CIBC is Canada’s strongest bank…or is it?

June 21, 2012 | Last updated on June 21, 2012
2 min read

CIBC is the strongest bank in Canada and North America. It’s also the third strongest bank in the world, says Bloomberg Markets. Bloomberg’s global study is based on banks with more than $100-billion (U.S.) worth of assets.

This is the second consecutive year the bank has been recognized among the world’s strongest banks. CIBC has also been recognized for providing a positive corporate culture and superior mobile banking services.

The Bloomberg Markets assessment studied the risk factors and capital levels of the world’s largest banks. It also examined 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).

In 2011, CIBC reported net income of $3.1 billion, an increase of more than 25% year over year. Its return on equity was 21.3% and its capital position remains among the best of any bank globally with a Tier 1 capital ratio of 14.7%.

The global recognition of Canada’s banks is nothing new—both Canadian banks and Mark Carney have become infamous for aiding Canada in surviving the crisis largely unscathed.

However, a study released by the Canadian Centre for Policy Alternatives (CCPA) last week questioned the true strength of Canada’s big banks. CIBC was named as one of the main banks in serious trouble during the recession, needing government support that exceeded the market value of the company to stay afloat.

And this past Tuesday, Carney was also criticized. His predecessor, David Dodge, openly disagreed with the governor’s views on the threat of rising consumer debt, as well as with his opinion on the current housing market.