The wealth management unit of Canadian Imperial Bank of Commerce (CIBC) has reported a net income of C$128m for the first quarter ended 31 January 2015, up C$14m or 12% from C$114m during the same period a year ago.
The division’s revenue for the quarter rose by 23% to C$619m from the corresponding quarter a year ago.
According to the bank, the rise in revenue was primarily due to the acquisition of Atlantic Trust Private Wealth Management, higher assets under management (AUM) driven by market appreciation and net sales of long-term mutual funds, and higher fee-based revenue.
For the first quarter, wealth management continued its progress in support of the firm’s strategic priority to build its wealth management platform.
Overall, CIBC group reported net income of C$923m, compared with C$1177m for the first quarter a year ago.
CIBC president and CEO Victor Dodig said: "In the quarter, CIBC’s core businesses delivered solid results despite a challenging macroeconomic environment. Through our client-focused strategy, we continued to deliver consistent and sustainable earnings as a strong performance-oriented relationship bank."