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.
B次元官网网址淥ur neighbours to the southB次元官网网址re enjoying an economic boost that we have yet to fully experience here in Canada,B次元官网网址� Victor Dodig told analysts on a Thursday call.
B次元官网网址淭hatB次元官网网址檚 a tailwind we can look forward to in the second half of this year.B次元官网网址�
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.
DodigB次元官网网址檚 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.
CanadaB次元官网网址檚 vaccination rates have climbed as vaccine supply has improved and politicians and public health officials have unveiled reopening plans for several provinces.
B次元官网网址淲hile weB次元官网网址檙e not on the other side of this pandemic yet, thereB次元官网网址檚 every reason to be optimistic,B次元官网网址� 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 CIBCB次元官网网址檚 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.
B次元官网网址淚 do think it will take time for that part of the business to come backB次元官网网址o it does feel more like a 2022 event,B次元官网网址� she said.
CIBCB次元官网网址檚 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 companyB次元官网网址檚 154-year history had a woman in the chair position, Kate Stevenson.
Tara Deschamps, The Canadian Press
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