Investors interested in stocks from the Banks - Foreign sector have probably already heard of Deutsche Bank (DB) and Canadian Imperial Bank (CM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Sco ...

After registering significant gains in 2023, major bourses climbed northward in January, with the Dow breezing past the 38,000 mark and the S&P 500 entering a bull market. For January, the Dow and the S&P 500 gained 2.1% and 3.3%, respectively. The tech-laden Nasdaq also posted a healthy gain of 3.3%, per FactSet data.Last month, stocks gained momentum as fears of a looming recession were squashed by strong economic growth in the final quarter of 2023. The U.S. economy expanded at an annualized rate of 3.3% ...

Investors interested in Banks - Foreign stocks are likely familiar with Deutsche Bank (DB) and Canadian Imperial Bank (CM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revisi ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, January 24:Canadian Imperial Bank of Commerce (CM) : This company which provides various financial products and services has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8% the last 60 days.This Zacks Rank #1 company has a dividend yield of 5.7%, compared with the industry average of 4.1%.Owens Corning (OC) : This building materials company has witnessed the Zacks Consens ...

Financial Data and Key Metrics Changes - The company reported record revenue of $23.4 billion for fiscal 2023, an increase of 7% year-over-year, and pre-provisioned pre-tax earnings of $10.2 billion, up 8% from the previous year [4][16] - Adjusted net income for Q4 was $1.5 billion, a 16% increase from the same quarter last year, with revenue of $5.8 billion, up 9% [11][10] - Diluted earnings per share (EPS) for Q4 was $1.53, reflecting a 22% increase over the prior year, while adjusted EPS was $1.57 [10][11] Business Line Data and Key Metrics Changes - In Canadian Personal and Business Banking, net income was $639 million, up 32% from the same quarter last year, with revenue growth of 9% [14] - The Capital Markets and Direct Financial Services segment saw net income of $383 million, a 1% increase year-over-year, with revenues of $1.3 billion, up 9% [64] - The Direct Financial Services (DFS) revenues increased by 26% year-over-year to $1.2 billion, driven by growth in digital banking solutions [8] Market Data and Key Metrics Changes - The Canadian P&C net interest margin (NIM) was 267 basis points, up 20 basis points from the prior year, while the US segment NIM was 344 basis points [12] - Non-interest income for Q4 was $2.6 billion, up 20% from the prior year, attributed to growth in trading revenues and higher market-related fees [13] - The US Commercial Banking segment reported net income of $39 million, down 69% from the prior year due to higher credit provisions [34] Company Strategy and Development Direction - The company is focusing on four strategic priorities: growing the mass affluent wealth franchise, enhancing digital banking offerings, leveraging connectivity for commercial clients, and improving operational efficiency [6][3] - The company aims to maintain a strong capital position with a CET1 ratio of 12.4% and plans to continue accreting capital through various levers [5][30] - The company is committed to prudent and profitable growth, particularly in the US market, where it plans to expand its private wealth platform [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by high interest rates and inflation but expressed confidence in the company's resilience and ability to navigate these conditions [4][28] - The outlook for fiscal 2024 includes expectations of slowing consumer spending and continued economic growth, with a focus on maintaining financial strength and risk discipline [28][23] - Management indicated that while credit provisions are expected to normalize, they remain vigilant about potential economic shocks that could impact loan losses [48][69] Other Important Information - The company announced a $0.03 dividend increase to common shareholders, reflecting its strong capital position [5] - The company has seen a significant increase in client net promoter scores, indicating improved client satisfaction [7] - The company is actively working with clients experiencing financial hardship to mitigate risks associated with high interest rates [19] Q&A Session Summary Question: What are the expectations for impaired PCL outlook in the coming quarters? - Management expects further normalization in consumer portfolios and anticipates impaired PCLs to trend in the mid-30s range, with a focus on monitoring economic conditions [48] Question: How does the transition to IRB affect risk-weighted assets? - The transition to IRB is expected to add approximately 20 basis points to the capital ratio, with no immediate concerns regarding the output floor [51][52] Question: What is the impact of the new Canadian mortgage charter on the company? - Management indicated that the new charter aligns with existing practices and does not present significant changes that would impact earnings or capital [96][97]

Financial Performance - Adjusted net income for 2023 was $6.5 billion, compared to $6.6 billion in 2022[19] - Reported revenue increased to $23.3 billion in 2023, up from $21.8 billion in 2022[19] - Adjusted earnings per share were $6.72 in 2023, compared to $7.05 in 2022[19] - Net income increased by $109 million or 5% from 2022, driven by higher revenue, partially offset by higher non-interest expenses and provision for credit losses[96] - Revenue grew by $498 million or 6% from 2022, primarily due to higher net interest margin and volume growth[97] - Net interest income rose by $590 million or 9% from 2022, supported by higher net interest margin and volume growth, including contributions from the Canadian Costco credit card portfolio acquisition[98] - Net interest margin on average interest-earning assets increased by 9 basis points, mainly due to higher deposit margins, partially offset by lower loan margins[99] - Average loans and acceptances grew to $316.7 billion in 2023, up from $302.1 billion in 2022[90] - Average deposits increased to $218.4 billion in 2023, compared to $204.0 billion in 2022[90] - Provision for credit losses increased by $110 million or 13% from 2022, driven by higher write-offs in credit cards and personal lending[100] - Non-interest expenses rose by $199 million or 4% from 2022, primarily due to higher spending on strategic initiatives and employee-related compensation[101] - Income taxes increased by $80 million or 10% from 2022, largely due to higher income and a 1.5% tax rate increase from the 2022 Canadian Federal budget[102] - Average assets grew by $14.7 billion or 5% from 2022, mainly due to growth in residential mortgages and the acquisition of the Canadian Costco credit card portfolio[103] - CIBC's net income for 2023 was $5,033 million, down from $6,243 million in 2022, with a reported efficiency ratio of 61.5%[109] - The loan loss ratio for 2023 was 0.30%, up from 0.14% in 2022, reflecting higher credit risks[109] - CIBC's total revenue for 2023 was $23,323 million, with net interest income contributing $12,825 million and non-interest income at $10,498 million[109] - Total shareholder return for 2023 was -15.85%, reflecting broader economic challenges and market conditions[109] - Revenue decreased by $34 million, non-interest expenses increased by $1,176 million, and income taxes increased by $218 million, resulting in a net income decrease of $1,428 million[114] - CIBC's 2023 net income was $5,033 million, with a provision for credit losses of $2,010 million and income taxes of $1,931 million[120] - Adjusted pre-provision, pre-tax earnings for 2023 were $10,184 million, compared to $9,388 million in 2022 and $8,805 million in 2021[120] - Total revenue for the year ended October 31, 2023 was $23,323 million, with a provision for credit losses of $1,994 million and non-interest expenses of $14,349 million[147] - Net income (loss) attributable to equity shareholders was $4,995 million, with a diluted EPS of $5.16[147] - Adjusted total revenue was $23,357 million, with adjusted non-interest expenses of $13,173 million and adjusted net income (loss) of $6,423 million[147] - Adjusted diluted EPS was $6.72, reflecting a 30% increase compared to the reported diluted EPS[147] - The impact of items of note on net income was $1,428 million after-tax, with a significant increase in legal provisions of $1,055 million[147] - The U.S. Commercial Banking and Wealth Management segment reported a net income (loss) of $280 million in US$ millions[147] - The Canadian Federal budget impact included a commodity tax charge of $34 million and an income tax charge of $545 million[147] - The amortization and impairment of acquisition-related intangible assets impacted non-interest expenses by $121 million[147] - The adjusted income (loss) before income taxes was $8,174 million, compared to the reported $6,964 million[147] - The adjusted income taxes were $1,713 million, reflecting a decrease of $218 million due to the impact of items of note[147] - Total revenue for the year ended October 31, 2022, was $21.833 billion, with Canadian Personal Banking contributing $8.909 billion and U.S. Commercial Banking and Wealth Management contributing $1.902 billion[149] - Net income attributable to equity shareholders was $6.220 billion, with Canadian Personal Banking contributing $2.249 billion and U.S. Commercial Banking and Wealth Management contributing $588 million[149] - Adjusted diluted EPS for the year was $7.05, reflecting adjustments for items of note such as acquisition and integration-related costs[149] - Provision for credit losses was $1.057 billion, with Canadian Personal Banking accounting for $876 million and U.S. Commercial Banking and Wealth Management accounting for $169 million[149] - Non-interest expenses totaled $12.803 billion, with Canadian Personal Banking accounting for $4.975 billion and U.S. Commercial Banking and Wealth Management accounting for $1.028 billion[149] - Adjusted net income attributable to equity shareholders was $6.555 billion, reflecting adjustments for items of note[149] - Total pre-tax impact of items of note on net income was $452 million, with significant contributions from amortization and impairment of acquisition-related intangible assets[149] - Adjusted total revenue was $21.817 billion, slightly lower than the reported total revenue due to adjustments for items of note[149] - Adjusted provision for credit losses was $963 million, reflecting adjustments for items of note[149] - Adjusted non-interest expenses were $12.429 billion, reflecting adjustments for items of note such as acquisition and integration-related costs[149] - Total revenue for the year ended October 31, 2021 was $20,015 million, with Canadian Personal Banking contributing $8,150 million and Canadian Commercial Banking and Wealth Management contributing $4,670 million[151] - Net income attributable to equity shareholders was $6,429 million, with diluted EPS of $6.96[151] - Adjusted net income attributable to equity shareholders was $6,670 million, with adjusted diluted EPS of $7.23[151] - Provision for credit losses was $158 million, with reversals in Canadian Commercial Banking and Wealth Management ($39 million) and U.S. Commercial Banking and Wealth Management ($100 million)[151] - Non-interest expenses were $11,535 million, with adjustments for items of note reducing expenses by $325 million[151] - Income before income taxes was $8,322 million, with adjusted income before taxes at $8,647 million[151] - The impact of items of note on net income was $241 million after-tax, with a $0.27 impact on diluted EPS[151] - Corporate and Other segment reported a net loss of $496 million, with an adjusted net loss of $314 million[151] - Total pre-tax impact of items of note on net income was $325 million, primarily due to real estate consolidation and legal provisions[151] - Adjusted non-interest expenses were $11,210 million, reflecting cost management efforts[151] - Total revenue for the year ended October 31, 2020 was $18.741 billion, with Canadian Personal Banking contributing $7.922 billion and U.S. Banking contributing $1.520 billion[153] - Provision for credit losses totaled $2.489 billion, with Canadian Personal Banking accounting for $1.189 billion and U.S. Banking accounting for $358 million[153] - Net income (loss) attributable to equity shareholders was $3.790 billion, with Canadian Personal Banking contributing $1.785 billion and U.S. Banking contributing $282 million[153] - Non-interest expenses were $11.362 billion, with Canadian Personal Banking accounting for $4.308 billion and U.S. Banking accounting for $838 million[153] - Adjusted net income (loss) attributable to equity shareholders was $4.445 billion, with Canadian Personal Banking contributing $1.791 billion and U.S. Banking contributing $327 million[153] - Adjusted diluted EPS was $4.85, reflecting the impact of adjustments on net income[153] - The company incurred a goodwill impairment charge of $248 million related to its controlling interest in CIBC FirstCaribbean[153] - Restructuring charges, primarily relating to employee severance and related costs, amounted to $339 million[153] - The company reported a gain of $79 million as a result of plan amendments related to pension and other post-employment plans[153] - The total after-tax impact of items of note on net income was $655 million, with U.S. Commercial Banking and Wealth Management contributing $587 million[153] - Total revenue for the year ended October 31, 2019 was $18.611 billion, with Canadian Personal Banking contributing $8.240 billion and U.S. Commercial Banking and Wealth Management contributing $1.911 billion[155] - Net income attributable to equity shareholders was $5.096 billion, with Canadian Personal Banking contributing $2.126 billion and U.S. Commercial Banking and Wealth Management contributing $648 million[155] - Provision for credit losses totaled $1.286 billion, with Canadian Personal Banking accounting for $889 million and U.S. Commercial Banking and Wealth Management accounting for $73 million[155] - Non-interest expenses were $10.856 billion, with Canadian Personal Banking accounting for $4.459 billion and U.S. Commercial Banking and Wealth Management accounting for $1.114 billion[155] - Net interest income increased by $1,182 million or 10% from 2021, driven by volume growth across businesses, partially offset by lower trading income[162] - Non-interest income rose by $636 million or 7% from 2021, primarily due to higher trading revenue, fee-based revenue, and growth in commercial borrowing fees[163] - Provision for credit losses surged by $899 million or 569% from 2021, reflecting an unfavorable economic outlook change in 2022 compared to 2021's recovery-driven favorable outlook[164] - Canadian Commercial Banking and Wealth Management revenue increased by $263 million or 12% from 2021, driven by loan growth and higher fee-based revenue[166] - Global markets revenue grew by $246 million or 12% from 2021, primarily due to higher foreign exchange and equity derivatives trading revenue[167] - International banking revenue increased by $91 million, benefiting from foreign exchange translation and higher net product spreads[168] - Non-interest expenses rose by $1,268 million or 11% from 2021, driven by higher employee compensation, strategic initiatives, and legal provisions[193] - Canadian Personal and Business Banking revenue increased by $759 million or 9% from 2021, driven by volume growth and higher fee income, including the acquisition of the Canadian Costco credit card portfolio[195] Client Growth and Engagement - Net new clients grew by over 650,000 across CIBC and Simplii brands in 2023, driven by newcomer and student segments[33] - CIBC welcomed more than two million new Costco Mastercard clients in 2023, improving client satisfaction through enhanced communication and onboarding processes[13] - CIBC's newcomer banking bundle provides tailored financial solutions, including free day-to-day banking for two years and no annual fee for two years on select credit cards[25] - Over 90,000 Costco cardholders now have a broader banking relationship with CIBC, with over 10,000 having an Imperial Service relationship[66] - CIBC's strategy focuses on attracting new clients, improving client experience scores, and managing expenses prudently[73] - CIBC ranked 1 in customer satisfaction with mobile banking apps in the J.D. Power 2023 Mobile Banking App Satisfaction Study for the third time since 2020[130] - CIBC launched the CIBC Smart Planner, a digital advice tool in its mobile banking app, to help clients set and achieve financial goals[130] - CIBC introduced the Living Plan in CIBC GoalPlanner, allowing clients to modify goals and instantly see the impact of life changes in their personalized plan[129] Sustainable Finance and Environmental Initiatives - CIBC partnered with Export Development Canada (EDC) to launch the Sustainable Finance Guarantee (SFG) pilot program, providing up to $1 billion in financing over the next three years to support decarbonizing the economy[27] - CIBC aims to achieve net-zero greenhouse gas (GHG) emissions from operational and financing activities by 2050, with progress toward 2030 targets for oil and gas and power generation portfolios[12] - CIBC's sustainable finance initiatives include partnerships with McGill University, Schulich School of Business, and the University of Calgary's Energy Transition Centre[58] Cybersecurity and Technology - CIBC's cyber security strategy includes robust security processes, rigorous monitoring, and employee awareness training to ensure the confidentiality, availability, and integrity of client information[7] - CIBC launched Digital Personal Identification Number (PIN) Reset in 2023, eliminating the need for a call to reset credit or debit card PINs[60] - CIBC launched the CIBC Investment Platform, enhancing advisor productivity and client reporting capabilities[191] Capital Management and Financial Strength - CIBC's CET1 ratio increased steadily through 2023, reflecting proactive capital management[31] - CIBC's Common Equity Tier 1 ratio increased steadily through 2023 due to proactive capital management[62] - CIBC's robust and well-diversified balance sheet supported clients effectively during global banking sector disruptions in 2023[62] - CIBC's CET1 ratio stood at 12.4% in 2023, up from 11.7% in 2022, indicating improved capital strength[109] - CIBC issued $750 million principal amount of 5.35% Debentures due April 20, 2033, qualifying as Tier 2 capital[178] Corporate Social Responsibility - CIBC committed $800M over the next 10 years (2023–2032) for corporate giving, community sponsorships, and employee giving and fundraising[55] - CIBC's employee engagement scores are world-class, and the company was named the top company in Canada for gender equality by Equileap[71] Market and Economic Outlook - Mortgage growth in Canadian Personal and Business Banking is expected to remain soft through at least the first half of 2024 due to weaker home sales and higher interest rates[84] - CIBC forecasts Canadian GDP growth of less than 1% for 2024, with unemployment expected to peak above 6%[84] - The U.S. GDP growth is projected at roughly 1% in 2024, with unemployment expected to climb modestly over 4%[84] - The unemployment rate in Canada is expected to rise to just under 6% by the end of 2023, impacting consumer spending and mortgage demand[110] Legal and Regulatory Matters - CIBC paid $770 million to settle litigation with Cerberus Capital Management, resulting in a pre-tax charge of $1,055 million and an after-tax charge of $762 million[85] - CIBC FirstCaribbean completed the sale of banking assets in Aruba, St. Vincent, and Grenada in February 2022, March 2023, and July 2023, respectively, while ceasing operations in Dominica on January 31, 2023[112] - The sale of banking assets in Curaçao and Sint Maarten is expected to be finalized in fiscal 2024, pending regulatory approvals[112] Business Segments Performance - CIBC reported a $5.40B revenue in Canadian Commercial Banking and Wealth Management for 2023[64] - CIBC's U.S. operations delivered double-digit revenue growth in 2023, driven by its capital markets platform[69] - Canadian Personal and Business Banking benefited from loan and deposit growth over the last eight quarters, driven by organic client growth and the acquisition of the Canadian Costco credit card portfolio in Q2 2022[157] - U.S. Commercial Banking and Wealth Management saw increased loan volumes and fee income, but was offset by market-related headwinds in wealth management due to market volatility[157] - Capital Markets and Direct Financial Services experienced lower trading revenue in Q3 and Q4 of 2022 and 2023, but higher trading revenue in Q1 2023 due to robust market conditions[157] - Provision for credit losses in Canadian Personal and Business Banking was impacted by lower insolvencies and write-offs in credit cards relative to pre-pandemic levels in Q1 and Q2 2022[158] - U.S. Commercial Banking and Wealth Management saw higher provisions on impaired loans in Q2, Q3, and Q4 of 2023, mainly attributable to the real estate and construction sector[158] - Non-interest expenses fluctuated due to changes in employee compensation, strategic investments, and foreign exchange rates, with increases in legal provisions in Q2 and Q4 2022 and Q1 2023[159] - CIBC's net income for the quarter increased by $53 million or 4% compared to the prior quarter[133] - CIBC's non-interest expenses decreased by $43 million or 1% year-over-year, primarily due to lower spending on strategic initiatives[132] - CIBC's income tax expense increased by $96 million or 34% year-over-year, driven by higher income[132] - CIBC's revenue increased by $584 million or 13% year-over-year, with commercial banking revenue up $451 million or 25%[141] - CIBC's wealth management revenue increased by $133 million or 5% year-over-year, driven by higher fee-based revenue and net interest income[141] - CIBC's provision for credit losses on performing loans decreased by $154 million year-over-year, due to a more unfavorable economic outlook in the prior year[132] - The U.S. Commercial Banking and Wealth Management segment reported a net income (loss) of $280 million in US$ millions[147] - Total revenue for the year ended October 31, 2022, was $21.833 billion, with Canadian Personal Banking contributing $8.909 billion and U.S. Commercial Banking and Wealth Management contributing $1.902 billion[149] - Net income attributable to equity shareholders was $6.220 billion, with Canadian Personal Banking contributing $2.249 billion and U.S. Commercial Banking and Wealth Management contributing $588 million[149] - Total revenue for the year ended October 31, 2021 was $20,015 million, with Canadian Personal Banking contributing $8,150 million and Canadian Commercial Banking and Wealth Management contributing $4,670 million[151] - Net income attributable to equity shareholders was $6,429 million, with diluted EPS of $6.96[151

Financial Data and Key Metrics Changes - The company reported net earnings of $1.5 billion or $1.52 per share, which is lower than the prior year due to higher provisions for credit losses, while pre-provision pretax earnings increased by 5% [32][47] - Total provision for credit losses was $736 million in Q3, compared to $438 million in the previous quarter, with allowance coverage increasing from 66 basis points to 73 basis points [24][25] - Adjusted net income was down 15% from the prior year, driven by an increase in credit provisions, while revenues of $5.9 billion were up 6% year-over-year [48][32] Business Line Data and Key Metrics Changes - Net income in Canadian Personal and Business Banking was $527 million, down 17% from the same quarter last year due to higher provisions for credit losses, while revenues increased by 6% year-over-year [13] - Net income for Canadian Commercial Banking and Wealth Management was $467 million, with revenues up 1% from a year ago, benefiting from loan and deposit growth [14] - U.S. Commercial Banking and Wealth Management reported a net income of $62 million, down 62% from the prior year due to higher credit provisions, despite a 5% increase in revenues [16] Market Data and Key Metrics Changes - The Canadian P&C net interest margin (NIM) was 267 basis points, reflecting strong margin expansion supported by higher rates [7] - U.S. segment NIM was 346 basis points, up 10 basis points year-over-year, driven by higher deposit margins [8] - Loan balances averaged $537 billion this quarter, an increase of 5% from the prior year, with high-quality deposit growth outpacing loans [9] Company Strategy and Development Direction - The company is focused on three key strategic priorities: growing high-growth segments, delivering leading digital banking solutions, and simplifying operations [34] - The Canadian consumer franchise has added over 650,000 net new clients in the past year, indicating robust growth [35] - The company aims to maintain a CET1 ratio above regulatory requirements while prudently managing capital deployment [12][66] Management's Comments on Operating Environment and Future Outlook - Management expects loan losses to remain at current levels for the next few quarters, reflecting ongoing economic headwinds [2][4] - The company is cautious about the economic environment but believes its strong balance sheet positions it well for growth when conditions improve [12][44] - Management noted that the Canadian consumer lending portfolio continues to perform well, despite pressures in the U.S. office sector [23][71] Other Important Information - The company has seen a build in performing allowances reflecting a prudent outlook based on macroeconomic conditions [23] - The total allowance coverage increased due to higher debt service ratio forecasts for consumer loans [24] - The company is committed to maintaining a disciplined approach to resource allocation and efficiency [12][41] Q&A Session Summary Question: What is the outlook for credit losses given the current economic conditions? - Management indicated that credit losses are expected to normalize within expectations, with provisions reflecting forward-looking indicators [106][112] Question: How does the company view the risk framework and cultural aspects in light of recent press articles? - Management emphasized strong governance and a commitment to prudent risk management, stating that they maintain transparent engagement with regulators [62][79] Question: What is the impact of interest rate changes on the company's deposit mix and margins? - Management noted that while there has been a shift in deposit types, the overall deposit franchise remains strong, and they expect stability in margins moving forward [81][116]

Restrictions on the flow of funds | --- | --- | --- | --- | --- | --- | |----------------------|-------------------------------------------------------------------------------------------------------------|-------|--------------------------|-------|----------------------------| | $ millions, HQLA | average of the three months ended July 31, 2023 | Total | (1) unweighted value | Total | weighted value (2) | | 1 Cash outflows | HQLA | | n/a | $ | 182,337 | | 2 | Retail deposits and deposits from small busines ...

Financial Data and Key Metrics Changes - Adjusted second quarter revenue was $5.7 billion, up 6% year-over-year, with pre-provisioned pre-tax earnings of $2.5 billion, also up 6.6% from the prior year [9][32] - Net income was $1.6 billion, a decrease of 2% year-over-year, attributed to normalizing impaired credit provisions [3][32] - Diluted earnings per share were $1.76, reflecting a 9% increase year-over-year, while adjusted EPS was $1.70 with a return on equity (ROE) of 13.9% [13][32] - Total bank net interest income (NII) was up 3% from the prior year, with NII excluding trading increasing by 10% due to loan and deposit growth [14][32] Business Line Data and Key Metrics Changes - Canadian commercial banking and wealth management reported net income of $452 million, with pre-provisioned pre-tax earnings of $663 million, up 2% year-over-year [37] - Capital markets revenues were $1.4 billion, up 3% year-over-year, driven by a 34% increase in direct financial services [20] - Wealth management experienced a 6% revenue decline due to negative market impacts, while commercial banking saw a 15% revenue growth [37] Market Data and Key Metrics Changes - North American commercial banking and wealth management businesses reported year-over-year loan growth in the 9% to 10% range, although at a slower pace than previous quarters [4] - Client deposit growth outpaced loans, increasing by 10% to an average balance of $520 billion [15] - The US segment's net interest margin (NIM) was 341 basis points, up 2 basis points year-over-year but down 13 basis points from the prior quarter [33] Company Strategy and Development Direction - The company is focused on building a strong and resilient bank, emphasizing client relationships and sustainable financing [5][12] - There is a commitment to ESG initiatives, with recognition for diversity and gender equality [12] - The management team is prioritizing organic growth and harvesting past investments rather than pursuing M&A opportunities in the US [61][90] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic challenges, highlighting a strong capital position with a CET1 ratio of 11.9% [10][30] - The company anticipates continued upward momentum in margins and NII growth despite market uncertainties [33][97] - Management remains vigilant in risk management, particularly in monitoring asset classes and client segments for signs of stress [3][28] Other Important Information - Total loan balances averaged $538 billion, with 55% being real estate secured lending [24] - The allowance for credit losses remains prudent, with overall coverage above pre-pandemic levels [41] - The company maintains a medium-term guidance of quarterly losses in the corporate and other business unit segment between $75 million to $125 million [39] Q&A Session Summary Question: Margin breakdown and hedging strategy - Management discussed the unique aspects of their margin strategy and the impact of deposit trends on margins in both Canada and the US [48][50] Question: Liquidity coverage ratio (LCR) concerns - Management clarified the fluctuations in LCR and their strategy to maintain higher liquidity levels in uncertain environments [56][58] Question: US office market differences - Management explained the structural differences between Canadian and US office markets, emphasizing consistent underwriting standards [68][92] Question: Performing recovery in Canadian personal banking - Management attributed the recovery to a less pessimistic outlook and resilience in their retail portfolios [95][96] Question: Future capital generation and risk posture - Management confirmed a focus on organic growth and maintaining a disciplined approach to capital deployment amid a challenging revenue environment [118][120]

Overview of results CIBC today announced its financial results for the second quarter ended April 30, 2023. Second quarter highlights Results for the second quarter of 2023 were affected by the following items of note aggregating to a positive impact of $0.06 per share: • $114 million ($82 million after-tax) decrease in legal provisions (Corporate and Other); and • $27 million ($21 million after-tax) amortization of acquisition-related intangible assets. Our CET1 ratio (4) was 11.9% at April 30, 2023, compa ...