CIBC signs deal to sell CIBC Caribbean for US$1.6B, reports Q2 profit up

The CIBC logo displayed the lobby of its headquarters in Toronto on Monday, Oct. 25, 2021. THE CANADIAN PRESS/Evan Buhler

TORONTO — CIBC announced a deal to sell its 91.67 per cent interest in CIBC Caribbean to the Bank of N.T. Butterfield & Son for a total of US$1.6 billion in cash and stock as it reported its second-quarter profit rose compared with a year ago.

Under the CIBC Caribbean agreement, the bank said Thursday it will receive US$1 billion in cash and 52.1 million Butterfield common shares, which will represent about a 22 per cent stake in the company.

Chief executive Harry Culham said the deal will allow CIBC to “reallocate significant capital towards our highest strategic growth priorities.”

“The transaction brings together two complementary banks with deep roots and established relationships across the region,” he said on a conference call with analysts.

“We’ve been working with Butterfield for many, many years in the past so we know them well. Clients will benefit from an expanded range of financial services, including Butterfield’s trust and wealth management expertise.”

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The sale came as CIBC said it earned C$2.47 billion or C$2.53 per diluted share for the quarter ended April 30, up from C$2.01 billion or C$2.04 per diluted share a year earlier.

Revenue for the quarter totalled C$8.01 billion, up from C$7.02 billion in the same quarter last year, while its provision for credit losses amounted to C$605 million, the same as a year earlier.

Chief risk officer Frank Guse said the bank’s credit portfolio “continues to demonstrate resilience with overall performance remaining broadly stable,” even as elevated unemployment and heightened geopolitical tensions led to higher impaired provisions in the quarter.

He said some segments of CIBC’s loan portfolios are experiencing more pressure than anticipated, but the bank is “not currently seeing material credit concerns.”

“We continue to monitor the portfolio closely given the evolving economic environment,” said Guse during the call.

“We remain confident in the quality of our credit portfolio and the prudence of our reserves, which positions us well to manage through the current environment.”

On an adjusted basis, CIBC says it earned C$2.54 per diluted share in its latest quarter, up from an adjusted profit of C$2.05 per diluted share in the same quarter last year.

Analysts on average had expected an adjusted profit of C$2.44 per share, according to LSEG Data & Analytics.

Although it came in ahead of expectations, Jefferies analyst John Aiken cautioned that the earnings mix “may not be what the market prefers to see.”

CIBC said its Canadian personal and business banking group earned $846 million for the quarter, up from $734 million a year ago

The bank’s Canadian commercial banking and wealth management business earned $614 million, up from $549 million in the same quarter last year.

CIBC’s U.S. commercial banking and wealth management group earned $260 million, up from $173 million a year ago

The bank’s capital markets arm earned $792 million, up from $566 million in its second quarter last year.

“Capital markets far exceeded expectations, but this was met with misses in domestic retail and U.S. commercial,” Aiken said in a note.

“That said, the effective exit from the Caribbean, which the bank has been attempting for some time is a welcome relief. However, we do not view CIBC’s results as positively as some of its peers this quarter.”

Scotiabank analyst Mike Rizvanovic said it was still a “decent result overall” for CIBC, noting the bank showed “clear evidence of expense control.”

CBIC also announced several executive changes includes the appointment of Susan Rimmer as senior executive vice-president and group head, commercial banking. Rimmer, who already leads commercial banking in Canada, will also assume accountability for commercial banking in the U.S., as well as the office of the CEO.

The bank also said Eric Belanger has been appointed senior executive vice-president and group head, wealth management.

This report by The Canadian Press was first published May 28, 2026.