CIBC hikes dividend as profit declines 28 on restructuring charges

TORONTO — CIBC reports its net income for the fourth quarter was $778 million, a 2.8 per cent decline from the same time last year due to higher restructuring costs at the corporate level.The bank’s profit for the three months ended Oct. 31 amounted to $1.93 per CIBC common share — or $2.36 per share after excluding $161 million in restructuring expenses after taxes.The bank also announced that its dividend would rise three cents to $1.15 per share on common shares for the quarter ending Jan. 31, 2016.Canada’s banks pulling off another miracle earnings season, but for how long?Royal Bank of Canada’s profit climbs 11% to record on higher earnings in capital markets and personal bankingScotiabank, BMO posted big profits, but is there danger hiding below the surface?Revenue increased to nearly $3.5 billion from about $3.2 billion in the comparable period last year, up 8.4 per cent, with all three main portions of the business contributing to the increase.CIBC’s retail and business banking operations accounted for most of the overall fourth quarter profit: $655 million — up $53 million from the same time last year.The bank’s wealth management arm also increased its profit to $123 million from $119 million and its capital markets operations grew net income to $209 million from $136 million.The decline in overall fourth-quarter profit was at the corporate level, where the loss grew to $209 million from $46 million.The bank had disclosed in October at an investor day that it would take a restructuring charge of up to $200 million in the fourth quarter, but provided no further details then or in Thursday’s press release on its quarterly and 12-month results.It did reveal that CIBC’s total workforce was reduced by 124 positions during the quarter to 16,977, but they accounted for less than one per cent of CIBC’s employees.Excluding the restructuring and other items, CIBC’s adjusted earnings for the quarter rose to $952 million from $911 million in the fourth quarter of fiscal 2014.For the full financial year ended Oct. 31, CIBC had $3.59 billion of net income and $7.92 billion of revenue, up from $3.22 billion of net income and $7.5 billion of revenue in fiscal 2014.“In 2015, all three of our strategic business units delivered strong performance,” CIBC president and CEO Victor Dodig said in a statement. “Looking to 2016, I am confident that our client-focused strategy and our investment in innovation and process improvements will add long-term value for our shareholders.”

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