CIBC(US:CM)2024-12-05 12:32Financial Performance - Reported net income for 2024 was $7.2 billion, while adjusted net income was $7.3 billion, compared to $5.0 billion and $6.5 billion in 2023[18]. - Revenue increased to $25.6 billion in 2024 from $23.3 billion in 2023, representing a growth of approximately 9.9%[18]. - Reported return on equity (ROE) improved to 13.4% in 2024, up from 10.3% in 2023, while adjusted ROE rose to 13.7% from 13.4%[18]. - Total shareholder return reached 87.6% in 2024, a significant recovery from a negative return of -15.9% in 2023[18]. - CIBC reported earnings of $7.2 billion or $7.28 per share, with adjusted earnings of $7.3 billion or $7.40 per share, and revenue of $25.6 billion, up 10% from the previous year[69]. - The bank's CET1 ratio stands at 13.3%, indicating strong capital strength[69]. - In fiscal 2024, reported diluted EPS increased by 41% year-over-year to $7.28, while adjusted diluted EPS rose by 10% to $7.40[132]. - The company achieved a reported operating leverage of 9.1% in 2024, compared to (5.2)% in 2023, indicating significant revenue growth relative to expenses[134]. - Return on common shareholders' equity (ROE) for 2024 was reported at 13.4%, up from 10.3% in 2023, but below the target of at least 16% due to higher regulatory capital requirements[137]. - The dividend payout ratio improved to 49.4% in 2024 from 66.5% in 2023, reflecting a focus on sustainable earnings[139]. - Total shareholder return (TSR) for the three years ended October 31, 2024, was 36.4%, outperforming the S&P/TSX Composite Banks Index of 21.9%[141]. Market and Client Growth - CIBC welcomed over 613,000 net new clients across Canadian consumer platforms in the last twelve months, with significant growth among students and newcomers to Canada[74]. - The Wealth Management business saw a 30% year-over-year growth in assets under administration, ranking 1 among the Big 6 banks in Canada for long-term mutual fund sales[81]. - CIBC's Capital Markets business in the U.S. achieved a revenue growth of 21% in 2024, marking the third consecutive year of double-digit growth[85]. - The Direct Financial Services business reported a three-year cumulative annual growth rate of 16% in 2024, driven by innovation and expertise[86]. Digital and Technological Advancements - CIBC is expanding its digital-first personal banking capabilities in Canada and enhancing its mass affluent and private wealth franchise in both Canada and the U.S.[7]. - The bank is operationalizing a new Enterprise AI Framework to manage AI solutions responsibly and promote business innovation[27]. - Digital engagement reached 87%, with 38% of new products opened through digital channels[77]. - CIBC made significant investments in AI and technology, achieving the greatest year-over-year improvement in the Evident AI Index among all banks[87]. - The bank launched several Generative AI pilots, including the CIBC AI Platform and GitHub CoPilot, to enhance innovation and productivity[88]. Community and Environmental Initiatives - CIBC financed projects totaling $123 million for affordable housing in the U.S., resulting in 500 units developed for low- and moderate-income communities[39]. - The bank entered partnerships with six First Nations in Canada, authorizing $34.5 million in housing loans to support Indigenous housing development[40]. - CIBC is committed to achieving net-zero GHG emissions by 2050 and has built a leading renewables franchise to support clients' climate objectives[93]. - The bank set an inaugural interim net-zero target for its automotive manufacturing portfolio and continues to report on progress towards its net-zero ambition[110]. - CIBC advanced nearly half of its $100 million commitment to funds investing in carbon technology, low carbon fuels, energy storage, and hydrogen[51]. Financial Metrics and Ratios - Adjusted efficiency ratio improved to 55.8% in 2024 from 56.4% in 2023, indicating better cost management[18]. - Reported efficiency ratio improved to 56.4% in 2024 from 61.5% in 2023[159]. - Liquidity coverage ratio (LCR) for the quarter ended October 31, 2024, was 129%, compared to 135% for the same period last year[146]. - Average interest-earning assets rose to $929,604 million in 2024, compared to $861,136 million in 2023[159]. - Net interest margin on average interest-earning assets for 2024 was 1.47%, slightly down from 1.49% in 2023[183]. Strategic Partnerships and Transactions - CIBC acted as financial advisor and lead arranger for a €2.6 billion refinancing for Ventient Energy, one of the largest independent renewable power producers in Europe[47]. - The bank coordinated a US$654 million green loan for Arevon Energy, supporting a 374 MWdc solar project with 150 MW/600 MWh of energy storage[48]. - CIBC Caribbean announced the sale of banking assets in Curaçao, completed on May 24, 2024, with no material impact expected[176]. - CIBC settled litigation with Cerberus for $770 million, impacting net income by $762 million after tax[177]. Economic Outlook - The economic outlook for Canada suggests GDP growth will pick up from about 1.3% in 2024 to just under 2% in 2025[167]. - Canadian Personal Banking mortgage growth is expected to return to long-term historic rates in 2025 due to lower interest rates[170]. - Canadian commercial and corporate banking loan growth is anticipated to increase in 2025 as a result of interest rate relief[171]. - The Bank of Canada reduced the overnight rate by 125 basis points in 2024 to 3.75%[167].