Canadian Imperial Bank of Commerce (CM:CA) (CM)
Q1 Earnings Report
Canadian Imperial Bank of Commerce (CIBC) reported a strong first-quarter profit of C$3.10 billion for the quarter ended January 31, up from C$2.17 billion a year earlier, driven by growth across all major divisions. CEO Harry Culham highlighted the bank’s focus on mass affluent and private wealth clients, digital-first personal banking in the U.S., and a connected platform linking commercial banking, wealth management, and capital markets teams, which boosted cross-business referrals by 23% in its U.S. franchise. U.S. capital markets revenue rose 39% with net income up 50%, contributing to a total capital markets profit of C$877 million. Canadian personal and business banking profits increased to C$960 million, and overall revenue grew to C$8.40 billion from C$7.28 billion. While delinquencies in credit cards and mortgages increased, provisions for credit losses fell slightly to C$568 million, and adjusted earnings rose to C$2.76 per share from C$2.20, reflecting CIBC’s strategic execution, diversified growth, and optimism for moderate economic expansion supported by trade and fiscal policy in 2026.
Analyst Updates
TD Securities maintained its Buy rating on Canadian Imperial Bank of Commerce with a 12-month target price of $142.00 per share. The firm’s stance reflects confidence in CIBC’s earnings durability, particularly its momentum in capital markets and wealth management, where trading activity and advisory revenues have remained firm. TD also sees support from stable net interest margins, ongoing expense discipline, and a well-capitalized balance sheet that provides flexibility to manage credit normalization. While provisions for credit losses may trend higher industry-wide, the bank’s diversified revenue base and solid CET1 ratio position it to navigate a moderating economic backdrop.
Scotiabank maintained its Sector Outperform rating on Canadian Imperial Bank of Commerce with a C$138.00 target price. The rating reflects CIBC’s competitive positioning among Canadian peers, supported by a balanced mix of personal and commercial banking, capital markets, and wealth operations. Scotiabank highlighted disciplined underwriting standards, prudent capital deployment, and improving operating leverage as key pillars of its outlook. The firm also views CIBC’s strategic focus on efficiency initiatives and cross-selling within its core Canadian franchise as constructive drivers of medium-term return on equity stability, even as macro risks and potential credit headwinds remain on the radar.
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