Topic: How To Invest

The Successful Investor Hotline – Friday, May 25, 2018

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $114.87, Toronto symbol CM, paid $6.6 billion in cash and stock to acquire Chicago-based PrivateBancorp Inc. in June 2017. That firm mainly lends to small and mid-sized businesses. It also provides wealth management services. The additional revenue from PrivateBancorp has helped CIBC offset slowing demand for new mortgages in Canada. If you exclude costs to integrate the acquisition, the bank’s overall earnings for the three months ended April 30, 2018, rose 25.7%, to $1.35 billion from $1.07 billion a year earlier. Due to more shares outstanding, earnings per share increased at a slower rate of 11.7%, to $2.95 from $2.64. That beat the consensus estimate of $2.81. Earnings from Canadian retail banking (46% of the total) rose 16.3% in the quarter due to higher interest rates. The Canadian commercial banking and wealth management business (24%) reported 9.2% higher earnings. The gain is due to an increase in its assets under management. CIBC’s U.S. operations (11%) saw earnings soar…