The Big Six Canadian banks released their final earnings reports in late November and early December. Today, I want to zero-in on the bank stock that offers the best value to investors as we look to close the book on 2022.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth largest of the Big Six Canadian banks. Shares of CIBC have plunged 26% in 2022 as of close on December 29. This bank stock has dropped 15% over the past month.
This bank unveiled its fourth quarter and full year fiscal 2022 earnings on December 1, 2022. It reported total revenue of $5.38 billion in the fourth quarter – up 6% compared to the third quarter of fiscal 2021. Meanwhile, adjusted net income dropped 17% to $2.07 billion or $1.39 per diluted share.
Canadian Personal and Business Banking reported adjusted net income of $2.39 billion for the full year – down 4% from the prior year. Meanwhile, adjusted net income in U.S. Commercial Banking and Wealth Management dropped 17% to $810 million. On the other hand, adjusted net income in Canadian Commercial Banking and Wealth Management and Capital Markets rose 14% and 3%, respectively, to $1.89 billion and $1.90 billion.
Shares of this bank stock possess a very attractive price-to-earnings ratio of 8.2. CIBC currently offers a quarterly dividend of $0.85 per share. That represents a tasty 6.1% yield. This is a great opportunity to snatch up a top bank stock at a big discount. Better yet, you get to take advantage of its great dividend.