CIBC said a slumping economy–especially in the wake of the Sept. 11 attacks–has resulted in lower fourth-quarter net earnings and a continuing cost-cutting drive that will see it cut another 300 positions.

CIBC said its reported net earnings in Q4 fell 27% to $242 million (56 cents a share), down from the fourth quarter of 2000 when it earned $332 million or 78 cents a share.

For the whole fiscal year, CIBC’s reported earnings fell 18.25 to $1.69 billion, compared to last year’s $2.06 billion.

The bank blamed the lower profit on lower revenues ($2.7 billion versus $3.02 billion in Q4 2000) and higher expenses due to increased technology spending and a restructuring charge. It said that was partially offset by reduced income taxes.

The bank took a $207 million restructuring charge in the quarter to account for job cuts. About $73 million of that charge relates to its electronic commerce division–specifically its U.S. online banking unit, Amicus.

“CIBC’s solid performance in 2001 was overshadowed by dramatically changing economic conditions, particularly in the wake of the Sept. 11 events,” said CIBC CEO John Hunkin.

“North America has entered into a significant period of slowdown and all indications are that these unsettled economic conditions will continue through the first half of 2002,” he said.

The bank said in the current environment, its best strategy is to control expenses. It announced it would expand its October plan to lay off 2,000 people to 2,300 layoffs.

The weak economy led CIBC to increase its provision for bad loans to $403 million from previous quarter’s $149 million. For the fiscal year, CIBC’s loan loss provisions were $1.1 billion. CIBC last week announced plans to buy the retail brokerage arm of Merrill Lynch Canada

CIBC shares rose 10 cents to close at $54.50 Monday.