Topic: How To Invest

The Successful Investor Hotline – Friday, February 23, 2018

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $119.00, Toronto symbol CM, completed its acquisition of Chicago-based PrivateBancorp Inc. in June 2017. That firm mainly lends to small and mid-sized businesses. It also provides wealth management services. CIBC paid $6.6 billion in cash and stock. If you exclude costs to integrate PrivateBancorp, CIBC’s earnings for the three months ended January 31, 2018, rose 22.9%, to $1.43 billion from $1.17 billion a year earlier. That included $102 million from PrivateBancorp. Due to more shares outstanding, earnings per share increased just 10.0%, to $3.18 from $2.89. However, that beat the consensus estimate of $2.83. Earnings from CIBC’s Canadian retail banking (46% of the total) rose 17.3% in the quarter due to higher loan demand and interest rates. The Canadian commercial banking and wealth management business (22%) reported 13.8% higher earnings on an increase in assets under management. CIBC’s U.S. operations (10%) saw its earnings soar 351.6% due to the PrivateBancorp acquisition. However, earnings at the securities trading…

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