CIBC sees third quarter net profit fall

TORONTO - CIBC is reporting nearly $1.1 billion of net income for its fiscal third quarter, and an increase to its quarterly dividend.

The profit amounted to $2.60 per common share, down from $3.61 per share in CIBC's 2016 third quarter.

The Toronto-based bank (TSX:CM) says this year's third quarter included higher provisions for legal expenses and costs associated with its acquisition of PrivateBank.

The Chicago-based wealth management firm cost CIBC about US$5 billion in cash and stock when the deal closed in June.

After adjustments, CIBC earned $2.77 per share or $1.167 billion, up from $1.07 billion in last year's third quarter, while revenue was on a par with last year at $4.1 billion.

CIBC's dividend is going up to $1.30 per share with its next payment, up three cents or about 2.4 per cent from the previous rate.

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