Earnings Highlights and Review: CIBC’s Q2 Results Outshined Forecasts

Research Desk Line-up: Toronto-Dominion Bank Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily publishes post-earnings coverage on Canadian Imperial Bank of Commerce (NYSE: CM) (“CIBC”) following the Company’s posting of its financial results for the second quarter fiscal 2017 (Q2 FY17) on May 25, 2017. The Toronto, Ontario-based bank’s both reported and adjusted EPS rose 10% y-o-y. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Money Center Banks industry. Pro-TD has currently selected The Toronto-Dominion Bank (NYSE: TD) for due-diligence and potential coverage as the Company announced on May 25, 2017, its financial results for Q2 2017 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Toronto-Dominion Bank when we publish it.

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Earnings Reviewed

During the quarter ended March 31, 2017, CIBC’s total revenues came in at C$3.70 billion, up from C$3.63 billion in the year ago corresponding quarter. Meanwhile, the Company’s adjusted total revenues came in at C$3.83 billion in Q2 FY17 compared to C$3.70 billion in the last year’s comparable period.

The bank and financial services Company reported net income attributable to common shareholders of C$1.04 billion, or C$2.59 per diluted share, in Q2 FY17, which came in above C$926 million, or C$2.35 per diluted share, in Q2 FY16. Adjusted net income attributable to common shareholders for the reported quarter was C$1.06 billion, or C$2.64 per diluted share, versus C$947 million, or C$2.40 per diluted share, in the year ago same period. The quarterly adjusted net income numbers beat analysts’ expectations of C$2.57 per diluted share.

Performance Metrics

In Q2 FY17, CIBC’s return on average assets came in at 0.82% compared to 0.76% in the previous year’s comparable period. The Company’s adjusted return on common shareholders’ equity was 18.1% in Q2 FY17 versus 18.4% reported in the year ago same quarter. The bank’s adjusted efficiency ratio was 58.9% in Q2 FY17 compared to 58.0% in Q2 FY16. The bank’s net interest margin for the reported quarter stood at 1.63% compared to 1.65% in Q2 FY16.

As on March 31, 2017, the bank’s common equity tier 1 ratio was 12.2% compared to 10.4% as on March 31, 2016. Additionally, tier 1 capital ratio and total capital ratio stood at 13.5% and 15.4%, respectively at the end of Q2 FY17.

At the close of Q2 FY17, CIBC has total net loans and acceptances of C$330.75 billion compared to C$303.76 billion at the close of Q2 FY16. Total average deposits also grew to C$413.13 billion in Q2 FY 17 from C$368.71 billion in Q2 FY16. Furthermore, average interest-earning assets grew to C$475.07 billion from C$437.18 billion in the last year’s same quarter.

Segment Performance

For the reported period, Retail and Business Banking segment’s total revenues grew to C$2.23 billion from C$2.15 billion in Q2 FY16. The segment’s net income attributable to equity shareholders came in at C$647 million in Q2 FY17 versus C$652 million in the last year’s comparable quarter.

Wealth Management segment’s total revenue stood at C$659 million in Q2 FY17 compared to C$583 million in Q2 FY16. During the quarter, the segment recorded net income attributable to equity shareholders of C$154 million compared to C$113 million in Q2 FY16.

In Q2 FY17, Capital Markets segment’s revenue was C$733 million compared to C$750 million in Q2 FY16. Meanwhile, net income attributable to equity shareholders increased during Q2 FY17 to C$292 million from C$252 million in Q2 FY16.

Corporate and Other segment reported total revenue of C$81 million in Q2 FY17 compared to C$148 million in Q2 FY16. Meanwhile, the segment posted net loss attributable to equity shareholders of C$48 million in Q2 FY17 versus a net loss attributable to equity shareholders of C$81 million in Q2 FY16.

Dividend

In a separate press release on May 25, 2017, CIBC’s Board of Directors declared a dividend of C$1.27 per share on common shares for the quarter ending July 31, 2017, payable on July 28, 2017.

Stock Performance

At the closing bell, on Thursday, June 15, 2017, Canadian Imperial Bank of Commerce’s stock rose slightly by 0.16%, ending the trading session at $79.84. A total volume of 674.94 thousand shares were traded at the end of the day. In the last month and previous twelve months, shares of the Company have advanced 1.26% and 1.85%, respectively. Shares of the Company have a PE ratio of 8.98 and have a dividend yield of 4.72%. The stock currently has a market cap of $31.88 billion.

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