CANADIAN IMPERIAL BANK OF COMMERCE $93(Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 397.2 million; Market cap: $36.9 billion; Price-to-sales ratio: 3.0; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.cibc.com) sold half of its Aeroplan accounts to TD Bank (see page 31) when TD took over the plan at the start of 2014.
The sale cut CIBC’s revenue by 4.7% in the three months ended January 31, 2015, to $3.5 billion from $3.6 billion a year earlier.
Excluding a gain on the Aeroplan sale and other unusual items, earnings improved 0.5%, to $956 million from $951 million. Per-share profits rose 2.2%, to $2.36 from $2.31, on fewer shares outstanding.
CIBC’s main Canadian retail banking operations (61% of the total) reported that its earnings fell 3.9%. Lower interest income from credit cards following the Aeroplan sale offset higher consumer and business loan volumes.
Earnings from securities trading (27%) jumped 26.0% on stronger equity and foreign exchange trading volumes, higher fees from underwriting and a gain on the sale of an investment. Wealth management earnings (13%) gained 12.8%, as rising stock markets increased the value of the assets this business administers.
Loan-loss provisions fell 14.2%, to $187 million from $218 million a year earlier. That’s due to the Aeroplan sale and better credit management, which offset higher provisions on U.S. real estate loans.
The stock trades at a low 10.1 times the $9.23 a share that CIBC will probably earn in 2015. The bank also raised its dividend by 2.9%. The new annual rate of $4.24 a share yields 4.6%.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Changes to this Policy
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