CIBC tops estimates on strength in capital markets, U.S. commercial and wealth management units
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CIBC is the fourth major bank to report earnings this week and the fourth to beat analysts’ estimates.Fred Lum/The Globe and Mail
Canadian Imperial Bank of Commerce CM-T booked a boost in fourth-quarter profit that topped analysts’ estimates on stronger demand in its capital markets and U.S. commercial and wealth management units.
CIBC’s profit climbed 16 per cent to $2.2-billion from the same period a year earlier, or $2.20 per share, in the three months that ended Oct. 31.
Adjusted to exclude certain items, the bank said it earned $2.21 per share. That beat the $2.08 per share analysts expected, according to S&P Capital IQ.
“We delivered record financial performance in 2025 through the consistent execution of our client-focused strategy, driving high-quality earnings growth and delivering top-tier returns for our shareholders,” CIBC chief executive officer Harry Culham said in a statement.
The bank raised its quarterly dividend by 10 cents to $1.07 per share.
Canadian Imperial Bank of Commerce is the fourth major bank to report earnings for the fiscal fourth quarter. Earlier in the week, Bank of Nova Scotia BNS-T, Royal Bank of Canada RY-T and National Bank of Canada NA-T posted higher profits that beat analysts’ estimates. Toronto-Dominion Bank TD-T and Bank of Montreal BMO-T will wrap up earnings week today.
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In the quarter, CIBC set aside $605-million in provisions for credit losses – the funds banks set aside to cover loans that may default.
That’s a 44-per-cent increase from the same quarter last year and included $497-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses. The bank said the increase in impaired loans was driven by an uptick in souring loans across all businesses, except U.S. commercial banking and wealth management.
Total revenue rose 14 per cent in the quarter to $7.6-billion and expenses increased 10 per cent to $4.2-billion, which the bank said was driven by higher employee-related costs, technology and investments.
CIBC’s net interest margin – the difference that the bank earns on loans and pays on deposits – grew to 1.59 per cent from 1.50 per cent in the same quarter last year.
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Profit from capital markets surged 58 per cent to $548-million from the same quarter last year as growth in lending and a boost in underwriting and advisory activity drove higher corporate and investment banking revenues.
While the bank booked more tepid growth in its Canadian personal, commercial and wealth businesses, profit in its U.S. commercial banking and wealth management unit jumped 35 per cent to $199-million. The U.S. region contributed 23 per cent of the lender’s earnings.
