New York- and Canada-listed CIBC has today posted strong group and wealth management results.

New York- and Canada-listed Canadian Imperial Bank of Commerce has today reported wealth management net income of $121 million for the third quarter of 2014, up $19 million, or 19 per cent, from a year ago and up from $117 million logged in the prior quarter.

Wealth management revenue of $568 million was up $110 million year-on-year, or 24 per cent, primarily due to higher client assets under management. This was driven by market appreciation and net sales of long-term mutual funds, as well as higher fee-based and commission revenue, and the acquisition of Atlantic Trust in January.

Atlantic Trust provides wealth management solutions for high net worth individuals, families, foundations and endowments in the US.

“Our acquisition of Atlantic Trust aligns with our strategy to grow our wealth management business in North America and supports our goal to grow wealth management to 15 per cent of the bank's overall earnings,” Victor Dodig, senior executive vice president of CIBC and group head of wealth management, said at the time.

Meanwhile, CIBC Asset Management logged $100 billion in assets under management - a “significant milestone,” the firm said, along with its 22nd consecutive quarter of positive net sales of long-term mutual funds, which hit $4.5 billion year-to-date.

Asset management revenue was up $27 million from the same quarter last year, and up $5 million from the prior quarter, primarily due to higher client AuM - driven by market appreciation and net sales of long-term mutual funds.

CIBC has three strategic business units: retail and business banking, wealth management and wholesale banking.

The firm's wealth management wing provides relationship-based advisory services and investment solutions to institutional, retail and high net worth clients. Its asset management, retail brokerage and private wealth management businesses combine to create an integrated offer, delivered through more than 1,500 advisors across Canada and the US.

Private wealth management revenue of $75 million was up $43 million from the same quarter last year and flat quarter-on-quarter, due primarily to the acquisition of Atlantic Trust and higher AuM driven by client balance growth. 

Group

The CIBC Group reported $921 million in net income, compared with $878 million for the third quarter a year ago, and $306 million for the prior quarter.

Reported return on common shareholders' equity was 21.0 per cent and adjusted ROE was 20.7 per cent.

CIBC's Basel III Common Equity Tier 1 ratio at July 31, 2014, was 10.1 per cent, while its Tier 1 and Total capital ratios were 12.2 per cent and 14.8 per cent, respectively. The compares to a Basel III Common Equity Tier 1 ratio of 10.0 per cent; Tier 1 capital ratio of 12.1 per cent; and Total capital ratio of 14.9 per cent in the prior quarter.

The firm also announced the intention to seek Toronto Stock Exchange approval for a normal course issuer bid that would permit it to purchase for cancellation up to a maximum of 8 million, or approximately 2 per cent, of its outstanding common shares over the next 12 months. 

"CIBC's solid results this quarter reflect the strength of our retail and wholesale banking franchises and strong wealth management platform," said Gerald McCaughey, CIBC's current  president and chief executive.  

In July, CIBC appointed Victor Dodig as the bank's next president and CEO, effective September 15, 2014. Dodig is the senior executive vice president of CIBC and group head of wealth management.

According to a report in The Montreal Gazette, Dodig “sees room to grow in domestic banking while looking abroad for asset management and private wealth takeovers.”