a 15 per cent increase in profits, with a net income of $1.87 billion and adjusted diluted earnings of $4.08 per share. CIBC’s commercial banking and wealth management segment saw a 31 per cent increase in net income from a year earlier to $462 million, particularly as a result of rising investment activity and market appreciation. Meanwhile, net income of the bank’s personal and business banking segment reached $687 million, a five per cent growth from the same time last year, driven by higher volume and increases in fees.
“Our structure, coupled with a constructive economic environment, led to double-digit loan growth and solid banking growth, solid deposit growth in commercial banking on both sides of the border,” CIBC president and CEO Victor Dodig said.
Meanwhile, the banking giant’s board also approved a two-for-one share split, which is subject to shareholder approval during a meeting in early April. With shares trading up more than four per cent in Toronto by Friday morning at $161.11, Dodig believes that such a move would bring new investors into the fold. “Our stock price has appreciated significantly,” he said. “That makes now a good time to announce a split which would make our shares more accessible to many retail investors.”
The CIBC chief executive also said that the bank was continuing to monitor the ongoing geopolitical tensions, and several other challenges, including inflationary pressures and supply chain disruptions. “These factors may have an impact on economic growth and client activity in the near term,” he added. “Recognizing this economic backdrop, the most important thing I’d like to stress is that we’ve demonstrated over the past two challenging years, that we have a strategic playbook that will not only support our clients, but also manage our risk and allow us to invest for future growth.”
