Expenses on its Canadian Costco credit card portfolio were also attributed by the bank as a reason for higher overall expenses, which were up by 17% year over year (to $1.31 billion) while capital market activity income was down by 9% compared with the same period last year, at $447 million.

CIBC’s president and CEO Victor Dodig said the company had witnessed “strong growth” across its business amidst a changing economic climate.

“As the economic environment continues to evolve, we remain focused on delivering shareholder value by taking a disciplined approach to capital allocation to execute our strategy, focusing on key client segments, further enhancing client experience, and investing in future differentiators for our bank,” Dodig said.

“Our highly-connected and purpose-driven team will continue to move our bank forward as we create positive change and help make ambitions a reality.”