The bank benefited from substantial recovery in its core operations
Canadian Imperial Bank of Commerce bounced back from the doldrums of the pandemic year with Q2 reported net income spiking by 321% annually to $1.651 billion and Q2 adjusted net income growing by 278% during the same timeframe to reach $1.666 billion.
As of the end of April 2021, CIBC’s Common Equity Tier 1 ratio was 12.4%, up from the previous quarter’s 12.3%. CIBC’s leverage ratio stood at 4.7%.
CIBC saw sustained strength across its core businesses. Canadian personal and business banking had a 270% annual gain in its reported net income to reach $603 million. This was mainly due to lower provisions for credit losses, the bank said.
Read more: CIBC reports strong fiscal Q1
As for CIBC’s commercial banking and wealth management operations, those had a 94% annual increase in reported net income to reach $399 million during the second quarter, “primarily due to lower provisions for credit losses and higher revenues across all businesses, partially offset by higher expenses.”
The bank’s cross-border operations enjoyed a strong performance, with its US commercial banking and wealth management business seeing 1,340% annual growth in its reported net income to reach $216 million.
CIBC Capital Markets reported net income of $495 million for the second quarter, up by 180% from the same time a year prior “primarily due to higher revenue and a lower provision for credit losses, partially offset by higher expenses.”
“Our strong performance in the second quarter of 2021 is a result of executing on our client-focused growth strategy,” said Victor Dodig, president and chief executive officer of CIBC. “We are delivering results by building on the momentum we have established in our Canadian consumer franchise, further accelerating our performance in areas where we have strength, and simplifying and transforming our bank to enable reinvestment for growth.”
