Bloomberg names CIBC strongest North American bank

For the second consecutive year, CIBC 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.

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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.

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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% in the past year, ahead of Bank of Montreal’s 1.16% 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%, and the 0.2% gain by National Bank of Canada.

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