CIBC Posts Strong Q4 Earnings While TD Faces Growth Challenges Over Compliance Issues

CIBC beats profit expectations with higher margins and lower provisions, while TD struggles with penalties and compliance remediation costs in the U.S.

CIBC reported a Q4 profit of $1.88 billion, or $1.91 per share adjusted, surpassing analysts' expectations of $1.79 per share, driven by higher loan profit margins and reduced credit loss provisions.
CIBC increased its quarterly dividend by nearly 8% to $0.97 per share, signaling strength in its core Canadian and U.S. retail banking businesses.
TD Bank is prioritizing anti-money laundering compliance after a $3 billion penalty and U.S. regulatory sanctions, suspending its medium-term financial targets for profitability and growth.
TD's Q4 earnings missed expectations, with adjusted earnings at $1.72 per share compared to analysts' forecast of $1.82, as the bank set aside $1.1 billion in provisions for potential loan defaults.
Analysts remain cautious about TD's near-term outlook, citing ongoing compliance costs, asset growth restrictions in the U.S., and uncertainty over when the bank will regain investor confidence.