UPDATE 2-CIBC posts profit, but misses Wall St expectations

* Q2 adj cash EPS C$1.46 vs est C$1.50

* Revenue up 35 pct

* Loan loss provisions down 20 pct to C$334 mln
(Adds details from conference call, analyst comment)

TORONTO, May 27 (BestGrowthStock) – Canadian Imperial Bank of
Commerce (CM.TO: ) posted a lower-than-expected quarterly profit
on Thursday and said it would focus on beefing up domestic
business banking.

Canada’s No. 5 bank said it had earned C$660 million ($620
million), or C$1.59 a share, in the second quarter ended April
30, compared with a year-earlier loss of C$51 million, or
C$0.24 a share.

Revenue rose 35 percent, due largely to a sharp rebound in
the wholesale banking division, which took losses associated
with structured credit investments a year earlier.

Excluding certain items, the company earned C$1.46 per
share, compared with the analysts’ average estimate of C$1.50,
according to Thomson Reuters I/B/E/S.

Stronger-than-expected results from rival Bank of Montreal
(BMO.TO: ) on Wednesday had raised expectations that other
Canadian banks might follow with their own stellar financial

“When compared against what Bank of Montreal reported
yesterday, CIBC’s earnings will likely disappoint the market,
in our view,” Barclays Capital analyst John Aiken said in a
research note.

He attributed CIBC’s miss to weaker-than-expected trading
revenues and advisory fees.

CIBC said quarterly provisions for credit losses, or the
amount of money set aside to cover bad loans, fell C$78 million
to C$334 million. Its Tier 1 capital, a key measure of the
capital adequacy of a bank, was 13.7 percent.

Once a high-flying Wall Street player, Toronto-based CIBC
has reduced its U.S. operations over the past decade and turned
its focus on its domestic business.

Speaking on a conference call, Chief Executive Officer
Jerry McCoughey said the bank would target reinvestment in its
domestic corporate lending and business banking divisions,
which have fallen behind those of Canadian rivals.

“Both of those areas, when the economy is recovering and
hopefully transitions into expansion, should provide
opportunities for us to deploy capital in Canada,” he said.

Shares of CIBC closed at C$75.29 Wednesday on the Toronto
Stock Exchange.
($1=$1.06 Canadian)

Stock Trading

(Reporting by Cameron French, additional reporting by Sakthi
Prasad in Bangalore; Editing by Lisa Von Ahn)

UPDATE 2-CIBC posts profit, but misses Wall St expectations