Canadian Imperial Bank of Commerce (CIBC) (TSX:CM) reported fourth-quarter earnings on Thursday that exceeded analysts’ expectations, driven by strong growth in its capital markets operations and robust performance in its US commercial and wealth management units.
Revenue for the quarter rose 14% to C$7.58 billion, while adjusted net income climbed 16% to C$2.19 billion. Adjusted diluted earnings per share (EPS) also rose 16% to C$2.21, comfortably beating analyst estimates.
The bank announced a 10% increase to its quarterly dividend, raising it by C$0.10 to C$1.07 per share.
Shares rose 2.6% on the Toronto Stock Exchange following the announcement.
CIBC’s capital markets division led the gains, with net income up 58% year-on-year. US commercial banking and wealth management reported a 35% increase in net income, while Canadian commercial banking and wealth grew 9%. Canadian personal and business banking saw a more modest 1% increase in net income, as higher expenses partially offset strong top-line growth.
CIBC reaffirmed its medium-term financial targets. The bank reported FY25 adjusted EPS growth of 16%, significantly exceeding its target range of 7% to 10%, while adjusted return on equity came in at 14.4%, slightly below its 15% target. Management maintained guidance for the Corporate & Other segment, expecting a net loss between C$0 and C$50 million per quarter.
Analysts at Jefferies said they viewed the earnings favorably but added a note of caution. “While we view the earnings favourably, we note that CIBC did see an uptick in impaired loans, generating higher-than-expected provisions,” analysts wrote. “Credit concerns have caused some investor caution, which may limit (CIBC’s) upside.”