CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM): Financial results for Q3 2026
CANADIAN IMPERIAL BANK OF COMMERCE /CAN/ (CM) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 CIBC Announces Third Quarter 2026 Results Toronto, ON – August 27, 2026 – CIBC (TSX: CM) (NYSE: CM) today announced its financial results for the third quarter ended July 31, 2026. Third quarter highlights Q3/26 Q3/25 Q2/26 YoY Variance QoQ Variance Revenue $8,368 mi
How this was made
The 30-second read
Why it matters
The earnings beat and improved adjusted EPS suggest a bullish outlook, but the $0.26 per share charge from the Caribbean bank sale tempers enthusiasm.
Market read
CIBC's earnings are a primary driver for Canadian banking stocks and may influence investor sentiment toward the sector.
What to watch
The modest decline in CET1 ratio and leverage ratio may warrant closer monitoring of capital adequacy.
CIBC reported Q3/26 revenue of $8,368 million, reported net income of $2,409 million and adjusted net income of $2,648 million.
Revenue increased +15% year over year and +5% sequentially, while adjusted net income and adjusted diluted EPS each increased +26% year over year and +7% sequentially. All four operating segments reported higher year-over-year net income, and the bank reported a 13.4% CET1 ratio.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $8,368 million | +5% | +15% |
| Adjusted total revenuenon-GAAP | $8,370 million | – | – |
| Provision for (reversal of) credit lossesGAAP | $564 million | – | – |
| Non-interest expensesGAAP | $4,685 million | – | – |
| Adjusted non-interest expensesnon-GAAP | $4,408 million | – | – |
| Income before income taxesGAAP | $3,119 million | – | – |
| Adjusted income before income taxesnon-GAAP | $3,398 million | – | – |
| Income taxesGAAP | $710 million | – | – |
| Net incomeGAAP | $2,409 million | -2% | +15% |
| Adjusted net incomenon-GAAP | $2,648 million | +7% | +26% |
| Common shareholdersGAAP | $2,271 million | – | – |
| Adjusted common shareholdersnon-GAAP | $2,510 million | – | – |
| Reported diluted EPSGAAP | $2.47 | -2% | +15% |
| Adjusted diluted EPSnon-GAAP | $2.73 | +7% | +26% |
| Reported return on common shareholders’ equityGAAP | 15.2% | – | – |
| Adjusted return on common shareholders’ equitynon-GAAP | 16.8% | – | – |
| Net interest margin on average interest-earning assetsother | 1.63% | – | – |
| Net interest margin on average interest-earning assets (excluding trading)other | 2.07% | – | – |
| Adjusted pre-provision, pre-tax earningsnon-GAAP | $3,962 million | +4% | +20% |
| Common Equity Tier 1 (CET1) Ratioother | 13.4% | – | – |
| Leverage ratioother | 4.3% | – | – |
| Liquidity coverage ratioother | 127% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Canadian Personal and Business BankingHigher revenue was mainly driven by higher net interest margin and loan growth. Reported and adjusted non-interest expenses were higher mainly due to higher spending on technology and other strategic initiatives and employee-related compensation. | $3,344 million | – | – |
| Canadian Commercial Banking and Wealth ManagementCommercial banking revenue was higher compared to the prior year due to higher net interest margin and volume growth. In wealth management, revenue increased from higher fee-based revenue, higher commission revenue and higher net interest income. | $2,037 million | – | – |
| U.S. Commercial Banking and Wealth ManagementCommercial banking revenue was higher primarily due to volume growth and higher net interest margin. Wealth management revenue was comparable with the same quarter last year. | $863 million | – | – |
| Capital MarketsGlobal markets revenue was up primarily driven by higher equity trading and financing revenue. Corporate and investment banking revenue was up primarily due to higher revenue from lending and deposit activities with corporate clients, partially offset by lower advisory and equity underwriting revenue. | $1,834 million | – | – |
| Corporate and OtherThe filing provides no narrative revenue driver for Corporate and Other. | $290 million | – | – |
What drove it
- Canadian Personal and Business Banking net income was $948 million, up $136 million or 17% from the third quarter a year ago, primarily due to higher revenue, partially offset by higher non-interest expenses.
- Canadian Commercial Banking and Wealth Management net income was $619 million, up $21 million or 4% from the third quarter a year ago, primarily due to higher revenue, partially offset by higher non-interest expenses and a higher provision for credit losses.
- U.S. Commercial Banking and Wealth Management net income was $320 million, up $66 million or 23% from the third quarter a year ago, primarily due to a lower provision for credit losses and higher revenue, partially offset by higher non-interest expenses.
- Capital Markets net income was $722 million, up $182 million or 34% from the third quarter a year ago, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses.
- The current quarter included a provision reversal on performing loans due to a favourable change in the economic outlook and an allowance release related to a sale of a number of commercial real estate loans in the U.S.
Concerns
- Results were affected by $269 million ($232 million after-tax) of charges related to the announced sale of CIBC Caribbean Bank Limited.
- Results were affected by $10 million ($7 million after-tax) amortization of acquisition-related intangible assets.
- Provision for credit losses on impaired loans was up mainly due to higher provisions in Canadian Commercial Banking and Wealth Management, Canadian Personal and Business Banking, and Capital Markets.
- Reported and adjusted non-interest expenses increased in several business lines due to employee-related compensation and spending on technology and other strategic initiatives.
- CET1 ratio was 13.4% at July 31, 2026, compared with 13.6% at the end of the prior quarter.
What to watch
- The trajectory of net interest margin on average interest-earning assets, reported at 1.63%, and excluding trading, reported at 2.07%.
- Provision for credit losses on impaired loans, which increased mainly in Canadian Commercial Banking and Wealth Management, Canadian Personal and Business Banking, and Capital Markets.
- The financial impact and completion of the announced sale of CIBC Caribbean Bank Limited.
- Expense growth related to technology, strategic initiatives and employee-related compensation.
- Capital Markets revenue mix, including equity trading and financing revenue, lending and deposit activities, advisory revenue and equity underwriting revenue.
Balance sheet and cash flow
- Common Equity Tier 1 (CET1) Ratio was 13.4% at July 31, 2026, compared with 13.6% at the end of the prior quarter.
- CIBC’s leverage ratio at July 31, 2026 was 4.3%.
- CIBC’s liquidity coverage ratio at July 31, 2026 was 127%.
Analysis
CIBC delivered broad-based Q3/26 earnings growth. Revenue was $8,368 million, up +15% from Q3/25 and +5% from Q2/26. Reported net income was $2,409 million, up +15% year over year but down -2% sequentially, while adjusted net income was $2,648 million, up +26% year over year and +7% sequentially. Reported diluted EPS was $2.47 and adjusted diluted EPS was $2.73.
All four operating businesses recorded higher year-over-year net income. Canadian Personal and Business Banking generated $948 million, with higher net interest margin and loan growth supporting revenue. Canadian Commercial Banking and Wealth Management generated $619 million, supported by commercial-banking margin and volume growth as well as wealth-management fee, commission and net-interest-income growth. U.S. Commercial Banking and Wealth Management earned $320 million, aided by a lower provision for credit losses and higher commercial-banking revenue. Capital Markets produced $722 million as higher equity trading, financing, lending and deposit activity more than offset lower advisory and equity underwriting revenue.
Margins remained above the year-ago levels shown in the release. Net interest margin on average interest-earning assets was 1.63%, compared with 1.58% in Q3/25, though below 1.67% in Q2/26. The excluding-trading measure was 2.07%, compared with 1.94% a year earlier and 2.05% in the prior quarter. Reported ROE was 15.2%, compared with 14.2% a year ago and 16.4% in Q2/26; adjusted ROE was 16.8%.
Credit costs were $564 million, compared with $559 million in Q3/25 and $605 million in Q2/26. The quarter included a provision reversal on performing loans from a favourable economic-outlook change and an allowance release associated with the sale of certain U.S. commercial real estate loans. These benefits were partially offset by unfavourable credit migration, while impaired-loan provisions increased mainly in Canadian Commercial Banking and Wealth Management, Canadian Personal and Business Banking and Capital Markets. Non-interest expenses were $4,685 million, and adjusted non-interest expenses were $4,408 million, with technology, strategic initiatives and compensation cited as expense drivers.
Reported results included $269 million of charges, or $232 million after tax, related to the announced sale of CIBC Caribbean, plus $10 million of amortization, or $7 million after tax, of acquisition-related intangible assets. The items produced a negative impact of $0.26 per share. CIBC reported a CET1 ratio of 13.4%, down from 13.6% at the end of the prior quarter, alongside a 4.3% leverage ratio and 127% liquidity coverage ratio. The release provided no forward financial guidance, dividend declaration, share-repurchase activity, cash balance, debt balance, operating cash flow or free cash flow.
Management, verbatim
We continue to accelerate the execution of our strategy, driving another quarter of strong financial results including double-digit growth in net income and a higher return on equity compared to a year ago.
Harry Culham, CIBC President and Chief Executive Officer
We’re investing in key enablers including artificial intelligence (AI) to empower our team, as we continue to modernize our bank, drive efficiency and sharpen our focus on our clients.
Harry Culham, CIBC President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Previous outlook for comparison
- Gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Dividend declaration or amount
- Share repurchase activity or amount
- Segment revenue year-over-year percentage changes
- Segment revenue quarter-over-quarter percentage changes
- Effective tax rate
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
CIBC filed a Form 6‑K with the SEC, providing its Q3 2026 financial results for the first time.
Ticker impact
CIBC disclosed its Q3 2026 earnings with revenue of $8.37B and adjusted EPS of $2.73, a fresh primary filing.
Potential upside of 3‑5% if market digests the earnings beat and higher guidance.
The earnings beat is material and new; investors typically reward banks that exceed profit expectations, especially with solid capital ratios.
Market effects
Canadian banking sector may see broader gains as CIBC's results highlight resilience in net interest margins.
Positive earnings could lift Toronto Stock Exchange banking indices.
Large North American banks may benefit from a perception of stable credit quality amid global rate environments.
Counterpoint
Charges from the Caribbean bank sale and higher non‑interest expenses could signal margin pressure ahead.
Key entities
- ExecutiveHarry Culham
President and CEO of CIBC, quoted on the earnings release.
