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1. Company Snapshot

1.a. Company Description

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally.The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets.The company offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services.


It also provides day-to-day banking, borrowing and credit, specialty, investing and wealth, and international services; correspondent banking and online foreign exchange services; and cash management services.Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

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1.b. Last Insights on CM

The recent performance of Canadian Imperial Bank of Commerce (CM) has been negatively driven by heightened implied volatility in the options market, as investors have become increasingly cautious. This surge in volatility may indicate growing concerns about future earnings prospects, despite the company's strong Q1 2025 earnings beat, which saw revenue rise 17% and adjusted EPS increase 22%. Elevated expenses and trade tensions may be contributing to these concerns, and investors should closely monitor these factors in the coming months."

1.c. Company Highlights

2. CIBC Delivers Strong Fiscal 2025 with Double-Digit Growth Across Key Metrics

CIBC reported a robust fiscal 2025, with net earnings reaching $8.5 billion and earnings per share (EPS) of $8.61, representing a 17% and 16% increase, respectively. The bank's revenue grew by 14% to a record $29 billion, driven by double-digit growth across all business segments. The bank's adjusted return on equity (ROE) for the fourth quarter was 14.1%, up 70 basis points from the same quarter last year, indicating a strong profitability. The actual EPS came out at $2.2 relative to estimates at $2.08.

Publication Date: 08:01

📋 Highlights
  • Net Earnings & EPS Growth:: CIBC reported $8.5 billion net earnings (up 17%) and $8.61 EPS (up 16%) in fiscal 2025.
  • Record Revenue Expansion:: Total revenues hit $29 billion (+14%), driven by double-digit growth across all business segments.
  • CET1 Ratio & Dividend Increase:: CET1 ratio at 13.3%, with a 10% quarterly dividend hike to common shareholders announced.
  • Capital Markets Loan Growth:: Capital Markets business saw 22% YoY loan growth, driven by non-deposit-taking financial institutions.
  • Global Credit Financing Performance:: High-margin global credit financing business achieved ROE exceeding 20%, with low risk profiles.

Revenue Growth and Profitability

The bank's net interest income, excluding trading, increased by 14%, driven by continued balance sheet growth and expanding margins. Non-interest income rose by 15% to $3.4 billion, fueled by market-related fees and transaction-related fees. The bank's expense performance saw a 10% increase, partly due to investments and seasonal costs, but it plans to manage expense growth to mid-single digits in 2026.

Credit Quality and Capital Position

CIBC's credit quality remained resilient, with an impaired provision for credit losses (PCL) ratio of 33 basis points. The bank's Common Equity Tier 1 (CET1) ratio stood at 13.3%, and it announced a 10% increase in its quarterly dividend to common shareholders. The bank expects its CET1 ratio to be around 12.5% in the future, with a 100 basis point buffer above the regulatory minimum.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.88, CIBC's valuation appears reasonable compared to its peers. The bank's Dividend Yield stands at 3.08%, providing a relatively attractive income stream. Analysts estimate revenue growth at 6.4% for the next year. CIBC is expected to achieve an ROE above 15% in fiscal 2026, driven by EPS growth at the high end or higher than its 7% to 10% medium-term target range.

Strategic Focus and Growth Opportunities

CIBC's strategy remains focused on growing its mass affluent and private wealth franchise, digital-first personal banking, and leveraging its connected platform. The bank is investing in technology, including AI and digital capabilities, to drive growth and improve efficiency. The U.S. business is expected to continue growing, with elevated expenses normalizing in 2026. The capital markets business has seen exceptional loan growth, driven by the non-deposit-taking financial institutions business.

3. NewsRoom

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How CIBC’s Earnings Beat And 10% Dividend Hike At Canadian Imperial Bank of Commerce (TSX:CM) Has Changed Its Investment Story

Dec -06

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Company News for Dec 5, 2025

Dec -05

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Canadian Imperial Bank of Commerce (CM) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...

Dec -05

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Is CIBC (TSX:CM) Now Overvalued? Revisiting the Bank’s Valuation After Its Recent Share Price Surge

Dec -04

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TSX Closer: Sets Fresh Record Close On Improved Commodity Prices and Optimism Around Economy

Dec -04

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Netflix in lead for WBD bid, Canadian banks top earnings estimates

Dec -04

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Correction To TSX Closer: Up For the First Time This Week, Back To Near Last Friday's Record Close

Dec -04

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Update: CIBC Turns Negative in Premarket As Investors Digest Q4 Details; Bank Also Announced Senior Executive Leadership Changes

Dec -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.09%)

6. Segments

Canadian Personal and Business Banking

Expected Growth: 4.5%

The 4.5% growth in Canadian Personal and Business Banking at CIBC is driven by strong performance in mortgage lending, increased business deposits, and higher fee-based revenue from products like credit cards and investments. Digital transformation and enhanced customer experience have also contributed to the growth, attracting and retaining customers.

Canadian Commercial Banking and Wealth Management

Expected Growth: 5.2%

Canadian Commercial Banking and Wealth Management at CIBC grew 5.2% driven by strong loan growth, increased fee-based revenue, and higher investment assets. Business expansion, digital transformation, and enhanced customer experience also contributed to this growth. Additionally, strategic investments in technology and talent acquisition helped improve operational efficiency and competitiveness.

U.S. Commercial Banking and Wealth Management

Expected Growth: 5.5%

The 5.5% growth in U.S. Commercial Banking and Wealth Management at Canadian Imperial Bank of Commerce is driven by strong loan growth, increased client acquisition, and higher asset under management fees. The segment's performance is also supported by the bank's strategic investments in digital platforms and enhanced customer experience, leading to improved operational efficiency and revenue expansion.

Capital Markets

Expected Growth: 6.0%

The 6.0% growth in Capital Markets at Canadian Imperial Bank of Commerce is driven by strong performance in investment banking, robust trading volumes, and increased advisory fees. Improving market conditions and strategic investments in technology and talent have also contributed to this growth, enabling the bank to capitalize on emerging opportunities and expand its market share.

Corporate and Other

Expected Growth: 3.8%

The 3.8% growth in Corporate and Other segment of Canadian Imperial Bank of Commerce is driven by increased commercial lending, higher investment banking fees, and growth in foreign exchange and interest rate products, partially offset by lower loan fees and higher expenses.

7. Detailed Products

Personal Banking

Everyday banking services for individuals, including chequing and savings accounts, credit cards, mortgages, and personal loans

Business Banking

Financial services for small and medium-sized businesses, including cash management, payment processing, and commercial lending

Wealth Management

Investment and wealth management services for individuals and institutions, including brokerage, advisory, and asset management

Capital Markets

Investment banking and capital markets services, including corporate finance, equity and debt capital markets, and mergers and acquisitions

Credit Cards

A range of credit cards offering rewards, cash back, and other benefits

Mortgages

Residential and commercial mortgage products, including fixed and variable rate mortgages

Insurance

Life, health, and business insurance products, including term life, whole life, and disability insurance

8. Canadian Imperial Bank of Commerce's Porter Forces

Forces Ranking

Threat Of Substitutes

The Canadian Imperial Bank of Commerce (CIBC) faces a moderate threat from substitutes, as there are alternative financial institutions and non-bank financial service providers in the market. However, CIBC's strong brand presence and extensive network mitigate this threat.

Bargaining Power Of Customers

CIBC's customers have relatively low bargaining power due to the bank's large customer base and the fact that switching costs are relatively high. Additionally, CIBC's strong customer service and product offerings reduce customer churn.

Bargaining Power Of Suppliers

The bargaining power of suppliers to CIBC is relatively low, as there are many suppliers in the market and the bank has a large and diversified supplier base. Additionally, CIBC's significant market share and influence allow it to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants to the Canadian banking market is relatively low, due to the high barriers to entry, including regulatory requirements and the need for significant capital investment. CIBC's established brand and market presence further reduce this threat.

Intensity Of Rivalry

The Canadian banking market is highly competitive, with five major banks (including CIBC) competing for market share. The intensity of rivalry is high, with banks competing on price, product offerings, and customer service. CIBC must continually invest in its products and services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.02%
Debt Cost 23.65%
Equity Weight 21.98%
Equity Cost 10.31%
WACC 20.72%
Leverage 354.97%

11. Quality Control: Canadian Imperial Bank of Commerce passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CIBC

A-Score: 6.9/10

Value: 5.2

Growth: 5.2

Quality: 5.2

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Scotiabank

A-Score: 6.8/10

Value: 5.3

Growth: 4.9

Quality: 4.1

Yield: 9.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
JPMorgan Chase

A-Score: 6.7/10

Value: 5.3

Growth: 5.2

Quality: 6.5

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Citigroup

A-Score: 6.2/10

Value: 6.7

Growth: 4.7

Quality: 4.4

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Bank of America

A-Score: 6.2/10

Value: 5.6

Growth: 5.3

Quality: 5.0

Yield: 5.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Wells Fargo

A-Score: 6.1/10

Value: 5.9

Growth: 5.2

Quality: 5.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.15$

Current Price

126.15$

Potential

-0.00%

Expected Cash-Flows