The 11 per cent revenue growth reported for the quarter ending
"We have invested significant resources to enhance our banking capabilities, to grow market share and to streamline our cost base. I think you can see all of this in our results," Dodig said during a conference call with financial analysts to discuss the bank's first-quarter results.
Just this week the bank announced it was investing in cloud-based banking platform Pollinate to bring its small and medium-sized digital business payments and banking system Tyl to
Dodig said the investments will not only help the bank grow but also better prepare it for a future where open banking -- which allows people to securely share their banking data with third-parties such as tech companies -- is the norm.
To help boost personal banking, CIBC also invested to take over
While growth-related investments helped push up costs, chief financial officer
He said that while the bank is focused on growth, it could also dial back spending if necessary.
"We have the ability to manage the pace of investment in the face of a more challenging operating environment in order to work towards our positive operating leverage target."
Overall CIBC reported a profit of
Revenue totalled
On an adjusted basis, CIBC says it earned
Analysts on average had expected an adjusted profit of
Scotiabank analyst
Grauman said it was a key driver in beating his overall estimates, but said it would be a mistake to dismiss the results as simply a trading beat because the bank also posted 14 per cent loan growth, slightly positive operating leverage and positive results in its property and casualty business.
”When we dig into the results we see a lot to highlight beyond capital markets strength," he said in a note.
CIBC also proposed a two-for-one stock split as it reported results Friday, subject to approval by shareholders at its annual meeting on
Dodig said the stock split proposal comes after the bank has seen its share price appreciate significantly, with the bank's shares trading at around
"That makes now a good time to announce a split, which would make our shares more accessible to many retail investors," said Dodig.
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