Canadian Imperial Bank of Commerce (CM) Q3 2024 earnings summary

Executive summary

• Adjusted net income reached $1.9 billion, up 28% year-over-year, with adjusted EPS of $1.93, reflecting strong core results and a client-focused strategy.

• Revenue was $6.6 billion, up 13% year-over-year, with broad-based growth across all business segments.

• CET1 ratio improved to 13.3%, supporting organic growth and capital strength.

• Positive operating leverage achieved, with disciplined expense management and ongoing investment in strategic initiatives.

• Results were impacted by an $88 million tax charge from new federal tax measures and a $2 million FDIC special assessment.

Financial highlights

• Adjusted net income was $1.9 billion, up 28% year-over-year; revenues rose 13% to $6.6 billion.

• Adjusted diluted EPS rose 27% year-over-year to $1.93; reported EPS was $1.82, up 24%.

• Provision for credit losses was $483 million, down $253 million year-over-year, with allowance coverage remaining strong.

• Non-interest income grew 17% year-over-year, driven by trading and market-sensitive businesses.

• Expenses increased 11% year-over-year, mainly from higher compensation and investments.

Outlook and guidance

• Management expects business activity to pick up through 2025 amid further interest rate relief and stronger economic growth.

• Expense growth is expected to remain in the mid-single digit range, with a continued focus on positive operating leverage.

• Full-year guidance for impaired PCLs remains in the mid-30s basis points, with credit performance expected to remain healthy.

• Mortgage growth to remain subdued, with commercial and corporate loan growth expected to pick up in late 2024.

• Wealth management and capital markets to benefit from easing rates and improved market sentiment.