(Reuters) - Canadian Imperial Bank of Commerce (CIBC) joined its rivals in reporting a better-than-expected profit for the fourth quarter on Thursday, as it set aside less money to cover potential bad loans arising from the COVID-19 pandemic.
Bank of Nova Scotia, Bank of Montreal, National Bank of Canada and Royal Bank of Canada all cut their provisions after three straight quarters of adding for credit losses.
CIBC set aside $291 million for the provisions in the fourth quarter ended Oct. 31, down 28% from a year earlier.
Net income fell 14% to C$1.02 billion ($788.80 million), as weakness at CIBC’s U.S. commercial banking and wealth management businesses offset gains in its capital markets unit.
Canada’s big 6 banks have reported strong results from their capital market businesses in the quarter, helped by increased volatility in markets due to the health crisis.
CIBC reported an adjusted diluted profit of C$2.79 per share, beating analysts’ average expectation of C$2.52 per share, according to Refinitiv.
($1 = 1.2931 Canadian dollars)
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli
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