Canadian Imperial Bank of Commerce (CIBC) (CM.TO) reported a fall in its first-quarter profit on Friday, weighed down by higher provisions to settle a lawsuit tied to the 2008 global financial crisis.
The Canadian lender posted an overall net profit of C$432 million ($318.26 million), or C$0.39 per share, compared with C$1.87 billion, or C$2.01 per share, seen a year ago.
Last week, CIBC said it would pay $770 million to a vehicle controlled by private-equity firm Cerberus Capital Management to resolve the lawsuit.
The dispute stemmed from a complex 2008 transaction in which CIBC made payments to a Cerberus entity in exchange for a loan to reduce the bank’s exposure to U.S. residential real estate.
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