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Canadian Imperial Bank of Commerce (NYSE:CM) Q2 earnings on Thursday has topped consensus estimates, bolstered by its Canadian Commercial Banking and Wealth Management and Capital Markets businesses.
Shares of CM are ticking up 0.9% in premarket trading.
Adjusted EPS of C$1.77 ($1.38) in the second quarter exceeded the average analyst estimate of C$1.72, but down from C$2.04 in Q1 and $1.79 in Q2 2021. Revenue of C$5.5B ($4.3B) in Q2 also beat the consensus of C$5.32B and gained from C$5.12B in the year-ago period.
Adjusted return on equity was 15.2% in Q2 vs. 17.6% in Q1 and 17.3% in Q2 of last year.
Net income for its Canadian Commercial Banking and Wealth Management segment was C$480M in Q2, up 20% from the year-ago quarter, driven primarily by higher revenue, partially offset by higher expenses and lower provision reversal.
Capital Markets net income for Q2 rose 9% to C$540M, helped by higher revenues, partially offset by higher expenses.
Still, its Canadian Personal and Business banking unit saw net income of C$496M in Q2, down 18% from Q2 a year ago, primarily due to a higher provision for credit losses and higher expenses, partially offset by higher revenue.
Provision for credit losses were C$303M in Q2, up C$271M from Q2 2021, highlighting the acquisition of the Canadian Costco credit card portfolio.
Earlier, Canadian Imperial Bank lifted its quarterly dividend to C$0.83 per share.
