CIBC to record gain in the fourth quarter from Visa restructuring
TORONTO, Oct. 3 /CNW/ - CIBC announced today that it expects to report a gain in its fourth quarter results following Visa's announcement of the completion of its worldwide restructuring. As part of this restructuring, CIBC will receive shares of Visa Inc. in exchange for the membership interest it held in the previous structure. Accounting standards require the recognition of a gain at the restructuring date. Given CIBC's leadership position in the Canadian credit card market, CIBC expects that it will book a material gain in the current quarter, although the exact amount of CIBC's gain will be finalized following an independent valuation of the bank's shares of Visa Inc. which is expected to be completed before the release of CIBC's fourth quarter and fiscal 2007 results on December 6, 2007. CIBC expects this restructuring will not have a material impact on revenue and expenses for its cards business on an ongoing basis.
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For further information: Rob McLeod, (416) 980-3714; John Ferren, (416) 980-2088