(RTTNews) - Canadian Imperial Bank of Commerce (CM: News , CM.TO) Thursday said its second quarter loss narrowed from the prior year on higher revenues, reflecting lower structured credit losses as well as foreign exchange gain from repatriation activities. The company also expects to return to profitability in the final quarter of the calendar year, amid deepening global slowdown. Separately, the company said it has amended its shareholders investment plan, enabling shareholders resident in Canada or the United States to get their dividends reinvested in its additional common shares.

Second quarter net loss of Canadian Imperial Bank narrowed to C$51 million or C$0.24 per share from C$1.11 billion or C$3.00 per share in the same quarter a year ago.

Net loss applicable to common shares was C$90 million, compared to a loss of C$1.41 billion in the corresponding quarter last year. Cash net loss applicable to common shares was C$81 million, compared to a loss of C$1.13 billion in the year-earlier quarter. Cash loss per share was C$0.21, compared with C$2.98 a year ago.

Results for the quarter include higher provision for credit loss amounting to C$394 million, compared to C$176 million recorded in the prior-year quarter, primarily due to higher losses in the cards and personal lending portfolios. Loan loss provision also included a net increase to the allowance for loan losses of C$90 million.

The current quarter also included a tax expense related to the foreign exchange gain on repatriation activities and the write-off of future tax assets. The structured credit losses in the last year quarter resulted in a higher tax benefit in that quarter.

Comprehensive loss for the quarter was C$21 million compared to comprehensive loss of C$1.07 billion in the year-earlier quarter.
Total revenue for the quarter surged to C$2.16 billion from C$126 million in the comparable quarter last year.

Segment wise, revenue from CIBC retail markets dropped marginally to C$2.25 billion, while loss from Wholesale banking narrowed to C$241 million from C$2.17 billion in the corresponding quarter last year. Corporate and other revenues surged to C$150 million from C$8 million in the prior-year quarter.

The bank said its revenues were primarily driven by lower structured credit losses and due to the foreign exchange gain on repatriation activities compared to a foreign exchange loss in the prior year quarter. Influence of higher volume growth in retail products, higher fixed income and equity trading revenue and higher revenue from U.S. real estate finance is also evident in revenue growth, company said. These factors, however, were partially offset by the negative impact of the MTM of credit derivatives in corporate loan hedging programs.

To receive FREE breaking news email alerts for Canadian Imperial Bank of Commerce and others in your portfolio

 1   2   3   Next Page