CIBC hikes dividend as profit rises 6%

CIBCincreased its third-quarter net income to $978 million, up 6.2 per cent from the same time last year, driven by improvements at its core banking business and wealth management services.

CIBC's net profit was equal to $2.42 per share, or $2.45 per share after adjustments.

The adjusted earnings hit a record $990 million, which was up 10 per cent from the third quarter of 2014 and above analyst estimates.

The bank says it will raise its quarterly dividend by 2.75 per cent to $1.12 per share, an increase of three cents.

CIBC also plans to to buy back up to eight million of its shares over the next 12 months, representing up to two per cent of the total float.

The buyback would cost up to $722.5 million if all shares were repurchased at Wednesday's closing stock price of $90.31.

CIBC's core retail and business banking unit generated about two-thirds of the total net income. It rose by $47 million or eight per cent from a year earlier to $636 million mainly due to higher revenue and lower loan losses.

Net income from wealth management was up $19 million or 16 per cent from a year ago at $140 million while net income from wholesale banking fell $12 million or four per cent to $270 million. Corporate expenses were $68 million.

Excluding two items that had a total negative impact of $12 million after taxes, CIBC's adjusted net earnings were $990 million, up from $908 a year before.

Adjusted earnings at wholesale banking were $275 million, up 21 million or eight per cent from a year earlier due to higher revenue from trading.