Canadian Imperial Bank of Commerce third-quarter earnings were buoyed by growth across the bank's segments in the latest quarter, as a rise in lending in Canada alongside strong market conditions and rise in client activity offered a tailwind.
CIBC, one of the country's largest lenders, recorded net income of 2.41 billion Canadian dollars ($1.74 billion), or C$2.47 a share, against C$2.1 billion, or C$2.15 a share, a year earlier. Growth was held back by one-time charges, including C$232 million related to the bank's sale of its Caribbean operation.
On an adjusted basis, per-share earnings jumped 26% to C$2.73, topping the C$2.53 mean estimate of analysts polled by FactSet.
Total revenue for the three months to July 31 increased 15% from last year to C$8.37 billion, above the C$8.06 billion analysts anticipated.
Return on equity, a measure of profitability and efficiency, widened to 15.2% from 14.2% a year prior and hit 16.8% on an adjusted basis for the latest quarter.
CIBC's provision for credit losses was reduced to C$564 million in the latest quarter from C$605 million the quarter before, though was up slightly from C$559 million a year earlier. Analysts were expecting a steeper C$629 million to be put aside against the risk of defaults.
CIBC's Canadian personal and business banking reported a 17% rise in net income thanks to higher revenue, though partially offset by an increase in non-interest expenses. Canadian commercial banking and wealth management income was up about 4%.
The U.S. commercial banking and wealth management segment notched a 23% rise in income due to a lower provision for credit losses and higher revenue, while CIBC's capital markets arm saw income increase 34% as the credit-loss provision for the segment also dropped.
Geopolitical and trade uncertainties continue to weigh on activity in Canada and other countries, while the conflict in the Middle East has boosted energy and other commodity prices and inflationary pressures.
In its report to shareholders, CIBC said that despite the recent escalation of trade tensions between Canada and the U.S., many Canadian commercial banking and corporate banking clients remain cautiously optimistic about their prospects and ability to navigate any new tariff. As a result, the bank said it expects continued loan growth in Canadian commercial banking and corporate banking for the remainder of 2026 that builds off the lowering of interest rates last year.
U.S. commercial banking activity has strengthened recently, which CIBC said was consistent with improved loan growth trends across the industry. The bank forecasts financial markets will benefit from continued lower short-term interest rates in both Canada and the U.S. Its Canadian and U.S. wealth management businesses have benefited from strong equity market performance, and it said corporate and investment banking is expected to continue to benefit from merger and acquisition activity.
The bank's common equity Tier 1 capital ratio stood at 13.4% at the end of July, steady on a year earlier but slightly narrower than the previous quarter's 13.6%.
The country's banking regulator requires the big banks to hold a capital ratio of no less than 11% of risk-weighted assets.
CIBC in May agreed to sell its almost 92% stake in CIBC Caribbean Bank to Bank of N.T. Butterfield & Son for about$1.65 billion, including shares representing an equity interest of roughly 22% in Butterfield.