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

St. Andrew’s Roman Catholic Cathedral in Victoria. (Black Press Media file photo)
Victoria bishop apologizes for church’s role in residential schools

Bishop Gary Gordon voices commitment to healing and reconciliation

Police are asking opponents of logging near Port Renfrew not to involve their children following additional arrests Saturday. (Black Press Media File)
Police arrest eight protesters including two minors near Port Renfrew Saturday

RCMP ask parents not to involve their children in Fairy Creek logging protests

Future grads at Oak Bay High will have greater scholarship opportunities available through the Oak Bay Rotary Club. (Black Press Media file photo)
Private donor quadruples donations to Oak Bay Rotary scholarship funds

The club has awarded more than $25,000 to Oak Bay High students

Elaine Kirwin in her Expedia Cruises office talks about the future of travel. (Don Denton/Black Press Media)
Sidney travel agency charts course through pandemic

Owner of Expedia Cruises in Sidney expects smooth sailing ahead once travel restrictions lift

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

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

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

Most Read