03:00 PM EDT, 05/30/2024 (MT Newswires) -- CIBC reported Q2/24 core cash EPS of $1.75 vs. NBF $1.72 and consensus $1.65.

CIBC's stronger than expected Q2/24 results were highlighted by positive news on the credit front. However, there was another quarter of declining CRE (i.e., U.S. office) losses and GILs, which had been a headwind for over a year, writes National Bank's Gabriel Dechaine.

Still, this quarter saw CRE losses abating, confirming CIBC's guidance. "We have greater confidence in the bank's mid-30s impaired loss ratio guidance, considering that CRE had generated roughly a third of losses over the prior year. "

Regarding expense management, this quarter's 8% growth rate was higher than the recent trend, notes Dechaine. However, it was balanced against an equal amount of revenue growth.

"Overall, we believe CM will deliver on its full-year positive operating leverage target."

Raising target to $78, from $76. Maintain Outperform.

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