CIBC quarterly profit rises on capital markets strength

(Reuters) – Canadian Imperial Bank of Commerce reported a rise in first-quarter profit on Thursday, helped by strength in its capital markets unit.

The Canadian central bank’s move to lower interest rates, along with strong economic data, has helped equity markets soar and boosted investors’ appetite to strike more deals.

CIBC’s Capital Markets unit reported a net income of C$619 million for the first quarter, up C$97 million or 19% from the first quarter a year ago.

The bank’s adjusted net income rose to C$2.18 billion ($1.52 billion), or C$2.20 per share, in the three months ended January 31, from C$1.77 billion, or C$1.81 per share, a year earlier.

Provisions for credit losses in the quarter were also down by C$12 million to C$573 million, compared to the same quarter last year.

($1 = 1.4335 Canadian dollars)