* Expects increased loan-loss provisions going forward
* Q1 profit beats market expectations
* Impaired loans in oil and gas sector climb
(Recasts with executive comments from conference call)
By John Tilak and Matt Scuffham
TORONTO, Feb 25 (Reuters) - Canadian Imperial Bank of
Commerce CM.TO said on Thursday it expects loan losses to
increase as the oil price slump impacts energy clients, and
warned they could double if Canada went into recession.
Chief Risk Officer Laura Dottori-Attanasio made the forecast
after CIBC posted a first-quarter profit that topped market
expectations, with growth in retail and business banking
offsetting losses from oil sector loans that turned sour.
"If we went into a recessionary-type environment we could
see ourselves doubling our loan losses," Dottori-Attanasio told
analysts on a conference call on Thursday.
CIBC joined rivals Royal Bank of Canada RY.TO and Bank of
Montreal BMO.TO in reporting increased losses from impaired
loans in the oil and gas sector. Dottori-Attanasio said that
trend was likely to continue.
"We are seeing this quarter a lot of downgrades in the oil
and gas space, an increase in delinquencies. Our expectation
would be to see increased loan loss provisions on a go-forward
basis," she said.
CIBC's gross impaired loans in the oil and gas sector
climbed to C$128 million in the first quarter, from C$125
million in the fourth quarter and zero in the year-earlier
period.
Net income for the quarter ended Jan. 31 was C$982 million,
or C$2.43 per share, compared with C$923 million, or C$2.28 per
share, a year ago. Excluding special items, earnings rose to
C$2.55 per share.
Analysts on average had expected earnings of C$2.41 a share,
according to Thomson Reuters I/B/E/S.
CIBC recorded a 6 percent rise in earnings at its retail and
business banking division. Net income slipped 7 percent at its
wealth management unit and was down 10 percent in capital
markets.
It also raised its quarterly dividend.
(Editing by Elaine Hardcastle, W Simon and Paul Simao)