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CIBC posts lower net income impacted by its Caribbean operations; boosts dividend

May 29, 2014

The Canadian Press

TORONTO - CIBC is boosting its shareholder dividend while reporting a lower second-quarter net income of $306 million, saying the results were impacted by it Caribbean banking subsidiary.

The bank is boosting its quarterly dividend by two cents to $1 per common share.

CIBC (TSX:CM) says it earned 73 cents per share diluted in the quarter, compared with $2.09 per share on $862 million in net income in the same quarter last year.

The bank announced earlier this month that it was taking a $420-million, non-cash goodwill impairment charge in the quarter related to CIBC First Caribbean, which it says has been impacted by a prolonged recession in the region. CIBC also recorded $123 million of after-tax of loan losses related to the Caribbean bank.

Excluding such items, CIBC's adjusted net income was $887 million, or $2.17 cents per share, up three per cent year-over-year, beating analysts' expectations of $2.07 per share.

CIBC is the sixth big bank to beat analysts' expectations on adjusted earnings per share in the quarter.

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Source: Canadian Press DataFile

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