Profits at CIBC were better than analysts were forecasting with a 26% jump in the latest quarter compared to a year earlier.
The first of Canada’s big banks to report its latest results posted new income for Q2 2018 of almost $1.32 billion, up from $1.05 billion a year earlier, but down from $1.328 billion in the first quarter.
The bank’s mortgage lending business in Canada has been impacted by government policy and rising interest rates while the bank’s activities south of the border showed significant growth.
Quarter-over-quarter growth for the bank’s spot mortgage balance was flat at $203 billion. The year-over-year growth was 6.8% but this was weak compared to the 12.4% annual gain seen in the second quarter of 2017.
US commercial, wealth management operations gain 431%
The acquisition of Private Bancorp helped CIBC’s US commercial banking and wealth management operations post a 431% rise year-over-year to $138 million net income.
Canadian personal and small business banking income was up 16% year-over-year to $584 million while commercial banking and wealth management was up 9% to $310 million.
"In the second quarter, each of our business units performed well," says Victor G. Dodig, CIBC President and Chief Executive Officer. "We delivered robust earnings growth with continued progress on our strategy to build a relationship-oriented bank for a modern world with high quality, diversified earnings growth and disciplined expense and capital management. We remain focused on building a strong North American platform to serve our clients and invest in our communities."