UPDATE 1-CIBC reports stronger third-quarter profit

Thu Aug 28, 2014 6:49am EDT
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TORONTO Aug 28 (Reuters) - Canadian Imperial Bank of Commerce reported a higher third-quarter profit on Thursday, helped by strong gains at its wealth management and investment dealer divisions.

Canada's 5th largest lender said its net income rose to C$921 million, or C$2.26 per share in the quarter ended July 31, from C$878 million, or C$2.13 a year earlier.

Adjusted earnings per share were C$2.23. Analysts had expected C$2.21 per share.

CIBC said net income at its wholesale banking unit, which includes investment banking and trading, rose 32 percent to C$282 million. It benefited from increased financial markets activity, including fees from the initial public offering of PrairieSky Royalty Ltd.

Profit at its wealth management arm rose 19 percent to C$121 million, with assets under management boosted by mutual fund sales and a jump in Canadian and U.S. stock markets to record highs.

But profit at CIBC's retail and business banking arm slipped 4 percent to C$589 million, hurt by a drop in credit card revenue after CIBC agreed to sell about half of its Aeroplan Visa credit card portfolio. (Reporting by Jeffrey Hodgson, Editing by Franklin Paul)