By Robb M. Stewart

Canadian Imperial Bank of Commerce reported a strong start to the fiscal year as it benefited from higher trading revenue and a rise in personal and business banking income thanks to loan growth and higher fees in its home market in the first quarter.

CIBC, one of the country's largest lenders, recorded net income attributable to equity holders of 2.16 billion Canadian dollars ($1.51 billion), or C$2.19 a share, for the three months ended Jan. 31, against C$1.72 billion, or C$1.77, a year earlier. On an adjusted basis that strips out amortization of intangible assets and other items, per-share earnings rose to C$2.20, ahead of the C$1.91 mean estimate of analysts polled by FactSet.

The bank recorded a provision for credit losses of C$573 million for the quarter, C$154 million higher than in the prior quarter but down C$12 million from the same quarter last year.

CIBC's credit-loss provision for performing loans was up on the quarter before and last year, due to what the bank said was a worsening economic outlook and the uncertainty tariffs could be imposed by the U.S. government. The provision on impaired loans was up on the previous period but down year-over-year due to lower provisions in its U.S. commercial banking and wealth management operations, and Canadian commercial banking and wealth management.

Net interest income for the period rose to C$3.80 billion from C$3.25 billion a year earlier, while noninterest income advanced to C$3.48 billion from C$2.97 billion. That left total revenue up 17% at C$7.28 billion, beating the C$6.87 billion analysts anticipated.

Canada's big banks have in recent days said clients have been spooked by the prospect of an escalating trade dispute with the U.S. as President Trump seeks to impose sweeping tariffs on even the U.S.'s closest trading partners.

That has clouded the outlook for Canada's economy, which the central bank has forecast should continue to see modest growth this year if a trade dispute is avoided. The Bank of Canada has lowered its policy interest rate six times since June, lowering borrowing costs and buoying spending by households that have been squeezed by a jump in the cost of living in recent years.

CIBC's common equity Tier 1 capital ratio stood at 13.5% for the three-month period, wider than the 13.3% at the end of the previous quarter. The country's banking regulator requires the big banks to hold a capital ratio of no less than 11.5% of risk-weighted assets.

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

(END) Dow Jones Newswires

February 27, 2025 06:32 ET (11:32 GMT)

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