CIBC Q2 Profit More Than Triples, Tops Expectations; Shares Pop 3%

Shares of Canadian Imperial Bank of Commerce (CM) jumped 3% in early trading Thursday after Canada’s fifth-largest bank posted strong Q2 profits, driven by falling loan loss provisions and strong capital market results. CIBC earned C$3.59 per share on an adjusted basis, which was much higher than the consensus estimate of C$3.01 per share. Indeed, the Canadian bank only allocated C$32 million to new provisions in Q2, down from C$1.4 billion a year ago. In the Canadian commercial banking and wealth management unit, profit increased 94% year-on-year to C$399 million, as provisions for credit losses fell. Capital markets profit climbed to C$495 million from C$177 million in the same quarter last year.