Revenue from wealth operations rose 12 per cent year-over-year, to C$404 million, driven by higher fee-based revenue and commissions from new issue and equity trading activity, higher client assets under management primarily due to improved capital markets, and higher long-term net sales of mutual funds, the bank said.

The efficiency ratio of the wealth management division was 76 per cent, compared to 78.8 per cent for the same period in 2010. Full-time equivalent employees in wealth were 3,675, up from 3,566 last year.

At the beginning of the quarter CIBC split its wealth management and international retail banking operations out from its Retail Markets business. Wealth management is now counted as a standalone business unit. The quarter also saw CIBC announce a deal to acquire American Century Investments, as part of a plan to strengthen its international wealth business.

Under the agreement CIBC will buy around 41 per cent of ACI’s equity from JP Morgan Chase & Co. Starting in the fourth quarter, the acquired firm’s results will be included in the performance of the Canadian bank’s wealth management unit.

Overall, CIBC reported net income of C$808 million for the third quarter ended 31 July 2011, compared with net income of C$640 million for the same period last year.

“We are very pleased with the solid results we delivered this quarter in what continues to be a challenging economic environment worldwide,” says Gerry McCaughey, CIBC president and chief executive. “Our investment in American Century announced this quarter, and dividend increase announced today, reflect our confidence and underscore our commitment to growing CIBC, while maintaining prudent capital ratios.”