Canadian lender CIBC's profit lower, hurt by capital markets
TORONTO (Reuters) - Canadian Imperial Bank of Commerce reported a weaker fourth-quarter profit on Thursday, hurt by the loss of some credit card revenue and softer results at its wholesale banking division.
Canada's fifth-largest lender said its net income fell to C$811 million ($714 million), or C$1.98 per share, in the quarter ended Oct. 31, from C$825 million, or C$2.02, a year earlier.
Excluding items, the bank earned C$2.24 per share, falling short of the average analyst estimate of C$2.25, according to Thomson Reuters I/B/E/S.
CIBC raised its quarterly dividend by 3 Canadian cents to C$1.03 per share.
CIBC said net income at its retail and business banking arm fell to C$602 million from C$613 million a year earlier, hurt by a loss of credit card revenue after it agreed to sell about half of its Aeroplan Visa credit card portfolio.
Profit at its wealth management arm rose C$16 million to C$119 million, as revenue climbed on the acquisition of Atlantic Trust and rising assets under management.
But net income at its wholesale banking unit fell to C$136 million from C$209 million as revenue declined. The bank said the unit was hurt by lower capital markets and corporate and investment banking revenue.
($1 = 1.1364 Canadian dollars)
(Reporting by Ashutosh Pandey in Bangalore and Jeffrey Hodgson in Toronto; Editing by Don Sebastian and W Simon)
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