Banking giant closes out Big Six earnings
Canadian Imperial Bank of Commerce (CIBC) reported strong earnings to close out the third-quarter financial results of Canada’s leading banks, exceeding analyst estimates and lowering loan-loss provisions in Q3.
The bank said in a release on Thursday morning (August 29) that its adjusted net income had swelled to just under $1.9 billion, up 28% from the same time last year and 10% on a quarter-over-quarter basis, meaning adjusted earnings per share (EPS) came in at $1.93.
It set aside less money for potentially souring loans than analysts had expected, revealing loan loss provisions of $483 million – a significant drop from the $736 million reported in 2023’s third quarter.
The bank’s Canadian personal and business banking unit posted a strong quarter, seeing reported net income jump by 26% year over year, while a slight improvement was also seen on the commercial banking and wealth management side.
CIBC’s problems on the US commercial real estate front also appear to be easing. The bank said in a presentation to investors that the “majority of challenges” in its multibillion-dollar office portfolio had been met, with defaults set to stay “significantly reduced” looking ahead.
The banking giant, one of Canada’s traditional Big Six top lenders, followed Toronto-Dominion (TD) Bank, Bank of Montreal (BMO), Bank of Nova Scotia (Scotiabank), Royal Bank of Canada (RBC), and National Bank of Canada (NBC) in revealing its financial results for the third quarter.
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