Financial Results
Canadian, US Commercial, Wealth Results Improve At CIBC
Wealth management results in Canada and the US improved at CIBC in the three months to January 31.
Toronto-headquartered CIBC, the Canada-headquartered banking group, yesterday said its Canadian commercial banking and wealth management arm logged C$591 million ($409.6 million) in attributable income in the three months ended January 31, versus C$523 million a year before.
In Canadian wealth management, the increase in revenue was due to higher fee-based revenue from higher average assets under administration and assets under management balances as a result of market appreciation, higher commission revenue from increased client activity, and higher net interest income.
At the US commercial banking and wealth arm of CIBC, attributable net income stood at C$200 million, from a loss of C$8 million a year earlier. The shift was mainly caused by lower provision for credit losses, higher revenue, and lower expenses. Higher annual performance-based mutual fund fees helped boost results.
Across the whole of the bank, revenue rose to C$7.281 billion in the latest three-month period, from $6.221 billion, it said in a statement.
Provision for credit losses was C$573 million, down C$12 million from the same quarter last year. Provision for credit losses on performing loans was up primarily due to a worsening in the economic outlook including with respect to the uncertainty that tariffs could be imposed by the US government and model parameter updates in its retail portfolios. Provision for credit losses on impaired loans was down due to lower provisions in US commercial banking and wealth management, and Canadian commercial banking and wealth management, partially offset by higher provisions in other strategic business units.
The bank said its Common Equity Tier 1 ratio – a standard international shock absorber measure – was 13.5 per cent, up from 13 per cent.
(Canadian banks' quarterly reporting tends to follow a different pattern to the calendar year approach of most. The "first" quarter of 2025 for CIBC is three months to end-January 2025.)
