Canadian Imperial Bank of Commerce (CIBC)’s wealth management business has reported net income of C$92 million for the second quarter ended 30 April 2013, an increase of 16% compared with C$79 million a year ago.
The division’s revenue for the quarter rose by 6% to C$443 million from C$418 in the corresponding quarter of 2012, primarily due to higher client assets under management driven by higher long-term net sales of mutual funds.
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Private wealth management revenue increased to C$28 million from C$25 million in the second quarter of 2012, mainly due to higher assets under management driven by client growth, including the impact of the acquisition of the MFS McLean Budden private wealth management business in September 2012, the bank said in a statement.
Revenue in the asset management unit was C$153 million, up from C$130 million reported in the year ago period, primarily due to higher client assets under management driven by higher long-term net sales of mutual funds.
Overall, CIBC group reported an 8% rise in quarterly profit, largely to lower provisions for bad loans and higher wholesale banking income.
The group reported net income of C$876 million, compared with C$811 million for the second quarter a year ago. Total revenue was C$3.13 billion for the quarter, up from C$3.08 billion in the year ago period.
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By GlobalDataGerald McCaughey, president and CEO of CIBC, said: "CIBC delivered solid results this quarter across our core businesses in retail and business banking, wealth management and wholesale banking. These results reflect our strong focus on our clients as well as our underlying business fundamentals."
