UPDATE 3-CIBC reports better-than-expected profit, raises dividend
* Q2 adj earnings/shr C$2.28 vs. est C$2.23
* Raises dividend by C$0.03 to C$1.09
* Reports C$25 mln in impaired energy loans (Adds background on banking stocks; updates share price)
By Amrutha Gayathri
May 28 (Reuters) - Canadian Imperial Bank of Commerce reported a better-than-expected quarterly profit on Thursday, boosted by higher client trading, and raised its dividend for the third straight quarter.
The quarterly dividend increase of 3 Canadian cents per share to C$1.09 pushed the bank's shareholder payout ratio to the higher end of its target of 40-50 percent of earnings.
On an adjusted basis, net income attributable to shareholders rose to C$2.28 per share in the second quarter ended April 30. Analysts on average had expected C$2.23 per share, according to Thomson Reuters I/B/E/S.
Net income in its wholesale banking unit rose about 17 percent to C$250 million.
"Trading and underwriting revenues can be volatile, so it's hard to say they will continue to be as strong as recently reported," Edward Jones analyst James Shanahan said. Continued...