CIBC Posts C$420 Million Charge on Caribbean Banking

Canadian Imperial Bank of Commerce, the nation’s fifth-biggest bank, posted a C$420 million ($386 million) impairment charge on its Caribbean banking business in the second quarter.

“In light of persistently challenging economic conditions in many Caribbean countries and our current expectations for conditions going forward, we have reduced the carrying value of the goodwill related to CIBC FirstCaribbean,” the Toronto-based lender said yesterday in a statement.

Canadian Imperial also recorded C$123 million of incremental loan losses for the Caribbean bank, “reflecting revised expectations on the extent and timing of the anticipated economic recovery in the Caribbean region.”

Canadian Imperial is scheduled to report results for the second quarter ended April 30 on May 29.