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CIBC hikes dividend, plans buyback despite Q4 profit miss

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Canadian Imperial Bank of Commerce joined its peers on Thursday in rewarding its shareholders for their patience.

The bank said its board authorized a dividend hike that will lift the quarterly payout to $1.61 per share from $1.46, effective with the Jan. 28 distribution. It also announced plans to repurchase up to 10 million of its common shares.

Like the other lenders that have made similar moves this week, CIBC was able to share its wealth after the Office of the Superintendent of Financial Institutions recently lifted its pandemic-era ban on dividend hikes and share buybacks.

CIBC also said on Thursday its full-year profit climbed to $6.4 billion from $3.8 billion in 2020. For the fiscal fourth quarter, which ended Oct. 31, earnings surged 42 per cent year-over-year to $1.44 billion. However, on an adjusted basis the bank fell short of expectations at $3.37 per share; the average analyst estimate was for $3.54.

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Unlike other banks this week whose profits got a boost from improved credit quality, CIBC set aside $78 million for loans that could go bad during the fourth quarter. In the prior quarter, the bank had benefitted from the release of $99 million that was previously set aside as provisions for its loan books.

CIBC’s core Canadian personal and banking division saw profit stagnate in the final quarter of its fiscal year. Net income was $597 million, compared to $590 million a year earlier and $642 million in the prior quarter. The division’s provisions for credit losses jumped to $164 million from $67 million in the fiscal third quarter. In a release, CIBC attributed the provisioning in part due to what it calls “model parameter updates.”

The bank’s other divisions fared better in the quarter, as profit rose year-over-year in capital markets, Canadian commercial banking and wealth management, as well as in CIBC’s U.S. division where profit doubled year-over-year to US$204 million.

“Against the backdrop of the ongoing global pandemic, our bank continued to invest for the future, including expanding our platform and capabilities in the U.S., accelerating the growth of our Canadian consumer franchise, and making foundational investments in cloud technology and other capabilities that will enable us to do more for clients in 2022 and beyond,” said CIBC President and Chief Executive Victor Dodig in a release.

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Elon Musk found not guilty of fraud over Tesla tweet – BBC News – BBC News

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  1. Elon Musk found not guilty of fraud over Tesla tweet – BBC News  BBC News
  2. Elon Musk wins lawsuit over tweet  CTV News
  3. Tesla’s Elon Musk found not liable in trial over 2018 ‘funding secured’ tweets  Arab News
  4. Tesla and Elon Musk found not liable in trial over 2018 ‘funding secured’ tweets  Driving
  5. For Elon Musk, Two Cases About His Tweets, and Two Victories  The Wall Street Journal
  6. View Full Coverage on Google News

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NL Hydro Reports Record High Demand – VOCM

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  1. NL Hydro Reports Record High Demand  VOCM
  2. Electricity consumption reaches all-time peak, says N.L. Hydro  CBC.ca
  3. Hydro Close To Hitting ‘All-Time High’ On Demand Amid Arctic Blast  VOCM
  4. View Full Coverage on Google News

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Fuel made from Russian oil is being funneled to New York – Markets Insider

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  1. Fuel made from Russian oil is being funneled to New York  Markets Insider
  2. Oil’s New Map: How India Turns Russia Crude Into the West’s Fuel  BNN Bloomberg
  3. Indian refineries ditch US dollar to buy Russian oil amid Ukraine sanctions – report  Hindustan Times
  4. Oil’s new map: how India turns Russian crude into the West’s fuel  South China Morning Post
  5. Analysis | What Europe Risks With Wider Sanctions on Russian Oil  The Washington Post
  6. View Full Coverage on Google News

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