CIBC posts 9% revenue growth in second quarter and increases dividend

Canadian Imperial Bank of Commerce CM CM announced an 8% year-over-year net profit decline in the second quarter to C$1.52 billionand adjusted net income decreased 1% year-over-year to C$1.65 billion.

Revenue increased 9% year-on-year to C$5.38 billion, net interest income increased 12% year-on-year to C$3.09 billion, and non-interest income interest reached C$2.29 billion (+5% year-on-year).

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.

The CET1 ratio was 11.7% as of April 30, 2022, compared to 12.2% at the end of the previous quarter. CIBC’s leverage ratio as of April 30, 2022 was 4.2%.

Canadian Personal and Commercial Banking reported net income of C$496 million (-18% YoY) and Capital Markets reported net income of C$540 million (+9% YoY) ).

Canadian Commercial Banking and Wealth Management reported net income of C$480 million (+20% YoY), U.S. Commercial Banking and Wealth Management reported 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% versus 17.3%.

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

Price action: CM shares are trading down 1.30% at C$69.19 on the TSX, and CM is down 1.17% at $54.12 on the NYSE when last checked on Thursday.

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