May 30 (Bloomberg) -- 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. in September. The lender, which last month announced it was buying Atlantic Trust Private Wealth Management from Invesco Ltd., 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 firstname.lastname@example.org