Canadian Imperial Bank of Commerce or CIBC (CM,CM.TO) reported Wednesday a 26.3 percent rise in third-quarter profit, helped by improved volume growth in all segments and lower provision for credit losses. The company also raised its dividend, reportedly for the first time in four years.
Third-quarter net income was C$808 million, higher than last year's C$640 million. Earnings per share grew to C$1.89 from C$1.53 a year ago.
The latest quarter results included C$0.06 per share reduction in the general allowance, C$0.03 per share loss from the structured credit run-off business and C$0.03 per share premium paid on preferred share redemptions.
Cash earnings per share, which excluded these items, increased to C$1.91 from C$1.55 in the earlier year period. On average, 16 analysts polled by Thomson Reuters expected earnings per share of C$1.82 for the quarter. Analysts' estimates typically exclude one-time items.
Total revenue for the quarter increased to C$3.06 billion from C$2.85 billion in the previous year and matched Wall Street analysts' consensus estimate.
Retail and Business Banking revenues grew 3 percent to C$2 billion primarily due to solid volume growth in personal banking, including the acquired MasterCard portfolio, and higher fees, partially offset by narrower spreads, the company noted. Wealth Management and Wholesale Banking segments also posted strong revenue growth in the quarter.
Total net interest income rose 4 percent largely due to solid volume growth across most retail products, while net interest margin dropped to 1.72 percent from last year's 1.74 percent.
Non-interest income grew 11 percent, with gain in structured credit run-off business compared to losses last year.
Provision for credit losses dropped 12 percent to C$195 million mainly due to lower write-offs and bankruptcies in the credit card and personal lending portfolios.
CIBC President and Chief Executive Officer Gerry McCaughey stated, "We are very pleased with the solid results we delivered this quarter in what continues to be a challenging economic environment worldwide."
Further, CIBC's board declared a quarterly dividend of C$0.90 per share, an increase of 3 cents per share, payable on October 28 to shareholders of record on September 28.
Stating that both the Canadian and U.S. economies decelerated in the first half of calendar 2011, given higher gasoline prices and the Japanese quake impact, the company expects the U.S. economy to improve in the third quarter and Canada to see a pick-up in economic data.
Specifically, CIBC expects its Retail and Business Banking division to face slower growth in demand for mortgages and household credit, and modest improvements in demand for business credit.
Wealth Management could see a shift in investor interest towards safer, yield-bearing assets given recent volatility. Wholesale Banking should benefit from a healthy pace of bond issuance with governments remaining heavy borrowers and businesses taking advantage of low base interest rates on government bonds, it noted.
McCaughey said, "Our investment in American Century announced this quarter, and dividend increase announced today, reflect our confidence and underscore our commitment to growing CIBC, while maintaining prudent capital ratios."
CM closed Tuesday's regular trading session at $74.70, up $1.01 or 1.37 percent.
CM.TO settled at C$73.06, up C$1.16 or 1.61 percent.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.