22 February 2018

According to analyst Shannon Stemm, it’s a great sign for the bank, as it’s more vulnerable to certain changes in Canada than other lenders. Moreover, the demand for mortgage loans here is expected to go down amid stricter rules, and this product accounts for a larger part of CIBC’s income.

CIBC was the first of Canadian large banks to provide its performance results for the quarter ended on January 31. The bank raised its quarterly payment to common shareholders by three cents to $1.33 per share, despite a decrease in profit attributable to shareholders, falling from $1.39 billion a year ago to the current $1.31 billion.

Specialists also paid much attention to the possible signs of influence from the recent changes, including stricter rules for uninsured mortgages. As you know, starting January 1, all homebuyers with a down payment of more than 20% from the property’s value have to prove their ability to withstand a possible rate increase. Canada’s largest banks have warned that such measures could negatively affect financial institutions.