Home Breadcrumb caret Industry News Breadcrumb caret Industry Big banks post big profits (May 26, 2004) Two of Canada’s big banks today released their latest earnings reports, ringing up huge profits in the second quarter. BMO Financial and CIBC posted quarterly earnings of $602 million and $531 million respectively. Both banks announced significant growth in their private client and wealth management groups, while seeing profitability decline in their […] By Steven Lamb | May 26, 2004 | Last updated on May 26, 2004 2 min read (May 26, 2004) Two of Canada’s big banks today released their latest earnings reports, ringing up huge profits in the second quarter. BMO Financial and CIBC posted quarterly earnings of $602 million and $531 million respectively. Both banks announced significant growth in their private client and wealth management groups, while seeing profitability decline in their personal retail banking operations. Profits from BMO’s Private Client Group doubled, due to improved equity markets, which also helped the investment banking division boost earnings by 28%. Lower interest rates held back earnings growth from personal credit services. On a year-to-date basis, BMO has earned $1.13 billion, up $326 million or 40% from the same period in 2003. At CIBC, year-to-date earnings hit $1.14 billion, as the second quarter brought in $531 million, up from Q2 earnings of $320 million in 2003. CIBC also credited the strong equity markets for its improved performance, with CIBC Wealth Management profits rising to $99 million and assets under management growing by 13%. The online brokerage division turned in a strong performance as well, as CIBC Investor’s Edge posted revenue growth of 57% over last year. The bank singled out one product in particular, saying its RRSP Escalating Rate GICs, drove the strongest year-to-date growth in GIC market share in the past five years. CIBC World Markets earned $259 million in the quarter. “Continuing to realize deliberate and sustainable growth remains a key priority for CIBC,” said John Hunkin, president and CEO of CIBC. “In order to achieve this, we intend to move forward in our efforts to integrate social and environmental initiatives with economic goals, building a model for long-term growth. I am confident that by executing against these objectives we will be well positioned to continue to deliver strong shareholder returns.” Both banks bought back stock over the quarter, with CIBC picking up 6.2 million common shares and BMO repurchasing 1.35 million common shares. Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com (05/26/04) Steven Lamb Save Stroke 1 Print Group 8 Share LI logo