CIBC reported higher profits in the third quarter, even as mortgage arrears in Toronto and Vancouver point to ongoing pressure on households.
The bank’s adjusted net income was $2.1 billion, an increase of 11% from last year at $2.16 per share.
The result was a 17% increase in net income from Canadian individual and corporate banking, supported by growth in net interest and tax rates and volume. Profits from commercial banks and wealth management also increased by 19%.
“Our credit portfolio is resilient and they excel in the favorable ending of the guidance we provided at the beginning of the year,” outgoing CEO Victor Dodig said on the bank’s earnings call.
Credit regulations totaled $559 million, down from $605 million in the second quarter, with total allowance coverage rising to 0.78%.
Mortgage trends and risks increase
CIBC’s 90-day mortgage crime rate rose to 0.36% in the third quarter, up from 0.33% in the previous quarter and 0.30% in the same period last year. Uninsured arrears climbed to 0.37%, GTA at 0.44%, and GVA at 0.36%, the highest in the region.
Despite the increase, net mortgage sales remained below 0.01%, with an average uninsured loan-to-value ratio of 50% nationwide, with Vancouver even lower LTV.
“We are very satisfied with the overall health of our clients and portfolios,” Chief Risk Officer Frank Guse told analysts. “…The illegal rate rises, especially in these markets, which fits very well with our expectations. This reflects the higher unemployment rate, high interest rates and the ongoing weakness in housing sales in these markets.”
Looking ahead, banks expect update risks to be manageable. The CIBC project uses the assumed tax rate of 4.0–4.5%, while revenue does not grow, the average payment volume at renewal is less than 1.6% of customer revenue, and the renewal LTV is between 45% and 58%.
New mortgage origins totaled $13 billion in the quarter, with an average Canadian LTV of 65%. Credit quality is still high, with most new borrowers holding credit scores of over 750, more than half of over 800.
Focus on relationship promotion edge
In Canada’s personal and commercial banking business, net interest margin rose to 2.81% in the third quarter, up 8 basis points from the previous quarter and 18 basis points year-on-year, driven mainly by higher deposit margins. CFO Rob Sedran told analysts that the bank expects a gradual increase here, supported by balance sheet positioning and business portfolio.
Hratch Panossian, head of personal and commercial banking, said mortgage margins are now up about 20% year-on-year, as the bank prioritizes loans for consulting services over discounted prices. He noted that nearly 80% of mortgage customers now have a chip account with CIBC, while 93% of mortgage customers have at least another product.
“The mortgage today accounts for about 10% of our revenue. It used to be higher than that,” Panossian said, adding that 93% of CIBC customers own another product in the bank.
“Of all of the clients who have mortgages with us have a checking account. Most of the clients, we are major banks,” he added. “All of these numbers are all the highest in history because we focus on relationship-based strategies rather than doing low-profit products separately on a transaction basis with our clients. We will continue to do so.”
CIBC’s approach reflects the movement of peers like Scotiabank, which is also trying to increase revenue by reducing price competition and introducing more customer relationships across multiple products.
Visited once today, visited once today
Bank Income Big Bank CIBC CIBC Meeting Call CIBC Income CIBC Mortgage Frank Guse Hratch Panossian Panossian Mortgage Renewal Quarterly Earnings
Last modified: September 2, 2025
