Canadian Imperial Bank of Commerce CM-T -4.72%decrease
picked up more business from domestic clients and kept loan losses in check to continue the sector’s streak of third quarter profits that beat analysts’ expectations.
On Thursday, CIBC reported it earned $2.41-billion in the third quarter, or $2.47 per share, up 15 per cent from the same period in 2025.
The Toronto-based bank’s adjusted earnings were $2.65-billion or $2.73 per share. Analysts had forecast the bank would post adjusted earnings of $2.50-per share, according to data from the London Stock Exchange Group (LSEG).
“We continue to accelerate the execution of our strategy, driving another quarter of strong financial results including double-digit growth in net income and a higher return on equity compared to a year ago,” said Harry Culham, CIBC’s chief executive officer, in a press release.
“CIBC continued the trend of better-than-expected results, with each of its operating segments contributing to the beat,” said analyst John Aiken at Jefferies Financial Group in a report.
“While loan growth and efficiency gains were positive, the market’s reaction may be tempered by the reserve release and margin contraction in the U.S. segment,” said Mr. Aiken.
CIBC’s return on equity, a key measure of the bank’s financial performance, rose to 16.8 per cent, up from 14.2 per cent in the same period a year ago.
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CIBC highlighted the integration of artificial intelligence into its operations, rolling out a workspace system called CAI 2.0 that allows employees to delegate work to AI-driven agents.
“We’re investing in key enablers including artificial intelligence to empower our team, as we continue to modernize our bank, drive efficiency and sharpen our focus on our clients,” said Mr. Culham. In a conference call with analysts, Mr. Culham said the bank expects to continue expanding its workforce as it increases the use of AI, rather than replacing staff with technology, while making its employees more productive.
CIBC’s domestic growth strategy includes bulking up a wealth management platform that targets the mass affluent segment of the population. Rob Sedran, CIBC’s chief financial officer, said in a conference call the bank’s target is to double the size of this business, which has $360-billion of assets under management, over the next five years. This year, Mr. Sedran said the business is growing at a 10-per-cent clip.
Earlier this week, Bank of Montreal, Bank of Nova Scotia and National Bank of Canada reported financial results that exceeded expectations. Royal Bank of Canada and Toronto-Dominion Bank also release their quarterly performance on Thursday.
CIBC posted revenue growth in all of its lines of business units, including a 9 per cent increase in revenue at its Canadian personal and business division, the bank’s largest business. The division had adjusted earnings of $1.7-billion, up 18 per cent compared to last year.
The bank’s U.S. commercial and wealth management division earned US$277-million on an adjusted basis, up 10 per cent from the same period in 2025.
CIBC’s capital markets business had a strong quarter, continuing a trend seen at other domestic banks. Adjusted earnings were $977-million, up 24 per cent from the third quarter of 2025.
CIBC set aside $564-million for problem loans, in line with the $559-million provision for credit losses in the same period last year and down 7 per cent from the previous quarter.
CIBC is the latest domestic bank to report better-than-expected results against a backdrop of economic uncertainty due to Canada’s trade dispute with the U.S. On Tuesday, executives at Bank of Montreal and Bank of Nova Scotia said consumers and businesses are adjusting well to a challenging global trade environment.
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