CIBCWI Makes C$70 m in Third Quarter
CIBC West Indies contributed C$70 millionto the Canada-based parent bank's C$460 million earnings for itsthird quarter ending 31 July.
The bank reported that the $460 millionearnings were the equivalent of $1.12 per share, diluted, (whichinclude the net impact of building Amicus, $(0.17); a gain onthe sale of subsidiaries, $0.05; and an adjustment for tax ratechanges, $(0.05)). Adjusted Earnings (which exclude only the saleof subsidiaries and an adjustment for tax rate changes) were $459million or $1.12 per share, diluted.
Returns of the third quarter for this company,the third largest Canadian bank in terms of assets, were downfrom C$604 million, or C$1.44 Canadian cents a share, a year earlier.The performance was nonetheless reportedly welcomed by analystswho had forecast lower profits for the period and a share valueof 94 cents.
"(CIBC) West Indies is a full servicebanking operation in eight countries, servicing all customer segmentsthrough a 45 branch network and electronic delivery channels.Revenue is earned on net interest spreads and sales and servicefees. Revenue was $70 million in the Quarter, comparable withthe third quarter of 200 and the prior quarter," CIBC headoffice said of the Caribbean department.
CIBC West Indies, which also in the reportingquarter announced that it was going through a process of mergerwith Barclays to form FirstCaribbean International Bank.
Operating earnings for the total CIBC operationsfor the nine months ended July 31, 2001, were $1,631 million,compared to $1,787 million for the same period last year. OperatingEarnings per share, diluted, were $3.99, compared to $4.21 forthe same period in 2000. Reported Earnings for the first ninemonths of 2001 were $1,444 million or $3.51 per share, diluted,compared to $1,728 million or $4.06 per share, diluted, for thesame period of 2000. Adjusted Earnings for the nine month periodwere $1,445 million or $3.51 per share, diluted compared to $1,698million or $3.99 per share, diluted for the same period last year.
Year-to-date, CIBC's Operating Return onEquity was 21.2%. Since November 1, 1999, CIBC's total returnto shareholders is up 69.5%, the best total return among the majorCanadian banks.
"Our performance in a less than favourablebusiness environment is a clear reflection of our ongoing effortto build a broad-based franchise that is capable of weatheringdownturns in the market," said John S. Hunkin, Chairman andChief Executive Officer. "We remain confident that - throughthe fundamental strength and diversity of our business portfolio- we are well-positioned for growth as market conditions improve."