UPDATE 1-CIBC profit slips on charges

Thu Dec 5, 2013 6:12am EST
 
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TORONTO Dec 5 (Reuters) - Canadian Imperial Bank of Commerce said on Thursday that its quarterly profit slipped 1.9 percent after one-time charges offset a rise in retail and wealth management income.

The bank, Canada's fifth-largest, earned C$836 million ($782 million), or C$2.05 a share, in the fourth quarter ended Oct. 31, compared with C$852 million, or C$2.02 a share, a year earlier. CIBC bought back stock during the year, reducing its share count and boosting its earnings per share.

Excluding one-time items that included a C$39 million restructuring charge from the bank's Caribbean unit and a C$35 million impairment of an equity position associated with its exited U.S. leveraged finance portfolio, the bank earned C$2.22 a share.

Analysts on average had expected a profit of C$2.15 a share, according to Thomson Reuters I/B/E/S.

Profit at CIBC's Canadian retail bank rose 7 percent to C$610 million. Retail bank profit has been a strength for Canadian lenders in spite of concerns about a slowing housing market and low interest rates.

Wealth management income climbed 24 percent to C$104 million, while wholesale banking income, which includes trading, investment banking, and advisory fees, rose 9 percent to C$210 million.