|Bid||94.21 x 0|
|Ask||94.23 x 0|
|Day's Range||93.96 - 94.51|
|52 Week Range||67.52 - 115.96|
|Beta (5Y Monthly)||0.94|
|PE Ratio (TTM)||8.40|
|Earnings Date||Aug 20, 2020 - Aug 24, 2020|
|Forward Dividend & Yield||5.84 (6.44%)|
|Ex-Dividend Date||Jun 26, 2020|
|1y Target Est||93.64|
Canadian banks' exposure to the beleaguered energy industry contributed to plunging profits in the second quarter, but investors said that as oil prices recover, the tenfold boost in loan-loss provisions lenders made from a year earlier may be enough to absorb any losses. Meanwhile, money set aside to cover energy loan losses rose to C$450 million ($330.37 million) at Canada's four biggest banks, from C$46 million a year earlier, according to Reuters calculations.
Canadian Imperial's (CM) second-quarter fiscal 2020 results indicate rise in provisions, expenses and lower non-interest income, partly offset by improved net interest income.
Canadian Imperial Bank of Commerce (CIBC) took a mark-to-market trading loss of C$88.2 million ($64 million) in one day in March due mainly to volatility in the gold market, the bank said in its second-quarter earnings report on Thursday. CIBC is not alone in being caught out when the coronavirus outbreak interrupted gold supply routes and gold futures prices in New York shot above London spot prices. CIBC said the loss happened on March 24 and was "mostly attributable to our precious metals trading business".
Canadian Imperial Bank (CM) delivered earnings and revenue surprises of -41.88% and -0.18%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
Investors and analysts are bracing for massive earnings declines at Canadian banks this fiscal year, after second-quarter profits halved as they set aside billions of dollars to cover loan losses from the coronavirus pandemic and a struggling energy sector. Market watchers warned that the nearly four-fold increase in provisions, to nearly C$11 billion ($8 billion), in the three months through April may not be adequate to absorb potential loan losses at some of the top six banks, with further increases likely to weigh on performance this year. "This was the most negative quarter that I can recall seeing in 25 years," said Brian Madden, a portfolio manager at Goodreid Investment Counsel.
Shares of Canadian Imperial Bank (NYSE:CM) were flat in pre-market trading after the company reported Q2 results.Quarterly Results Earnings per share decreased 68.61% over the past year to $0.70, which may not compare to the estimate of $2.27.Revenue of $3,415,000,000 decreased by 0.58% from the same period last year, which missed the estimate of $3,510,000,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Canadian Imperial Bank hasn't issued any revenue guidance for the time being.Details Of The Call Date: May 28, 2020View more earnings on CMTime: 08:00 AMET Webcast URL: https://bell.media-server.com/mmc/p/kxb6xum7Price Action Company's 52-week high was at $87.62Company's 52-week low was at $46.45Price action over last quarter: down 14.44%Company Description Canadian Imperial Bank of Commerce is Canada's fifth- largest bank, operating three business segments: retail and business banking, wealth management, and capital markets. It serves approximately 11 million personal banking and business customers, primarily in Canada.See more from Benzinga * Hamilton Lane: Q4 Earnings Insights * Recap: Dollar General Q1 Earnings * Recap: Dollar Tree Q1 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Canadian Imperial Bank of Commerce set aside more than five times than the amount it did a year earlier to prepare for the deteriorating financial health of households and businesses from the coronavirus pandemic and a plunge in oil prices.Canada’s banks are building reserves to prepare for pain resulting from pandemic-related shutdowns, and CIBC is no different. The Toronto-based lender had a record C$1.41 billion ($1.03 billion) in provisions for credit losses in the fiscal second quarter. Earnings missed analysts’ estimates.Key InsightsCanadian personal and small-business banking is under the new leadership of Laura Dottori-Attanasio, the one-time chief risk officer who took over CIBC’s biggest division just as the Covid-19 crisis began disrupting the economy. The domestic division earned C$203 million in the quarter, down 64% from a year earlier.Canada’s fifth-largest lender by assets has been pushing to get more earnings from the U.S. after buying boutique investment bank Cleary Gull Inc. last year and Chicago-based PrivateBancorp in 2017. CIBC earned C$18 million from U.S. commercial banking and wealth management in the quarter, down 89% from a year earlier. That compares with a 37% decrease for Canadian commercial banking and wealth management.Market volatility during the early days of the Covid-19 outbreak gave a boost to traders on both sides of the border, helping earnings in most banks’ capital-markets divisions. That didn’t pan out at CIBC Capital Markets, where earnings fell 52% to C$137 million, with a decline in trading revenue.Market ReactionCIBC shares have fallen 15% this year as of Wednesday’s close, compared with the 16% decline of the eight-company S&P/TSX Commercial Banks Index.Get MoreSecond-quarter net income fell 71% to C$392 million, or 83 cents a share. Adjusted per-share earnings of 94 cents missed the C$1.60 average estimate of 12 analysts in a Bloomberg survey.Read more about CIBC’s quarterly results here.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CIBC Declares Dividends for the Quarter Ending July 31, 2020
Canadian Prime Minister Justin Trudeau has spoken to the heads of the country's six big banks to get their views on the state of the economy and the COVID-19 relief efforts, the Globe and Mail reported on Sunday, citing multiple sources. This was Trudeau's first one-on-one dialogue with the CEOs since the beginning of the coronavirus outbreak, according to the report, which added that the calls took place around the Victoria Day long weekend. The topics covered included adjustments required in relief efforts rolled out by the government, need for further support and pressures faced by clients of the banks, the report said, adding that the talks were 'high-level check-ins rather than deep policy discussions'.
(Bloomberg) -- Canadian inflation went negative for the first time since the 2009 recession after the coronavirus lockdown put the brakes on the world economy.Consumer prices dropped 0.2% in April from the same month a year earlier, Statistics Canada reported Wednesday from Ottawa. That’s down from a 0.9% annual rate in March and 2.2% in February.The report adds inflation to the list of economic indicators showing an historic impact from the coronavirus pandemic. Collapsing gasoline prices have pulled inflation lower over the past two months, but weak demand should keep it at extremely low levels for an extended period. That could even spur worries about deflation and keep pressure off the Bank of Canada to ease up on accommodation efforts any time soon.“With the economy likely still underperforming if and when further restrictions are lifted, there will be an underlying drag on inflation that central bankers will need to offset with additional monetary easing,” Royce Mendes, an economist at Canadian Imperial Bank of Commerce, said in a note to investors.Gasoline prices continued to fall as demand remained low because of limited travel, business closures and a supply glut. In April, gasoline posted a 39.3% drop, marking the biggest year over year decline on record. Excluding gasoline, inflation rose 1.6% from the same period last year.Core inflation readings, which factor out volatile items like energy prices and are often seen as a better measure of underlying price pressure, declined to 1.8%, from 1.83% in the prior month, the lowest since January 2019.Consumers paid less for transportation, traveler accommodation, clothing and education but paid more for food and household cleaning products. Supply chain issues resulted in higher prices for beef and pork. The uptick in prices for household cleaning products and toilet paper is a result of increased demand.From March, prices fell 0.7%, matching the largest one-month drop since 2008. Excluding gasoline, inflation dipped 0.1% on the month.Statistics Canada also said it was unable to gather as much data as usual because in-person collection was suspended and some establishments were temporarily closed.(Updates with details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CIBC Innovation Banking is pleased to announce a $5 million growth capital financing with Toronto-based Sensibill Inc. ("Sensibill"), a provider of everyday tools such as digital receipt management and SKU-level data that help institutions better know and serve customers. Backed by Radical Ventures, Information Venture Partners, First Ascent Ventures and Impression Ventures, the company will use the funds to support its plans for strategic growth.
(Bloomberg) -- Canada’s financial system remains resilient even in the face of the Covid-19 pandemic and moves to keep credit markets functioning have been largely effective, though risks remain, according to the Bank of Canada.The country’s largest banks remain well capitalized even in the most pessimistic scenario, though some smaller lenders may struggle, and many businesses, especially in the energy sector, face higher funding costs and potential downgrades, the central bank said Thursday in its annual Financial System Review.Canada entered the crisis with strong banks, the protection of a robust mortgage insurance system and an economy in a solid position, the central bank said. “With these strengths, as well as the aggressive government policy response to the pandemic, the largest banks are in a good position to manage the consequences,” policy makers led by Governor Stephen Poloz said in the 39-page report that nevertheless outlines significant, across-the-board risks to the financial system.Small energy firms, lower-rated companies and some alternative lenders were singled out as potential flash points.It’s the central bank’s first comprehensive statement about the risks to Canada’s financial stability since the economy went into lockdown in mid-March. Since then, policy makers have expanded the bank’s balance sheet by about C$270 billion ($192 billion) in efforts to prevent credit markets from seizing up. Purchases of assets including government bonds, bankers acceptances and commercial paper have been successful and in many cases uptake has declined, the central bank said.Policy ResponseThe bottom line from the central bank is things would have been much worse without the massive monetary and fiscal response. Yet even with that response, the fallout from the economic shutdown will be worse than the 2008-2009 crisis, policy makers said, and the longer the crisis lasts, the worse things could become for households and businesses.“Overall, the Bank of Canada still sees the financial system as resilient. But the longer the economy remains tamped down, or if there are second waves of the virus once restrictions are eased, there could be further strains that require policy makers to take even more aggressive action,” wrote CIBC economist Royce Mendes in a note.Running the more pessimistic scenario from the April 15 Monetary Policy Report, which assumes a second-quarter economic contraction of 30%, the bank finds policy actions combined with payment deferrals limit the rise in mortgage arrears, with the rate of around 0.8% in the second half of 2021. That’s still almost double the peak rate in 2009.Since the Covid-19 shock, higher-risk Canadian firms are finding it difficult to tap U.S. leveraged loan markets, and some alternative lenders have suspended redemptions to cope with liquidity pressures. In addition, other small independent lenders which normally finance small firms “have reported challenging market conditions that, if persistent, could jeopardize the future of their business.”Alternative lenders, such as mortgage investment corporations, have become increasingly important for the provision of credit to households and small businesses, and now account for 1.5% of residential mortgage lending nationally.Households VulnerableThe bank acknowledges that many Canadian households face financial difficulty as jobs have been lost due to Covid-19. A significant share of the labor force is unemployed or underutilized and that will “continue for an unknown period.”The weakness in the labor market, along with physical distancing, have led to a decrease in housing activity. Both housing sales and listings are down sharply. Households may feel even more financially burdened if they are having difficult selling their homes. Most Canadian households see prices declining over the next six to 12 months.Highly indebted households will have a hard time managing income losses from lost employment. About 20% of all mortgage borrowers do not have enough liquid assets to cover two months of mortgage payments.Poloz downplayed concerns the central bank’s role in financing government spending could lead to a loss of its independence. “This government has been unwavering in its commitment to central bank independence throughout this,” Poloz said during a press teleconference in Ottawa. “We’ve behaved in ways which have been completely consistent with our inflation target. The key anchor to all that is the inflation target.”The governor, who steps down next month, cited the adage that central banks have the power to lend, while governments have the power to spend. “That distinction is crucial, and for us, the business of lending really only really has its power when people have confidence in the inflation target and therefore the independence of the central bank,” he said.“The objective is, in the first instance, market functioning. That’s crucial, because the monetary policy actions we’ve taken won’t go anywhere if financial markets were to stay gummed up as they were in early March.”(Updates with economist quote in eighth paragraph, Poloz comments in bottom three.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TORONTO , May 13, 2020 /CNW/ - CIBC announced today it is recognizing Canadian frontline health care workers who have sacrificed so much to keep us safe during COVID-19 by providing 30 million Aventura points to give these tireless workers a well-deserved break to recharge and reconnect with family. Nominations are open to all Canadians and can be made at CIBCHolidaysForHeroes.com.
TORONTO , May 7, 2020 /CNW/ - As the disruption caused by COVID-19 creates more pressure on Canadians and their finances, CIBC's support measures have now helped over 200,000 personal and small business banking clients with over $3 billion in improved cash flow through payment deferrals on mortgages, loans, and credit cards, and loans to small businesses through the Canada Emergency Business Account. To date, CIBC has provided relief measures on credit balances of $37 billion . "We understand that every measure of financial relief and advice during this difficult time makes a huge difference to our clients by giving them added cash flow and the confidence that they can manage through the near-term," said Laura Dottori-Attanasio , Senior Executive Vice-President and Group Head, Personal and Business Banking, CIBC.
Canadian Imperial Bank of Commerce’s asset-management arm halved its holdings for the pharmaceutical stock in the first quarter. It could buy even more shares of Apple and Microsoft.
TORONTO , May 4, 2020 /CNW/ - A new CIBC study finds that the majority (81 per cent) of Canadian small business owners say COVID-19 has negatively impacted their operations, and many (32 per cent) worry about the viability of their business over the next year. The majority (85 per cent) agree the uncertainty of how long COVID-19 measures will last is currently the hardest aspect to manage. Many business owners (54 per cent) say sales have dropped, and an additional 28 per cent have had to temporarily shut down operations altogether.
CIBC launches Advice for Today, an online resource focused on financial advice and insight during COVID-19