(September 2 – 10:30 ET) – CIBC is reporting slightly improved results for the third quarter, ended July 31. Earnings per share came in at 70¢ up from 68¢ in the period last year. Through the first six months of the year net income is flat.
The headline earnings per share numbers are actually 88¢ in Q3 this year, up from 51¢ in the period last year. But this reflects the sale of the bank’s holding of Global Crossing in Q3 1999. The bank’s return on equity also improved from 9.2% in the quarter last year to 15.4% this year.
The bank is reporting a 10% year over year increase in wealth management revenues, but it declines to reveal the bottom line on this business. Over at CIBC World Markets earnings were up $16 million from the second quarter and up $44 million from Q3 1998, but if you include its investment in Global Crossing earnings for the division are up $150 million from Q2 and up
$242 million from Q# 1998.
Net income from personal and commercial banking was down by $8 million from the second quarter and down $34 million from the quarter last year. It continues to focus on the development of its electronic banking business in this area.
CIBC reiterated its $500 million expense reduction target, to be achieved by the fourth quarter next year. Chief executive John Hunkin also repeated his pledge to focus only on productive businesses and to continue the bank’s restructuring. Another $200 million is to wrung out of its securities arm, CIBC World Markets, and that has substantially been achieved according to the bank.
CIBC says that it is 100% Y2K compliant.
-IE Staff
For more please see:
www.newswire.ca