CIBC today reported a big third-quarter loss as the bank took a $2.5 billion charge to settle Enron-related litigation.

The bank had a net loss of $1.9 billion, or $5.77 per share, in the quarter ended July 31, compared with a profit of $596 million, or $1.60 per share, in the year-before period.

It was the bank’s first quarterly loss since 2002.

The bank’s profit was wiped out by a charge taken to settle litigation stemming from the bank’s dealings with energy trader Enron Corp., which collapsed in 2001 amid an accounting scandal.

Earlier this month, CIBC agreed to pay US$2.53 billion after-tax to settle its part in a class action lawsuit that accused it and other banks of helping Enron hide its debts.

On a per-share basis, the charge amounted to $7.45.

The third quarter results also included a $19 million after-tax provision and a $39 million reduction in income tax expense in respect of amounts accrued in prior quarters.

The bank said these are a result of the settlements reached during the quarter with U.S. regulators relating to financing and brokerage services CIBC provided to hedge funds engaged in mutual fund market timing.

“These settlements will have a significant impact on our financial performance for 2005,” said Gerry McCaughey, president and CEO, in a news release. “My job now, and the job of our management team, is to move CIBC forward.”

Revenue rose 12% to $3.2 billion, while loan-loss provisions were $199 million in the quarter, up from $91 million a year before.

Return on equity was negative 75.1%, compared with 21.3% a year earlier.

The bank said CIBC Retail Markets and Wealth Management reported good results this quarter.

CIBC Wood Gundy reached a new milestone for assets under administration, by surpassing the $111 billion mark in the quarter, representing a 14% increase from the same period a year earlier.

Despite the quarterly loss, the bank declared a dividend of 68¢ per share on its common shares.

The bank’s shares were up 60¢ at $69.69 on the Toronto Stock Exchange, after the quarterly results were released.