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 ...

Financial Data and Key Metrics - Adjusted net earnings for Q1 2023 were $1.8 billion, or $1.94 per share, with a CET1 ratio of 11.6% and a return on equity of 15.5% [53] - Net interest income (NII) was $3.2 billion, up 2% YoY, with NIM ex-trading up 5 basis points sequentially and 3 basis points YoY [125] - Total provision for credit losses was $295 million in Q1, down from $436 million last quarter, with impaired provisions at $259 million [166] - Trading income was particularly strong this quarter, contributing to a 15% increase in non-interest income to $2.7 billion [102] Business Line Data and Key Metrics - Personal and Business Banking net income was $594 million, down 15% YoY, with revenues of $2.3 billion, up 4% YoY [103] - Direct Financial Services (DFS) revenue increased 38% YoY, driven by deposit margin expansion in the Simplii business [104] - Capital Markets net income was $612 million, up 13% YoY, with revenues of $1.5 billion, up 14% YoY, driven by strong client activity in global markets [154] - U.S. Commercial Banking and Wealth Management net income was $159 million, down 15% YoY, with revenues up 10% YoY [127] Market Data and Key Metrics - Canadian P&C NIM improved to 248 basis points, up 12 basis points YoY, with U.S. NIM at 354 basis points, up 9 basis points YoY [152] - Canadian mortgage originations were down 47% YoY, with variable rate mortgages accounting for 30% of new originations, down from previous quarters [76][97] - Commercial real estate (CRE) exposure in Canada and the U.S. remains well-diversified, with 69% of the Canadian portfolio and 60% of the U.S. portfolio being investment grade [180] Company Strategy and Industry Competition - The company is focused on executing its strategy, particularly in the mass affluent segment, leveraging Imperial Service and small business investments [24][25] - Investments in technology, including AI and cloud, have improved efficiency and client connectivity, with plans to continue driving innovation [123][136] - The company is targeting growth in the U.S. platform, aiming for over 10% growth in areas of competitive advantage [6] - The company expects to maintain a CET1 ratio of around 12% by the end of 2023, supported by organic capital generation and share issuance [139] Management Commentary on Operating Environment and Future Outlook - Management expects NIM expansion to continue, particularly in the back half of the year, with core NIM ex-trading positioned to increase a few basis points per quarter [93] - The company anticipates normalization of credit losses towards pre-COVID levels, with impaired PCL ratios trending towards the mid-20 to 30 basis point range [37] - Management remains confident in delivering positive operating leverage over the medium term, with expenses expected to stabilize around current levels [153] - The company is prepared for potential deposit attrition, particularly in the U.S., and is managing liquidity closely given the macroeconomic backdrop [206] Other Important Information - The company has made significant investments in its Direct Financial Services platform, which has delivered a 3-year revenue CAGR of approximately 15% [136] - The company has been recognized for its ESG efforts, including being named to the Dow Jones Sustainability Index North America for the 18th consecutive year [175] - The company has a strong focus on client relationships, with over 0.5 million net new clients added in the past 12 months [170] Summary of Q&A Session Question: NIM Outlook and Rate Sensitivity - Management expects NIM to expand, particularly in the back half of the year, with core NIM ex-trading positioned to increase a few basis points per quarter [93] - A 100 basis point rate cut would negatively impact NII by approximately $300 million, but short-term cuts would be immaterial [4] Question: Trading Performance and Market Activity - The strong trading performance this quarter was driven by client activity in volatile markets, particularly in foreign exchange, interest rates, and commodities [81][154] - The company does not engage in proprietary trading, with VAR devoted entirely to client activity [16] Question: Credit Loss Normalization - Management expects credit losses to normalize towards pre-COVID levels, with impaired PCL ratios trending towards the mid-20 to 30 basis point range [37] - The company has been conservative in its outlook, assuming some normalization of the environment and counterparty credit risk [30] Question: Commercial Real Estate Exposure - The company has a long-standing CRE business with low losses, and while the industry is quiet, there are no signs of stress in the portfolio [42][43] - Office exposure is being closely monitored, but there are no significant changes in underwriting posture [205] Question: Private Wealth and Net Flows - Private wealth net flows were strong at 6.2% over the last 12 months, driven by success in the private bank and Wood Gundy franchise [33][34] - The company expects continued growth in private wealth, supported by investments in the platform and competitive recruiting [34] Question: Innovation Banking Performance - Innovation banking has seen slower loan growth due to market conditions, but the portfolio is performing well, with no signs of stress [36] - The company remains confident in exceeding the targets set at Investor Day for this segment [35]

Report to Shareholders for the First Quarter, 2023 www.cibc.com February 24, 2023 Report of the President and Chief Executive Officer Overview of results CIBC today announced its financial results for the first quarter ended January 31, 2023. First quarter highlights Results for the first quarter of 2023 were affected by the following items of note aggregating to a negative impact of $1.55 per share: • $1,169 million ($844 million after-tax) increase in legal provisions (Corporate and Other); • $545 million ...

Financial Data and Key Metrics Changes - Adjusted fiscal 2022 full year revenue was $21.8 billion, up 9%, and pre-provision pre-tax earnings were $9.4 billion, up 7% from the previous year [8] - Adjusted net earnings were $6.6 billion or $7.05 per share, down 2% from the prior year, primarily due to more normal credit provisions [8][19] - Operating leverage was negative in fiscal 2022, with structural expense growth in the mid single-digits and total expense growth of 11% year-over-year [9][33] - CET1 ratio remained strong at 11.7%, and return on equity for the year was 14.7% [9][33] Business Line Data and Key Metrics Changes - Canadian Personal & Business Banking saw net client growth of over 350,000, with deposits and assets growing by 9% and 12% respectively [11][12] - Canadian Commercial Banking and Wealth Management reported loan and deposit growth of 20% and 12% respectively, with a record year of net inflows in Private Wealth, up 27% [13][14] - U.S. Commercial Banking and Wealth Management experienced loan growth of 15%, with strong client growth of 6% in wealth and private banking funds [15] - Capital Markets revenue grew by 17%, driven by strong performance across all lines of business [31] Market Data and Key Metrics Changes - The Canadian Personal & Business Banking segment added over 350,000 net new clients, with significant growth in the affluent segment [11] - The U.S. segment's net income was down 42% due to higher credit provisions, but pre-provision pre-tax earnings increased by 3% [30] - Non-interest income was $2.2 billion, up 6% from the prior year, driven by trading income [24] Company Strategy and Development Direction - The company is focused on high growth, high touch segments and investing in technology to enhance client experience [10] - Strategic investments are being made in Innovation Banking, fintech capabilities, and renewable energy platforms [10] - The company aims to moderate expense growth in 2023 to the mid single-digit range while continuing to grow its client franchise [17][34] Management's Comments on Operating Environment and Future Outlook - The management anticipates slower global economic growth in 2023 due to central banks' monetary policy tightening [17] - Confidence in navigating challenging circumstances is emphasized, with a focus on execution and client growth [17] - The company expects to generate continued but moderating revenue growth through share gains and improving operating leverage [34] Other Important Information - The company announced a $0.02 dividend increase to common shareholders while maintaining a payout ratio between 40% and 50% [9] - The company has set 2030 interim targets to reduce carbon intensity in its oil and gas and power generation portfolios [10] Q&A Session Summary Question: Revenue growth expectations for 2023 - Management indicated uncertainty in the revenue environment but remains confident in delivering high single-digit growth over the medium term [48][49] Question: Update on mortgage and commercial loan growth in 2023 - Mortgage growth is expected to be low single-digit, while commercial loan growth is anticipated to return to historical levels of high single-digit growth [54][56] Question: Impact of mortgage growth on margins - Management acknowledged that rapid mortgage growth in the past has led to current margin pressures, but efforts are being made to protect margins [60][61] Question: Performing loan reserve increase - The increase in performing loan reserves is primarily driven by forward-looking indicators affecting personal lending and credit card books in Canada [66][68]

Financial Performance - In 2022, the company reported revenue of $21.8 billion, an increase from $20.0 billion in 2021, representing a growth of 9%[13] - Reported net income was $6.2 billion, with adjusted net income at $6.6 billion, down from $6.4 billion and $6.7 billion respectively in 2021[13] - The diluted earnings per share (EPS) was $6.68, a decrease of 4% from $6.96 in 2021, with adjusted EPS at $7.05, down 2% from $7.23[14] - CIBC reported earnings of $6.2 billion or $6.68 per share for 2022, with adjusted earnings of $6.6 billion or $7.05 per share, consistent with the previous year[37] - Revenue increased by 9% to $21.8 billion, and adjusted pre-provision, pre-tax earnings rose by 7% to $9.4 billion, driven by robust volume growth across all businesses[38] - CIBC reported a strong performance in 2022, with a focus on delivering superior client experience and top-tier shareholder returns[71] - CIBC's financial measures focus on earnings growth, operating leverage, profitability, and balance sheet strength, with targets set for a three to five-year cycle[71] - CIBC's total shareholder return of 40.6% over five years outperformed the S&P/TSX Composite Banks Index[14] Credit Losses and Provisions - The provision for credit losses was $1.1 billion in 2022, compared to $0.2 billion in 2021, indicating a significant increase in risk provisioning[13] - Provision for credit losses significantly rose to $1,057 million in 2022, compared to $158 million in 2021, reflecting a substantial increase in credit risk[75] - Provision for credit losses for 2022 was $876 million, compared to $350 million in 2021, indicating an increase of 150.3%[101] - Provision for credit losses increased by $526 million or 150% from 2021, reflecting an unfavorable change in the economic outlook[111] Capital and Liquidity - The CET1 ratio was reported at 11.7%, indicating a strong capital buffer[14] - The Common Equity Tier 1 (CET1) ratio for the year ended October 31, 2022, was 11.7%, down from 12.4% in 2021, but still above regulatory requirements[74] - The liquidity coverage ratio (LCR) for the quarter ended October 31, 2022, was 129%, compared to 127% for the same period last year, indicating strong liquidity[74] - CIBC's total capital ratio as of October 31, 2022, was 14.0%, which includes all buffer requirements[145] - CIBC's capital management policy is reviewed annually, establishing targets for capital strength and adequacy based on regulatory requirements and risk appetite[141] Market and Economic Conditions - Economic challenges in 2022, including geopolitical tensions and supply-chain disruptions, impacted the bank's ability to meet certain performance objectives[71] - Real GDP growth in Canada is expected to decelerate to 0.6% in 2023, down from approximately 3.5% in 2022[77] - The unemployment rate in Canada is projected to rise to nearly 6% by the end of 2023, up from an average of 5.3% in 2022[77] - The ongoing conflict in Ukraine and sanctions on Russia have led to elevated volatility in commodity prices, particularly in oil and gas markets[191] Strategic Initiatives - The company launched a new Black Entrepreneur Program with a commitment of $15 million in business loans over four years (2022-2025) to support Black-owned businesses[16] - The bank aims to mobilize $300 billion in sustainable finance by 2030, focusing on renewable energy and sustainable infrastructure[19] - CIBC plans to increase its minimum entry wage to $25 per hour by 2025, reflecting its commitment to employee welfare[55] - CIBC's commitment to creating enduring value for stakeholders is reflected in its purpose-driven culture and community contributions[70] Risk Management - CIBC's risk management framework includes regular risk reports to identify and communicate risk levels, stress testing, and proactive risk mitigation options[168] - The Risk Management group is responsible for setting risk strategies and providing independent oversight of business activities[170] - CIBC's risk appetite statement is reviewed annually to ensure alignment with strategic, financial, and capital planning cycles[172] - Credit risk is managed through a three lines of defence model, with oversight from Risk Management and internal audit[201] Client Experience and Growth - The bank achieved its strongest net client growth since 2017, growing market share in deposits and loans, and was ranked first in online banking by J.D. Power among Canadian peers[39] - The Direct Financial Services business, including Simplii Financial, was ranked number one in client experience by Ipsos, indicating strong growth potential[53] - CIBC Smart Start was introduced, offering no-fee banking for youth and students until the age of 25[105] - CIBC Wood Gundy achieved a 57% increase in net flows compared to the previous year, reflecting a client-focused approach[113] Environmental, Social, and Governance (ESG) - The bank is committed to achieving net-zero greenhouse gas emissions by 2050 and has set interim targets for emissions reduction by 2030[55] - The bank's ESG strategy includes tying executive compensation to ESG performance, ensuring accountability in sustainability efforts[58] - CIBC aims to achieve and maintain an AA rating while meeting stakeholders' expectations regarding ESG criteria, including net zero greenhouse gas emissions[172] - CIBC is enhancing its climate-related disclosures in alignment with the Task Force on Climate-related Financial Disclosure (TCFD) recommendations[189]

Canadian Imperial Bank of Commerce (NYSE:CM) Q3 2022 Results Conference Call August 25, 2022 8:00 AM ET Company Participants Geoff Weiss - Senior Vice President, Investor Relations Victor Dodig - President & Chief Executive Officer Hratch Panossian - Chief Financial Officer Shawn Beber - Chief Risk Officer Mike Capatides - Group Head, U.S. Commercial Banking and Wealth Management Harry Culham - Group Head, Capital Markets and Direct Financial Services Laura Dottori Attanasio - Group Head, Canadian Personal ...

Table of Contents Report to Shareholders for the Third Quarter, 2022 www.cibc.com August 25, 2022 Report of the President and Chief Executive Officer Overview of results CIBC today announced its financial results for the third quarter ended July 31, 2022. Third quarter highlights Results for the third quarter of 2022 were affected by the following items of note aggregating to a negative impact of $0.07 per share: • $50 million ($38 million after-tax) in acquisition and integration-related costs as well as p ...