Canadian Imperial Bank of Commerce ( NYSE: CM ), known as CIBC, posted stronger-than-expected fiscal Q1 earnings on Friday, helped by higher interest rates and a lower provision for credit losses. By business segment, its Capital Markets unit grew against both the previous and year-ago quarters, and Canadian Commercial Banking and Wealth Management turned in solid results.
Q1 adjusted EPS of C$1.94 (US$1.43), exceeding the C$1.72 average analyst estimate, rose from C$1.39 in the prior quarter and dropped from C$2.04 in the year-ago period.
Revenue of C$5.93B for the three months ended Jan. 31, topping the C$5.74 consensus, increased from C$5.39B in Q4 and from C$5.50B in Q1 2022.
CIBC's ( CM ) provision for credit losses were C$295M vs. C$436M in Q4 and from C$75M in Q1 2022.
Net interest income of C$3.21B rose from C$3.19B in the prior quarter and from C$3.13B in the year-ago quarter. Net interest margin was 1.33%, flat with Q4 and down from 1.43% in Q1 2022.
Q1 non-interest expenses of C$4.46B increased from C$3.48B in the prior quarter and from C$3.02B a year earlier.
CIBC's ( CM ) Q1 adjusted return on equity was 15.5%, up from 11.2% in the prior quarter and down from 17.4% in the year-ago period.
Net income by segment vs. prior quarter and year-ago period:
- Canadian Personal and Business Banking: C$589M vs. C$471M and C$687M.
- Canadian Commercial Banking and Wealth Management: C$469M vs. C$469M and C$442M.
- U.S. Commercial Banking and Wealth Management: C$201M vs. C$161M and C$226M.
- Capital Markets: C$612M vs. C$378M and C$543M
Conference call at 8:00 AM ET.
Earlier, Canadian Imperial Bank non-GAAP EPS of C$1.94 beats by C$0.22, revenue of C$5.93B beats by C$210M
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CIBC fiscal Q1 earnings beat consensus, helped as rates rise, PCL falls