Core Viewpoint - The comparison between NatWest Group (NWG) and Canadian Imperial Bank (CM) indicates that NWG is more attractive to value investors due to its stronger earnings estimate revision activity and more favorable valuation metrics [3][7]. Valuation Metrics - NWG has a forward P/E ratio of 9.15, while CM has a forward P/E of 13.02, suggesting that NWG is undervalued compared to CM [5]. - The PEG ratio for NWG is 0.84, indicating a better valuation relative to its expected earnings growth compared to CM's PEG ratio of 1.69 [5]. - NWG's P/B ratio is 1.05, which is lower than CM's P/B of 1.83, further supporting NWG's more attractive valuation [6]. Analyst Outlook - NWG holds a Zacks Rank of 2 (Buy), reflecting a more positive analyst outlook compared to CM's Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for NWG suggests a more favorable future performance as perceived by analysts [7]. Value Grades - Based on various valuation metrics, NWG has a Value grade of B, while CM has a Value grade of C, indicating that NWG is viewed as a better value investment [6].

Core Viewpoint - Canadian Imperial Bank reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing an increase from $1.41 per share a year ago, representing an earnings surprise of +9.79% [1][2] Financial Performance - The bank's revenues for the quarter ended July 2025 were $5.28 billion, surpassing the Zacks Consensus Estimate by 3.09%, and up from $4.82 billion year-over-year [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Canadian Imperial Bank shares have increased approximately 19.1% since the beginning of the year, outperforming the S&P 500's gain of 10.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.42 on revenues of $5.16 billion, and for the current fiscal year, it is $5.92 on revenues of $20.75 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Foreign is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported net income of $2,100,000,000, an increase of 11% from the prior year, and earnings per share of $2.16, up 12% [9] - Pre-provision pre-tax earnings rose by 12%, supported by broad-based growth across all operating units and healthy margin expansion [9][21] - The CET1 ratio at the end of the quarter was 13.4%, stable quarter over quarter, with a return on equity of 14.2%, up 20 basis points from the prior year [11][22] Business Line Data and Key Metrics Changes - Canadian Personal and Business Banking adjusted net income increased by 17% to $817,000,000, driven by higher revenue growth and margin expansion [29] - Canadian Commercial Banking and Wealth Management saw net income and pre-provision pre-tax earnings up 19% and 16% respectively, with revenues up 13% [30] - U.S. Commercial Banking and Wealth Management net income was up 15%, with revenues increasing by 8% [32] Market Data and Key Metrics Changes - Capital Markets segment net income increased by 43% year over year, with revenues up 24% [34] - The U.S. segment revenue growth was up 37% year to date, contributing significantly to the overall performance [16] - Non-interest income was $3,200,000,000, up 4%, with market-related fees increasing by 10% [26] Company Strategy and Development Direction - The company emphasized a client-focused strategy that is yielding strong results, with a focus on deepening client relationships and expanding digital banking capabilities [6][15] - The leadership transition is expected to accelerate the execution of the company's strategy under new CEO Harry Culham [7][8] - The company plans to continue returning capital to shareholders while supporting client growth ambitions [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid global trade tensions and economic uncertainty, anticipating increased client activity as the trade environment stabilizes [18][19] - The company expects to continue executing its strategy regardless of macroeconomic conditions, focusing on supporting clients and optimizing capital [19][20] - Management highlighted improving profitability, top-tier credit quality, and robust top-line growth as key indicators of the company's strength [20] Other Important Information - The company launched innovative solutions, including the CIBC Education Portfolios and a new dedicated business banking program for skilled trades professionals [13] - The digital banking capabilities were recognized with high customer satisfaction rankings, reflecting the company's commitment to exceeding client expectations [14] - The AI-powered voice assistant and CAI platform received awards for enhancing customer experience and operational efficiency [17] Q&A Session Summary Question: Is it the intention to complete the renewed NCIB? - The company confirmed the completion of the previous buyback and expressed confidence in the earnings trajectory, indicating a consistent approach to capital management [45][46] Question: What is the true ROE potential of the company? - Management indicated that while the ROE target was recalibrated, the conviction in the strategy remains strong, with expectations for continued upward movement in ROE [52][54] Question: What is the outlook on margin expansion? - Management expressed optimism about sustainable margin increases, driven by strategic execution and favorable market conditions [60][64] Question: How is the company managing credit risks amid economic uncertainties? - Management highlighted the resilience of Canadian consumer portfolios and the proactive measures taken to manage risks, including maintaining robust provisions [75][84] Question: What is the status of the Imperial Service and its impact on wealth management? - Management emphasized the importance of the Imperial Service in driving the mass affluent strategy and noted ongoing investments to enhance productivity and client engagement [102][106]

Financial Data and Key Metrics Changes - The company reported net income of $2.1 billion, an increase of 11% from the prior year, and earnings per share of $2.16, up 12% [7] - Pre-provision pre-tax earnings rose by 12%, supported by broad-based growth across all operating units and healthy margin expansion [7][21] - The CET1 ratio ended the quarter at 13.4%, with a return on equity of 14.2%, up 20 basis points from the prior year [9][20] Business Line Data and Key Metrics Changes - Canadian Personal and Business Banking adjusted net income increased by 17% to $817 million, driven by higher revenue growth and margin expansion [26] - Canadian Commercial Banking and Wealth Management saw net income and pre-provision pre-tax earnings up 19% and 16% respectively, with revenues up 13% [28] - Capital Markets net income increased by 43% year-over-year, with revenues up 24%, driven by strong performance in Global Markets and Investment Banking [31] Market Data and Key Metrics Changes - In the U.S. segment, net income was up 15% from the prior year, with revenues increasing by 8% [29] - The Canadian P&C net interest margin was up 27 basis points year-over-year, reflecting the benefits from the rate environment [26] - The U.S. net interest margin was up 6 basis points sequentially, driven by strength in deposits [22] Company Strategy and Development Direction - The company emphasized a client-focused strategy that is yielding strong results, with a focus on deepening client relationships and expanding digital banking capabilities [5][11] - The launch of innovative solutions, such as the CIBC Education Portfolios and a new dedicated business banking program, reflects the company's commitment to enhancing client offerings [11][12] - The company is well-positioned to capture emerging opportunities despite global trade tensions and economic uncertainty [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's resilience and ability to navigate shifts in economic conditions, anticipating increased client activity as the global trade environment stabilizes [16][17] - The outlook remains positive, with expectations for continued growth driven by a diversified platform and strong client relationships [17][18] - Management highlighted the importance of maintaining a disciplined approach to credit risk management amid evolving macroeconomic conditions [34][39] Other Important Information - The company announced a new normal course issuer bid for 2% of its outstanding common shares, reflecting a balanced approach to capital management [9][19] - The bank's digital registration surpassed 10 million clients, indicating strong momentum in digital banking [12] - The AI-powered voice assistant and CIBC AI platform received recognition for enhancing customer experience [15] Q&A Session Summary Question: Is it the intention to complete the renewed NCIB? - Management confirmed the completion of the previous buyback and expressed confidence in the bank's earnings trajectory, indicating plans to continue the buyback program [42][44] Question: What is the true ROE potential of the company? - Management indicated that while the ROE target was recalibrated, the conviction in the strategy remains strong, with expectations for continued upward movement in ROE [50][52] Question: What is the outlook for margins going forward? - Management acknowledged the significant margin increases but suggested that future improvements would be more gradual, maintaining a positive outlook [85] Question: Can you provide an update on the Imperial Service? - Management highlighted the Imperial Service as a core driver of the mass affluent strategy, emphasizing ongoing investments in technology and adviser productivity [100][106]

Quarterly Results Presentation Third Quarter 2025 August 28, 2025 All amounts are in Canadian dollars unless otherwise indicated. Forward-Looking Statements Third Quarter 2025 A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this presentation, in other filings with Canadian securities regulators or the SEC and in other communications. All such statements are made pursuant to the "safe ha ...

Financial Performance - CIBC's financial results for the third quarter of 2025 will be compared with corresponding periods, with all amounts expressed in Canadian dollars (CAD) and prepared in accordance with IFRS[12]. - Net interest income for Q3 2025 was $4,048 million, an increase of 6.9% from $3,788 million in Q2 2025 and 14.6% from $3,532 million in Q3 2024[14]. - Total revenue reached $7,254 million in Q3 2025, up 3.3% from $7,022 million in Q2 2025 and 9.8% from $6,604 million in Q3 2024[14]. - Net income attributable to equity shareholders was $2,094 million for Q3 2025, compared to $1,998 million in Q2 2025 and $1,786 million in Q3 2024, reflecting a year-over-year increase of 17.2%[14]. - The reported efficiency ratio improved to 54.8% in Q3 2025 from 54.4% in Q2 2025 and 55.8% in Q3 2024[14]. - The common shareholders' equity increased to $55,930 million in Q3 2025, up from $55,724 million in Q2 2025 and $52,580 million in Q3 2024[14]. - Total revenue for the three months ended July 31, 2025, was $7,254 million, an increase of 3.3% compared to $7,022 million for the same period in 2024[47]. - Net income for the three months ended July 31, 2025, was $2,096 million, up from $2,007 million in the same period last year, reflecting a 4.4% increase[47]. - Adjusted net income for the quarter was $2,104 million, an increase of 10.9% compared to $1,895 million for the same quarter last year[30]. - Non-interest income rose by $134 million or 4% from the same quarter last year, primarily due to higher underwriting and advisory fees[35]. Economic Outlook - The economic outlook indicates Canadian GDP growth is expected to be 1.4% for 2025, with potential risks from global trade conflicts and elevated U.S. tariffs[19]. - The economic outlook anticipates real GDP growth slowing to 1.7% for 2025, with an unemployment rate averaging 4.3%[22]. - CIBC highlights potential recession risks due to U.S. tariffs, high interest rates, and geopolitical conflicts impacting the global economy[12]. Risk Management - Forward-looking statements are made regarding the financial condition, risk management, and sustainability commitments, including a net-zero ambition by 2050[12]. - CIBC emphasizes the importance of managing various risks, including credit, market, liquidity, and operational risks, which could affect financial performance[12]. - The financial institution is committed to enhancing its risk management and valuation models to adapt to changing market conditions[12]. - Provision for credit losses was $559 million, up $76 million from the same quarter last year, reflecting higher provisions in Canadian Personal and Business Banking[39]. Strategic Initiatives - The company is focused on developing and introducing new products and services, expanding distribution channels, and increasing revenue from these initiatives[12]. - CIBC's strategic priorities include attracting and retaining key employees and successfully executing acquisition strategies[12]. - CIBC continues to focus on technology and innovation to enhance its service delivery across banking channels[91]. Shareholder Information - The market capitalization rose to $92,044 million as of July 31, 2025, compared to $81,231 million on April 30, 2025 and $67,444 million on July 31, 2024[14]. - The company repurchased 20.0 million common shares for a total of $1,757 million under its Normal Course Issuer Bid, with 5.5 million shares repurchased in the latest quarter[192]. - As of July 31, 2025, the company had 929,477,200 common shares outstanding, with a total par value of $16,869 million[208]. Capital and Liquidity - The CET1 ratio increased to 13.4% as of July 31, 2025, up from 13.3% on October 31, 2024, driven by an increase in CET1 capital[186]. - The TLAC ratio improved to 32.9% as of July 31, 2025, up from 30.3% on October 31, 2024, due to an increase in total TLAC instruments[190]. - The liquidity coverage ratio (LCR) was reported at 127% for Q3 2025, down from 131% in Q2 2025 but up from 126% in Q3 2024[14]. Operational Performance - Non-interest expenses increased by $294 million or 8% year-over-year, mainly due to higher performance-based compensation[42]. - Non-interest expenses for the nine months amounted to $11,673 million, reflecting the company's investment in growth[85]. - The efficiency ratio improved to 49.6% for the quarter, down from 51.7% in the prior year[99]. - The company reported a total income before income taxes of $8,147 million for the nine months, showcasing strong operational performance[85].

Financial Performance - Canadian Imperial Bank of Commerce (CIBC) earnings surpass estimates [1] - Strong performance driven by its domestic retail-banking business [1] Company Highlights - CIBC continues a two-year run of earnings beats [1]

Core Viewpoint - Canadian Imperial Bank (CM) is expected to report a year-over-year increase in earnings and revenues for the quarter ended July 2025, with a consensus outlook indicating potential stock price movements based on actual results compared to estimates [1][2]. Earnings Expectations - The consensus EPS estimate for Canadian Imperial Bank is $1.43 per share, reflecting a year-over-year change of +1.4% [3]. - Expected revenues for the quarter are $5.12 billion, which represents a 6.2% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.71% higher, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Canadian Imperial Bank is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.87%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a positive ESP being a strong predictor of an earnings beat [9][10]. - Canadian Imperial Bank's current Zacks Rank is 3 (Hold), which complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Canadian Imperial Bank exceeded the expected EPS of $1.34 by delivering $1.44, resulting in a surprise of +7.46% [13]. - The company has beaten consensus EPS estimates in the last four quarters [14]. Industry Comparison - Royal Bank (RY), a peer in the banking industry, is expected to report an EPS of $2.36 for the same quarter, indicating a year-over-year change of -0.8% [18]. - Royal Bank's revenues are projected to be $11.59 billion, up 8.5% from the previous year, with a positive Earnings ESP of +1.06% and a Zacks Rank of 3 [19].

Core Insights - CIBC announced senior leadership appointments to enhance its client-focused strategy and prepare for future growth, with Harry Culham taking over as President and CEO on November 1, 2025 [1][2] Leadership Appointments - Harry Culham will assume the role of President and CEO, emphasizing a client-focused strategy and a connected culture [1][2] - Christian Exshaw appointed as Senior Executive Vice-President and Group Head, Capital Markets, responsible for global capital markets [2] - Kevin Li appointed as Senior Executive Vice-President and Group Head, U.S. Region; President and CEO, CIBC Bank USA, focusing on cross-border business growth [2] - Christina Kramer appointed as Senior Executive Vice-President and Chief Administrative Officer, overseeing Technology, Infrastructure, Innovation, and ESG initiatives [2] - Hratch Panossian continues as Senior Executive Vice-President and Group Head, Personal and Business Banking, expanding his role to include contact centers and client marketing [2] - Susan Rimmer remains Senior Executive Vice-President and Group Head, Commercial Banking and Wealth Management, adding oversight of CIBC Caribbean [2] - Amy South appointed as Executive Vice-President, Office of the CEO and Chief of Staff, responsible for various strategic initiatives [3] - Stephen Scholtz appointed as Global Chief Legal Officer, bringing extensive legal experience to the role [3] Retirements and Transitions - Shawn Beber will retire on July 1, 2026, after 23 years, transitioning to a Special Advisor role on November 1, 2025 [3] - Kikelomo Lawal will also retire, having led Legal and ESG strategy development [3] Company Overview - CIBC is a leading North American financial institution serving 14 million clients across various sectors, offering a comprehensive range of financial services [5]

Core Viewpoint - Woori Bank (WF) is currently viewed as a superior value opportunity compared to Canadian Imperial Bank (CM) based on various valuation metrics [1][6]. Valuation Metrics - Both Woori Bank and Canadian Imperial Bank have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - Woori Bank has a forward P/E ratio of 6.26, significantly lower than Canadian Imperial Bank's forward P/E of 12.35 [5]. - The PEG ratio for Woori Bank is 0.98, while Canadian Imperial Bank has a PEG ratio of 1.58, suggesting Woori Bank is more favorably valued in terms of expected earnings growth [5]. - Woori Bank's P/B ratio is 0.54, compared to Canadian Imperial Bank's P/B of 1.72, further indicating Woori Bank's undervaluation relative to its book value [6]. - These metrics contribute to Woori Bank's Value grade of B and Canadian Imperial Bank's Value grade of C, reinforcing the view that Woori Bank presents a better value opportunity [6].