CIBC Revenue and Profit Rise

Canadian Imperial Bank of Commerce said revenue and profit rose in its latest quarter.

Chief Executive Victor Dodig said results in the quarter were "broad based," driven by the Toronto-based bank's three units.

CIBC posted a net profit of 1.44 billion Canadian dollars ($1.1 billion), or C$3.61 a share, in its latest quarter. That is up from C$962 million, or C$2.42 a share, a year prior.

In December, CIBC agreed to sell its stake in mutual-fund manager American Century Investments to Nomura Holdings Inc. for around $1 billion. That move added C$428 million in the quarter.

Adjusted to exclude the gain and other items, CIBC said earnings were C$2.67 a share, handily beating analyst views.

Revenue rose 18% to $4.14 billion.

Analysts polled by Thomson Reuters had expected profit of C$2.36 a share on revenue of $3.72 billion.

The bank's provision for credit losses totaled C$243 million, down from C$324 million in the prior quarter but up from the C$189 in the prior year.

Net interest income rose 4.6% to $2.11 billion as fee-based income jumped 35% to $2.02 billion.

Noninterest expenses rose 1.8% to $2.22.

In June, CIBC said it would acquire Chicago-based lender PrivateBancorp Inc. for about $3.8 billion in cash and stock, in the latest move by a big Canadian bank to bet on the U.S. market for growth. The deal is expected to close in early 2017.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

August 25, 2016 07:35 ET (11:35 GMT)

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