CIBC profits nearly triple in Q2 after Caribbean troubles a year ago

TORONTO – Canadian Imperial Bank of Commerce (TSX:CM) says profits nearly tripled in the second quarter as its wholesale banking and wealth management divisions led growth.

The bank reported net income of $911 million, or $2.25 per share, compared to $306 million or 73 cents a year ago when the bank logged a $543-million impairment charge linked to a prolonged recession that affected its Caribbean banking subsidiary.

Adjusted net income, which filters out one-time items, was $2.28 per share, five cents better than analysts expected, according to a survey by Thomson Reuters.

CIBC’s retail and business banking operations boosted net income by seven per cent to $583 million as revenue grew from more transactions and higher fees.

Wholesale banking net income increased 17 per cent to $250 million on higher revenue from commodities and foreign exchange trading. Wealth management net income grew 10 per cent to $129 million.

CIBC also increased its dividend by three cents to $1.09.