Surrey: Royal Bank reported a second-quarter profit of $4.4 billion, up 11 percent, while CIBC’s net income from capital markets rose 20 percent to $566 million.
Net income increased by $258 million after HSBC Bank merged with Royal Bank of Canada. Adjusted net income and adjusted diluted EBITDA were $4.5 billion and $3.12 billion, up 8 percent and 7 percent respectively from the previous year. It is worth noting that with government approval, HSBC Bank was sold to Royal Bank, which led to the elimination of competition and increased poor customer service. Banks have also increased their fees significantly in recent years, but instead of improving services, they are getting worse.
According to the Ombudsman (OIB), an investigative body that receives complaints from banks, there has been a significant increase in consumer complaints against banks.
Canadian Imperial Bank of Commerce (CIBC) released its second-quarter report yesterday, saying its net profit had increased, mainly due to improvements in its capital markets department.
It said that US President Donald Trump’s trade policy changes have increased market volatility, forcing investors to change their information, and as a result, banks’ trading desks are making good profits through additional fees.
On the other hand, there are also reports that major Canadian banks have adopted AI. And with the help of automation, it has continuously increased its profits. Recently, Canadian Imperial Bank of Commerce (CIBC) released its second-quarter results, saying that its capital markets revenue increased by 20% to $566 million. The company’s total adjusted revenue was $2.02 billion, up from $1.72 billion a year earlier.
Similarly, Royal Bank of Canada (RBC) also released its second-quarter results, saying that its total revenue reached $15.67 billion, which is significantly higher than the $14.15 billion in the previous year. The bank’s net profit was $4.4 billion, which is $450 million more than the previous year.
Along with these profits, the banks have also increased the returns for their shareholders. For example, RBC has increased its quarterly dividend to $1.54 per share and plans to buy back 35 million shares. All this has been possible due to cost reductions, a smaller number of human employees and the efficiency gains these banks have achieved through AI.

While banks are making profits, consumers are not being listened to. According to a 2024 J.D. Power report, customer satisfaction at major Canadian banks is declining year-over-year, and customer complaints have also increased by 18%.
Customers have complained that they sometimes have to deal with chatbots to reach an employee. “I called three times when a wrong transfer was made from my account, but each time it was a chatbot. It took a week to reach someone who actually helped,” said a Burnaby spokesperson.
Is it that dangerous? Or is the method of use wrong?
Using AI is not bad, but if it is limited to just providing automated answers instead of solving the actual problem of the customer, it becomes a serious challenge. For AI to be helpful, it must complement human cooperation, not completely replace it.
Many banks are also taking longer to resolve customer complaints or fraud investigations. Possible solutions in many cases: Hybrid model and serious work
Hybrid model: Banks should run AI and human employees together so that automated responses are used where they are beneficial, but human support is always available for serious issues.
Improved complaint process: Whenever a customer complains, it should be taken directly to a human employee and not routed through a chatbot.
Social listening and data analysis: Policies should be changed by examining customer feedback.
Real action: Lines like “Customer service is our priority” should not be limited to statements, but should also enhance the customer experience. These results reflect the bank’s strong performance in growing global markets, investment banking and direct financial services. This has also led the bank to increase its reserves, which is a precautionary measure in view of future economic uncertainty.
CIBC’s results contrast with those of its rival Royal Bank of Canada (RBC), which reported a 55 per cent increase in its loan loss provisions to C$1.42 billion this quarter.
The results show that CIBC has increased profits with a strong performance in its capital markets division, although loan loss provisions also increased. They reflect the bank’s financial strength and risk management plan.