Capital markets and wealth management drive CIBC's first quarter beat
Canadian Imperial Bank of Commerce exceeded analyst expectations as it reported higher first-quarter profits than it did last year due to better performances in each of its business streams.
Net income for the three months ending Jan. 31 increased 26 per cent compared to the same period last year to $2.17 billion, resulting in net earnings per share of $2.19.
The bank’s adjusted earnings were $2.18 billion, up 23 per cent from a year ago, resulting in adjusted earnings per share of $2.20. Analysts had expected CIBC to earn $1.97 per share.
“We delivered another strong financial performance by continuing to execute on our client-focused strategy,” chief executive Victor Dodig said in a statement. “Our diversified business platform, robust capital position and strong credit quality give us the foundation to deliver for stakeholders in the year ahead, including support for our clients as we navigate the expected volatility in the cross-border business environment.
CIBC’s total provisions for credit losses (PCLs) — the amount of money banks keep aside to tackle potentially bad loans — was $573 million, down two per cent compared to last year but up 37 per cent from the fourth quarter of 2024.
The year-over-year increase in PCLs was primarily due to a worsening economic outlook, including the uncertainty linked to the tariffs, the bank said.
On Tuesday, the Bank of Montreal and Bank of Nova Scotia added a slight monetary cushion in case United States President Donald Trump imposes his planned 25 per cent tariffs on most Canadian products. But both banks expect to increase their PCLs further if he follows through on his threat.
CIBC reported net income of $765 million in its Canadian personal and business banking segment, up
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