Update: Canadian Imperial Bank Of Commerce's Fiscal Q1 Adjusted Profit Falls, Revenue Rises; Maintains Quarterly Dividend; National Bank Takes First Look
09:49 AM EST, 02/29/2024 (MT Newswires) -- Canadian Imperial Bank Of Commerce (CM.TO) on Thursday reported fiscal first-quarter adjusted net income of $1.77 billion, or $1.81 per diluted share, down from $1.84 billion, or $1.94 per diluted share, a year earlier.
Analysts polled by Capital IQ expected $1.67.
Revenue for the quarter ended Jan. 31 was $6.22 billion, up from $5.93 billion a year earlier.
Analysts surveyed by Capital IQ expected $6.07 billion.
The reported return on common shareholders' equity for fiscal Q1 was 13.5% versus 3.1% a year earlier. Common Equity Tier 1 Ratio for the quarter was 13%, as compared with 11.6% a year earlier.
Provision for credit losses was $585 million, up $290 million from the same quarter last year.
Additionally, the company's board maintained its dividend of $0.90 per share on common shares for the quarter ending April 30. The dividend will be paid on April 29 to shareholders of record at the close of business on March 28.
Meanwhile, National Bank noted a "good, clean beat, with stable/good credit performance" from Canadian Imperial Bank Of Commerce in fiscal Q1.
National Bank said the company reported Q1 core cash EPS of $1.81 versus the NBF estimate of $1.74 and the consensus estimate of $1.66. "The beat versus our estimate was due to higher revenues (+$0.08) and lower PCLs (+$0.02) offset by higher expenses (-$0.02)," the analysts said.
Noting a positive impact, National Bank said all-bank net interest margin was up 6 basis points sequentially, with 2% positive operating leverage. National Bank also noted "better than expected" credit performance, including flat GILs and signs of improving CRE portfolio performance.
National Bank also said 13% CET 1 ratio was ahead of forecast.
National Bank has an outperform rating and a price target of C$71.
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