The US commercial banking and wealth management sectors are expected to experience the strongest sales growth over the next three years, according to the Canadian Imperial Bank of Commerce.
According to a presentation made Thursday for investors, the unit’s revenue will expand at a compound annual growth rate of 10 to 13% until 2025. The predictions from Canada’s fifth-largest lender for the four units show that they will increase at the highest rate of all.
Since taking over as CEO in 2014, Victor Dodig has increased CIBC’s US activities, most notably through the 2017 $5 billion acquisition of commercial bank and wealth manager PrivateBancorp Inc. The expansion of CIBC’s US operations is expected to spur growth across the board, particularly in its capital markets division.
With sales in the US expanding by at least 10%, Toronto-based CIBC targets compound annual revenue growth in its capital-markets segment of 7% to 10%. A 7 to 10% compound yearly revenue increase is another goal for Canadian commercial banking and wealth management.
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