TORONTO – CIBC raised its quarterly dividend as it reported a second-quarter profit of $1.69 billion.

The bank said Thursday it will now pay a quarterly dividend of 87 cents per share, up from 85 cents.

The increased payment to shareholders came as CIBC reported its net income amounted to $1.76 per diluted share for the quarter ended April 30, up from $1.52 billion or $1.62 per diluted share a year earlier.

Revenue totalled $5.70 billion, up from $5.38 billion in its second quarter last year, while its provision for credit losses amounted to $438 million, up from $303 million a year earlier.

On an adjusted basis, CIBC says it earned $1.70 per diluted share in its latest quarter, down from an adjusted profit of $1.77 per diluted share in the same quarter last year.

Analysts on average had expected an adjusted profit of $1.63 per share, according to estimates compiled by financial markets data firm Refinitiv.

“In a more fluid economic environment we remain well capitalized and our well-diversified business provides resilience, as we live our purpose of helping make ambitions real in the second half of the fiscal year,” CIBC chief executive Victor Dodig said in a statement.

CIBC said its Canadian personal and business banking earned $637 million in its latest quarter, up from $496 million in the same quarter last year, helped by higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses.

Meanwhile, the bank said its Canadian commercial banking and wealth management business earned $452 million, down from $480 million a year ago.

CIBC’s U.S. commercial banking and wealth management operations earned $55 million, down from $180 million in the same quarter last year.

The bank’s capital markets arm earned $497 million for the second quarter, down from $540 million a year ago.

This report by The Canadian Press was first published May 25, 2023.

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