CIBC (CM) shows 33.6x earnings coverage on subordinated indebtedness
Rhea-AI Filing Summary
Canadian Imperial Bank of Commerce reports strong earnings coverage on its subordinated indebtedness for the 12 months ended April 30, 2026. Interest requirements on subordinated debt were $374 million, while earnings before income taxes and subordinated interest were $12,561 million.
These earnings were 33.6 times the related interest requirements, indicating a substantial cushion to meet obligations on subordinated indebtedness. The ratio is derived from consolidated financial statements prepared under IFRS and is a non-IFRS measure that may not be comparable with similar ratios reported by other issuers.
Positive
- None.
Negative
- None.
Key Figures
Subordinated interest requirements: $374 million
Earnings before tax and subordinated interest: $12,561 million
Earnings coverage ratio: 33.6 times
3 metrics
Subordinated interest requirements
$374 million
12-month period ended April 30, 2026
Earnings before tax and subordinated interest
$12,561 million
12-month period ended April 30, 2026
Earnings coverage ratio
33.6 times
Earnings vs. subordinated interest requirements
Key Terms
subordinated indebtedness, earnings coverage, non-controlling interests, International Financial Reporting Standards, +1 more
5 terms
subordinated indebtedness financial
"Earnings Coverage on Subordinated Indebtedness as at April 30, 2026"
Debt that carries lower priority for repayment than other borrowings, meaning holders are paid only after higher‑priority creditors are made whole if the borrower runs into financial trouble; think of it as standing at the back of a queue at a checkout. It matters to investors because it usually carries higher interest to compensate for greater risk, affects how much creditors recover in default, and influences a borrower’s overall credit profile and cost of borrowing.
earnings coverage financial
"Earnings Coverage on Subordinated Indebtedness as at April 30, 2026"
non-controlling interests financial
"net of non-controlling interests, for the 12-month period ended April 30, 2026"
An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.
International Financial Reporting Standards financial
"prepared in accordance with International Financial Reporting Standards (“IFRS”)"
International Financial Reporting Standards are a common set of accounting rules used by companies in many countries to prepare and present their financial statements. They matter to investors because they make results easier to compare across borders — like using the same measuring tape — so investors can assess profitability, cash flow and risk more reliably and spot differences that come from business performance rather than differing accounting methods.
non-IFRS measure financial
"The ratio reported is not defined by IFRS and does not have any standardized meaning"
A non-IFRS measure is a financial number a company reports that is calculated outside standard accounting rules; it adjusts or removes items such as one-time costs, taxes, or accounting entries to highlight what management sees as the business’s recurring performance. Investors use these figures like a tailored snapshot to understand underlying trends — similar to a chef sharing a simplified recipe — but because they are not standardized, they require careful comparison and scrutiny.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What earnings coverage ratio did CIBC (CM) report on its subordinated indebtedness?
CIBC reported an earnings coverage ratio of 33.6 times on its subordinated indebtedness. This means earnings before income taxes and subordinated interest were 33.6 times the related interest requirements for the 12 months ended April 30, 2026.
How much were CIBC (CM) subordinated debt interest requirements for the period?
CIBC’s interest requirements on subordinated indebtedness were $374 million for the 12-month period ended April 30, 2026. This figure represents the total interest payable on subordinated debt over that period, used in calculating the earnings coverage ratio.
What level of earnings did CIBC (CM) generate for its subordinated debt coverage?
CIBC generated $12,561 million in earnings before income taxes and subordinated interest, net of non-controlling interests. These earnings for the 12 months ended April 30, 2026 were used to determine the 33.6 times earnings coverage ratio.
Over what period is CIBC (CM) earnings coverage on subordinated indebtedness calculated?
CIBC’s earnings coverage on subordinated indebtedness is calculated over the 12-month period ended April 30, 2026. Both the interest requirements and the earnings figure used in the ratio relate to this same 12‑month timeframe.
Is CIBC (CM) earnings coverage ratio on subordinated debt an IFRS measure?
The earnings coverage ratio is not defined by IFRS and has no standardized meaning under IFRS. CIBC calculates it using amounts from IFRS-based consolidated financial statements, so it may not be directly comparable to similar measures from other issuers.
How does CIBC (CM) treat non-controlling interests in its earnings coverage calculation?
In calculating the earnings coverage ratio, CIBC uses earnings before income taxes and subordinated interest net of non-controlling interests. Non-controlling interests are adjusted to before-tax equivalents using applicable effective income tax rates for the 12-month period ended April 30, 2026.