CIBC’s traders give results a boost on rates products

Bloomberg

Canadian Imperial Bank of Commerce’s (CIBC) traders gave the bank’s earnings a boost last quarter amid a strong stretch for interest-rate products.
Revenue from the capital-markets division rose to C$1.48 billion ($1.09 billion) in the three months through January, up 14% from a year earlier, the Toronto-based bank said. Overall profit topped analysts’ estimates for the fiscal first quarter.
CIBC’s global markets division is benefiting as central banks’ rate-hiking campaigns increase trading in bonds and rate-related instruments.
The bank’s trading revenue, on a tax equivalent basis, rose 17% from a year earlier, led by a gain in interest-rate products.
CIBC shares have climbed 12% this year, compared with a 6.3% gain for the S&P/TSX Commercial Banks Index.
Net income fell 77% to C$432 million, or 39 cents a share, hurt by a provision for a lawsuit against the firm from Cerberus Capital Management LP. Excluding some items, profit was C$1.94 a share. Analysts estimated C$1.72, on average.
Revenue in CIBC’s Canadian personal and business banking unit rose 3.5% to C$2.26 billion as balances of all types of loans continued to rise.
The bank set aside C$295 million in provisions for credit losses, less than the C$345.3 million analysts estimated.