CM Canadian Imperial Bank of Commerce

By Austen Hufford 

Canadian Imperial Bank of Commerce on Thursday posted revenue and profit gains across all its divisions during its first quarter as higher trading volumes boosted results.

Last year, the bank agreed to buy Chicago-based PrivateBancorp Inc . for about $3.8 billion in cash and stock, but in December, a PrivateBancorp shareholder vote was postponed as shares of U.S. banks surged following the election of Donald Trump as president. Last month, PrivateBancorp said it still believes in the long-term benefits of the deal.

Toronto-based CIBC, one of Canada's largest lenders by assets, earned 1.39 billion Canadian dollars ($1.06 billion), or C$3.50 a share, in its latest quarter, up from C$968 million, or C$2.43 a share, the year before.

The bank said results were boosted by a C$299 million gain from the sale and lease-back of certain retail properties.

Adjusted to exclude that and other items, CIBC earned C$2.89 a share.

Revenue rose 17% to C$4.21 billion.

Analysts polled by Thomson Reuters were expecting C$2.59 in adjusted earnings per share on C$3.83 billion in revenue.

Loan-loss provisions, or the funds set aside to cover bad loans, decreased to C$212 million from C$262 million a year earlier and C$222 million in the previous quarter.

Net interest income rose 1.7% to C$2.14 billion, and fee-based income increased 40% to C$2.07 billion.

In the latest period, earnings from retail and business banking rose 39% on volume growth and higher fees that were partially offset by narrower spreads, a higher provision for credit losses and higher spending. Wealth management profit was up 12% on higher average assets under management and increased transactions. Capital markets earnings rose 52% on higher equity derivatives, interest rate and commodities trading, as well as increases in equity and debt issuance activity an corporate banking revenue.

CIBC raised its quarterly dividend by 3 Canadian cents a share, to C$1.27 a share. The company also said it was seeking approval to repurchase up to 8 million shares, or about 2% of those outstanding, in the next 12 months.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

February 23, 2017 07:53 ET (12:53 GMT)

Canadian Imperial Bank o... (TSX:CM)
Historical Stock Chart
From Mar 2024 to Apr 2024

Canadian Imperial Bank o... (TSX:CM)
Historical Stock Chart
From Apr 2023 to Apr 2024