Topic: How To Invest

The Successful Investor Hotline – Friday, August 18, 2017

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $106.94, Toronto symbol CM, announced this week that it is ending its 19-year joint venture with supermarket operator LOBLAW COMPANIES LTD., $67.82, Toronto symbol L. That business, called President’s Choice Financial, offers no-fee banking, mortgages and other loans. It mainly sells those services over the Internet and telephone. In its place, CIBC plans to launch its own online banking service called “Simplii Financial.” It will transfer all PC Financial clients to the new platform on November 1, 2017. As a result of this move, CIBC expects to pay $100 million in fees and other charges. To put that amount in context, the bank earned $1.1 billion, or $2.64 a share, in the quarter ended April 30, 2017. As for Loblaw, it will continue to offer customers its no-fee PC Financial MasterCard credit cards, and both home and auto insurance. The company will also continue to manage its PC Plus loyalty program. OUR RECOMMENDATION: Both CIBC and Loblaw are buys. CIBC recent…