Canadian Imperial Bank of Commerce (CM,CM.TO) reported Thursday a higher second-quarter profit, reflecting a rise in trading related interest income and volume growth across most of its retail products.
The company said retail and business banking revenue increased 4 percent from last year helped by strong volume growth and higher treasury allocations.
Wealth management revenues were unchanged year-over-year as lower commissions from equity trading and new issuance activity were offset by income from investment in American Century Investments.
Wholesale banking revenues declined from last year, reflecting lower capital markets and corporate and investment banking revenue.
In the second quarter, the company's net income attributable to equity shareholders increased to C$810 million from C$764 million reported last year.
On a per-share basis, earnings were C$1.90, higher than C$1.80 per share a year ago. Adjusted for one-time items, earnings per share grew to C$2.00 from C$1.83 per share a year earlier.
On average, 15 analysts polled by Thomson Reuters expected the bank to earn C$1.88 in the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter slightly grew to C$3.08 billion from C$3.02 billion in the same quarter last year, but came below analysts' estimate of C$3.13 billion.
Net interest income increased to C$1.75 billion from C$1.73 billion in the previous year. Non-interest income was C$1.33 billion, higher than C$1.28 billion in the preceding year. Net interest margin was 1.82 percent, higher than 1.79 percent last year.
Provision for credit losses increased 26 percent to C$308 million. Tier 1 capital ratio as at April 30, 2012 was 14.1 percent, compared to 14.7 percent as at October 31, 2011.
Noting that CIBC was ranked as the strongest bank in North America and the third strongest bank in the world by Bloomberg Markets Magazine, CEO Gerry McCaughey said, "The investments we are making in our retail and business banking, wealth management and wholesale banking businesses are furthering our strength and positioning us well for the future."
CIBC's board also declared a dividend of 90 cents per share on common shares for the quarter ending July 31, 2012 payable on July 27, 2012, to shareholders of record on June 28, 2012.
CM closed Wednesday's regular trading at $68.30 on the NYSE, while CM.TO ended at C$70.33.
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