Canadian Imperial Bank of Commerce (NYSE:CM) is seeing momentum from a strategy that more closely links its Canadian Commercial Banking and Wealth businesses, according to Susan Rimmer, group head of Canadian Commercial Banking and Wealth, during a fireside chat.
Rimmer said the combined structure is designed to deliver “enterprise solutions” to commercial clients by coordinating advice and product offerings across the bank. She pointed to cross-sell progress in both wealth relationships and core banking products, while also addressing credit demand trends, commercial real estate positioning, margin drivers, and how the bank is approaching artificial intelligence (AI) in wealth management.
Connectivity between commercial banking and wealth
Within commercial banking, she also highlighted linkage between lending and deposits. Rimmer said 95% of CIBC’s commercial banking lending clients also maintain a deposit relationship, which she framed as part of building a “balanced” book across assets and liabilities for stability and sustainable performance. The next step, she added, is to deepen those deposit relationships by expanding into more comprehensive cash management offerings, including payments services.
Growth outlook and where demand is coming from
Asked about the pace of commercial growth in an uncertain macro environment, Rimmer said commercial banking posted high single-digit loan and deposit growth in fiscal 2025 and again in the first quarter of the current year. She said the bank believes it can continue to drive mid- to high single-digit growth in assets and liabilities through the remainder of the year, with the back half expected to be more robust than the front half.
Rimmer said the “lion’s share” of growth has come from diversified commercial and industrial (C&I) clients across the country. She noted that sectors most directly impacted by tariffs—such as autos, steel, aluminum, and lumber—have been “very tough,” but she added that CIBC does not have large exposures in those segments.
She cited pockets of improving sentiment and activity across regions:
- British Columbia: Strong results in hospitality and tourism.
- Alberta/Calgary: Optimism tied to anticipated infrastructure and energy projects, including expected spillover to adjacent suppliers.
- Ontario: Larger diversified clients exploring opportunities to scale via acquisitions.
- Quebec: Manufacturing described as “remarkably resilient” amid tariff uncertainty.
- Atlantic Canada: Opportunity linked to expected defense spending from Ottawa.
Rimmer said CIBC is focused on “relationship banking” and being selective in the clients and segments it supports, with an emphasis on banking through the cycle and surrounding clients with broader solutions, including wealth.
Commercial real estate exposure and subsegment views
Rimmer said commercial real estate (CRE) represents about 40% of CIBC’s commercial mortgage book and acknowledged growth has been slow in the segment. She argued that the outlook depends heavily on subsegments, identifying multifamily condo developers in Toronto and Vancouver as the most challenged area. Even there, she said CIBC is “very confident” in its book, citing comfort with loan-to-value levels and deal structuring.
She also described CIBC’s CRE risk management approach, saying the bank runs a centralized team at head office that covers commercial real estate nationwide and has been together for more than 20 years. Rimmer said the bank has had “outstanding credit performance” in the book versus peers and that CIBC is comfortable with its risk posture and origination strategy. She added that meaningful growth in CRE is unlikely until the economy improves and softer areas recover.
Outside the more pressured areas, she said CIBC sees opportunity in industrials and student housing, and she characterized grocery-anchored retail as a favored segment.
Margins, deposits, and competition
Rimmer said margin performance has been an important theme for CIBC and that her business unit is contributing to net interest margin (NIM) expansion. She cited a 14 basis-point increase from 2.96% to 3.10% from the fourth quarter to the first quarter.
She attributed the margin improvement to three factors:
- Business mix: Deposits growing faster than loans.
- Factoring.
- Pricing and service: Delivering full-service solutions that support relationship economics.
While she said she does not expect NIM to keep expanding at the same quarter-over-quarter pace through the year, she expressed confidence in the overall direction and in the strategy to maintain margins.
On competitive dynamics, Rimmer said Canadian deposits are “always competitive,” adding that banks generally have more asset opportunities than liability opportunities, which keeps pricing discipline tight. She emphasized product quality, advice, service, and technology as key to sustaining deposit origination alongside lending.
AI investment in wealth and ROE priorities
Turning to AI, Rimmer said it is a significant focus for CIBC and for the wealth business specifically. She outlined several areas where CIBC is applying AI and related technology development, including improving frontline productivity for advisors and private bankers, enhancing the client experience through better analytics and digital engagement, and driving productivity in middle- and back-office operations. She also pointed to the opportunity to generate insights from the bank’s data as tools mature.
Rimmer said CIBC is investing in technology through channels such as Investor’s Edge, which she described as a “chassis” for technology spending that can be reused across multiple wealth platforms. She also noted Wood Gundy’s footprint, citing 886 investment advisors across the country, and said the bank is building modular capabilities intended to be deployed across wealth channels and, in some cases, within the retail business.
On return on equity, Rimmer said CIBC prioritizes “best-in-class” ROE and evaluates “total client returns across the enterprise.” She argued that housing commercial banking and wealth together enables more dynamic pricing decisions while keeping clients close to the bank. She said she would not chase growth at the expense of ROE hurdles, and referenced CIBC’s stated emphasis on a “premium ROE” and a 15% minimum.
Rimmer added that the bank is planning for mid- to high single-digit commercial banking growth and would revisit capital allocation if opportunities emerged beyond those parameters, weighing where the “next best use” of incremental capital would be.
In closing comments on client sentiment, Rimmer said entrepreneurs are looking for greater certainty—particularly around USMCA—and that clarity, even if imperfect, would help decision-making. She also said businesses are encouraged by anticipated government investment, including major projects and defense spending, while noting that broader global uncertainty, including conflict in the Middle East, could affect inflation expectations and client outlooks.
About Canadian Imperial Bank of Commerce (NYSE:CM)
Canadian Imperial Bank of Commerce (NYSE: CM), commonly known as CIBC, is a major Canadian financial institution headquartered in Toronto. Formed in 1961 through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada, CIBC is one of Canada’s largest banks and provides a broad range of banking and financial services to retail, small business, commercial and institutional clients.
CIBC’s activities span personal and business banking, wealth management, capital markets and corporate banking.
