Eli Unger
Canadian Imperial Bank of Commerce (NYSE:CM), known as CIBC, posted fiscal Q3 earnings that easily surpassed the consensus as earnings at its U.S. Commercial Banking and Wealth Management business more than doubled Q/Q and its provision for credit losses dropped more than expected.
The bank also said it expects to buy back up to 20M of its common shares, representing ~2.1% of its common shares outstanding as of July 31, 2024, under a normal course issuer bid.
CIBC (CM) stock increased 2.7% in Thursday premarket trading.
For the quarter ended July 31, 2024, the company’s adjusted EPS of C$1.93 (US$1.43), beating the Visible Alpha consensus of C$1.74, rose from C$1.75 in the prior quarter and C$1.52 in the year-ago period.
Q3 revenue of C$6.60B (US$4.91B), exceeding the C$6.24B Visible Alpha consensus, increased from C$6.16B in Q2 and C$5.85B in Q3 2023.
Net interest income, excluding trading, climbed to C$3.81B from C$3.44B in the previous quarter and C$3.34B a year ago.
Provision for credit losses of C$483M, less than the Visible Alpha consensus of C$547M, fell from C$514M in Q2 and C$736M in last year’s Q3.
Adjusted preprovision pretax earnings of C$2.94B grew from C$2.69B in the prior quarter and C$2.60B a year ago.
Noninterest expenses of C$3.68B increased/decreased from C$3.50B in Q2 and C$3.31B in Q3 2023.
Q3 adjusted return on equity was 14.0%, up from 13.4% in the prior quarter and 12.0% a year ago.
Adjusted net income by segment vs. prior quarter and a year ago:
- Canadian Personal and Business Banking: C$633M fell 3% Q/Q and rose 20% Y/Y.
- Canadian Commercial Banking and Wealth Management: C$468M, up 3% Q/Q and flat Y/Y.
- U.S. Commercial Banking and Wealth Management: C$163M jumped 101% Q/Q and 163% Y/Y.
- Capital Markets: C$476M, down 6% Q/Q and 4% Y/Y.
Conference call at 8:00 AM ET.
Earlier, Canadian Imperial Bank non-GAAP EPS of C$1.93, revenue of C$6.6B
