BUSINESS
05/26/2011 07:01 EDT | Updated 07/26/2011 05:12 EDT

CIBC Second-Quarter Profit Rises

(CP) -- CIBC says its profits rose in the second quarter of 2011, but the results were still short of analyst expectations.

The bank reported net income of $678 million or $1.60 per share for the second quarter, compared to net earnings of $660 million or $1.59 a year ago.

On an adjusted basis, the earnings were $1.75, about five cents below expectations, according to a survey of analysts by Thomson Reuters.

Quarterly revenues dipped to $2.89 billion from $2.92 billion a year earlier.

The bank says its results were affected by a $70 million loss from a structured credit run-off business.

Provision for credit losses was $194 million compared with $316 million a year ago.

"CIBC delivered solid performance during the second quarter," said president and CEO Gerry McCaughey.

"The investments we are making in our retail and wholesale businesses are furthering our strength in Canada and positioning us well for the future."

CIBC has more than 41,000 employees across its operations including retail and wholesale banking and financial services, serving more than 11 million customers.

CIBC shuffled the ranks of its senior executives earlier this year to give more responsibility to Richard Nesbitt, the bank's head of investment banking.

Last year, CIBC bought a $2.1-billion credit card portfolio from Citigroup's Canadian MasterCard business to make it the country's largest issuer of Visa and MasterCard credit cards

The portfolio includes accounts associated with co-branded Petro-Canada (TSX:SU) credit cards that offer the Petro Points rewards program.