Large lender Canadian Imperial Bank of Commerce (CIBC) stated in a report last Thursday that its 4th quarter profits were lower-than-expected, hurt by major credit card revenue losses and not-so-impressive wholesale banking division results.
In the quarter that ended on October 31, the 5th largest lender in Canada said that its net income went down at C$1.98 per share that is equivalent to C$811 million compared to last year’s C$2.25 a share or C$825 million.
Special items excluded, CIBC’s earnings fell short of the analysts estimates. It earned C$2.24 only which is lower than the average estimates of C$2.25 per share.
CIBS’s quarterly dividend raised by C$0.03 cents making it C$1.03 a share.
The net income in the company’s wholesale banking arm plummeted from C$209 million to C$136 million as revenue went down hurt by the lower capital markets as well as investment banking revenue.
Credit card revenue losses have hurt the bank’s 4th quarter profits after CIBC agreed to sell part of its Aeroplan Visa credit card portfolio.
While the net income in the retail and business banking went down, its profits in the wealth management division went up from CS16 million to C$119 after increasing assets under management and the purchase of the Atlantic Trust.