CIBC Raises Dividend After Rise in Quarterly Profit

By Robb M. Stewart

Canadian Imperial Bank of Commerce joined other big Canadian lenders in lifting its dividend after earnings in the fiscal fourth quarter were buoyed by growth in capital markets activities and commercial banking and wealth management operations.

CIBC recorded net income of 2.18 billion Canadian dollars ($1.56 billion), or C$2.20 a share, for the three months ended July 31, against C$1.88 billion, or C$1.90, a year earlier. On an adjusted basis that strips out amortization of intangible assets and other items, per-share earnings increased to C$2.21, beating the C$2.08 mean estimate of analysts polled by FactSet.

The result including a negative C$8 million in costs for amortization and impairment of acquisition-related intangible assets.

Total revenue was up 14% to C$7.58 billion from C$6.62 billion last year, topping the C$7.27 billion analysts anticipated.

CIBC's provision for credit losses rose to C$605 million in the latest quarter, from C$559 the quarter before and C$419 a year earlier. That was heftier than the C$548 million analysts expected to be put aside against the risk of defaults.

Excluding provisions and tax, earnings for the second quarter were C$198 million higher than the same period last year at C$1.58 billion, CIBC said.

Net interest income for the period increased 14% to C$4.13 billion, while non-interest income climbed %15 on last year to C$3.44 billion.

CIBC declared a dividend of C$1.07 a share for the coming quarter, an increase of C$0.10, or 10%. The dividend is payable on Jan. 28 to shareholders of record at the close of business Dec. 29.

The bank's common equity Tier 1 capital ratio stood at 13.3% for the three-month period. That was slightly narrower than 13.4% at the end of the third quarter but still well ahead of the no less than 11.5% of risk-weighted assets required by Canada's banking regulator.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

December 04, 2025 06:13 ET (11:13 GMT)