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Canadian Imperial Bank of Commerce

5/25/2013, 11:08 AM ET

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Saturday, April 27, 8:55 AM Staking the fate of his hedge fund on a large short of Canadian banks (BMO, BNS, RY, CM) and the loonie (FXC), Vijai Mohan's arguments of a property price bubble fueled - in part - by an emerging markets growth bubble aren't unfamiliar ones. A third leg: That the country's banks are the world's best capitalized is a falsity, owing to a required "risk-weight" of just 9.9% on mortgages (the U.S. is 35% minimum, Australia 15-20%, Europe 20%). Should regulators impose a higher rate (it's under discussion), the nation's lenders would be forced to raise capital and/or reduce dividends. 15 Comments [Financials, Global & FX]
Wednesday, April 17, 9:04 AM Likely overcapitalized Canadian banks should consider committing to an annual dividend payout ratio of 60-70% each year, argues CIBC's Robert Sedran. He envisions a regular quarterly dividend with a Q4 special payout based on the actual full-year results. "An innovative way to satisfy investors' demand for yield while simultaneously satisfying regulators' demand for prudence." Banks targeted: BMO, BNS, CM, RY, TD. 2 Comments [Financials]
Thursday, April 11, 4:28 PM CIBC (CM) is buying Atlantic Trust Private Management from Invesco (IVZ) for $210M in cash. Atlantic Trust, which manages ~$20B in assets, allows CIBC to expand into the U.S. private wealth management market. The deal is expected to close in 2H13, be accretive to CIBC's FY14 EPS, and lower the bank's Basel III Tier 1 ratio by 20 bps. Invesco is holding a CC at 4:30PM ET (webcast). (PR) Comment! [Financials, M&A]
Wednesday, April 3, 12:03 PM Canadian lenders are set for a dramatic expansion in P/E multiples, says Scotiabank's Kevin Choquette, believing the slowdown in the country's real estate market is more than discounted in bank stock prices. His favorite pick is Imperial Bank (CM) as it's restructured to lessen its reliance on mortgage banking. 5 Comments [Financials]
Thursday, February 28, 5:57 AM Canadian Imperial Bank of Commerce (CM): FQ1 EPS of C$2.15. Revenue of C$2.1B (+2% Y/Y). The board declares quarterly dividend of C$0.94/share, representing an annual yield of 4.5%. (PR) Comment! [Earnings, Breaking News, Financials, Dividends]
Friday, February 22, 12:24 PM After a big 2012 (including garnering an international award), Canadian banks - RY, BMO, TD, BNS, CM - are expected to show the effects of a slowdown in the domestic economy when they report earnings next week. Look for slowing lending as signs abound that the heavily-indebted Canadian consumer is cutting back. 6 Comments [Financials]
Monday, January 28, 1:45 PM Six Canadian banks get a one-notch downgrade from Moody's as high levels of consumer debt and bubbly housing prices leave the lenders "more vulnerable than in the past." The agency also notes banks' reliance on "confidence-sensitive wholesale funding, which is obscured by limited public disclosure." Among those cut: BMO, BNS, CM, TD. 18 Comments [Financials]
Monday, December 10, 2012, 11:18 AM Forget bank of the year, how about banking system of the year? Canadian lenders buck the global trend of pay cuts, Royal Bank of Canada (RY) and National Bank (NTIOF.PK) leading the way with an 11% jump in bonus pools. Scotiabank (BNS), TD Bank, and Bank of Montreal (BMO) also show increases, but Imperial Bank (CM) sees a reduction in incentive pay. 4 Comments [Financials]
Friday, October 26, 2012, 3:12 PM The Canadian banking sector gets put on review for a downgrade by Moody's. "These firms face challenges not fully captured in their current ratings ... high consumer debt levels, elevated housing prices, macroeconomic risks, capital markets activities." The agencies get rapped for being behind the curve, but a review of the universally-loved Canadian banks is anything but that. Included: BMO, BNS, CM, TD. 5 Comments [Financials]
Monday, June 18, 2012, 7:52 AM Investors used to routine double-digit profit gains at Canadian banks may need to prepare for at least a flattening in growth trends. "What we're seeing here is the early indication of (a) domestic consumer lending slowdown," says Barclays' John Aiken. "Loan growth simply will not be the big tailwind (as it's been) for the Big Six in the last decade," says portfolio manager Todd Johnson. Comment! [Financials]
Thursday, May 3, 2012, 1:00 PM Canadian lenders dominate Bloomberg's list of the world strongest banks, placing 6 in the top 22. There may have been more, except the country ran out of banks of large enough scope. Counter-cyclical regulatory policy helps, as banks are usually told to tighten up when times are good, not after the crash. 2 Comments [Financials]
Thursday, February 23, 2012, 2:42 PM Canadian Imperial Bank (CM -0.2%) pares earlier losses to trade flat after Credit Suisse cut its rating on the shares to Neutral this morning, citing high Canadian consumer exposure and potential NIM compression. Comment! [Global & FX, Financials]
Thursday, January 5, 2012, 9:03 AM Barclays' John Aiken downgrades the Canadian financial services sector to neutral, expecting domestic and global headwinds to cut into earnings growth. "The steam is dissipating from the Canadian economic engine, with greater downside risk (than forecast)," he writes. Among the individual names cut: BMO, BNS, CM, MFC, RY, SLF, TD. Comment! [Financials]
Wednesday, December 14, 2011, 9:28 AM Stonecap Securities' Brad Smith, cuts his outlook on the Canadian banking sector as the big lenders cut loss reserves to near pre-crisis levels even as credit unexpectedly deteriorated in Q3. Smith is reducing the PE multiple he expects the banks to sell for from 11X to 9X. Lowest rated: Bank of Montreal (BMO) and TD Bank. Highest: Scotiabank (BNS). Comment! [Financials]
Wednesday, July 20, 2011, 8:35 AM Canada's OSFI claims none of the country's banks make the list of 28 lenders who would face capital surcharges for being TBTF should rules being discussed by a Basel committee be implemented. Comment! [Global & FX, Financials]
Friday, July 15, 2011, 7:58 AM CIBC (CM) purchases a 41% stake in American Century Investments for $848M in a move to shore up its international asset management base. CIBC will hold 10.1% of the firm's voting rights and have two reps on the board. Comment! [M&A, Financials]