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

J. L. Crowe Secondary will host the convocation for 2021 Graduates on Saturday starting at 9 a.m. Photo: Jim Bailey
Convocation goes Saturday with Kootenay Columbia grads in learning groups, no parents

Parents can live-stream the ceremony of their 2021 graduates online

Clarice Tuai, seen in front of the ‘50 Objects for 50 Years’ exhibit, is a summer student for the Trail museum/visitors centre. Photo: Sheri Regnier
Trail museum invites everyone to visit new Doukhobor exhibit

‘50 Objects for 50 Years’ runs until October 1

Students at Creston Valley Secondary School put together an art installation of a replica residential school room. (Photo by Kelsey Yates)
Creston students create art installation of residential school room

The replica was decorated with a small bed, school uniform, and notes written with pleas for help

A living wage sets a higher standard than the minimum wage; it is what a family needs to earn to provide the basic needs based on the actual costs of living in a community.
Fruitvale now a living wage employer

“I’m really excited that Fruitvale is leading the charge for municipalities locally,” Morissette said.

Black Press file photo
West Kootenay communities behind provincial COVID-19 vaccination rate

Only Trail is at the provincial average for vaccinations

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

Most Read