A CIBC sign is shown in the financial district in Toronto on August 22, 2017. THE CANADIAN PRESS/Nathan Denette

A CIBC sign is shown in the financial district in Toronto on August 22, 2017. THE CANADIAN PRESS/Nathan Denette

Economic boost coming in the back half of 2021, if vaccination stays effective: CIBC

CIBC earned $1.65 billion or $3.55 per diluted share in its second quarter

The chief executive of Canadian Imperial Bank of Commerce is expecting the country to soon experience an economic boost as more people become fully vaccinated against COVID-19.

“Our neighbours to the south…are enjoying an economic boost that we have yet to fully experience here in Canada,” Victor Dodig told analysts on a Thursday call.

“That’s a tailwind we can look forward to in the second half of this year.”

If effective mass vaccination programs continue over the spring and summer, Dodig predicts a global rebound will also materialize in the latter half of the year with real GDP forecasts jumping by 5.7 per cent domestically and 6.6 per cent in the U.S.

Dodig’s remarks came as CIBC beat expectations and more than tripled its second-quarter profit compared with a year ago, when the pandemic was beginning.

CIBC earned $1.65 billion or $3.55 per diluted share in its second quarter, up from a profit of $392 million or 83 cents per share a year ago.

Canada’s vaccination rates have climbed as vaccine supply has improved and politicians and public health officials have unveiled reopening plans for several provinces.

“While we’re not on the other side of this pandemic yet, there’s every reason to be optimistic,” Dodig said.

When businesses are allowed to open their doors and welcome customers, Dodig believes it will have a big impact on the money many Canadians have managed to save while working from home and having fewer activities to spend on.

He predicted the country will see heightened credit card activity as stay-at-home orders are lifted.

While Laura Dottori-Attanasio, who leads CIBC’s personal and business banking, said purchase volumes are already edging towards pre-pandemic levels, she cautioned that spending on big-ticket items, transportation, travel and restaurants is still low.

“I do think it will take time for that part of the business to come back…so it does feel more like a 2022 event,” she said.

CIBC’s profit for the quarter ended Apr. 30 came as its provisions for credit losses, the money set aside for bad loans, fell to $32 million compared with $1.41 billion in the same quarter last year at the onset of the pandemic.

Total revenue grew to $4.93 billion from $4.58 billion in the same quarter last year.

On an adjusted basis, CIBC earned nearly $1.67 billion or $3.59 per diluted share in its latest quarter, up from an adjusted profit of $441 million or 94 cents per diluted share a year earlier.

Analysts on average had expected an adjusted profit of $3.01 per share, according to financial data firm Refinitiv.

The bank also noted that it achieved gender parity on its board during the quarter, and for the first time in the company’s 154-year history had a woman in the chair position, Kate Stevenson.

Tara Deschamps, The Canadian Press


Like us on Facebook and follow us on Twitter.

Coronaviruseconomy

Just Posted

Hundreds gathered at Surrey’s Holland Park Friday (June 11) in memory of the Muslim family killed in London, Ont. on Sunday (June 6). (Photo: Shane MacKichan)
Educating public ‘exhausting,’ says White Rock Muslim Association past president

Asad Syed says public needs to be more vocal in their condemnation

The City of White Rock turns 63 today. (file photo)
City of White Rock 2020 annual report available for review

Report to be discussed at June 28 council meeting

Dooris Raad was last seen in South Surrey’s Ocean Park neighbourhood on June 7. (Surrey RCMP photo)
Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of June 13

Crime Stoppers’ weekly list based on information provided by police investigators

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read