UPDATE 1-CIBC card deal could see sale of C$3 bln of receivables
* In talks to sell half of Aeroplan portfolio
* Aeroplan card contributed C$0.95/share in past year
* Bank profit topped estimates, shares rise
By Cameron French
TORONTO, Aug 29 (Reuters) - Canadian Imperial Bank of Commerce will part with around C$3 billion ($2.85 billion) of credit card receivables if its deal to sell half of its Aeroplan Visa credit card portfolio with Toronto-Dominion Bank goes through.
Speaking on a conference call to discuss the bank's third-quarter results, Chief Financial Officer Kevin Glass said on Thursday that the Aeroplan portfolio currently accounts for about C$6 billion in outstanding receivables.
He also said the card had produced 95 Canadian cents per share of profit over the 12 months ended July 31. That amounts to about 12 percent of the bank's total profit over that period.
CIBC has in the past refused to break out the profit contribution of its credit cards, but made the disclosure as it negotiates a deal with TD that would see the two banks split the portfolio about down the middle, with CIBC retaining clients with which it has other banking relationships.
For the fiscal third quarter, Toronto-based CIBC earned C$890 million ($848.75 million), or C$2.16 a share. That compared with a profit of C$841 million, or C$2.00 a share, in the year-before period. Continued...