CIBC Reports Rise In Quarterly Profits

Tom Burroughes

23 August 2018

Toronto-listed CIBC, which provides services including private banking, today reported a 20 per cent year-on-year rise in adjusted net income of C$1.399 billion in the three months to July 31. On a reported basis, net income rose 25 per cent to C$1.369 billion over the period.

Adjusted return on equity stood at 17.1 per cent in the quarter, against 17.3 per cent a year ago, it said in a statement.

Results for the third quarter were negatively affected by a C$31 million amortization of acquisition-related intangible assets; and C$9 million in transaction and integration-related costs net of purchase accounting adjustments associated with the acquisitions of The PrivateBank and Geneva Advisors.

Canadian commercial banking and wealth management reported net income of C$350 million for the third quarter, up C$59 million from the third quarter a year ago, primarily driven by higher revenue. The increase in revenue was driven mainly by deposit and lending growth, higher fees and wider spreads in commercial banking, and higher client assets in wealth management.

US commercial banking and wealth management reported net income of C$162 million for the third quarter, up C$121 million from the third quarter a year ago. Excluding items of note, adjusted net income was C$171 million, up $126 million, mainly because results of CIBC Bank USA were included for the full quarter. The same quarter last year only included the results of CIBC Bank USA following the acquisition on June 23, 2017.