TORONTO (Reuters):

Canadian Imperial Bank of Commerce said yesterday it expected a higher quarterly profit, helped by good revenue, expense and loan loss performance in most of its business groups.

Canada's fifth-largest bank by assets said it expected to report earnings of about C$2.30 a share for the third quarter ended on July 31, compared with C$1.86 a year earlier.

The bank said its results include market-to-market write-downs, net of gains on related hedges, of about C$290 million, or C$190 million after tax, in its structured credit business, on collateralised debt obligations and residential mortgage-backed securities related to the United States residential mortgage market.

CIBC said its exposure to the U.S. residential mortgage market before write-downs is approximately US$1.7 billion, excluding exposure directly hedged with other counterparties. It estimates that less than 60 per cent of this exposure relates to underlying subprime mortgages.