Canadian Imperial Bank of Commerce (CIBC) reached an agreement to sell its Caribbean banking arm to Butterfield for approximately $1.6 billion.
The bank announced the transaction alongside quarterly earnings that beat analyst expectations. Strong performance in the capital-markets division primarily drove the financial results.
CIBC plans to use the proceeds to streamline operations and fund growth initiatives across North America. This sale follows previous unsuccessful attempts to divest the unit, including a 2021 deal blocked by regulators.