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CIBC and TD profit rises, but investors still bracing for signs of weakness

Toronto-Dominion Bank, the country's largest lender, also reported results on Thursday, and its stock dropped 1.34 per cent to $54.30.

Canadian Imperial Bank of Commerce’s personal and commercial banking unit was resilient in its fourth quarter, with profit rising 8.8 per cent from the same period last year to $655 million, but it could have been even better if it hadn’t set aside more money for loan losses.

Funds that the country’s fifth-largest lender by assets earmarked for covering anticipated credit losses increased to $190 million during the three months ended Oct. 31 from $171 million in 2014, according to company filings disclosed Thursday.

Gross impaired loans in oil and gas, specifically, more than tripled to $125 million from $34 million in the third period, which was largely attributed to two companies and is the product of the current rout in oil prices.

Investors have been bracing, and short sellers salivating, for Canadian banks to show signs of weakness.

Not to worry, assured CIBC’s chief risk officer Laura Dottori-Attanasio. “Overall, our portfolio is performing as expected given distressed oil prices,” she told analysts. Plus, 78 per cent of the $17.3 billion that’s directly exposed is rated as investment grade.

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