A drop-off in metropolitan housing markets that has been “more pronounced and more prolonged” than anticipated is weighing on mortgage growth at the Canadian Imperial Bank of Commerce.
Eight Capital analyst Steve Theriault wrote in a note that CIBC management had been seeing “outsized growth” from urban areas, but that, when it comes to the bank’s real estate secured lending in Canada, “it sounds to us as though any expansion will remain below market levels in 2019.” “Longer term, the execution of our strategy will allow us to deliver on all of our financial targets over time, including our medium-term EPS growth target of five to 10 per cent,” Dodig said.
“While a slowdown in Canadian consumer banking activities represents a challenge for all of the banks, CM has above average exposure to this headwind,” National Bank Financial analyst Gabriel Dechaine wrote in a note.
Sunny Ways my Friends courtesy of Crime Minister Trudeau