CIBC offers hope worst is over

TARA PERKINS

FINANCIAL SERVICES REPORTER

August 28, 2008

Canadian Imperial Bank of Commerce sparked a rally in its shares yesterday by managing to eke out its first profit of the year, raising hopes the bank had finally put the bulk of its troubles with risky investments to bed.

The domestic bank most battered by the U.S. subprime mortgage crisis posted a $71-million third-quarter profit that missed analysts' expectations and were a 91-per-cent tumble from earnings of $835-million one year earlier. The results included an $885-million writedown on risky U.S. exposures.

But CIBC's stock popped because the writedown was less severe than many analysts had expected, increasing expectations CIBC is turning a corner and won't need to raise equity.

The stock closed up 5.33 per cent on the Toronto Stock Exchange, and traded as high as $61.19 during the day.
08-29-2008 18:16 More...

Canada Tightens Mortgage Insurance Rules to Guard Against Housing Bubble

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