CIBC Profit Climbs on Wealth, Consumer Banking; Lifts PayoutDoug Alexander
Canadian Imperial Bank of Commerce said fiscal third-quarter profit rose 6.2 percent on gains in wealth management and consumer lending. The firm raised its dividend 2.8 percent to C$1.12.
Net income for the period ended July 31 climbed to C$978 million ($740 million), or C$2.42 a share, from C$921 million, or C$2.26 a share, a year earlier, the Toronto-based bank said Thursday in a statement. Profit excluding some items was C$2.45 a share, beating the C$2.31 average estimate of 15 analysts surveyed by Bloomberg.
“Our strong performance this quarter was supported by excellent results in retail and business banking, wealth management and wholesale banking,’” Chief Executive Officer Victor Dodig, 50, said in the statement.
CIBC is the fourth Canadian bank this quarter to report earnings that surpassed analysts’ expectations on improved domestic lending, following Bank of Montreal, Royal Bank of Canada and National Bank of Canada.
CIBC’s revenue rose 4.9 percent to C$3.52 billion from a year earlier, according to the statement. The bank set aside C$189 million for bad loans, down from C$195 million.
Earnings from retail and business banking rose 8 percent to C$636 million and wealth-management profit increased 16 percent to C$140 million.
Wholesale banking profit fell 4.3 percent to C$270 million, as lower investment banking fees eroded trading revenue. Fees for underwriting and advisory dropped 29 percent to C$106 million, while trading revenue jumped 61 percent to C$192 million.
Toronto-Dominion Bank, Canada’s second-largest lender, also report results today.
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