CIBC profit rises on Aeroplan deal, bank hikes dividend.

Thu Feb 27, 2014 6:31am EST
 
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* Ex-items EPS C$2.31 vs est C$2.16

* Lending profits, cards deal drives profit

* Dividend raised by 2 pct

TORONTO, Feb 27 (Reuters) - Canadian Imperial Bank of Commerce said on Thursday its first-quarter profit jumped by 50 percent, driven by stronger domestic lending profits and a C$183 million gain on the sale of half of its Aeroplan credit card portfolio to Toronto-Dominion Bank.

CIBC, Canada's fifth-largest bank, also raised its dividend by 2 percent.

The bank earned C$1.18 billion ($1.06 billion), or C$2.88 a share, in the fiscal first quarter ended Jan. 31. That compared with a year-before profit of C$785 million, or 1.88 a share.

Excluding the impact of the Aeroplan deal and other smaller items, the bank earned C$2.31 a share. Analysts had expected a profit of C$2.16 a share, according to Thomson Reuters I/B/E/S.

CIBC agreed in September to sell about half of its Aeroplan Visa card portfolio in a deal that avoided a potential legal battle over the right to issue the valuable flight rewards card.

Profit at CIBC's Canadian retail and business bank surged 29 percent to C$746 million, while its wealth management division earned C$114 million, up 28 percent on the year.   Continued...