CIBC today reported a 33% rise in first-quarter profit, helped by stronger retail banking and capital markets income.

The baml said net income was $770 million, or $2.11 a share, for the three months ended Jan. 31. That compared with earnings of $580 million, or $1.62 a share, in the same period a year earlier.

The bank also said it was raising its quarterly dividend to 77¢ per share.

Return on equity, a key measure of profitability, was 27.1%, compared with 25.6% in the first quarter of 2006.

Provisions for credit losses dropped $23 million, or 14%, to $143 million due to improvements in CIBC’s unsecured lending portfolio although this was offset a bit by higher losses in its credit cards business.

Non-interest expenses rose $66 million, or 4%, to $1.9 billion because of salary costs and the impact of last year’s acquisition of FirstCaribbean International Bank

Net income at CIBC’s retail division rose 21% to $530 million helped by a growth in volume as well as an improvement in loan losses and lower taxes.

Higher capital markets revenue helped CIBC World Markets post a 64% increase in net income to $210 million.

CIBC’s Tier 1 capital ratio at Jan. 31 was 9.6%, up from 9.0% a year ago.