CIBC says its booming consumer mortgage business is well-insured

CIBC says its booming consumer mortgage business is well-insured
Peter J. Thompson/National Post

The head of Canadian Imperial Bank of Commerce’s retail banking operation says he’s “comfortable” with the bank’s business mix despite continuing rapid growth of the consumer mortgage portfolio.

“In our own branded mortgage space we are now growing faster than anyone,” said David Williamson.

All the big banks have been aggressively pursuing the consumer loan business, especially mortgages, so CIBC is hardly alone on that front. But a key reason Canada’s fifth biggest bank by assets is confident the issue won’t come back to haunt it is that CIBC has worked hard to cut its exposure to potential losses. “We’ve got the vast majority of our mortgages insured with the government of Canada,” Mr. Williamson said in an interview with the Financial Post, referring to coverage provided by the Canada Mortgage and Housing Corp. “Probably more than other banks.”

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