Canadian Imperial Bank of Commerce Shares
Canadian Imperial Bank of Commerce or CIBC as it is commonly called is the fifth largest bank in Canada, as per deposits. It is based out of Toronto and has operations in the United States of America, United Kingdom and Asia. Ranked 159 in the Forbes 2000 list, it is one of the Big Five in Canada, a term often used to describe the biggest and most influential banks of Canada. While known to many as CIBC, it is listed with the Toronto Stock Exchange and the New York stock exchange as CM.
While all players, big and small, suffered the pangs of recession in 2008, CIBC bank was also not untouched. While it reported revenue of over C$ 14 billion and total assets of over C$ 350 billion, net profit climbed down to a little more than C$ 2 billion in the year 2008. In fact, it was reported to be the hardest hit among the Big Five of Canada. This was perhaps because of its considerable operations in the USA and its play in the real estate and capital market. These markets being hit badly in 2008, the bank suffered huge losses. But it made considerable efforts to gain back its momentum. This included selling out its investment banking ventures in the USA, limiting exposure in the real estate market and selling equity shares. These efforts paid off as it reported a high of 10.5% capital ratio, giving solace to many worried investors.
The bank continues in its efforts to attract more and more investors by giving out many share and dividend purchase options, separate for Canadian and US Citizens. These schemes do not attract any service tax or brokerage fee, making it an easy to buy shares for an interested investor.
The current shares of CIBC are available at approximately C$ 65. It has seen steady rise in the last few months and considered stable by most trade analysts. This rise is expected to continue as the bank reports optimistic profits in the third quarter of 2009. The earnings of over CAD 400 million is considerable over earnings reported in the end of third quarter of 2008, which were at a dismal CAD 71 million. Earnings per share have also looked up from a low of CAD 0.11 to a respectable C$ 1.02. The capital share continues on a high, at a 12%. This remains the strength of the bank, a position which is the highest amongst its peers. This gives it the strength to continue its core business as well as give out ample opportunities of expansion and diversification. The other strong point in the character of the bank is its revenues from retail banking, making it a credible name in minds of the common people.
This also impacted well in its reputation in the market, as an organization working hard to get back on its feet. Its strategy, performance and risk management has been commendable and it is one of the only 25 companies from all around the world to be listed under the Dow Jones Sustainability World Index - DJSI. The index has a stringent list of 317 components, which determine a company's ability and efforts to sustain itself under the pressures of the economy. To be included in the list is an achievement for CIBC and an assurance to its patrons.
The efforts to deliver and earn profits continue, and the Canadian Imperial Bank of Commerce gains its momentum in earning a name that spells business, reliability and assurance.