(December 2 – 11:10 ET) –
CIBC has reported its
financial results for the fourth
quarter and year ended Oct. 31,
1999. Earnings in the fourth
quarter were affected by a major
restructuring charge and other
non-recurring items. Excluding
these items, net income from base
operations was $304 million
compared with $319 million in the
third quarter and $86 million in
the same quarter last year.
After-tax adjustments to fourth
quarter results relate to a
restructuring charge, a securities
write-down , a change in the
estimated useful life of certain
technology assets and other items.
On an adjusted basis, earnings per
share were $0.68 in the fourth
quarter compared with $0.71 in the
third quarter and $0.14 last year.
Reported net income for the fourth
quarter including the above items
was $8 million, down from $394
million in the third quarter and
$34 million a year ago.
Annual Results Highlights Net
income from base operations,
excluding restructuring and other
non- recurring items, was $1,283
million in 1999, up $104 million or
9 per cent from 1998.
Adjustments to 1999 results
include the after-tax effect of
restructuring charges
($242 million), unusual securities
gains ($52 million), a change in
the estimated useful life of
certain technology assets
($31million), Oppenheimer
acquisition-related costs
($25 million) and other items
($8 million). Net income in 1998
was adjusted for the above items
as well as the gain on disposal of
Comcheq, a payroll processing
subsidiary. Similarly adjusted
earnings per share were $2.85 in
1999 and $2.56 in 1998 and return
on equity was 12.6 per cent in 1999
and 11.7 per cent in 1998.
Reported net income for 1999
including the above items was
$1,029 million, down $27 million
from $1,056 million in 1998.
Earnings per share were $2.23
and return on equity was 9.8 per
cent, down from $2.26 per share
and 10.3 per cent in 1998.
As at Oct. 31, 1999, the excess
of market value over book value of
CIBC’s securities held for
investment totaled $3,620 million.
This amount is not reflected on
CIBC’s balance sheet. The
unrealized excess of market value
over book value is recognized in
income when the investments are
sold. In addition, certain of
CIBC’s real estate assets
have been offered for sale and
are expected to generate a
substantial gain in 2000.
Revenues earned by CIBC’s
wealth management businesses in
both P&C Bank and CIBC World
Markets totaled $1,362 million in
1999, up $88 million or 6.9 per
cent from 1998. This increase
reflected the continued
development of CIBC’s
investment advisory sales forces.
Wealth management administered
assets totaled $138.4 billion at
year-end, an increase of $18.7
billion or 15.6 per cent from 1998.
Private client demonstrated strong
growth with administered assets
increasing $9.7 billion or 11.8
per cent to $91.6 billion. Mutual
funds and professional investment
management services combined,
totaled $20.2 billion, up $3.8
billion or 23.2 per cent.
-IE Staff
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