Canadian Imperial Bank of Commerce has agreed to sell its Hong Kong- and Singapore-based private wealth management business.
“This niche advisory and brokerage business, included in international banking within corporate and other, provides private banking services to high net worth individuals in the Asia-Pacific region and had assets under management of under $2 billion as at 30 April, 2012. The deal is subject to certain closing conditions and regulatory approvals and is expected to close by early 2013. CIBC's other businesses in Asia are unaffected by this transaction,” the bank said in a statement accompanying its results yesterday. The identity of buyer(s) was undisclosed.
CIBC has been in Asia for more than 25 years. The Canadian banking giant opened private wealth management centers in Hong Kong in 1985 and in Singapore in 1990, according to Dow Jones.
In the second quarter ended 30 April, net income at CIBC's wealth unit was C$79 million, up 8 per cent from a year earlier.
For the Toronto-listed banking group as a whole, CIBC reported net income of C$811 million for the second quarter, compared with net income of C$767 million for the same period last year.
Reported diluted earnings per share were C$1.90, compared with reported diluted EPS of C$1.80 a year ago.