(Reuters) – Canadian Imperial Bank of Commerce on Thursday reported a slump in fourth-quarter profit as the bank set aside larger provisions to cover potential loan defaults.
The lender’s overall net profit came in at C$1.19 billion ($886.93 million), or C$1.26 per share, compared with C$1.44 billion, or C$1.54 per share, a year ago.
An uncertain macroeconomic environment due to soaring inflation and a jump in borrowing costs have raised concerns of borrowers falling behind on their loan repayments.
CIBC set aside C$436 million in provisions for credit losses in the quarter, up more than fivefold from last year.
($1 = 1.3417 Canadian dollars)