Canadian Imperial Bank of Commerce (CIBC) is seeking acquisitions valued at more than C$1 billion (US$948.72 million) as it intends to boost the amount of profit it generates from wealth management business.
CIBC chief executive Gerry McCaughey, said, "Much of the growth that we are planning will come from the US and will be focused on asset management, private wealth management and private banking."
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
During the Scotiabank Financials Summit in Toronto, McCaughey also said that the bank had set its acquisition targets in Canada.
Currently, CIBC generates about 11% of its annual earnings from wealth management, up from 9% a few years ago. But the bank’s goal is to reach 15%, requiring it to consider bigger acquisitions.
CIBC is focusing on wealth management because it offers steady fee-based income and requires minimum capital to run, which is appealing under new global Basel III rules that had mandated banks to hold more capital on their balance sheets.
CIBC still sees some opportunities to grow organically in Canada and consolidate the domestic wealth-management sector, but much of the growth (will come) from the US," McCaughey said.
"As we have worked through the universe of potential acquisitions, it has become clear that choices improve as we expand the size of the universe under consideration. We are now open to considering acquisitions in excess of C$1 billion that would accelerate how fast we get to 15%," he added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
