02:37 PM EDT, 08/29/2024 (MT Newswires) -- National Bank has raised its target on CIBC to $86 (from $78) and kept its Outperform rating after the bank reported third quarter core cash EPS of $1.93 vs. NBF (and consensus) $1.74.
CIBC's better than expected third quarter results were underpinned by a strong credit performance. The bank reported a third consecutive quarter of declining losses and a second consecutive quarter of declining impaired loans in its U.S. Office CRE portfolio, notes analyst Gabriel Dechaine. This trend is not only an important sentiment booster, it provides a hedge against rising losses in other parts of the loan book considering that Office CRE PCLs represented roughly a third of impaired provisions in the prior four-quarter period.
The bank also reported a (slightly) stronger CET 1 ratio that, combined with a more supportive regulatory backdrop, enabled it to announce a share buyback program earlier than initially expected.
Price: 77.82, Change: +4.32, Percent Change: +5.88