Canadian Imperial Bank of Commerce, Canada’s fifth-biggest lender, reported a better-than-expected quarterly profit, driven by strong performance in its capital markets business.
The company said the unit gained from higher equity trading and underwriting revenue, as well as a rise in financing activity in the fourth quarter.
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Net income from capital markets business surged 52.5 percent to C$276 million in the quarter ended Oct. 31.
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CIBC has been expanding in the United States to help offset slow growth in its domestic market and said in June it would buy Chicago-based PrivateBancorp in a $3.8 billion cash-and-share deal, its biggest ever acquisition.
Proxy advisory firms Glass Lewis and Egan-Jones on Thursday recommended that PrivateBancorp’s shareholders vote in favor of the sale to CIBC.
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The bank’s total net income rose to $931 million, or C$2.32 per share, from C$778 million, or C$1.93 cents per share, a year earlier.
Excluding items, the company earned C$2.60 per share, beating the average analysts’ estimate of C$2.48, according to Thomson Reuters.
CIBC also raised its dividend to C$1.24 per share from C$1.21 per share.
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