CIBC’s annual report is now pegging a dollar figure to the closure of FirstLine, the move appearing to cost the bank $20 million in revenue for fiscal 2012.
That number is in the finest of print in its annual report, released this week.
“Other was down $20 million or 5 per cent, primarily due to lower revenue relating to FirstLine mortgages,” reads the report, referencing the reclassification of revenue from FirstLine into the “other” category.
The revenue slide is likely the result of two factors – the declining number of deals brokers sent FirstLine during its final days and CIBC’s decision to shutdown the broker lender just before the final quarter.
The report doesn’t specifically itemize originations for the year nor offer CIBC projections for just how much of FirstLine renewals it expects to convert to CIBC branded mortgages.
That switch is very much part of the plan, with the report reiterating the bank’s desire to bring those clients into the CIBC branch family for cross-selling opportunities.
“We exited the FirstLine mortgage broker channel and are renewing FirstLine clients into CIBC branded mortgages where we have the opportunity to cross-sell and deepen client relationships,” states the report.
Brokers are now focused on stymieing those plans, if renewal through CIBC isn’t best for the client, one industry veteran told MortgageBrokerNews.ca.