CIBC's (TSX:CM) 3-Digit Q2 Profit Growth Charms Investors, Stocks Rise

3 min read | May 28, 2021 01:33 AM AEST | By Raza Naqvi

CIBC's (TSX:CM) 3-Digit Q2 Profit Growth Charms Investors, Stocks Rise — Image source: Freedomz, Shutterstock

CIBC (TSX:CM) Stock Performance

CM stock was trading at C$ 140.59 on the Toronto Stock Exchange (TSX) on Thursday morning (10AM EST).

In the past month, CIBC scrip soared by 10 per cent to outpace the TSX 300 Composite Index. It catapulted by 52 per cent in the past year and climbed 28.5 per cent year-to-date (YTD).

1-year chart of stock performance, volume and moving average exponential of CIBC (Source: EODHD/Others)

From 4.5 per cent adjusted return on equity (ROE) in Q2 FY20, CIBC’s ROE increased to 17.3 per cent in Q2 FY21. As per TMX, CIBC has a return on assets of 0.55 per cent and a price-to-earnings ratio of 15.

CIBC’s Q2 FY21 Earnings Report – Key Highlights

Like other top Canadian banks that have released their second fiscal quarter earnings reports this week, CIBC has kept its quarterly dividend unchanged for Q3 FY21 at C$ 1.46 per unit.

Its adjusted earnings per share (EPS) increased to C$ 3.59 in Q2 FY21 from C$ 0.94 in Q2 FY20. The bank’s total revenue climbed to C$ 4.9 billion in the latest quarter.

CIBC’s core segment, which is the personal and business banking division, saw a 270 per cent YoY surge in its second-quarter profit of C$ 603 million. Amid the housing sector boom in Canada, the bank's residential mortgage book soared to C$ 230 billion in Q2 2021, as compared to C$ 208 billion in Q2 2020.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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