10:47:08 EST Wed 01 Feb 2023
Enter Symbol
or Name

Login ID:
Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 906,003,982
Close 2022-12-01 C$ 59.81
Recent Sedar Documents

Globe says for Big 6 banks, all eyes on lending margins

2022-12-02 07:51 ET - In the News

See In the News (C-RY) Royal Bank of Canada

The Globe and Mail reports in its Friday edition that Canada's major banks wrapped up their fiscal year on an uneasy note, with a boost to profit margins from rising interest rates offset by inflated costs and gradual increases in loan losses. The Globe's James Brashaw writes that five of the six largest lenders reported fiscal fourth-quarter profits that were flat or lower than a year ago, and three of them -- BMO, CIBC and National Bank of Canada -- fell short of analysts' earnings estimates. The outlier was TD, a lender rich in deposits that posted large increases in the margins it earned on loans (the difference between what it charges borrowers and pays on deposits). That helped drive retail banking revenues higher. In the 2023 fiscal year, banks are expecting to be dealt a tougher economic hand. Several banks cited factors such as high inflation, forecasts of slowing economic growth, geopolitical tensions and continuing pressure on sectors like manufacturing as reasons why demand for new loans could slow. That has caused investors and analysts to put an intense spotlight on lending margins, which are the primary tailwind for banks when interest rates spike, and to zero in on banks' ability to control spending.

© 2023 Canjex Publishing Ltd. All rights reserved.