CIBC's Profit Falls Below Estimates Amid Surge in Bad Loan Provisions

Canadian Imperial Bank of Commerce (CIBC) reported lower-than-expected earnings as it set aside more funds for souring loans, particularly in the US office loan portfolio. Provisions for credit losses totaled C$736 million ($543 million) in the fiscal third quarter, surpassing analyst predictions of C$456 million. CIBC's adjusted earnings per share of C$1.52 fell short of the average estimate of C$1.68. The bank attributed the surge in provisions to impairments in the US office loan portfolio and signaled that higher provisions from commercial real estate may persist. CIBC shares dropped 3.1% following the announcement.