Canadian Imperial Bank Of Commerce: Still Too Cheap To Ignore

Canadian Imperial Bank of Commerce (CM) has the lowest P/E ratio of the five major Canadian banks as well as the highest Return on Equity (ROE). The bank's share price has declined significantly since I wrote about it in March, when I called its lower valuation "hard to ignore", these declines came about largely because of growing concerns over a potential housing market collapse in Canada.Readers should note that all figures are referenced in Canadian dollars unless reference is made to the US ticker symbol or the contrary is indicated. It should also be noted that all capital figures referenced are on a Basel III basis and where applicable on an All-In basis.

Asset Quality and Capital

Canadian Imperial Bank of Commerce (hereafter 'CIBC') has a Capital Adequacy Ratio (CAR) of 15.3% which is the highest of the five biggest Canadian banks and well above the regulatory minimum of 11.5% set for the six biggest Canadian banks. It also represented a 10-basis point increase from the levels reported for the end of the first quarter.