(Bloomberg) -- Canadian Imperial Bank of Commerce posted fiscal third-quarter profit that topped analysts’ estimates as rising interest rates and the country’s housing market boosted lending income.

Net interest income rose 12% to C$3.24 billion ($2.51 billion) in the three months through July, the Toronto-based company said in a statement Thursday.

CIBC has been investing in technology and front-line, revenue-generating employees in a bid to spur faster growth than at its Canadian banking peers. While Canadian housing prices and sales have started to cool, mortgage balances still rose 11%, and the domestic personal banking unit’s net interest margin expanded 10 basis points to 2.29%.

CIBC shares have fallen 11% this year, compared with a 10% drop for the S&P/TSX Commercial Banks Index. 

Also in the results:

  • Net income fell 3.7% to C$1.67 billion, or C$1.78 a share.
  • Excluding some items, profit was C$1.85 a share. Analysts estimated C$1.83, on average.
  • CIBC set aside C$243 million in provisions for loan losses. Analysts projected C$239.3 million in provisions.

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