By Adriano Marchese


Canadian Imperial Bank of Commerce shares fell in early trading Thursday after the Canadian financial institution posted lower income and missed analyst expectations for growth in the fiscal fourth quarter, despite a rise in revenue.

At 9:49 a.m. ET, the shares were down 5.1% to C$61.49.

Over the three months ended Oct. 31, CIBC reported net income of 1.19 billion Canadian dollars ($887 million), or C$1.26 a share, down from C$1.44 billion, or C$1.54 a share, a year earlier.

On an adjusted basis, earnings declined 17% from last year to C$1.39 a share, missing the consensus expectation of growth to C$1.72 a share for the quarter, according to analysts polled by FactSet.

Return on common shareholders' equity dropped to 10.1% from 14.6%.

Revenue rose to C$5.388 billion from C$5.06 billion, missing the FactSet analyst consensus forecast of a greater rise to C$5.59 billion.

Common equity tier 1 ratio, a measure of a bank's capital against its assets, contracted slightly to 11.7% from 12.4%.

The provision for credit losses was C$436 million in the fourth quarter, up from C$358 million last year at this time, which the bank blamed on unfavorable changes in the economic outlook.

Among its main segments over the fiscal year, CIBC saw net income fall for its largest segment, Canadian personal and business banking, and the U.S. commercial banking and wealth management segment. Net income rose for the Canadian commercial banking and wealth segment and the capital markets segment.

Net income for the Canadian personal and business banking segment dropped 10% to C$2.25 billion, while the U.S. commercial banking and wealth management segment posted the largest decline in net income, falling 18% to C$760 million.

Net income increased 14% to C$1.9 billion for the Canadian commercial banking and wealth management segment, and it increased 3% to C$1.9 billion for the capital markets segment.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

12-01-22 1040ET