Canadian Imperial Bank of Commerce said third-quarter profit rose 4.9 percent as buoyant markets boosted wealth-management earnings and the lender won investment-banking business from oil and gas companies.

Net income for the period ended July 31 climbed to C$921 million ($848.7 million), or C$2.26 a share, from C$878 million, or C$2.13, a year earlier, the Toronto-based bank said in a statement today. Profit excluding some items was C$2.23 a share, beating the C$2.21 average estimate of 16 analysts surveyed by Bloomberg News.

Investment banking, wealth management and lower provisions for credit losses helped counter the loss of half of CIBC's mandate for the popular Aerogold Visa credit card and slowing growth in mortgages as Canadians' debt loads rise. The bank set aside C$195 million for bad loans, down from C$320 million a year earlier.

"Advisory fees were a big factor in supporting earnings this quarter," said John Aiken, an analyst at Barclays Plc in Toronto who rates the shares underweight.

CIBC said it plans to buy back as many as 8 million shares, or 2 percent of its stock, in the next 12 months.

The lender's investment-banking business posted earnings of C$282 million, up 33 percent from a year earlier. Underwriting and advisory fees surged to C$150 million from C$98 million as CIBC helped manage share sales including PrairieSky Royalty Ltd.'s initial public offering.

Wealth-management profit rose 19 percent to C$121 million, lifted by higher assets under management from improving markets and contributions from its January takeover of Atlantic Trust Private Wealth Management. CIBC has said it seeks to earn 15 percent of total profit from wealth management, up from about 11 percent last year.

Retail and business-banking earnings slid 3.8 percent to C$589 million from a year earlier, pulled down by lower credit- card revenue after CIBC sold half of its Aerogold Visa portfolio to Toronto-Dominion Bank in December.

"Retail banking is likely to see little change from the recent modest growth rates in demand for household and mortgage credit given existing levels of debt and the past few years' policy changes in mortgages," CIBC said in its outlook for the rest of the year. "Demand for business credit should continue to grow at a healthy pace."

Losses widened to C$71 million at CIBC's corporate division, which includes Caribbean banking, from C$48 million loss a year earlier.

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