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CIBC signage outside CIBC Square on Bay St. in Toronto.Fred Lum/The Globe and Mail
Canadian Imperial Bank of Commerce CM-T added its name to the list of Big Six lenders that beat investor expectations with solid first-quarter results across multiple divisions.
The bank made $3.1-billion in the first quarter of its fiscal year, or $3.21 per share. After adjusting for one-time items, including a $422-million boost from an income tax gain, the bank made $2.7-billion, or $2.76 per share. Analysts expected adjusted earnings of $2.40 per share.
While Canada’s largest banks have routinely reported stronger-than-expected earnings this quarter, CIBC’s profit is notable because of the lender’s exposure to Canada. The bank has a heavier domestic focus than most rivals, and Canada’s economy has been hit by U.S. President Donald Trump’s trade war.
Canada’s population has also been shrinking, falling by 0.2 per cent in the third quarter of 2025, after the federal government tightened the rules on immigration.
Yet CIBC continued to deliver, reporting an adjusted return on equity of 17.4 per cent, which is quite high for the banking sector.
Looking forward, even though trade headwinds persist, including a renegotiation of the United States-Mexico-Canada Agreement (USMCA) this year, CIBC’s executives sounded quite optimistic on a conference call Thursday. The bank’s provisions for bad loans, or money put aside to cushion against defaults, even dropped in the first quarter, relative to the previous quarter.
Frank Guse, the bank’s chief risk officer, told analysts that “performance remains stable and resilient” and that CIBC’s leaders “remain confident in the overall strength” of the bank’s loan portfolios.
Royal Bank beats profit estimates on personal banking, wealth management earnings
CIBC also reported a stronger net interest margin, which is the difference between what it costs the bank to borrow money and what the bank earns from lending these funds out to clients. Chief financial officer Rob Sedran said some of this strength stems from a product shift. Mortgages, a low-margin market, have temporarily become less relevant amid a weak housing market, while other products, such as high-margin credit cards, have more relevance in the earnings mix.
During the first quarter, profit from Canadian personal and business banking, which delivers the largest share of CIBC’s net income, jumped 25 per cent from the same period one year ago to $960-million. Capital markets, the second-largest contributor, also delivered a strong quarter, with profit climbing 42 per cent higher to $877-millilon from the same period one year ago.
Earnings from Canadian commercial banking and wealth management rose nine per cent year-over year, while profit from U.S. commercial banking and wealth management rose 19 per cent over the same period.
The reporting period covers the first quarter of chief executive officer Harry Culham’s era. He assumed the role on Nov. 1.
