CIBC Clocks 9% Revenue Growth In Q2, Boosts Dividend

Canadian Imperial Bank of Commerce CM CM reported a second-quarter net income decline of 8% year-over-year to C$1.52 billion, and adjusted net income declined 1% Y/Y to C$1.65 billion.

The revenue increased by 9% Y/Y to C$5.38 billion, net interest income increased 12% Y/Y to C$3.09 billion, and non-interest income was C$2.29 billion (+5% Y/Y).

Adjusted EPS for the quarter was C$1.77, compared to C$1.79 in 2Q21.

The net interest margin was 1.44% versus 1.42% a year ago.

CET1 ratio was 11.7% at April 30, 2022, compared with 12.2% at the end of the prior quarter. CIBC's leverage ratio at April 30, 2022, was 4.2%.

Canadian Personal and Business Banking reported a net income of C$496 million (-18% Y/Y), and Capital Markets reported a net income of C$540 million (+9% Y/Y).

Canadian Commercial Banking and Wealth Management reported a net income of C$480 million (+20% Y/Y), U.S. Commercial Banking and Wealth Management reported a net income of C$180 million, down C$36 million from 2Q21.

Provision for credit losses was C$303 million versus C$32 million in 2Q21.

ROE for the quarter was 14% versus 17.1% in 2Q21, and adjusted ROE was 15.2% vs. 17.3%.

Dividend: CIBC increased its quarterly common share dividend from C$0.805 per share to C$0.830 per share for the quarter ending July 31, 2022. The dividend is payable on July 28, 2022, to shareholders of record on June 28, 2022.

Price Action: CM shares are trading lower by 1.30% at C$69.19 on TSX, and CM is lower by 1.17% at $54.12 on NYSE on the last check Thursday.

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