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CIBC posts $852-million profit for fourth quarter, beats consensus estimate

TORONTO – CIBC says it had $852 million of net income in the fourth quarter, an increase of nearly $100 million from the same time last year.

The Toronto-based bank says the profit amounted to $2.02 per share of earnings, before adjustments.

On an adjusted basis, CIBC’s fourth-uqarter profit amounted to $2.04 per share.

The adjusted earnings were six cents above the consensus estimate of $1.98 per share.

The fourth quarter brought the total net income for CIBC’s 2012 financial year to $3.3 billion, before adjustments — up $400 million from last year.

“CIBC reported another year of solid progress in 2012,” Gerry McCaughey, CIBC president and chief executive officer, said in a statement.

He said the results across CIBC’s core businesses reflected the value of the bank’s strategy.

By far the largest portion of CIBC’s profit last year came from retail and business banking, which provided $2.2 billion of net income in the year ended Oct. 31, 2012 _ up from $2.2 billion in 2011.

“As we close fiscal 2012, our business is well positioned for growth,” David Williamson, CIBC’s head of retail and business banking.

“We have re-positioned our focus towards building deeper relationships with our clients, built more branches, extended our branch operating hours, launched new products and reinforced our leadership position in mobile banking with our launch of mobile payments.”

CIBC said its fourth quarter had several items of note that collectively reduced its earnings by two cents per share.

Among them was a $24-million gain ($19 million after tax) on the sale of its interests in relation to the Maple Group’s acquisition of TMX Group Inc. (TSX:X), which operates Canada’s largest stock and derivatives markets.

CIBC also recorded $57 million ($32 million after tax) on loan losses from its U.S. leveraged finance portfolio.

Analysts had estimated that on average the bank would have adjusted earnings of $1.98 per share and revenue of $3.2 billion in the fourth quarter, according to consensus estimates compiled by Thomson Reuters.