The TD and CIBC are raising their dividend

La TD et la CIBC haussent leur dividende

Photo: Ryan Remiorz, The canadian Press
CIBC increased its quarterly dividend to common shareholders of 4 cents, to $ 1.40

The CIBC and the TD Bank have recorded a decrease in their profits from the financial markets, as well as a heavy burden linked to their partnership with the new loyalty program of Air Canada.

CIBC announced a net profit of 1.18 billion for the quarter ended 31 January, a decrease of 11% compared to the same period of the previous year. “Even though we have faced some challenges this quarter, including the volatility in the market and some isolated cases of impairment of loans, our core business continued to do very well behave in accordance with our strategy,” said the chief executive officer of CIBC, Victor Dodig, during a conference call with analysts.

The fifth lender in Canada has recorded significant declines in earnings from its business banking services to individuals and small businesses and its capital markets, or decreases respectively 29 % and 38 %. However, the profits of the business banking services and wealth management were up 25 % in the United States. In Canada, the profits of this division have been relatively stable.

11 %

It is the decline in the net profit of the CIBC for the quarter ended January 31, compared to the same period last year

CIBC increased its quarterly dividend to common shareholders of 4 cents, to $ 1.40, while its adjusted earnings amounted to 3.01 cents per share. In comparison, the last one had been of $ 3.18 per a year ago.

Meanwhile, the TD Bank has posted an increase of 2.4% of its profits in the first quarter, compared to the previous year. It has earned a net profit of 2.41 billion, or $ 1.27 per share. On an adjusted basis, TD has made a profit of 2.95 billion, which is relatively stable compared to the previous year. The adjusted earnings per share was $ 1.57 to $, an increase compared to the $ 1.56 $ a year ago. In the wake of the bank added 7 cents to its quarterly dividend, which rises to 74 ¢ common share.

Like CIBC, TD Bank has taken advantage of its footprint in the United States, where his division retail saw its net profit increase of 30 %. The net profit of the retail business canadian lender was also weaker, falling 22% decrease compared to the same quarter of the previous year.

The two banks have also recorded, during the quarter, a charge related to the new loyalty program of Air Canada, 227 million for the CIBC, 607 million for the TD.