CIBC posts lower second-quarter profit on loan loss provisions

(Reuters) -CIBC reported a decline in second-quarter profit on Thursday, as the Canadian lender set aside higher provisions to prepare for soured loans due to a challenging economy.

The results follow those of peers Bank of Montreal and Bank of Nova Scotia on Wednesday that missed expectations, weighed down by higher provisions, slower top-line growth and higher expenses.

CIBC, Canada’s fifth largest bank by market capitalization, said it set aside C$438 million ($328 million) for bad loan provisions in the second quarter, up C$135 million from a year ago.

Net income, excluding one-off items, came in at C$1.63 billion, or C$1.70 a share, for the three months ended April 30, compared with C$1.65 billion, or $1.77 a share, a year earlier.

($1 = 1.3372 Canadian dollars)