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Banks raise dividends as interest rates push loss provisions higher

Author

Jay Lutz
May 25, 2023

Sponsored by Hertz Lithium

Canadian banks lift dividends as loss provisions bite

A trend seems to be emerging as Canada’s biggest banks continue the earnings season for fiscal Q2 2023.

Canadian Imperial Bank of Commerce (TSX: CM) started the second day of earnings week, reporting $5.70 billion in quarterly revenue. This is a decline from Q2 2022’s $5.93 billion.

The overall provision for credit losses was $438 million, up $135 million from the same quarter last year, owing to an increase in the provision for credit losses on impaired loans that was offset in part by a decrease in the provision for credit losses on performing loans.

“We continued to execute on our client-focused strategy, delivering solid financial results in the second quarter by leveraging the investments we’ve made in high-touch, high-growth markets and furthering our strengths in talent and technology,” said CEO Victor G. Dodig.

You can read more on the matter here.

Hertz Lithium is a British Columbia based mineral exploration company primarily engaged in the acquisition and exploration of mineral properties. The company currently has one material mineral property, the Lucky Mica Project, located in the Arizona Pegmatite Belt in the Maricopa County of Arizona, USA, which is in the exploration stage. The company is also working with the PSRF in the development of a novel lithium extraction technology.

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FULL DISCLOSURE: Hertz Lithium is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Hertz Lithium. The author has been compensated to cover Hertz Lithium on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.