Canadian Imperial Bank of Commerce (CIBC) shares plummeted 5.04% during Thursday's intraday trading session, marking a significant downturn for the financial institution.

The decline came despite the bank reporting stronger-than-expected fiscal second-quarter results, with adjusted earnings of CA$2.54 per diluted share beating analyst estimates of CA$2.46. Revenue for the quarter also increased to CA$8.01 billion from CA$7.02 billion a year earlier. Additionally, CIBC announced plans to purchase for cancellation up to 30 million shares, representing approximately 3.3% of its outstanding shares.

However, investor sentiment turned negative following CIBC's announcement that it agreed to sell its 91.7% stake in CIBC Caribbean Bank to Bank of N.T. Butterfield & Son for total consideration of approximately $1.6 billion. The transaction includes about $1 billion in cash and 52.1 million Butterfield common shares valued at $645 million. Market participants appeared concerned about the strategic implications of exiting the Caribbean market despite the earnings beat and share repurchase authorization.