Latest news with #HarryCulham
Globe and Mail
29-05-2025
- Business
- Globe and Mail
CIBC profit tops estimates on better-than-expected provisions for bad loans
Canadian Imperial Bank of Commerce CM-T reported higher second-quarter profit that beat analysts' estimates as the lender set aside lower-than-expected provisions for loans that could default and stronger activity in capital markets. CIBC earned $2-billion, or $2.04 per share, up 15 per cent from the same quarter last year. Adjusted to exclude certain items, the bank said it earned $2.05 per share. That edged out the $1.90 per share analysts expected, according to S&P Capital IQ. 'We are navigating the volatility in the global business environment from a position of strength, supported by our robust capital position, disciplined risk management and strong credit quality,' CIBC chief executive officer Victor Dodig said in a statement. In March, CIBC tapped head of capital markets Harry Culham as its next CEO in October. CIBC is the fifth major Canadian bank to report earnings for the fiscal second quarter. Over the past week, Toronto-Dominion Bank, Bank of Montreal and National Bank of Canada posted results that beat analyst estimates, while Bank of Nova Scotia's profit missed expectations. Royal Bank of Canada also releases results on Thursday. Analysts expected Canada's banks to continue grappling with higher loan loss reserves activity as U.S. President Donald Trump's trade war threatens a deeper economic downturn. In the quarter, CIBC set aside $605-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated, and included $142-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses. In the same quarter last year, CIBC set aside $67-million in provisions. Total revenue rose 14 per cent in the quarter to $7-billion while expenses increased 9 per cent to $3.8-billion, which the bank said was driven higher performance-based compensation. Profit from Canadian personal and business banking was $734-million, up 4 per cent from a year earlier, driven by higher revenue. The Canadian commercial and wealth management division generated $549-million of profit, up 13 per cent on higher loan and deposit margins and fee income, as well as an increase in fee-based revenue from higher average assets under administration and assets under management. Profit from the bank's U.S. commercial banking and wealth management unit was up 79 per cent at $122-million, driven by higher revenue and a lower provision for credit losses. Capital markets profit rose 20 per cent to $566-million on higher financing and trading revenue, corporate banking revenue and debt underwriting activity.
Reuters
13-03-2025
- Business
- Reuters
Canada's CIBC names capital markets head Harry Culham as next CEO, Dodig to retire
TORONTO, March 13 (Reuters) - Canadian lender CIBC ( opens new tab on Thursday named capital markets head Harry Culham as its next CEO, replacing Victor Dodig who will retire in October after over a decade at the top. Culham will serve as chief operating officer effective April 1 and take over as CEO on November 1, Canada's fifth largest lender said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. As part of CIBC's executive shakeup in September, Culham took on additional responsibility to oversee the bank's global asset management business and enterprise strategy, along with CIBC's Caribbean business. Culham will take the top seat during a challenging time for big Canadian banks amid economic uncertainties due to the trade war between the U.S. and Canada. "I understand risk quite well, (It is) one of my strengths ... We're not worried," Culham said in an interview. "We can control the controls, and we think we're good at that. We went through COVID, we've been through other ups and downs." The big five lenders have expanded south of the border seeking growth opportunities outside of home but have met many challenges. More recently, the banks have raked in large profits from wealth and capital market segments, that typically are fee-based and high margin businesses. CIBC has focused on growing its mass affluent and private wealth franchise in Canada and the U.S while building its digital footprint in Canada and growing its capital markets unit. "I'm really focused on the bank overall ... I don't see the strategy changing," Culham said. Culham first joined CIBC in Vancouver as an intern, participating in the bank's graduate programs. He held senior banking roles in Europe and Asia before rejoining CIBC in 2008 and taking over as the head of the capital markets segment in 2015. Under Dodig's leadership, CIBC expanded its U.S. footprint and also built the bank's presence at home by adding new clients through the purchase of Costco's (COST.O), opens new tab Canadian credit card portfolio. The bank's U.S. commercial lending book, however, faced challenges in 2023 due to higher exposure to the troubled U.S. office space compared to peers, but has taken steps to reduce the impact.
