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CIBC Financial News CIBC Announces Second Quarter 2021 Results Toronto , ON - May 27 , 2021 - CIBC ( TSX : CM ) ( NYSE : CM ) today announced its financial results for the second quarter ended April 30 , 2021 . Second quarter highlights Q2 / 21 Q2 / 20 Q1 / 21 Reported Net Income $ 1,651 million $ 392 million $ 1,625 million YOY Variance + 321 % QoQ Variance + 2 % Adjusted Net Income ( 1 ) $ 1,666 million $ 441 million $ 1,640 million + 278 % + 2 % Reported Diluted Earnings Per Share ( EPS ) $ 3.55 $ 0.83 $ 3.55 + 328 % 0 % Adjusted Diluted EPS ( 1 ) $ 3.59 $ 0.94 $ 3.58 + 282 % 0 % Reported Return on Common Shareholders ' Equity ( ROE ) Adjusted ROE ( 1 ) 17.1 % 4.0 % 17.0 % 17.3 % 4.5 % 17.2 % Common Equity Tier 1 Ratio 12.4 % 11.3 % 12.3 % " Our strong performance in the second quarter of 2021 is a result of executing on our client - focused growth strategy , " said Victor G. Dodig , CIBC President and Chief Executive Officer . " We are delivering results by building on the momentum we have established in our Canadian consumer franchise , further accelerating our performance in areas where we have strength , and simplifying and transforming our bank to enable reinvestment for growth . " Results for the second quarter of 2021 were affected by the following item of note aggregating to a negative impact of $ 0.04 per share : $ 20 million ( $ 15 million after - tax ) amortization of acquisition - related intangible assets . Our Common Equity Tier 1 ratio was 12.4 % at April 30 , 2021 compared with 12.3 % at the end of the prior quarter . CIBC's leverage ratio at April 30 , 2021 was 4.7 % . Core business performance Canadian Personal and Business Banking reported net income of $ 603 million for the second quarter , up $ 440 million or 270 % from the second quarter a year ago mainly due to lower provisions for credit losses . Adjusted pre - provision , pre - tax earnings ( 1 ) were up $ 19 million or 2 % from a year ago mainly due to robust volume growth and lower expenses , partially offset by narrower margins as a result of changes in the interest rate environment . Canadian Commercial Banking and Wealth Management reported net income of $ 399 million for the second quarter , up $ 193 million or 94 % from the second quarter a year ago , primarily due to lower provisions for credit losses and higher revenues across all businesses , partially offset by higher expenses . Pre - provision , pre - tax earnings ( 1 ) were up $ 61 million or 13 % compared with the second quarter a year ago , primarily due to higher fee revenue and strong volume growth in commercial banking , while wealth management revenue benefitted from significant growth in asset balances driven by market appreciation and strong mutual fund sales , in addition to increased investment activity by clients . 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 $ 216 million for the second quarter , up $ 201 million or 1340 % from the second quarter a year ago . Excluding items of note , adjusted net income ( ¹ ) was $ 229 million , up $ 197 million or 616 % from the second quarter a year ago , due to lower provisions for credit losses and higher U.S. dollar revenue , partially offset by the impact of foreign exchange translation . In U.S. dollars , adjusted pre - provision , pre - tax earnings ( 1 ) were up US $ 48 million or 27 % ( CAD $ 36 million or 15 % ) from the second quarter a year ago due to higher revenue , partially offset by higher expenses . Higher revenue was primarily driven by strong volume growth and higher fees , while higher expenses reflect increased performance - based compensation . Capital Markets reported net income of $ 495 million for the second quarter , up $ 318 million or 180 % from the second quarter a year ago , primarily due to higher revenue and a lower provision for credit losses , partially offset by higher expenses . Pre - provision , pre - tax earnings ( 1 ) were up 38 % from a year ago , driven by higher revenues across trading and corporate and investment banking , partially offset by higher performance - based compensation . Credit quality Provision for credit losses was $ 32 million , down $ 1,380 million or 98 % from the second quarter a year ago . Provision for credit losses on performing loans was down across all strategic business units ( SBUS ) as the same quarter last year included significant increases to reflect the unfavourable change in our economic outlook at the onset of the COVID - 19 pandemic , while the current quarter included a reversal mainly resulting from an improvement in our economic outlook as well as higher transfers of performing loans to impaired mainly in Canadian Personal and Business Banking . Provision for credit losses on impaired loans was also down , primarily due to lower impairments net of reversals in Canadian Commercial Banking and Wealth Management , and Capital Markets . ( 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 . Adjusted pre - provision , pre- tax earnings is revenue net of non - interest expenses adjusted for items of note and is a non - GAAP measure . CIBC Second Quarter 2021 News Release 1