The Successful Investor Hotline – Friday, May 31, 2013

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $78.35, Toronto symbol CM, reported better-than-expected earnings this week. It also raised its dividend. In its fiscal 2013 second quarter, which ended April 30, 2013, CIBC earned $876 million, up 4.3% from $840 million a year earlier. Earnings per share rose 6.0%, to $2.12 from $2.00, on fewer shares outstanding. These figures exclude several unusual items, mainly losses on securities the bank holds. On that basis, the latest earnings beat the consensus estimate of $2.08 a share. Revenue rose 1.8%, to $3.14 billion from $3.08 billion. Stronger earnings from CIBC’s retail banking and wealth management divisions offset lower results from its securities-trading business. As well, more of the bank’s credit card customers are paying their accounts on time, so it cut its loan-loss provisions by 14.0%, to $265 million from $308 million a year earlier. CIBC also lowered its provisions due to fewer loan losses at its Caribbean banking and U.S. real estate lending operations. In addition, the…