CIBC’s Profitability Is one of the Weakest

However, despite worse overall income results, common equity Tier 1 ratio didn’t deteriorate that much

Eric Compton 28 May, 2020 | 8:20PM

CIBC ATM

Narrow-moat Canadian Imperial Bank of Commerce (CM), or CIBC, reported decent fiscal second-quarter results, all things considered. The economic strain of coronavirus related shutdowns weighed on results with provisioning up significantly, coming in at $1.4 billion versus a more normal range of $200 million-$400 million. This was the biggest factor driving the year-over-year decline in EPS of 68% to $0.94. Of the six Canadian banks we cover, CIBC had the worst decline in EPS. This was partially driven by the bank’s larger relative increase in provisioning. Revenue was up only 1%, while expenses were up 3%, which led to a pre-provision revenue decline of 4%, also one of the weaker results among peers.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

How will COVID-19 affect your portfolio?

Find out all you need to know here

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bank of Montreal77.98 CAD-0.01
Canadian Imperial Bank of Commerce99.75 CAD-1.68

About Author

Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies