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This article was published 24/2/2011 (3813 days ago), so information in it may no longer be current.
TORONTO -- CIBC handily beat analyst expectations Thursday with a $799-million profit that provided a solid start to the Canadian banking sector's first-quarter earnings season.
The Toronto-based bank (TSX:CM) said its earnings, which amounted to $1.92 per share, grew from $652 million, or $1.58 for the same period last year, when equity markets were still recovering from the hit taken during the recession.
"After a softer back half of 2010, industry conditions were better this quarter, and we have broad-based performance across our capital markets and corporate and investment banking businesses," said Gerry McCaughey, CIBC president and CEO.
"As the environment continues to improve, the pipeline has become active for these capabilities and we saw strong evidence of this (during the) quarter."
Stripping out one-time items, earnings were $1.95 a share, almost 10 per cent higher than the $1.77 per share analysts had been expecting, according to Thomson Reuters.
The better-than-expected earnings came on the back of strong growth from its retail banking and capital markets businesses. Investors have been hoping some of the big five would boost dividends, but CIBC said it would hold its dividend at 87 cents per share.
"The payout ratio is 40 to 50 per cent and I think we'd like to see further quarters and where we lie within that range before we actually made any changes," said Gerry McCaughey, CIBC president and CEO.
In a further sign a dividend raise could be on the horizon, the company said its Tier one capital ratio stood at 14.3 per cent during the quarter, well above the seven per cent required under new international banking regulations.
The bank indicated it should be able to exceed the regulatory minimum capital standards ahead of the schedule handed down by the Basel Committee on Banking Supervision.
-- The Canadian Press
National Bank profits hit record
MONTREAL -- National Bank plans to increasingly reward its shareholders over the coming months after its profits soared to a record $312 million in the first quarter and beat analyst expectations.
The Montreal-based bank said it plans to redeem $516 million of rate-reset preferred shares that it has outstanding and pass along about $32 million in annual savings to common shareholders. It will also review its 66-cent per share quarterly dividend in three months.
"We expect to continue to generate excess capital and plan to optimize our capital structure," CEO Louis Vachon said Thursday.
The country's sixth-largest bank earned $1.80 per share, rising above the $1.64 per share consensus estimate gathered by Thomson Reuters.
Quarterly profits increased from $215 million or $1.22 a year earlier.