CIBC (CM) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $8.4 billion (up 15% year-over-year) and net income of $3.1 billion (up 43%), with adjusted EPS of $2.76 (up 25%) and reported EPS of $3.21 (up 47%).

• All business units delivered revenue and net income growth, with notable strength in Capital Markets and Canadian Personal and Business Banking.

• Return on equity reached 20.2% reported and 17.4% adjusted, with a CET1 ratio of 13.4%.

• Positive operating leverage for the 10th consecutive quarter, with efficiency ratio improving to 51.6% reported and 51.4% adjusted.

• Returned over 77% of earnings to shareholders via dividends and share buybacks, including repurchase of approximately 8 million shares.

Financial highlights

• Total revenue grew 15% year-over-year to $8.4 billion, with net income up 43% reported and 23% adjusted.

• Non-interest income rose 18% year-over-year, led by trading, advisory, and fee-based revenue.

• Expenses increased 12% year-over-year, mainly due to higher compensation and technology investments.

• Provision for credit losses was $568 million, down $5 million year-over-year and 6% sequentially.

• Adjusted pre-provision, pre-tax earnings reached $4,079 million, up 19% year-over-year.

Outlook and guidance

• Management expects continued positive momentum, supported by a diversified business model, proactive risk management, and stable to gradually increasing net interest margins.

• Credit performance is aligned with the full-year outlook, with prudent allowance levels maintained for ongoing economic uncertainties.

• Guidance for ROE to remain above 15%, with potential for further expansion.

• Canadian GDP growth forecast at 1.3% for 2026, U.S. GDP at 2.3%, and central bank rates expected to remain stable.

• Loan growth expected in commercial banking as trade uncertainty eases, with capital markets benefiting from strong equity markets and M&A activity.