Press release from CNW Group
CIBC named strongest bank in Canada and North America, and third in the world
Thursday, May 02, 2013
CIBC named strongest bank in Canada and North America, and third in the world11:30 EDT Thursday, May 02, 2013
TORONTO, May 2, 2013 /CNW/ - For the second consecutive year, CIBC (TSX: CM) (NYSE: CM) has been ranked as the strongest bank in Canada, strongest in North America and third strongest in the world by Bloomberg Markets. This is the third consecutive year CIBC has been recognized among the world's strongest banks.
"Being ranked as the strongest bank in North America for two consecutive years reflects our strategy of being a lower risk bank that generates consistent and sustainable earnings over the long term, while achieving strategic growth," said Gerry McCaughey, President and Chief Executive Officer.
In compiling the annual rankings, Bloomberg examined risk factors and capital levels by looking at the quality of the banks' holdings and ranked them based on five key criteria: Tier 1 capital to risk-weighted assets; non-performing assets to total assets; loan-loss reserves to non-performing assets; stability, measured in terms of the ratio of deposits to funding; and efficiency (costs to revenue). Bloomberg's global study is based on banks with more than $100-billion (U.S.) worth of assets.
In addition, Bloomberg announced late last week that CIBC generated the best risk-adjusted returns among Canada's six-largest lenders in the past 12 months. CIBC returned 1.18 per cent in the past year, ahead of Bank of Montreal's 1.16 per cent risk-adjusted return and six times that of Toronto-Dominion Bank, according to data compiled by Bloomberg. CIBC also outperformed Bank of Nova Scotia and Royal Bank of Canada, whose risk-adjusted returns were both 0.72 per cent, and the 0.2 per cent gain by National Bank of Canada.
"In 2012, CIBC delivered solid performance with net income of $3.3 billion, a 14 per cent increase over the prior year," added Mr. McCaughey. "Our return on equity was 22.0 per cent and we maintained a strong capital position with a tier 1 ratio of 13.8 per cent, keeping us in the leading position among Canadian banks." Bloomberg is a global business and financial information service that provides data, news and analytics to organizations globally.
CIBC is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com
For further information:
Mary Lou Frazer, Communications and Public Affairs, 416-980-4111, firstname.lastname@example.org