06:35 AM EDT, 08/29/2024 (MT Newswires) -- CIBC traded slightly higher in U.S. premarket on Thursday after reporting better-than-forecast adjusted earnings for the third quarter, buoyed by its Canadian Personal and Business Banking and U.S. Commercial Banking and Wealth Management businesses.

The bank reported adjusted net income of $1,895 million versus $1,475 million a year earlier.

Adjusted diluted EPS was $1.93 versus $1.52 a year earlier, beating a consensus forecast at Capital IQ of $1.74.

Third-quarter results were affected by items of note aggregating to a negative impact of $0.11 per share.

On core business performance, Canadian Personal and Business Banking reported net income of $628 million for the third quarter, up 26% primarily due to higher revenue and a lower provision for credit losses, partially offset by higher expenses.

Canadian Commercial Banking and Wealth Management reported net income of $468 million, in-line with last year, as higher revenue partially offset higher expenses.

U.S. Commercial Banking and Wealth Management reported net income of $215 million, up $142 million, primarily due to a lower provision for credit losses and higher revenue, partially offset by higher expenses.

Capital Markets and Direct Financial Services reported net income of $388 million for the third quarter, down by a fifth.

Provision for credit losses was $483 million, down $253 million from the same quarter last year.

Among other highlights, adjusted ROE was 14.0 % versus 12.0% and Common Equity Tier 1 (CET1) Ratio was 13.3%.

The bank also said it will purchase up to 20 million common shares, or 2.1% of outstanding shares, in a normal course issuer bid, subject to the approval of the Toronto Stock Exchange.

The board of directors declared a quarterly dividend of $0.90 per share, payable on October 28 to shareholders of record at the close of business on September 27.