CIBC reported sharply higher profits for the first quarter ended January 31, on Thursday. Canada’s fourth-largest bank said a solid contribution from its retail and wealth operations were responsible for the rise.

Net profit was $445 million, or $1.11 a share diluted. That is up from a profit of $333 million, or 82¢ a share, in the prior-year period.

Return on equity was 16.8% for the quarter, compared with 12.4% for the first quarter of 2002.

The bank said consumer deposits and balances for cards and mortgages recorded quarter-over-quarter growth. CIBC’s Canadian electronic banking business, President’s Choice Financial, a co-venture with Loblaw Companies Ltd., also continued to expand.

During the quarter CIBC Wealth Management substantially completed the sale of its Oppenheimer private client and asset management businesses to Fahnestock Viner Holdings Inc. in early January 2003 for approximately $350 million.

The bank said it capital ratios continue to be within its target range. As at January 31, 2003, CIBC’s Tier 1 and total capital were $11.3 billion and $14.9 billion, respectively. The Tier 1 and total capital ratios were 9% and 11.9%, respectively, compared with 8.7% and 11.3% at October 31, 2002.

Gross impaired loans were $2.3 billion, compared to $2.28 billion at October 31, 2002, while the allowance for credit losses exceeded gross impaired loans by $85 million.

CIBC declared a quarterly dividend of 41¢ per share.