Canadian Imperial Bank of Commerce beat estimates, fuelled in part by volatile markets that led to higher trading revenue, and announced a deal to offload a Caribbean business for US$1.6 billion.

The lender earned $2.54 a share on an adjusted basis in its fiscal second quarter, according to a statement Thursday, topping analysts’ $2.42 average estimate. Net income totalled $2.47 billion, also higher than forecasts.

Toronto-based CIBC extended its more than two-year streak of surpassing analyst estimates by showing growth across all its businesses.

Chief executive Harry Culham, who took over last year, has been seeking to boost CIBC’s presence with mass-affluent clients in Canada and the United States, expand its digital personal banking capabilities and leverage artificial intelligence.

The bank struck a deal to sell its 91.7 per cent interest in CIBC Caribbean to the Bank of N.T. Butterfield & Son Ltd. for about US$1.6 billion, exiting an asset in which it has a long history. That deal, which is expected to close in the first half of 2027, will provide capital that CIBC can reallocate toward other North American priorities, the bank said.

The bank’s adjusted return on equity was 16.4 per cent, down from 17.4 per cent in the first quarter. Banks are weathering a volatile few months around the globe with the war in Iran sending oil prices up and fears about the impact of AI. Culham said in April that it’s been an “unsettled geopolitical environment.”

  • BMO beats expectations, hikes dividend on boost from capital markets
  • Scotiabank CEO says investors shifting their focus to ‘business-friendly’ Canada

For trading desks, that volatility can be a boon. CIBC said that both equities and fixed-income trading posted higher revenue. Rival Bank of Montreal also benefited from better-than-forecast results at its capital-markets unit.

— With assistance from Christine Dobby.

Bloomberg.com