CIBC is rising after becoming the latest Canadian bank to post strong profits

Shares of Canadian Imperial Bank of Commerce (CM) gained in pre-market trading Thursday after the bank reported second-quarter earnings above analyst expectations, the latest in a string of strong month-end earnings for Canadian banks.

CIBC’s revenues and profits have grown year over year, driven by profits in each of its core businesses, from personal and commercial banking in Canada to wealth management services both domestically and in the U.S.

Revenue rose 8% from last year to C$6.16 billion ($4.49 billion), above analysts’ expectations of C$6.06 billion, according to estimates compiled by Visible Alpha. CIBC reported net income of C$1.75 billion, or C$1.79 per share, up 4% from a year ago and above analyst expectations of C$1.59 billion and 1. C$61 per share.

Growth in all sectors

CIBC reported year-over-year earnings growth across all four of its core businesses in Canada and the U.S., but also reported a higher provision for credit losses (PCL) for the quarter of C$514 million, an increase of C$76 million compared to the same period last year year.

Net income for CIBC’s Canadian operations increased slightly, but saw stronger gains, with more than 70% of the profit growth of its U.S. operations.

CIBC’s capital markets division also grew its revenue by 13% year over year, driven by higher revenues from its investment banking and global markets businesses.

CIBC’s total assets exceeded C$1 trillion this quarter, with deposits rising to C$732 billion from last year’s C$723.4 billion.

Dividend announcement, changes

CIBC also declared a quarterly dividend of C$0.90 on Thursday, with payments scheduled to be paid on July 29 to record shareholders on June 28.

The bank said Thursday it is making changes to its plan for those who choose to use the dividend to buy more shares rather than receive cash payments.

Starting this quarter, CIBC investors who elect to receive a stock dividend will receive common shares at no discount compared to the previous system, where shares were issued at a 2% discount to the average market price.

CIBC shares rose about 3% to $48.38 as of 8:45 a.m. EST on Thursday, reversing Wednesday’s 3% loss.