CIBC profit up 11%

CIBC is reporting net income of $794 million, or $1.91 per share, for its fiscal fourth quarter ended Oct. 31, 2011.

After adjusting for one-time items, cash earnings were $1.87 per sharea gain of 11 per cent from the same period a year ago.

The bank says its return on equity was 20.6 per cent.

For fiscal 2011, CIBC reports net income of $3.1 billion, earnings of $7.39 per share and a 21.3 per cent return on equity.

CIBC's retail and business banking sector accounted for $580 million of net incomeup from $505 million in the same period a year ago.

Wealth management earned $65 million and wholesale banking report took in $154 million.

On average, analysts were expecting per share earnings of $1.81, according to a poll by Thomson Reuters. Revenue was anticipated to be $3.05 billion.

In July, CIBC spent $848 million to increase its presence in the U.S. wealth management industry by purchasing a 41 per cent stake in Kansas-based American Century Investments.

The bank said asset managers like American Century, which is a market leader, are a low volatility business with growth potential as more aging baby boomers demand retirement fund management products.

"CIBC achieved solid results across our businesses in 2011, reflecting a strong focus on our clients as well as our underlying business fundamentals," said CIBC president and CEO Gerry McCaughey.

"Our capital position remains among the best of any bank globally and we continue to take steps to further grow our business by investing in organic growth and through acquisitions."

CIBC has more than 41,000 employees across its operations including retail and wholesale banking and financial services, serving more than 11 million customers.