CIBC (TSX, NYSE: CM)

All major Canadian banks are performing well. CIBC reported a strong third quarter, with revenue of $7.3 billion, up almost 10% from $6.6 billion in the same period last year. Reported net income was $2.1 billion ($2.15 a share), up from $1.8 billion ($1.82 a share) in the third quarter of fiscal 2024. Provision for credit losses was $559 million, up $76 million from the same quarter last year. Canadian bank stocks continue to have significant tailwinds, supporting further upside. These tailwinds include lower interest rates (reduction in the cost of funds), a steepening yield curve (increasing net interest margin), and a rising stock market (benefiting the wealth management divisions). I also suspect that all Canadian banks will increase their dividends at some point during the first quarter of 2026. - Richard Croft