Canadian Imperial Net Income Falls 4.4% on Lehman Settlement
Canadian Imperial Bank of Commerce, the country’s fifth-biggest bank, said first-quarter profit fell 4.4 percent after paying $150 million to settle a lawsuit with Lehman Brothers Holdings Inc.’s estate.
Net income for the period ended Jan. 31 was C$798 million ($780 million), or C$1.91 a share, compared with C$835 million, or C$1.93, a year earlier, the Toronto-based bank said today in a statement. Revenue rose 0.8 percent to C$3.18 billion from C$3.16 billion.
Earnings were eroded by the settlement with the Lehman estate to end a two-year-old legal dispute over collateralized debt obligation deals. Canadian Imperial said Dec. 31 that the after-tax cost of the settlement is $110 million. Excluding the cost and other items, CIBC said it earned C$2.15 a share, beating the C$2.09 a share average estimate of 16 analysts surveyed by Bloomberg.
(CIBC will hold a conference call to discuss results at +1-416-340-2217 or +1-866-696-5910 passcode 3201624# at 7:30 a.m. Toronto time or at www.cibc.com)
To contact the reporter on this story: Doug Alexander in Toronto at email@example.com