RBC Raises Price Target on Canadian Imperial Bank of Commerce to CA$176 From CA$167, Keeps Outperform Rating

Royal Bank of Canada (RY-T), Toronto-Dominion Bank (TD-T), and Canadian Imperial Bank of Commerce (CM-T) reported quarterly profits exceeding analysts' estimates, signaling resilience amid trade uncertainty. RBC's profit rose 11% to $6B, TD's net income increased 38% to $4.62B, and CIBC's profit grew 15% to $2.41B. All three banks expressed confidence in Canada's economic stability despite trade tensions, with plans for expansion and strategic investments.

CIBC reported Q3 2026 earnings with adjusted net income of $2.65B, up 26% YoY, and total revenue of $8.37B, up 15% YoY. Adjusted EPS was $2.73, up 26% YoY. The bank noted strong performance across all segments, share repurchases, and a charge related to Caribbean operations. Management highlighted digital transformation and AI integration, while cautioning about geopolitical risks and housing market pressures. CIBC plans an Investor Day on Dec. 9, 2026.

CIBC reported a 15% increase in quarterly net income to CAD $2.4 billion, driven by strong U.S. operations. Its U.S. unit, CIBC Bank USA, saw a 23% rise in net income to USD $228 million, with loan and deposit growth of 9% and 14% respectively. Despite a 14 basis point drop in net interest margin, credit quality improved. CIBC's exposure to tariff-sensitive loans is minimal, according to Chief Credit Officer Frank Guse.

Canada's TSX fell 53.33 points to 36,760.32, with CIBC and RBC shares down 3.6% and 2.2% respectively. BlackBerry rose 6.5%. U.S. markets gained, led by Nvidia's 8% jump after strong earnings and revenue growth forecast. NASDAQ rose 1.3%, S&P 500 up 0.6%, and Dow gained 0.3%.

Canada's major banks reported Q3 earnings, with all six beating analysts' expectations. Scotiabank (BNS) saw a 17% profit increase, BMO (BMO) reported a 25% decline but beat estimates, and RBC (RY) posted an 11% rise. National Bank (NA), CIBC (CM), and TD Bank (TD) also reported higher profits. Canadian bank stocks have risen 24% this year.

Royal Bank of Canada, TD Bank, and CIBC reported quarterly profits exceeding estimates, driven by strong capital markets performance. All six major Canadian banks beat profit expectations despite trade tensions. RBC, TD, and CIBC reported earnings per share of C$4.28, C$2.77, and C$2.73 respectively, all above analyst estimates. Capital markets income rose significantly for each bank, with RBC up 16%, CIBC up 34%, and TD's wholesale banking segment up 87%.