Market volatility, which is filled with sharp swings, unexpected headlines, and shifting sentiment, can test even the most patient investors. But Foolish investors know that these periods are exactly when strong, dependable businesses prove their worth.
That’s why having some reliable Canadian stocks in your portfolio matters, as they don’t just survive turbulence but continue to deliver steady growth and income. Let’s take a closer look at one Canadian bank that has shown it could do exactly that.
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A reliable banking giant with strong momentum
The top TSX-listed bank stock I’m talking about is Canadian Imperial Bank of Commerce (TSX:CM), which has long been a cornerstone of the Canadian banking sector. With its diversified operations and consistent performance, it has built a reputation as a dependable choice for long-term investors.
CM stock currently trades at $147.40 per share with a market cap of $136.3 billion. Over the past year, it has surged 80%, reflecting strong investor confidence despite the broader market volatility. It also offers a dividend yield of around 3%, paid quarterly, making it appealing for income-focused investors.
Strong results across the board
CIBC’s latest financial performance highlights why it stands out during uncertain times. In the first quarter of its fiscal year 2026 (ended in January), the bank reported a 15% year-over-year (YoY) increase in revenue to $8.4 billion. Net income jumped 43% YoY to $3.1 billion, while adjusted net income came in at $2.7 billion. This growth was supported by higher loan volumes, improved net interest margins, and stronger fee-based income from wealth management. Its net interest margin reached 1.61%, or 2.06% when excluding trading activities.
On the profitability side, its diluted earnings per share (EPS) rose 47% YoY to $3.21, while adjusted EPS climbed 25% to $2.76. Meanwhile, return on equity (ROE) surged to an impressive 20.2%, up from 15.2% a year earlier.
Strength across business segments
One of CIBC’s key strengths is its ability to generate growth across multiple divisions. Its Canadian personal and business banking segment reported net income of $960 million, up 25% YoY. Its commercial banking and wealth management segment posted a 9% increase to $647 million, supported by higher assets under management and administration.
In the U.S., its commercial banking and wealth management operations saw net income rise 19% YoY to $294 million, benefiting from lower credit loss provisions.
Strong financial base
Beyond earnings growth, CIBC’s solid balance sheet adds another layer of confidence. In the latest quarter, the bank reported a Common Equity Tier 1 (CET1) ratio of 13.4%, along with a leverage ratio of 4.4% and a liquidity coverage ratio of 133%.
These strong metrics highlight its ability to withstand economic uncertainty while continuing to support growth and shareholder returns.
Why it stands out during volatility
What makes CIBC even more attractive in volatile markets is its balance, as it offers steady income through dividends, consistent earnings growth, and exposure to multiple business lines. While no stock is immune to short-term market swings, companies with strong fundamentals and disciplined strategies tend to recover faster and deliver better long-term returns.
