Canadian Imperial Bank of Commerce
on Thursday beat analysts' expectations for fourth-quarter profit, led by growth in its capital markets segment.
CIBC's net income for the three months ended Oct. 31 was $2.18 billion, up 16 percent from $1.88 billion in the same quarter a year ago, resulting in net earnings per share of $2.20.
The company's adjusted net income (excluding the impact of one-time items) was $2.19 billion, compared with $1.89 billion last year, resulting in adjusted earnings per share of $2.21, beating analysts' expectations of about $2.08 per share.
The bank increased its quarterly dividend by 10 cents to $1.07 per share for the quarter ended Jan. 31, 2026.
“We achieved record financial performance in 2025,” CEO Harry Culham, who replaced Victor Dodig in November, said in a statement Thursday. “In a dynamic operating environment, our proactive and disciplined approach to managing our business, our strong capital position and our deep customer relationships have contributed to sustained growth.”
Bank of Nova Scotia and
also beat analysts' expectations for the fourth quarter this week.
Two of the three executives said economic uncertainty continued despite recent steps announced by the Canadian government to speed up key economic projects and reduce dependence on the United States, which has imposed tariffs.
CIBC's total provisions for credit losses (the amount of money banks set aside to address potentially bad loans) were $605 million in the fourth quarter, up $186 million, or 44 percent, from a year ago.
The bank's capital markets net income for the quarter increased 58 percent year-over-year, while net income in its U.S. commercial banking and wealth management segment increased 35 percent.
John Aiken, an analyst at Jefferies Inc., said CIBC reported “solid earnings” as both its commercial and wealth segments performed well.
“This offset somewhat disappointing results from domestic retail (higher provisions) and capital markets,” he said in a note. “While we are positive on earnings, we note that CIBC did see an increase in impaired loans, leading to higher-than-expected provisions. Loan issues have caused some investor caution.”
Mike Rizvanovich, an analyst at Bank of Nova Scotia, said in a note that CIBC's results were generally positive, but “the stock's upside potential today will be subdued given the market's sensitivity to any credit-related noise.”
• Email: [email protected]
