CIBC today reported a higher fourth-quarter profit, thanks to a strong performance from its retail businesses.

The bank said net income for the quarter ended Oct, 31 was $819 million, or $2.32 a share, compared with $728 million, or $2.06 a share, in the corresponding quarter of 2005.

For the year, CIBC’s net income hit a record $2.6 billion, after charges relating to Enron Corp. caused a loss of $32 million in 2005.

The bank’s results for the quarter were boosted by a reversal of the general allowance for credit losses and significant tax-related adjustments, partly offset by the impact of changes in credit spreads on the mark-to-market of its corporate loan credit derivatives.

Return on equity was 32.5%, down from 34.2% for the same period last year.

CIBC’s Tier 1 capital ratio at Oct. 31 was 10.4%, up from 8.5% a year ago.

Total revenue for the fourth quarter was $2.89 billion, down 16% from c$3.42 billion a year ago.

Provision for credit losses came in at $92 million in the quarter, down from $170 million in the final quarter of 2005.

“CIBC delivered solid results in 2006, underpinned by the progress we made against our strategic priorities” said Gerald McCaughey, president and CEO. “In 2007, our focus will be to further build on our progress and continue to position CIBC for consistent and sustainable performance over the long term.”

CIBC said its retail businesses continued to perform well overall.

CIBC Retail Markets’ profitability was up 18% in 2006. Volume growth, as well as improvements in expenses, loan losses and taxes, all contributed to this result.

CIBC’s wholesale businesses also reported solid results in 2006.

CIBC World Markets sustained its market strength in Canada, finishing the fiscal year as the leader in equity underwriting and M&A. In the U.S., CIBC’s real estate finance and merchant banking businesses both reported good results.

The bank left its quarterly dividend unchanged at 70¢ a share.