CIBC profit rises on markets-related income

Thu Dec 6, 2012 6:47am EST
 

TORONTO (Reuters) - Canadian Imperial Bank of Commerce (CM.TO: Quote) reported a 13 percent increase in quarterly earnings, driven by higher income from its wholesale banking and wealth management businesses.

CIBC, Canada's fifth-largest bank, said on Thursday that it had earned C$852 million ($858.05 million), or C$2.02 a share, in the fourth quarter ended on October 31, compared with C$757 million, or C$1.79 a share, a year earlier.

Excluding certain items, the bank earned C$2.04 a share, ahead of the analysts' average estimate of C$1.98, according to Thomson Reuters I/B/E/S.

Toronto-based CIBC is the third of Canada's "Big Five" banks to report fourth-quarter results.

Like peers Bank of Montreal (BMO.TO: Quote) and Royal Bank of Canada (RY.TO: Quote), CIBC benefited from a sharp year-on-year rise in wholesale banking revenue as trading fees improved from the relatively weak year-earlier period.

Wholesale banking income, which includes trading and investment banking, rose 58 percent to C$193 million.

Income from domestic retail banking, CIBC's largest division, fell 5 percent to C$569 million, while wealth management income rose 20 percent to C$84 million.

(Reporting by Cameron French; Editing by Lisa Von Ahn)

 
A pedestrian walks past a CIBC branch in Montreal, February 25, 2010. REUTERS/Christinne Muschi