CIBC Reports 26% Net Income Jump, Credit Loss Provision Decline in Q1 2025
CIBC (TSX: CM) posted its fiscal Q1 2025 earnings results, highlighted by a 26% year-over-year jump in reported net income to $2.17 billion from $1.73 billion in Q1 2024 and a 15% jump from $1.88 billion in Q4 2024.
The bank’s revenue rose to $7.28 billion, representing a 17% increase compared to the same period last year and a 10% improvement over the fourth quarter of 2024. Management attributes these jumps to its diverse business platform, elevated client satisfaction scores, and a disciplined approach to capital deployment.
During the quarter, reported diluted earnings per share climbed to $2.19, a 24% increase from $1.77 in Q1 2024 and a 15% rise from $1.90 in Q4 2024. On an adjusted basis, earnings per share stood at $2.20, up from $1.81 a year ago and from $1.91 in the previous quarter.
Net interest margin on average interest-earning assets came in at 1.50%, compared to 1.43% in the first quarter of 2024, also managing to maintain the same 1.50% margin quarter over quarter.
In Personal and Business Banking, net income reached $765 million, a 7% increase from last year, driven by rising loan volumes and higher net interest margins, partly offset by higher credit losses. Commercial Banking and Wealth Management segment contributed $591 million to the quarterly net income, up from $523 million in Q1 2024.
The US Commercial Banking and Wealth Management segment recorded net income of $256 million, an increase year over year from a net loss of $8 million. This improvement was largely attributed to lower provision for credit losses as well as higher deposit and loan volumes.
In Capital Markets, net income reached $619 million, representing a 19% jump from last year’s $552 million.
CIBC’s Common Equity Tier 1 ratio grew to 13.5% from 13.0% a year ago and from 13.3% in the prior quarter, underscoring the bank’s solid capital position.
Contrarian to the industry, total provision for credit losses for CIBC declined to $573 million from $585 million in the same period last year.
As the bank also announced last quarter, it is declaring an increase in dividends to $0.97 per share on common shares payable on April 28, 2025, up from $0.90 per share in the prior period.
CIBC last traded at $86.78 on the TSX.
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