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CIBC Exceeds Q2 Profit Forecasts as RBC’s Larger Loan-Loss Reserves Trigger Miss

The final major Canadian bank report completes a sector-wide picture of earnings resilience shaped by contrasting reserve strategies.

A CIBC logo is displayed in the lobby of its headquarters in Toronto on Monday, Oct. 25, 2021. THE CANADIAN PRESS/Evan Buhler
Royal Bank of Canada signage is pictured in the financial district in Toronto Sept. 8, 2023.

Overview

  • CIBC reported Q2 earnings of $2.04 per share, outperforming the $1.90 analysts’ forecast after setting aside $605 million for credit losses.
  • RBC delivered adjusted earnings of $3.12 per share, missing the $3.20 estimate following a $1.42 billion build in loan-loss provisions.
  • RBC raised its quarterly dividend by six cents to $1.54 per share and approved a buyback of up to 35 million shares.
  • CIBC’s capital markets profit climbed 20 percent to $566 million on elevated trading revenue and increased debt underwriting.
  • Both banks emphasize robust capital positions and disciplined credit management in a challenging economic and trade environment.