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CIBC Financial News CIBC Announces First Quarter 2021 Results Toronto , ON - February 25 , 2021 - CIBC ( TSX : CM ) ( NYSE : CM ) today announced its financial results for the first quarter ended January 31 , 2021 . First quarter highlights QoQ Q1 / 21 Q1 / 20 Q4 / 20 YoY Variance Variance Reported Net Income $ 1,625 million $ 1,212 million $ 1,016 million + 34 % + 60 % Adjusted Net Income ( 1 ) $ 1,640 million $ 1,483 million $ 1,280 million + 11 % + 28 % Reported Diluted Earnings Per Share ( EPS ) $ 3.55 $ 2.63 $ 2.20 + 35 % + 61 % Adjusted Diluted EPS ( 1 ) $ 3.58 $ 3.24 $ 2.79 + 10 % + 28 % Reported Return on Common Shareholders ' Equity ( ROE ) 17.0 % 13.1 % 10.7 % Adjusted ROE ( 1 ) 17.2 % 16.1 % 13.5 % Common Equity Tier 1 Ratio 12.3 % 11.3 % 12.1 % " In the first quarter of 2021 , we delivered strong financial performance and continued to execute on our client - focused strategy , " said Victor G. Dodig , CIBC President and Chief Executive Officer . " We made progress on revitalizing our Canadian consumer franchise , furthered the transformation of our bank through technology and innovation , and built on our momentum in areas of our business where we have advantages in the market . Our continued investments position us well to further advance our strategy in 2021 , and our strong capital position enables us to support our client - focused growth plans , as we navigate changing market conditions related to the COVID - 19 pandemic . " Results for the first quarter of 2021 were affected by the following item of note aggregating to a negative impact of $ 0.03 per share : $ 20 million ( $ 15 million after - tax ) amortization of acquisition - related intangible assets . • Our Common Equity Tier 1 ratio was 12.3 % at January 31 , 2021 compared with 12.1 % at the end of the prior quarter . CIBC's leverage ratio at January 31 , 2021 was 4.7 % . Core business performance Canadian Personal and Business Banking reported net income of $ 652 million for the first quarter , up $ 77 million or 13 % from the first quarter a year ago mainly due to lower provisions for credit losses , partially offset by lower revenue , with expenses comparable to the prior year . Pre - provision , pre - tax earnings ( 1 ) were down $ 54 million or 5 % from a year ago . Revenue was down from the prior year as volume growth was more than offset by narrower margins as a result of changes in the interest rate environment and lower fees due to continued lower client transaction activity resulting from the COVID - 19 pandemic . Canadian Commercial Banking and Wealth Management reported net income of $ 354 million for the first quarter , up $ 18 million or 5 % from the first quarter a year ago , primarily due to revenue growth in wealth management . Pre - provision , pre - tax earnings ( 1 ) were up $ 22 million or 4 % compared with the first quarter a year ago . Higher fee revenue and strong deposit volume growth in commercial banking was partially offset by lower margins reflecting the current interest rate environment . Wealth management benefited from significant growth in asset balances driven by market appreciation and strong mutual fund sales . Higher expenses were primarily driven by revenue - based variable compensation reflecting favourable business results . U.S. Commercial Banking and Wealth Management reported net income of $ 188 million for the first quarter , up $ 23 million or 14 % from the first quarter a year ago . Excluding items of note , adjusted net income ( 1 ) was $ 200 million , up $ 19 million or 10 % from the first quarter a year ago , due to higher revenue and lower expenses , partially offset by higher provision for credit losses . Pre - provision , pre - tax earnings ( 1 ) were up $ 73 million or 32 % from the first quarter a year ago . Higher revenue was primarily driven by volume growth , increased asset management fees , and syndication activity , partially offset by the impact of foreign exchange translation . Lower non - interest expenses reflect lower business development costs due to the impact of the COVID - 19 pandemic and the impact of foreign exchange translation . Capital Markets reported net income of $ 493 million for the first quarter , up $ 115 million or 30 % from the first quarter a year ago , primarily due to higher revenue , partially offset by higher performance - based compensation and a higher provision for credit losses . Pre - provision , pre - tax earnings ( 1 ) were up 27 % from a year ago , driven by higher revenue across fixed income , equity derivatives and foreign exchange trading and corporate banking and underwriting revenue , partially offset by lower advisory revenue and higher non - interest expenses . Credit quality Provision for credit losses was $ 147 million , down $ 114 million or 44 % from the first quarter a year ago . Provision for credit losses on performing loans was down across most strategic business units ( SBUS ) primarily due to a favourable change in our economic outlook , while provision for credit losses on impaired loans was comparable with the first quarter a year ago as a result of reductions in Canadian Personal and Business Banking and Canadian Commercial Banking and Wealth Management being largely offset by increases in U.S. Commercial Banking and Wealth Management , Capital Markets and Corporate and Other . ( 1 ) For additional information , see the " Non - GAAP measures " section . Pre - provision , pre - tax earnings is revenue net of non - interest expenses and is a non - GAAP measure . CIBC First Quarter 2021 News Release 1