The Financial Post reports in its Tuesday, June 2, edition that Canada's biggest banks surpassed analysts' second quarter earnings expectations, but their share prices largely remained unchanged, with CIBC and National Bank of Canada falling by 5.3 per cent and 4 per cent. The Post's Naimul Karim writes that analysts had anticipated this outcome due to the banks' recent share price surge, indicating that they may be overvalued. Jefferies analyst John Aiken says: "It would have taken a lot to garner any outside positive reaction, just because of where we sit with the macro, as well as the bank valuations. That upside was going to be very difficult to achieve, and we saw that play out." The provisions for credit loss were also expected to play a role in share price valuations. Many banks had earlier expected PCLs to improve in the second half of the year, but analysts expected the banks to change that outlook following the war with Iran. In the case of CIBC, some of these factors seemed to have played a role in its share price decline. TD economist Mario Mendonca says, "We feel good about CIBC's strong capital position, improving loan growth and low (loan-to-value ratio) on the large mortgage book."