Photo: Nathan Denette, The canadian Press
CIBC earned $ 392 million, or 83 ¢ per share, for its second quarter, compared to a profit of 1.35 billion, or $ 2.95 per share, in the same quarter last year.
The TD Bank and CIBC unveiled Thursday results similar to those of other major canadian financial institutions, showing a significant drop in their profits and increased their provisions for losses on receivables.
CIBC earned $ 392 million, or 83 ¢ per share, for its second quarter, compared to a profit of 1.35 billion, or $ 2.95 per share, in the same quarter last year. On an adjusted basis, its profit has reached 94 ¢ per share as against 2,97 $ per share for the same period last year.
Even if the conditions that created these cuts should not soon be resolved, the Bank has the resources to deal with such problems, said the chief executive officer of the CIBC Victor Dodig, during a call with analysts.
“The headwinds are economic should be present in the short term. Although there are many unknowns related to the pandemic, its effects on the economy and the path of recovery, what is certain is that our strong liquidity and capital we will resist the current pressures. “
The chief executive officer of the TD Bank, Bharat Masrani, has echoed these sentiments. However, the Bank still saw its profit slide nearly 1.52 billion, or 80 ¢ per share, compared to 3,17 billion, or $ 1.70 per share, a year earlier. On an adjusted basis, the Bank has earned 85 cents per share during its latest quarter, compared with $ 1.75 per for the same quarter last year.
The results of the banks have been largely weighed down by programs, deferral of payments and their allowances for credit losses. Those TD’s have increased to nearly $ 3.22 billion, compared to 633 million during the same period a year ago, while CIBC has set aside a total of 1.41 billion compared to 255 million in the second quarter of last year.
During the week, all major canadian banks have announced a dramatic increase in their provisions for credit losses due to the pandemic. Some of their leaders have warned that the pandemic was “not a recession as usual” and stressed that the economy is scraping ” the bottom of the barrel “.
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