Canadian Imperial Bank of Commerce would consider spending as much as US$1.8 billion) on wealth-management takeovers, incoming Chief Executive Officer Victor Dodig said, setting a new ceiling for acquisitions by the country’s fifth-biggest bank.
'I would say that the right size for us at this point in time would be up to C$2 billion,' Dodig, who becomes CEO when Gerald McCaughey retires September 15th, said at an investor conference in Toronto. 'We’ve been quite clear in that we’re most interested in the wealth-management space.'
Bloomberg News reports CIBC has said it seeks to boost earnings contribution from its wealth-management unit to 15% from 11% last year. McCaughey said a year ago that the Toronto-based bank was raising its target for acquisitions to more than C$1 billion to help reach that goal.
Dodig, 49, said he’s focusing on asset managers and private-wealth companies in the U.S., where CIBC has made previous acquisitions.
Hit the link below to access the complete Bloomberg News article: