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Summary
- Like the big six banks, Canadian Imperial Bank of Commerce also posted higher profits for the first fiscal quarter of 2020.
- The stock hit a new 52-week high during Thursday’s intraday trading.
- The lender stock has beaten its peers in the last one-year price performance with a return of 18.63 per cent.
Stocks of Canadian Imperial Bank of Commerce (TSX:CM) jumped by 1.25 per cent in the early trading hours of Thursday after it posted a higher profit for the first fiscal quarter of 2021. The bank registered a sharp drop in provisions for bad loans, which drove its quarterly earnings.
Joining the Canadian top six banks’ league, the lender’s profit soared 34 per cent year-over-year (YoY) to C$1.63 billion for the quarter. Its adjusted earnings per share were C$ 3.58, a jump of 10 per cent YoY from C$3.24 in Q1 FY20.
Profit from Canadian personal and business banking division climbed 13 per cent YoY to C$ 652 million.
The company’s provision for credit losses lowered to C$147 million against C$261 million in the prior quarter and C$211 million a year earlier.
Let us delve into this bank’s earnings in detail:
Canadian Imperial Bank of Commerce (TSX: CM)
Its capital market division earned a net income of C$ 493 million in Q1 FY21, an increase of 30 compared to the first quarter of fiscal 2020, due to higher revenue and lower provisions.
The credit quality improved by 44 per cent in the first fiscal quarter on a YoY basis. The bank’s bad loans were down across its strategic business units, because of a favorable shift in the economic outlook.
The lender has announced a quarterly dividend of C$ 1.46 per common share for the ongoing quarter. The stock has a dividend yield of approximately 5 per cent.
Image Source: Kalkine Group @2020
The blue-chip stock, with a market cap of C$ 53.23 billion, has outshined its peers in the last one year performance, returning 18.63 per cent. Like other constituents of the big six banks, this stock has also achieved a new 52-week high, which is C$ 119.31 per share.
It was trading ~76 per cent up against its 52-week low of C$ 67.52 around 11 am ET on Thursday, February 25.
