CIBC (CM) Q1 2025 earnings summary

Executive summary

• Delivered record Q1 results with revenues of CAD 7.3 billion, up 17% year-over-year, and adjusted EPS of CAD 2.20, up 22% year-over-year, supported by strong performance across all business units and a client-focused strategy.

• Achieved record net promoter scores in key Canadian banking segments, reflecting high client satisfaction, and launched European Canadian Depositary Receipts, expanding global investment access.

• Recognized for AI in client experience, sustainability leadership, and advancing gender equity, including being named to the Dow Jones Sustainability North America Index for the 20th consecutive year.

• Maintained robust risk management and capital position, navigating economic and political volatility, including trade tensions.

Financial highlights

• Revenue reached $7,281 million, up 17% year-over-year and 10% sequentially; adjusted net income was $2,179 million, up 23% year-over-year; reported net income was $2,171 million, up 26% year-over-year.

• Adjusted diluted EPS was $2.20, up 22% year-over-year; reported diluted EPS was $2.19, up 24% year-over-year.

• Adjusted pre-provision, pre-tax earnings were $3,415 million, up 19% year-over-year and 20% sequentially.

• CET1 ratio was 13.5%, up from 13.3% last quarter and 13.0% a year ago; liquidity coverage ratio was 132%.

• Provision for credit losses was $573 million, down $12 million year-over-year, but up $154 million sequentially.

Outlook and guidance

• Management expects continued positive operating leverage for the full year, with expense growth moderating and a focus on disciplined capital management.

• CET1 ratio anticipated to trend lower as client activity increases, but capital return to shareholders will continue.

• Credit normalization expected, with impaired PCLs guided to mid-30s basis points in the medium term; allowance coverage increased to 76 bps.

• Commercial banking loan and deposit growth expected to be mid-single digits for the remainder of the year; Canadian mortgage growth projected to rebound as rates fall.

• Ongoing volatility expected in the cross-border business environment, with risks from U.S. tariffs, high interest rates, and geopolitical conflicts.