The bank reported net income of $147 million, or 29¢ a share, in the three months ended Jan 31. That compares with a loss of $1.45 billion, or $4.39 a share, a year earlier.

The most recent results were hurt by losses that total $1.36 a share. They include a $708 million loss on structured credit run-off activities, $92 million in mark-to-market losses on hedges related to leveraged leases, and $87 million in losses from merchant banking and C48 million in foreign exchange losses.

There was a $94 million gain on changes in credit spreads on credit derivatives.

Quarterly revenue was 8% lower at $2.02 billion.

Return on equity, a measure of profitability was 4.0% during the quarter, a strong reversal from negative 52.9% a year ago.

CIBC Retail Markets reported net income of $562 million, down from $660 million in the first quarter of 2008.

CIBC World Markets reported a net loss of $413 million for the first quarter, compared to net income of $133 million for the fourth quarter of 2008. The prior quarter included a $486 million Enron-related expected tax benefit.

“While conditions across the worldwide financial services industry remain challenging, we are managing through this global environment by maintaining an emphasis on capital and overall balance sheet strength and continuing to position our core businesses for consistent and sustainable performance,” says Gerry McCaughey, president and CEO.

The bank also announced it plans to issue $200 million of preferred shares.

CIBC has entered into an agreement with a group of underwriters for an issue of 8 million non-cumulative Rate Reset Class A Preferred Shares, Series 37, priced at $25 per Series 37 Share.

The bank has granted the underwriters an option to purchase an additional 3 million Series 37 Shares at the same offering price. Should the underwriters’ option be fully exercised, the total gross proceeds of the financing will be $275 million.

The Series 37 Shares will yield 6.50% per year, payable quarterly, for an initial period ending July 31, 2014. On July 31, 2014 and on July 31 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 4.33%.

IE