Toronto, May 28, 2026, 12:03 ET
CIBC shares tumbled Thursday after the Canadian lender topped quarterly profit forecasts but said it will sell most of its Caribbean unit for about US$1.6 billion. The stock lost 5.5% to C$150.72 at 11:38 a.m. ET in Toronto, near its low for the day, after starting at C$160.50. Trading income came in strong.
Canadian bank stocks have run up into earnings and now traders see less upside unless banks deliver more than a strong quarter. The S&P/TSX composite edged up 0.15% to 34,463.92 at 11:09 a.m. ET, but financials lagged, losing 0.88%. That drop came even as CIBC, Royal Bank of Canada and Toronto-Dominion Bank all beat profit estimates.
CIBC reported adjusted net income up 23% to C$2.47 billion, or C$2.54 per share, for the quarter ended April 30. The bank excludes some items, like acquisition-related intangible amortization, from its adjusted results. Revenue was up 14% to C$8.01 billion.
CIBC posted earnings of C$2.54 a share, beating the analyst average of C$2.44, according to Reuters and LSEG data. Still, the stock dropped. Investors appeared to set aside the earnings beat and focus on the staying power of the quarter’s main driver.
CIBC’s engine was its capital markets unit, which handles trading, financing and investment banking for corporate and institutional clients. Profit there reached C$792 million, up 40% from last year, lifted by gains in equities and fixed-income trading and better financing revenue, the bank said.
CIBC CEO Harry Culham said the bank posted “strong financial results” and called out a “resilient balance sheet” as it stuck to its client strategy. Return on equity rose to 16.4% from 13.8% a year ago. The Common Equity Tier 1 ratio hit 13.6%. Regulators use the CET1 number to measure how banks can handle losses. Media Centre
CIBC said it plans to sell its 91.67% holding in CIBC Caribbean to Bank of N.T. Butterfield & Son. The deal would bring CIBC US$1 billion in cash along with 52.1 million shares in Butterfield, leaving it with about a 22% minority stake after the deal closes. CIBC expects to close in the first half of 2027. The bank said the deal should add 24 basis points to its CET1 ratio.
CIBC is calling the sale a shift in capital toward North America. The bank also said Thursday it plans to repurchase up to 30 million common shares, or roughly 3.3% of shares outstanding, through a normal course issuer bid, pending approval from the Toronto Stock Exchange.
Domestic banking stayed strong. Canadian personal and business banking earnings climbed 15% to C$846 million. Profit in Canadian commercial banking and wealth management was up 12% at C$614 million. Net interest margin improved from last year.
Big Canadian banks mostly echoed each other: good earnings, macro still rough. RBC posted C$3.90 per share, analysts were looking for C$3.78. TD put up C$2.38, topping the C$2.26 estimate, and CIBC reported C$2.54 versus the C$2.44 expected, according to Reuters. TD CFO Kelvin Tran said the consumer “continues to be resilient.” RBC CEO Dave McKay told analysts uncertainty is still high. Reuters
But there’s a risk capital markets slow before credit stress lets up. Reuters said this week Canadian consumer insolvencies climbed about 26% from December to March. National Bank’s Gabriel Dechaine said “the onus falls” on capital markets again while credit losses remain high and margin growth could stall. CIBC’s provision for credit losses hit C$605 million, flat from last year, but provisions on impaired loans increased in parts of its Canadian division. Reuters
CIBC has shuffled its North American operations, broadening the responsibilities of its top executives in both Canadian and U.S. commercial banking and wealth management. That’s part of the backdrop to Thursday’s results: profits are up and capital is strong, but the market is questioning whether those numbers can hold up in the coming quarters.
