By Robb M. Stewart

Canadian Imperial Bank of Commerce's fiscal third-quarter earnings beat expectations thanks to a lower-than-anticipated credit-loss provision and strong growth across its core operations, including a jump in capital-markets income.

CIBC, one of the country's largest lenders, on Thursday said it recorded net income of 2.1 billion Canadian dollars ($1.52 billion), or C$2.15 a share, for the three months ended July 31, against C$1.8 billion, or $1.82 a share, a year earlier. On an adjusted basis that strips out amortization of intangible assets and other items, per-share earnings increased to C$2.16, topping the C$2.01 mean estimate of analysts polled by FactSet.

Total revenue was up 9.8% at C$7.25 billion, beating the C$7.05 billion analysts anticipated.

CIBC's provision for credit losses stood at C$559 in the latest quarter, up C$76 million on a year earlier but down by C$46 million from the prior quarter and in line with the C$559.5 million provision expected by analysts.

Excluding provisions and tax, earnings for the second quarter rose 12% to C$3.29 billion, CIBC said.

Net interest income for the period increased 15% to C$4.05 billion, while noninterest income was 4.4% higher at C$3.21 billion.

The bank said it plans to launch a share-buyback program for up to 2.2% of its outstanding shares over a one-year period. A notice of a planned normal course issuer bid will be filed with the Toronto Stock Exchange, it said.

The bank's common-equity Tier 1 capital ratio stood at 13.4% as of the end of July, unchanged from the end of the second quarter. The country's banking regulator requires the big banks to hold a capital ratio of no less than 11.5% of risk-weighted assets.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

August 28, 2025 06:14 ET (10:14 GMT)

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