Canadian Imperial Bank of Commerce (TSX:CM) is reporting record third-quarter earnings that easily beat analyst expectations.
Toronto-based CIBC says it had net earnings of $890 million or $2.16 per diluted share in the most recent period, up from $841 million or $2 a diluted share in the same period last year.
Revenue rose to $3.26 billion from $3.15 billion.
Adjusted net income was $943 million or $2.29 per share diluted, well ahead of last year’s $876 million or $2.06 per diluted share.
The average analyst estimate as compiled in a survey by Thomson Reuters had been for adjusted earnings of $2.15 cents per diluted share on revenue of $3.4 billion.
The bank left its quarterly dividend unchanged at 96 cents per share, while also announcing a share buyback plan that would see it purchase for cancellation up to a maximum of eight million share or about two per cent of its shares outstanding.
“CIBC delivered solid results this quarter across our core businesses in retail and business banking, wealth management and wholesale banking,” president and CEO Gerald McCaughey said in the bank’s earnings release.
“These results reflect our strong focus on our clients as well as our underlying business fundamentals.”
Meanwhile, the banks said negotiations continue with rewards points operator Aimia Inc. (TSX:AIM) and competitor TD Bank (TSX:TD) over the future of the existing CIBC Aeroplan credit card portfolio.
An longtime agreement between CIBC and Aimia gave the bank rights for an Aeroplan-branded credit card. The two companies have been partners for more than 20 years, but their 10-year term agreement expires this year.
The bank declined to match an offer from TD Bank, but has proposed it keep half of current Aerogold customers who have other products with CIBC that earn Aeroplan miles, such as chequing accounts and mortgages.
TD Bank has said it could potentially acquire part of the existing CIBC Aeroplan credit card portfolio.