Canadian Imperial Bank beat corporate banking and capital markets segments in second quarter (NYSE:CM)

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Canadian Imperial Bank of Commerce (NYSE: CM) Second-quarter earnings on Thursday beat consensus estimates, supported by its Canadian commercial banking and wealth management and capital markets businesses.

CM shares rise 0.9% in pre-market commerce.

Adjusted EPS of C$1.77 ($1.38) in the second quarter beat analysts’ average estimate of C$1.72, but down from C$2.04 in Q1 and 1.79 Q2 2021 revenue of C$5.5B ($4.3B) in Q2 also topped consensus of C$5.32B and gained C$5.12B a year ago. a year.

Adjusted return on equity was 15.2% in Q2 compared to 17.6% in Q1 and 17.3% in Q2 last year.

Net income for its Canadian Commercial Banking and Wealth Management segment was C$480 million in the second quarter, up 20% from the prior year quarter, primarily due to higher revenue. high, partially offset by higher expenses and lower provision reversal.

Q2 Capital Markets net income increased 9% to C$540m, helped by higher revenue, partially offset by higher expenses.

Still, its Canadian Personal and Commercial Banking unit reported net income of C$496 million in the second quarter, down 18% from the second quarter a year earlier, mainly due to a higher provision. higher for credit losses and higher expenses, partially offset by higher revenues.

Provision for credit losses was C$303m in Q2, up C$271m from Q2 2021, highlighting the acquisition of Canadian credit card portfolio Costco.

Earlier, Canadian Imperial Bank raised its quarterly dividend to C$0.83 per share.