CIBC Profit Jumps 47% After Gain on Sale of U.S. Money Managerby
Canadian Imperial Bank of Commerce said its fiscal third-quarter profit rose 47 percent, boosted by a C$383 million ($297 million) gain from selling its minority stake in U.S. money manager American Century Investments.
Net income for the period ended July 31 rose to C$1.44 billion, or C$3.61 a share, from C$978 million, or C$2.42, a year earlier, the Toronto-based bank said Thursday in a statement. Profit excluding some items was C$2.67 a share, beating the C$2.34 average estimate of 14 analysts surveyed by Bloomberg.
“Our strong results this quarter were broad-based, as each of our retail and business banking, wealth management and capital markets business units performed well,” Chief Executive Officer Victor Dodig said in a statement.
Earnings in its Canadian consumer lending business rose 5.7 percent from a year ago, while its capital markets division climbed 15 percent, the country’s fifth-biggest bank said. The one-time gain, which lifted wealth management earnings, came from selling its 41 percent stake in American Century to Nomura Holdings Inc. in May for about $1 billion.
Toronto-Dominion Bank, Canada’s second-largest lender, also reports results today.