CIBC today reported a 14% drop in profit for the fourth-quarter. The bank said quarterly earnings were reduced in part by a $300 million provision to pay Enron-related legal costs.

Net income for the quarter ended October 31 was $439 million, or $1.06 per share, down from $510 million, or $1.28 per share, in the year-before period.

Return on equity was 14.2%, compared with 17.9% for the same period a year earlier.

The bank said net interest income was down $95 million, primarily due to reduced corporate lending assets in CIBC World Markets, and lower spreads in GICs.

CIBC Retail Markets reported net income of $303 million for the fourth quarter, compared with $204 million in the fourth quarter of 2003 and $253 million in the prior quarter. The current quarter included a $49 million recovery on the sale of proven claims relating to the Air Canada contract and lower loan losses.

CIBC Wealth Management reported net income of $105 million for the fourth quarter, compared with $89 million in the fourth quarter of 2003 and $106 million in the prior quarter.

CIBC World Markets reported a net loss of $26 million for the fourth quarter, which included the $300 million provision in respect of Enron-related litigation matters, compared with net income of $126 million in the fourth quarter of 2003 and $257 million in the prior quarter.

The bank also raised its quarterly dividend by 5¢ to 65¢ per share.

CIBC shares were down 70¢, or 0.96%, at $72.40 in late morning trading.