CIBC (CM) generates earnings 37x its subordinated debt interest
Rhea-AI Filing Summary
CANADIAN IMPERIAL BANK OF COMMERCE (CM) reported its earnings coverage on subordinated indebtedness for the 12-month period ended July 31, 2026. Interest requirements on subordinated indebtedness were $349 million, while earnings before income taxes and these interest requirements, net of non-controlling interests, were $12,925 million. This resulted in earnings equal to 37.0 times the related interest requirements, indicating substantial capacity to meet interest obligations on subordinated debt. The figures are based on consolidated financial statements prepared under IFRS, and the coverage ratio itself is a non-IFRS measure that may not be comparable with similar ratios reported by other issuers.
Positive
- Earnings covered subordinated debt interest by 37.0x, with $12,925 million in earnings before income taxes and subordinated interest versus $349 million in related interest requirements over the 12 months ended July 31, 2026, indicating strong capacity to service subordinated indebtedness.
Negative
- None.
Filing Explained
The filing states that its contents are incorporated by reference into listed S-8 and F-3 registration statements, making this report part of those registration filings; it does not itself disclose an issuance or sale.
Key Figures
Interest requirements on subordinated indebtedness: $349 million
Earnings before income taxes and subordinated interest, net of non-controlling interests: $12,925 million
Earnings coverage on subordinated indebtedness: 37.0 times
+1 more
4 metrics
Interest requirements on subordinated indebtedness
$349 million
For the 12-month period ended July 31, 2026
Earnings before income taxes and subordinated interest, net of non-controlling interests
$12,925 million
For the 12-month period ended July 31, 2026, used in coverage calculation
Earnings coverage on subordinated indebtedness
37.0 times
Earnings relative to subordinated indebtedness interest requirements for the 12-month period ended July 31, 2026
Reporting period
12-month period ended July 31, 2026
Period over which earnings coverage on subordinated indebtedness was calculated
Key Terms
subordinated indebtedness, earnings coverage, International Financial Reporting Standards, non-controlling interests
4 terms
subordinated indebtedness financial
"Earnings Coverage on Subordinated Indebtedness as at July 31, 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 July 31, 2026"
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-controlling interests financial
"net of non-controlling interests, for the 12-month period ended July 31, 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.
FAQ
What earnings coverage ratio on subordinated indebtedness did CM report for the period ended July 31, 2026?
CM reported that earnings before income taxes and subordinated interest of $12,925 million covered subordinated indebtedness interest requirements of $349 million by 37.0 times for the 12-month period ended July 31, 2026.
How much were CM's subordinated indebtedness interest requirements for the last 12 months?
For the 12-month period ended July 31, 2026, CM’s interest requirements based on subordinated indebtedness were $349 million, as disclosed in the earnings coverage calculation on its subordinated debt.
What level of earnings did CM generate relative to subordinated debt interest for CM?
CM generated $12,925 million of earnings before income taxes and subordinated interest, net of non-controlling interests, which was 37.0 times its subordinated indebtedness interest requirements over the same 12-month period.
Are CM's earnings coverage figures prepared under IFRS?
Yes. CM states that the amounts used to calculate earnings coverage on subordinated indebtedness are derived from its consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for the 12-month period ended July 31, 2026.
Is CM's earnings coverage ratio on subordinated indebtedness an IFRS-defined measure?
No. CM notes that the earnings coverage ratio on subordinated indebtedness is not defined by IFRS, has no standardized meaning under IFRS, and may not be directly comparable to similar measures reported by other issuers.
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