CIBC wealth management profit gains 12%

CIBC’s wealth management business reported net income of $133 million for the first quarter, up $14 million or 12% from the same period a year earlier.

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For the period ended January 31, 2017, the bank’s overall net income was $1.41 billion, up from $982 million a year ago.

The quarterly earnings amounted to $3.50 per diluted share, compared with $2.43 per diluted share during the same period last year.

The bank also boosted its quarterly dividend by three cents to $1.27 per share, payable on April 28.

On an adjusted basis, the Toronto-based bank had $1.17 billion of income, or $2.89 per share, compared with $1.03 billion, or $2.55 per share, during the first quarter of 2016.

Quarterly revenue was $4.21 billion, up from $3.59 billion a year ago.

Adjusted net income was $135 million, up $13 million or 11% from the first quarter a year ago, driven by higher revenue and partially offset by higher expenses. Higher revenue was driven by growth in average assets under management and higher transactional activity, CIBC said, including debt and equity issuance, partially offset by the impact of the sale of American Century Investments.

After reporting the stronger-than-expected earnings, CIBC’s CEO, Victor Dodig, told analysts during a conference call that the bank will remain disciplined and patient in efforts to buy Chicago-based lender PrivateBancorp.

In December, PrivateBancorp said its shareholders needed more time to consider the transaction. At that time, a shareholder vote was postponed after shares of PrivateBancorp rose above the value implied in the proposed deal, which was announced in June.

RBC reports its results Friday while other large Canadian banks report next week.

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Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.