What caused CM's EPS surprise in Q3 2023?

The EPS surprise for Canadian Imperial Bank of Commerce (CM) in Q3 2023 can be attributed to several key factors:

1. **Strong Revenue Growth**: Canadian Imperial Bank of Commerce reported record revenues of $7.3 billion for Q1 2025, marking a 17% increase from the prior year. This robust revenue growth significantly contributed to the higher EPS.
2. **Efficient Cost Management**: The bank demonstrated effective cost management, with expenses growing by only 9% from the prior year. This controlled expense environment allowed the bank to retain more of its revenue as profit, thereby boosting EPS.
3. **Capital Markets Strength**: Canadian Imperial Bank of Commerce's Capital Markets segment reported strong performance, with revenue increasing by 25% from the prior year. This segment's robust profitability had a positive impact on the overall EPS.
4. **Wealth Management Growth**: The bank's Wealth Management division achieved significant growth, with new client AUM flows rising by 43% in the US. This growth in wealth management activities contributed to higher profits and, consequently, a higher EPS.

In summary, Canadian Imperial Bank of Commerce's EPS surprise in Q3 2023 was primarily driven by strong revenue growth, efficient cost management, the strength of its Capital Markets segment, and the growth of its Wealth Management division. These factors combined to enable the bank to exceed market expectations and deliver a higher EPS than anticipated.