When it comes to investing in Canadian banks, Canadian Imperial Bank of Commerce (TSX:CM) often doesn't grab the headlines like some of its Big Five peers. But maybe that's exactly why it deserves a closer look. With interest rates staying high, the housing market trying to find its footing, and the economy walking a tightrope between growth and slowdown, the banking sector has its work cut out for it in 2025. That said, not all banks are created equal, and the way CIBC stock has positioned itself might surprise investors looking for both stability and opportunity this year.
Data doesn't lie
Let's start with the numbers. CIBC reported strong results for the first quarter of 2025. Revenue came in at $7.3 billion, up 17% from last year. Net income jumped 26% to hit $2.2 billion. Adjusted earnings per share (EPS) rose 22% to $2.20. That's not just good; it's one of the strongest starts to the year among the Big Five. These results were driven by broad-based growth across its core business units, showing that this isn't just a case of one segment propping up the rest.
What stood out in particular was CIBC's Canadian personal and business banking segment. It brought in $765 million in net income, up 7% year over year. This wasn't from flashy one-time gains; it was steady, everyday banking. Growth came from more clients, more deposits, and a lift in fees from services Canadians still rely on.
More to come
CIBC's commercial banking and wealth management unit also had a strong showing. Net income rose 13% to $591 million. Wealth management has been a key area for most banks, and CIBC's ability to generate double-digit growth in this space is a good sign. Business clients tend to be sticky, and once they trust a bank with their finances, they usually don't jump ship easily. That means recurring revenue and more cross-selling opportunities over time.
Then there's capital markets, the part of the bank that tends to be more volatile. In Q1, CIBC reported $619 million in net income from its capital markets division, up 19% from the previous year. That's a big jump and reflects strength in both investment banking and trading. It shows that CIBC can hold its own even in the more competitive, fast-paced corners of banking.
Staying strong
Financially, the bank looks solid. Its CET1 ratio, a key measure of a bank's capital strength, was 13.5% at the end of the quarter. That's up from 13% last year and comfortably above the regulatory minimum. A strong capital position gives CIBC room to keep lending, invest in new tech, and weather any bumps that come with higher interest rates or economic surprises. It's one of those metrics that's easy to overlook but offers peace of mind for investors when things get bumpy.
For dividend lovers, CIBC stock also makes a strong case. The stock was recently trading at about $88 per share and offers a dividend yield at 4.4%. The bank has a solid history of maintaining and growing its dividend over time, even during tough years. For investors looking for passive income, especially in retirement, that kind of predictability goes a long way.
Bottom line
So how should you approach CIBC stock in 2025? If you're looking for a well-rounded Canadian bank with strong earnings momentum, a healthy dividend, and a balanced strategy, it's worth serious consideration. It may not have the flash of some tech stocks or the rapid growth of emerging companies, but that's the point. CIBC offers something different: reliability, income, and a steady hand in uncertain times. For long-term investors, that's often exactly what you want.
