UPDATE 2-CIBC quarterly profit hit by charges

* Q4 adj cash EPS C$1.68 vs est C$1.64

* Profit hurt by one-time items

* Provision for credit losses sharply lower
(Adds details)

TORONTO, Dec 2 (BestGrowthStock) – Canadian Imperial Bank of
Commerce (CM.TO: ) said on Thursday quarterly profit fell 22
percent, hurt by charges on its structured credit business and
tax losses on capital repatriated from foreign countries.

Canada’s No. 5 bank earned C$500 million ($495 million), or
C$1.17 a share, in the fourth quarter ended Oct. 31, down from
C$644 million, or C$1.59 a share, a year earlier.

Excluding a C$122 million charge for structured credit
exposure and a C$117 million charge to repatriate capital,
profit was C$1.68 a share on a cash diluted basis. Analysts
polled by Thomson Reuters I/B/E/S had expected C$1.64 on

The bank has been exiting its structured credit business,
which held unhedged positions, and warned further losses could

Total revenue rose 12.7 percent to C$3.3 billion, while
provisions for credit losses fell to C$150 million from C$424

Retail and wealth management income rose, while CIBC’s
wholesale bank lost money during the quarter.

Return on equity was 19.4 percent, while the bank’s Tier 1
capital ratio was 13.9 percent at the end of the quarter.

The result follows a stronger-than-expected profit at
dividend increase at National Bank of Canada (NA.TO: ) on

National’s dividend increase made it the first of Canada’s
big banks to raise the payout since the financial crisis. CIBC
is not expected to resume dividend hikes until well into next
year at the earliest.

Canada’s banking regulator recently gave the all-clear to
the banks to resume big capital payouts such as dividend hikes
following a virtual two-year ban,
($1=$1.01 Canadian)
(Reporting by Cameron French; Editing by Derek Caney)

UPDATE 2-CIBC quarterly profit hit by charges