CIBC Quarterly Profit Rises 8% on Wealth-Management Gains

Canadian Imperial Bank of Commerce, the country’s fifth-largest lender, posted second-quarter profit that beat analysts’ estimates on gains in investment banking and wealth management. CIBC raised its dividend 2.1 percent.

Net income for the period ended April 30 climbed 8 percent to C$876 million ($847 million), or C$2.12 a share, from C$811 million, or C$1.90, a year earlier, the Toronto-based bank said today in a statement. Revenue advanced 2 percent to C$3.14 billion.

CIBC is seeking to build on its takeover of MFS McLean Budden’s private-wealth business from Sun life Financial Inc. (SLF) in September. The lender, which last month announced it was buying Atlantic Trust Private Wealth Management from Invesco Ltd. (IVZ), has said it has a medium-term goal of wealth management generating 15 percent of total earnings, up from about 10 percent last year.

Adjusted earnings, which exclude some items, were also C$2.12 a share, beating the C$2.07 average estimate of 14 analysts surveyed by Bloomberg. CIBC raised its quarterly dividend 2 cents to 96 cents a share.

Wealth-management profit increased 16 percent to C$92 million from a year earlier as assets under management rose. Earnings from wholesale banking advanced 51 percent to C$198 million, fueled by gains in trading.

Consumer banking posted profit of C$604 million, up 9 percent from the previous quarter.

CIBC fell 0.1 percent to C$80.43 yesterday in Toronto. The shares have gained 0.6 percent this year, trailing the 3 percent advance of the eight-company Standard & Poor’s/TSX Commercial Banks Index.

(CIBC will hold a conference call to discuss results at +1-416-340-2217 or +1-866-696-5910 passcode 3201624# at 7:30 a.m. or at www.cibc.com)

To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net

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