Canadian Imperial Bank of Commerce raised its dividend as it announced that its second-quarter profit rose to $876-million, from $811-million a year ago.
The earnings amount to $2.12 per share, topping analysts’ expectations, and compare to a profit of $1.90 per share in the same period of 2012. The dividend hike of two cents, to 96 cents per share, was expected by analysts.
The bank’s core retail and business banking division saw its earnings rise 9 per cent to $604-million, helped by wider spreads and higher fees. The division’s provision for soured loans declined 14 per cent, to $233-million, because the bank is seeing fewer bankruptcies among its credit card customers and is writing off less of those loans.
CIBC’s wealth management group saw its earnings rise 16 per cent to $92-million, as the amount of client money that it is managing increased, thanks mostly to stronger mutual fund sales.
The wholesale or investment banking group reported earnings of $198-million this quarter.