(Reuters) -Canadian Imperial Bank of Commerce reported a rise in third-quarter profit on Thursday, driven by robust performance in its capital markets division.
An uncertain economic backdrop, marked by sluggish economic growth and questions over the path of interest rates, has prompted investors to rejig their portfolios, driving trading volumes higher.
CIBC said provision for credit losses (PCLs) was C$559 million in the quarter, up C$76 million from a year earlier, but lower than analysts’ estimates of C$575.7 million according to data compiled by LSEG.
Improving credit conditions and tariff exemptions on most Canadian exports to the United States under the United States–Mexico–Canada Agreement (USMCA) have eased trade concerns, as banks now expect a softer economic impact as loan demands grow.
Net income jumped 87% to C$540 million in the capital markets segment.
The bank’s adjusted net income rose to C$2.1 billion ($1.52 billion), or C$2.16 per share, during the three months ended July 31, compared with C$1.90 billion, or C$1.93 per share, a year earlier.
($1 = 1.3817 Canadian dollars)
(Reporting by Atharva Singh and Prakhar Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)