CIBC today reported a 91% drop in third quarter profit year-over-year, but that’s still a huge improvement over the billion dollar loss it posted in the second quarter.

The bank said net income for the quarter ended July 31 fell to $71 million, or 11¢ a share, down from $835 million or $2.31 as share in the year ago period.

CIBC reported a loss of $1.1 billion, or $3 a share, in the second quarter of 2008.

The bank said provisions for credit losses were increased during the third quarter to $203 million, up from $162 million a year earlier, and up from $176 million in the second quarter of 2008 ended April 30.

The bank also logged a loss of $885 million, or $596 million after-tax, on the structured credit business, during the third quarter.

“The continued deterioration in securities with exposure to the U.S. residential mortgage market and financial guarantor credit spreads required CIBC to record further asset write-downs and counterparty credit valuation adjustments in its structured credit run-off business,” the bank said in a release.

“In addition, these market conditions had a negative impact on performance in other areas, particularly within CIBC’s wholesale and retail brokerage operations,” CIBC said.

Revenue for the third quarter was $1.9 billion, down from $2.98 billion in year earlier period.

Return on equity for the quarter was a dismal 1.6%, down from 28.3% a year ago, but up from negative 37.6% in the second quarter of 2008.

“Our results this quarter were affected by the volatile, and generally difficult, environment that persisted over much of the third quarter, as well as by the impact of our ongoing run-off activities and the refocusing of our core businesses, particularly in CIBC World Markets.” said Gerry McCaughey, president and CEO, in a release.