By Ketki Saxena
Investing.com - Canadian Imperial Bank Of Commerce (TSX:CM) announced its 1st Quarter 2022 earnings this morning, smashing analyst expectations on both earnings and revenue.
The bank posted profits of $1.87 B or $4.03 per share this quarter, up a whopping 15% from $1.63 B or $3.55 per share in Q1 2021. Excluding items, CIBC reported an adjusted net income of $1.89 B $4.08 per share, compared to $1.64 B or C$3.58 per share in Q1 2021, and smashing analyst expectations of $3.67 earnings per share. First quarter revenue grew 10.8% year on year to $5.5 billion, up from $4.963 B in Q1 2021.
CIBC saw growth in all key segments, including Canadian Personal and Business Banking, which reported net income of $687 million, up $35 million or 5% from the first quarter a year ago. Canadian Commercial Banking and Wealth Management also grew to $462 million, up $108 million or 31% from the first quarter a year ago. The U.S. Commercial Banking and Wealth Management segment reported net income of $226 million for the first quarter, up $38 million from the first quarter a year ago. Capital Markets revenue also grew, despite expectations of volatility this past quarter, reporting net income of $543 million, up $50 million or 10% from the first quarter a year ago.
In a press release, CIBC also announced that its Board of Directors had approved a plan to split its shares on a two-for-one basis. CIBC also declared a quarterly dividend of C$1.61 per share, payable on April 28, to shareholders of record at the close of business on March 28, 2022.
YTD, CIBC stock has returned 5.1% total price return to shareholders and is trading at a P/E multiple of 11.6x. CIBC offers a 4.01%, annual dividend, paid quarterly - the second-highest of Canada’s big banks, after BNS.
CIBC and National Bank of Canada were the second and third of the Big Six Canadian banks to report earnings this season, before today’s opening bell. RBC kicked off the season yesterday morning. BMO and BNS report results on Tuesday next week, and TD (TSX:TD) will close out the season with its earnings call the upcoming Thursday.