This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CIBC Provides Information On Goodwill Impairment At CIBC FirstCaribbean As A Result Of Economic Conditions In The Caribbean Region

Goodwill impairment is a non-cash item and does not affect ongoing operations or capital ratios

TORONTO, May 15, 2014 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced that it has recorded a non-cash goodwill impairment charge of CAD$420 million ( CAD$420 million after-tax) relating to its investment in CIBC FirstCaribbean International Bank Limited (CIBC FirstCaribbean) for the second quarter ending April 30, 2014.

In light of persistently challenging economic conditions in many Caribbean countries and our current expectations for conditions going forward, we have reduced the carrying value of the goodwill related to CIBC FirstCaribbean.

The goodwill impairment charge is a non-cash item and does not affect ongoing operations or capital ratios.

In addition to the goodwill impairment charge, CIBC also recorded CAD$123 million ( CAD$123 million after-tax) of incremental loan losses for CIBC FirstCaribbean, reflecting revised expectations on the extent and timing of the anticipated economic recovery in the Caribbean region.

The CET1 capital ratio as at April 30, 2014 is expected to strengthen from 9.5% reported as at January 31, 2014.

Both of these items have been recorded in the Corporate and Other business segment and will be treated as an item of note in the Q2/14 financial release on May 29, 2014.

CIBC will be announcing its fiscal 2014 second quarter results on Thursday, May 29, 2014.  Information relating to these results will be available at CIBC.com at approximately 6:00 a.m. (ET).

---------

A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this press release.  These statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this press release include, but are not limited to, statements regarding our goodwill impairment charge, loan losses for CIBC FirstCaribbean International Bank, capital ratios and operations.  Forward-looking statements are typically identified by the words "believe", "expect",  "anticipate",  "intend", "estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will", "should",  "would" and "could". By their nature, these statements require us to make assumptions and are subject to inherent risks and uncertainties that may be general or specific.  A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs