TORONTO, (Reuters) – The Canadian Imperial Bank of Commerce fell short of analysts’ expectations for fourth quarter profit. It raised loan loss provisions by 36% within its commercial and personal banking units and increased its dividend 10%.

Canada’s fifth-largest lender raised its dividend to C$1.61 versus C$1.46 and announced that it would buy back approximately 10 million shares.

In the third quarter ended October 31, net income after one-offs rose to C$1.57billion (C$1.23 billion), which is C$3.37 per share compared with C$1.28billion or C$2.79 per shares a year prior.

Based on IBES data from Refinitiv, analysts expected that the company would post C$3.53 per share.

C$78million in loan losses was taken by the bank. The increase in personal and commercial banking revenue offset reserve releases from other divisions. Pre-tax adjusted earnings before provision rose by 6%, to C$2.1 million

As with its peers, CIBC was also confronted by net interest margin problems and higher costs. The former fell 17 basis points from a previous year in the personal and bank unit, while the all-bank noninterest expenses rose 13%.

These were driven by higher performance-based salaries, the report stated.

($1 = 1.2796 Canadian dollars)