Canadian Imperial Bank of Commerce
reported a rise in second-quarter profit on Thursday, driven by robust performance in its capital markets and direct financial services segment.
The bank’s capital markets and direct financial services segment reported net income of $560-million, up 13 per cent from last year, driven by strong performance in its global markets and investment banking businesses.
Meanwhile, higher interest rates have raised the threat of customers defaulting on their loan repayments, prompting lenders to build bigger rainy-day funds.
Toronto-based CIBC’s provision for credit losses was $514-million in the quarter, up $76-million from last year.
Peers TD Bank, Bank of Nova Scotia, Bank of Montreal and National Bank of Canada also set aside bigger loan loss provisions.
The bank’s net income rose to $1.75-billion, or $1.79 a share, in the three months ended April 30, from $1.69-billion or $1.76 a share, a year earlier.