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CIBC 1Q Profit, Revenue Beat Views as Wealth-Management Segment Shines

By Adriano Marchese

 

Canadian Imperial Bank of Commerce on Friday reported better-than-expected first-quarter profit and revenue, benefiting from the performance at its wealth-management business, and said its provision for credit losses was nearly halved in the period.

For the three months ended Jan. 31, the Canadian banking and financial services corporation said earnings per share were 4.03 Canadian dollars (US$3.15), up from C$3.55 a year earlier.

Net income was C$1.87 billion, compared with C$1.63 billion.

The bank's wealth-management business performed particularly well, reporting a 31% increase in net income, to C$462 million, which CIBC attributed primarily to higher revenue in the period.

Adjusted earnings were C$4.08 a share, it said. According to FactSet, analysts had been expecting C$3.67 a share.

Return on common shareholders' equity rose to 17.4% from 17%, while the company's provision for credit losses was C$75 million, down 49% from a year earlier, it said.

Common equity Tier 1 ratio, which compares the bank's capital against its assets, fell slightly to 12.2% from 12.3%, the company said.

Total revenue rose to C$5.5 billion from C$4.96 billion, beating analyst expectations of C$5.24 billion.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

February 25, 2022 06:51 ET (11:51 GMT)

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