Canadian Imperial Bank of Commerce CM-T -0.30%decrease reported higher second-quarter profit that beat analysts’ estimates as the lender set aside lower-than-expected provisions for loans that could default and stronger activity in capital markets.

CIBC earned $2-billion, or $2.04 per share, up 15 per cent from the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $2.05 per share. That edged out the $1.90 per share analysts expected, according to S&P Capital IQ.

“We are navigating the volatility in the global business environment from a position of strength, supported by our robust capital position, disciplined risk management and strong credit quality,” CIBC chief executive officer Victor Dodig said in a statement.

In March, CIBC tapped head of capital markets Harry Culham as its next CEO in October.

CIBC is the fifth major Canadian bank to report earnings for the fiscal second quarter. Over the past week, Toronto-Dominion Bank, Bank of Montreal and National Bank of Canada posted results that beat analyst estimates,while Bank of Nova Scotia’s profit missed expectations. Royal Bank of Canada also releases results on Thursday.

Analysts expected Canada’s banks to continue grappling with higher loan loss reserves activity as U.S. President Donald Trump’s trade war threatens a deeper economic downturn.

In the quarter, CIBC set aside $605-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated, and included $142-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, CIBC set aside $67-million in provisions.

Total revenue rose 14 per cent in the quarter to $7-billion while expenses increased 9 per cent to $3.8-billion, which the bank said was driven higher performance-based compensation.More stories below advertisement

https://imasdk.googleapis.com/js/core/bridge3.697.0_en.html#fid=goog_1036621636

00:01 / 00:15

Profit from Canadian personal and business banking was $734-million, up 4 per cent from a year earlier, driven by higher revenue.

The Canadian commercial and wealth management division generated $549-million of profit, up 13 per cent on higher loan and deposit margins and fee income, as well as an increase in fee-based revenue from higher average assets under administration and assets under management.

Profit from the bank’s U.S. commercial banking and wealth management unit was up 79 per cent at $122-million, driven by higher revenue and a lower provision for credit losses.

Capital markets profit rose 20 per cent to $566-million on higher financing and trading revenue, corporate banking revenue and debt underwriting activity.

OPEC+ is discussing a mechanism for setting baselines for its 2027 production at a meeting on Wednesday, delegates said, while separate talks due on Saturday could agree a further accelerated oil output hike for July.

The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been discussing new baselines – production levels from which each member makes cuts or increases – for the past few years.

Baseline issues are controversial because some members such as the United Arab Emirates and Iraq have increased their oil production capacity, pressing the case for higher quotas, while others such as African members have seen declines.

The 22-member group on Wednesday may adopt a mechanism to help establish the baseline assessment for 2027, two of the delegates said. The Wednesday meeting will not change output policy, sources said while the talks were under way.

On Saturday, the eight OPEC+ members who are in the process of gradually raising output are set to meet and may agree an output hike for July of 411,000 barrels a day, the same as in May and June, the delegates said.

Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands

All sources declined to be identified by name due to the sensitivity of the matter.

OPEC+ has agreed three layers of output cuts since 2022. Two of these are in place until the end of 2026 and one is currently being unwound by the eight members.

The 2027 baselines in theory could feature in production policy when all output cuts currently in place expire.

Oil prices fell to a four-year low in April below $60 a barrel after OPEC+ said it was accelerating its output hike in May and as U.S. President Donald Trump’s tariffs raised concerns of global economic weakness. Since then it has recovered to about $65.

Earlier this month, sources told Reuters that the eight countries, in addition to an output hike for July, may unwind the remainder of the most recent cut by the end of October.

National Bank of Canada NA-T +3.45%increase reported second-quarter profit that beat analysts’ estimates on a boost from capital markets even as the lender ramps up provisions for bad loans.

National’s net income decreased by 1 per cent to $896-million, or $2.17 per share, in the three months that ended April 30.

Adjusted to exclude certain items, including acquisition and integration costs related to the acquisition of Canadian Western Bank, the bank said it earned $2.85 per share. That edged out the $2.40 per share analysts expected, according to S&P Capital IQ.

“In the context of continued geopolitical and geoeconomic uncertainty, our strong capital position allows us to support business growth,” National chief executive officer Laurent Ferreira said in a statement.

The bank raised its quarterly dividend by 4 cents to $1.18 per share.

National is the fourth major Canadian bank to report earnings for the fiscal second quarter. Bank of Montreal also released results Wednesday, posting profit that beat expectations.

Over the past week, Toronto-Dominion Bank posted results that beat analyst estimates and Bank of Nova Scotia missed expectations. Royal Bank of Canada and Canadian Imperial Bank of Commerce release results on Thursday.

Analysts expected Canada’s banks to continue grappling with higher loan loss reserves as U.S. President Donald Trump’s trade war threatens a deeper economic downturn.

In the quarter, National set aside $545-million in provisions for credit losses – the funds banks reserve to cover loans that may default. That was higher than analysts anticipated, and included $315-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, National reserved $138-million in provisions.

In the beginning of the quarter, National closed its takeover of Edmonton-based CWB, significantly expanding its footprint in Alberta and British Columbia. National is currently integrating Canada’s ninth-largest lender — a process that is driving up costs.

Total revenue rose 33 per cent in the quarter to $3.65-billion while expenses jumped 32 per cent to $1.94-billion.

Profit from Canadian personal and commercial banking was $132-million, down 58 per cent from a year earlier, driven by higher expenses due to the CWB takeover and a jump in provisions.

The wealth management division generated $232-million of profit, up 13 per cent, driven by higher fee-based revenues, net interest income and revenue from CWB.

Capital markets profit jumped 56 per cent to $501-million on a jump in trading revenue.

Bank of Montreal BMO-T +2.06%increase reported higher second-quarter profit that beat analysts’ estimates even as the lender set aside more money for loans that could default as tariff tensions weigh on Canadian consumers and businesses.

BMO earned $1.96-billion, or $2.50 per share, in the three months that ended April 30. That compared with $1.87-billion, or $2.36 per share, in the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $2.62 per share. That edged out the $2.55 per share analysts expected, according to S&P Capital IQ.

The bank raised its quarterly dividend by 4 cents to $1.63 per share.

BMO is the third major Canadian bank to report earnings for the fiscal second quarter. Over the past week, Toronto-Dominion Bank posted results that beat analyst estimates and Bank of Nova Scotia missed expectations. National Bank of Canada also reports Wednesday, and Royal Bank of Canada and Canadian Imperial Bank of Commerce release results on Thursday.

Analysts expected Canada’s banks to continue grappling with higher loan loss reserves and lower borrowing activity as U.S. President Donald Trump’s trade war threatens a deeper economic downturn.

In the quarter, BMO set aside $1.05-billion in provisions for credit losses – the funds banks reserve to cover loans that may default. That was higher than analysts anticipated, and included $289-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.

Rising risk in Canadian commercial banking and Canadian unsecured consumer lending drove the increase in provisions.

In the same quarter last year, BMO reserved $705-million in provisions.

Total revenue rose 9 per cent in the quarter to $8.68-billion while expenses increased 4 per cent to $5.02-billion, driven by employee-related and technology costs.

Profit from Canadian personal and commercial banking was $782-million, down 10 per cent from a year earlier as higher expenses and provisions for credit losses offset an increase in revenue. But loan balances were up 6 per cent year over year.

Profit from the bank’s U.S. arm edged higher to $546-million, partially offset by higher provisions and lower non-interest revenue due to the sale of a U.S. credit card portfolio.

The wealth management division generated $361-million of profit, up 13 per cent as stronger global markets activity boosted revenue.

And capital markets profit fell 6 per cent to $431-million as higher expenses and provisions offset a revenue boost in global markets.

• U.S. President Donald Trump called last week for a 50% tariff on EU goods to begin on June 1, but has since delayed the roll out of the duties to July 9.
• European stocks rebounded Monday morning, moving into positive territory, after previously sinking on Friday in response to Trump’s fresh tariffs threats.
• However, market watchers warned that the threat of tariff escalation between the U.S. and the EU is not yet over.

https://www.cnbc.com/2025/05/26/trump-delays-eu-tariffs-but-more-volatility-could-be-on-the-way.html

Monday May 26

U.S. markets closed (Memorial Day)

(8:30 a.m. ET) Canadian construction investment for March.

(8:30 a.m. ET) Canadian manufacturing sales for March.

–

Tuesday May 27

China industrial profits

Euro zone economic and consumer confidence

(8:30 a.m. ET) Canadian wholesale trade for April

(8:30 a.m. ET) U.S. durable goods orders for April. The Street is projecting a drop of 8.2 per cent from March.

(9 a.m. ET) U.S. S&P CoreLogic Case-Shiller Home Price Index for March.

(9 a.m. ET) U.S. FHFA House Price Index for March.

(10 a.m. ET) U.S. Conference Board Consumer Confidence Index for May.

Earnings include: Bank of Nova Scotia.

–

Wednesday May 28

Germany employment

(2 p.m. ET) U.S. Fed minutes released.

Earnings include: Bank of Montreal; Champion Iron Ltd.; EQB Inc.; HP Inc.; National Bank of Canada; Nvidia Corp.; Salesforce Inc.

–

Thursday May 29

Japan consumer confidence

(8:30 a.m. ET) Canada’s current account balance for Q1.

(8:30 a.m. ET) Canada’s Survey of Employment, Payrolls and Hours for March.

(8:30 a.m. ET) U.S. initial jobless claims for the week of May 24.

(8:30 a.m. ET) U.S. Real GDP for Q1. The Street currently expects a decline of 0.3 per cent year-over-year.

(10 a.m. ET) U.S. pending home sales for April.

Earnings include: BRP Inc.; Canadian Imperial Bank of Commerce; Dell Technologies Inc.; Lululemon Athletica Inc.; Marvell Technology Inc.; Royal Bank of Canada.

–

Friday May 30

China PMI

Japan CPI, industrial profits and retail sales

(8:30 a.m. ET) Canada’s Real GDP for Q1. Estimate is a rise of 1.5 per cent (compared to a 2.6-per-cent gain a year ago).

(8:30 a.m. ET) Canada’s monthly Real GDP for March. Estimate is an increase of 0.1 per cent (versus a decline of 0.2 per cent in the previous month).

(8:30 a.m. ET) U.S. personal income and consumption for April. The Street is projecting month-over-month gains of 0.3 per cent and 0.2 per cent, respectively.

(8:30 a.m. ET) U.S. retail and wholesale inventories for April.

(9:45 a.m. ET) U.S. Chicago PMI for May.

(10 a.m. ET) U.S. University of Michigan Consumer Sentiment Index for May.

Earnings include: Canopy Growth Corp.; Costco Wholesale Corp.; Laurentian Bank of Canada

Bank of Nova Scotia BNS-T +0.07%increase reported lower second-quarter profit that missed analysts’ estimates as the lender set aside more provisions for loan defaults as the U.S. trade war puts pressure on consumers and businesses.

Scotiabank earned $2.03-billion, or $1.48 per share, in the three months that ended April 30. That compared with $2.09-billion, or $1.57 per share, in the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $1.52 per share. That fell below the $1.57 per share analysts expected, according to S&P Capital IQ.

In the quarter, Scotiabank set aside $1.4-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That was higher than analysts anticipated, and included $346-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, Scotiabank posted $1-billion in provisions.

“Amidst the continuously-evolving economic outlook, we are focused on what we can control and are executing on our strategic plan while continuing to deliver positive operating leverage,” Scotiabank CEO Scott Thomson said in a statement. “This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook.”

Analysts expected Canada’s banks to continue grappling with higher loan loss reserves and lower borrowing activity as U.S. President Donald Trump’s trade war threatens a deeper economic downturn.

The bank raised its quarterly dividend by 4 cents to $1.10 per share. Scotiabank also said it plans to buy back 20 million of its shares.

Scotiabank is the second major Canadian bank to report earnings for the fiscal second quarter. Last week, Toronto-Dominion Bank posted results that beat analyst estimates. Bank of Montreal and National Bank of Canada report Wednesday, and Royal Bank of Canada and Canadian Imperial Bank of Commerce release results on Thursday.

Total revenue rose 9 per cent in the quarter to $9.08-billion. But expenses increased 8 per cent to $5.11-billion, which the bank said was driven by higher technology and professional fees, personnel costs, and performance and stock-based compensation.

Profit from Canadian banking dropped 31 per cent to $613-million as the bank set aside more provisions for performing loans. Loan balances were up 4 per cent year over year.

Profit from the bank’s international division was up 6 per cent, at $676-million, driven by higher non-interest income, lower expenses, provision for credit losses and income taxes.

Capital markets profit rose 10 per cent to $413-million on a boost in trading revenue. The global wealth management division generated $399-million, up 17 per cent.

The Conference Board released a report on Monday showing its reading on leading U.S. economic indicators slumped by more than expected in the month of April.

The report said the leading economic index tumbled by 1.0 percent in April after sliding by a downwardly revised 0.8 percent in March.

Economists had expected the leading economic index to decrease by 0.8 percent compared to the 0.7 percent drop originally reported for the previous month.

“The U.S. LEI registered its largest monthly decline since March 2023, when many feared the US was headed into recession, which did not ultimately materialize,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board.

“Most components of the index deteriorated,” she added. “Notably, consumers’ expectations have become continuously more pessimistic each month since January 2025, while the contribution of building permits and average working hours in manufacturing turned negative in April.”

Meanwhile, the Conference Board said its coincident economic index inched up by 0.1 percent in April after rising by 0.3 percent in March.

The report said the lagging economic index also rose by 0.3 percent in April after edging down by 0.1 percent in the previous month.

Australia’s central bank lowered its benchmark rate by a quarter-point for the second time this year as risks to inflation became more balanced, while uncertainties regarding economic outlook increased due to trade protectionism measures.

The policy board of the Reserve Bank of Australia, governed by Michele Bullock, decided to cut the cash rate target to 3.85 percent from 4.10 percent.

The current rate was the lowest in two years. Previously, the bank had reduced the rate by 25 basis points in February, which was the first cut since 2020.

The board judged that the risks to inflation became more balanced. Inflation reached the target band and upside risks appear to have diminished as international developments are set to weigh on the economy, the board observed.

“The Board assesses that this move will make monetary policy somewhat less restrictive,” the bank said.

Further, policymakers observed that the monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation.

Headline inflation is forecast to rise over the coming year to around the top of the band as temporary factors unwind and underlying inflation is projected to be around the midpoint of the 2-3 percent range throughout much of the forecast period.