2 Min Read
TORONTO - Canadian Imperial Bank of Commerce's (CM.TO) fourth-quarter profit rose a stronger-than-expected 59 percent due mainly to wholesale banking income, the company said on Thursday.
Canada's No. 5 bank earned a net C$794 million ($778 million), or C$1.89 a share, in the quarter ended October 31. That compared with a year-before profit of C$500 million, or C$1.17 a share.
Excluding one-time items, the bank earned C$1.87 a share. Analysts had expected, on average, a profit of C$1.81 per share, according to Thomson Reuters I/B/E/S.
"Core revenues were 3 percent higher than our expectations," RBC Capital Markets analyst Andre-Philippe Hardy said in a note.
He said the bank's retail banking, wholesale banking and wealth management divisions all were better than expected.
CIBC, which earlier this year bought a minority stake in U.S. asset manager American Century Investments, said profit was boosted by higher corporate and investment banking income, as well as stronger retail banking income.
CIBC is the first Canadian bank to report year-end results.
Shares of the banks have declined as the European debt crisis has worsened, although they said they have little direct exposure.
$1=$1.02 Canadian Reporting by Cameron French