Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q2 2007 Earnings Presentation

31 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 31, 2007

  1. Slide 1: Second Quarter 2007 Investor Presentation

    Second Quarter, 2007 Investor Presentation CIBC Investor Presentation May 31, 2007 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 filings with Canadian securities regul

  2. Slide 2: CIBC Overview

    Second Quarter, 2007 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer Second Quarter, 2007 Financial Review Tom Woods Senior Executive Vice-President and Chief Financial Officer 2

  3. Slide 3: Q2 Summary

    Second Quarter, 2007 Investor Presentation Q2 Summary $ Per Share EPS(1): $2.27 Includes(3) – Tax-Related Adjustments 0.27 Cash EPS(2): $2.29 – Reversal of General Allowance for Credit Losses 0.05 – Mark-to-Market gain on Corp. Loan Credit Derivative Portfolio 0.02 • Q2 ROE: 28.9% • Results helped b

  4. Slide 4: Revenue

    Second Quarter, 2007 Investor Presentation CIBC Revenue F ‘06 F ‘07 ($MM) Q4 Q1 Q2 vs. Q1 Net Interest Income 1,130 1,059 1,079 • Full quarter of Fees for Services FirstCaribbean Underwriting and Advisory 165 185 178 consolidation, partially Deposit and Payment 195 193 193 offset by 3 less days Cred

  5. Slide 5: Expenses and Net Income Components

    Second Quarter, 2007 Investor Presentation CIBC Expenses F ‘06 F ‘07 ($MM) Q4 Q1 Q2 vs. Q1 Employee Comp. and Benefits 1,064 1,160 1,126 • Lower incentive compensation and 3 less Occupancy Costs 136 150 152 days, partially offset by a full quarter of Computer and Office FirstCaribbean Equip. 286 263

  6. Slide 6: Retail Markets Revenue Components

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue ($MM) 2,151 2,189 1,975 (1) 2,038 2,046 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Affected by an Item of Note, see Slide 49 for details. 11 CIBC Retail Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Personal & Small Business Ba

  7. Slide 7: Personal & Small Business Banking

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 Personal & Small ($MM) Q2 Q3 Q4 Q1 Q2 Business Banking Personal & Small vs. Q1: Business Banking 490 533 522 517 501 + commissions up Imperial Service 227 242 230 237 232 Retail Brokerage 319 275 292 314 30

  8. Slide 8: Retail Brokerage

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Retail Brokerage Personal & Small vs. Q1: Business Banking 490 533 522 517 501 + AUA up 2.6% Imperial Service 227 242 230 237 232 Retail Brokerage 319 275 292 314 306 – new issues down

  9. Slide 9: Mortgages & Personal Lending

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 Mortgages & Personal ($MM) Q2 Q3 Q4 Q1 Q2 Lending Personal & Small vs. Q1: Business Banking 490 533 522 517 501 + mortgage balances up Imperial Service 227 242 230 237 232 + prepayment cash penalties up Ret

  10. Slide 10: FirstCaribbean

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Other Personal & Small vs. Q1: Business Banking 490 533 522 517 501 + higher Treasury revenue Imperial Service 227 242 230 237 232 Retail Brokerage 319 275 292 314 306 Cards 337 340 380

  11. Slide 11: World Markets Revenue

    Second Quarter, 2007 Investor Presentation CIBC World Markets Revenue ($MM) (1) 784 (1) (1) 726 (1) 697 677 (1) 607 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Affected by an Item of Note, see Slides 48 and 49 for details. 21 CIBC World Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Capital Markets

  12. Slide 12: World Markets Revenue Components

    Second Quarter, 2007 Investor Presentation CIBC World Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Capital Markets Capital Markets 354 325 351 449 351 vs. Q1: Investment Banking & + FX, new issues Credit Products 119 (1) 217 (1) 242 (1) 204 (1) 247 (1) distribution up Commercial Banki

  13. Slide 13: Merchant Banking

    Second Quarter, 2007 Investor Presentation CIBC World Markets Revenue Components F ‘06 F ‘07 ($MM) Q2 Q3 Q4 Q1 Q2 Merchant Banking Capital Markets 354 325 351 449 351 vs. Q1: Investment Banking & + gains & distributions Credit Products 119 (1) 217 (1) 242 (1) 204 (1) 247 (1) ($107MM) + lower write-d

  14. Slide 14: Common Share Dividends

    Second Quarter, 2007 Investor Presentation Common Share Dividends ($ per share) 0.77 0.68 0.70 0.70 0.70 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 27 CIBC Retail Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) (2) (2) 55 55 53 (2) (2) 51 ROE 47 63 NIX 61 61 61 60 (2) Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Non-GAAP financ

  15. Slide 15: Mortgages & Cards

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Mortgages & Cards(1) ($B; spot; administered assets) 104.3 101.5 99.7 Residential 97.3 94.8 Mortgages 12.3 11.7 12.0 11.6 Card Loans 11.2 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Excludes FirstCaribbean. 29 CIBC Retail Markets Loan Balances(1) ($B

  16. Slide 16: Market Share

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Market Share(1)(2) (%) 14.4 Residential 14.2 14.2 14.1 14.2 Mortgages Consumer 19.0 19.2 19.3 18.9 19.0 Deposits Consumer 10.2 10.0 9.9 Loans 9.6 (excl. cards) (3) 9.4 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Source: OSFI (consumer deposits); Bank

  17. Slide 17: Mutual Funds/Managed Accounts AUM & Market Share

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Mutual Funds/Managed Accounts AUM & Market Share(1) MF/Managed Accts AUM Canadian Market Share 70 11 59.3 61.1 Market Share (%) 60 55.7 53.9 55.4 50 $ Billions 9 40 8.8 8.8 8.8 8.6 8.5 30 7 20 10 0 5 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Source

  18. Slide 18: Imperial Service

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Imperial Service Funds Managed Funds Managed/Financial Advisor 100 100 82.9 84.5 79.4 79.5 81.0 80 80 $ Millions $ Billions 71.7 70.9 71.8 74.1 60 71.6 60 40 40 20 20 0 0 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 35 CIBC Retail Markets Discount Brokera

  19. Slide 19: Wood Gundy

    Second Quarter, 2007 Investor Presentation CIBC Retail Markets Wood Gundy(1) AUA AUA per Investment Adviser 140 140 117.6 120.4 120 114.8 113.1 115.6 120 $ Millions 100 100 $ Billions 80 87.0 89.9 80 82.9 82.1 84.1 60 60 40 40 20 20 0 0 Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 AUA excludes client cash and short p

  20. Slide 20: Retail plus Commercial Banking

    Second Quarter, 2007 Investor Presentation CIBC Retail plus Commercial Banking(1) Revenue Net Income F ‘06 F ‘07 F ‘06 F ‘07 ($MM) Q2 Q1 Q2 Q2 Q1 Q2 (2) (2) (2) CIBC Retail Markets 1,975 2,151 2,189 432 530 583 Plus: Commercial 119 121 121 27 39 34 Banking 2,094 2,272 2,310 459 569 617 (1) Commercia

  21. Slide 21: World Markets ROE & Cash Efficiency

    Second Quarter, 2007 Investor Presentation CIBC World Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) 44 42 39 37 ROE 24 78 NIX 70 65 67 (2) 63 (TEB) (3) (3) (3) (3) (3) Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Non-GAAP financial measures, see Slide 50. (2) Taxable equivalent basis. Non-GAAP financial measur

  22. Slide 22: Market Share

    Second Quarter, 2007 Investor Presentation CIBC World Markets Market Share (%) 16.5 Canadian 14.0 12.8 12.0 New Equity 10.3 Issues (1)(2) Equity Trading 8.1 7.1 6.8 7.6 7.2 Canada - % of shares traded (3) Q2 Q3 Q4 Q1 Q2 F ‘06 F ‘07 (1) Source: CIBC Equity Capital Markets. (2) Based on total amount u

  23. Slide 23: Behind the Reported NIMs

    Second Quarter, 2007 Investor Presentation Behind the Reported NIMs F ‘07 Q1 Q2 Reported NIM 1.33% 1.36% (1) Reported NIM (TEB) 1.41% 1.42% (1) NIM (TEB) (2) excluding fixed assets 1.61% 1.63% & excluding trading assets and (3) adding back securitizations 2.49% 2.45% (4) & excluding other NII 2.65%

  24. Slide 24: Tax Reconciliation – Q2/07

    Second Quarter, 2007 Investor Presentation Tax Reconciliation – Q2/07 (A) (B) (B ÷ A) Net Income Tax Tax Rate Tax Rate ($MM) (1) Before Tax Expense Q2/07 Q2YTD Reported 908 91 10.0% 16.8% Adjustments 80 (2) - Retail Markets 11 (2) - World Markets 91 (3) (4) Adjusted 908 182 20.0% 21.6% (5) TEB Adjus

  25. Slide 25: Items of Note – 2006

    Second Quarter, 2007 Investor Presentation Items of Note – 2006 Pre-Tax After-Tax EPS Effect Strategic Business Unit Q4 2006 Effect ($MM) Effect ($MM) ($/share) Mark-to-Market on Corporate Loan Credit Derivative portfolio re. AcG-13 (13) (8) (0.02) World Mkts Reversal of General Allowance for Credit

  26. Slide 26: Risk Review

    Second Quarter, 2007 Investor Presentation Second Quarter, 2007 Risk Review Ken Kilgour Senior Executive Vice-President and Chief Risk Officer Risk Management Q2 Key Messages - Credit Total Specific Retail & World Net Impaired Loans Provisions Markets Provisions 357 360 World Markets 190 Retail Mark

  27. Slide 27: Specific Provisions and Trading Revenue

    Second Quarter, 2007 Investor Presentation Q2 Specific Provisions 11 2 190 4 11 Residential Small Mortgages 5 Personal Business 14 Loans Cards 143 First Caribbean World Markets Q1 Q2 F ‘07 F ‘07 53 Trading Revenue (TEB) vs. Risk (1) (2),(3) Backtesting of Trading Revenue vs. Total VaR Second Quarter

  28. Slide 28: Tier 1 Ratio Movement in Q2

    Second Quarter, 2007 Investor Presentation Tier 1 Ratio Movement in Q2 0.65% (0.24%) (0.24%) (0.26%) 9.6% Common and 9.5% Higher Preferred Q2 RWAs Dividends Other Net Income Q1 Q2 F ‘07 F ‘07 55 Appendix 28

  29. Slide 29: Specific Provision for Credit Losses

    Second Quarter, 2007 Investor Presentation Specific Provision for Credit Losses ($MM) Retail Markets 400 World Markets 1.00% Other Expected Total Loss Ratio 108 Bank Range: 300 0.50% - 0.65% 0.75% 156 102 200 0.50% 171 266 100 89 185 193 186 0.25% 174 153 163 180 180 159 132 61 72 4 0 0.00% (14) (4)

  30. Slide 30: Credit Protection Industry Diversification

    Second Quarter, 2007 Investor Presentation Credit Protection Industry Diversification as at April 30, 2007 Total Bought Oil & Gas $2,877 Financial Institutions 1,627 Manufacturing - Capital 876 Cable & Telecom 612 Manufacturing - Consumer 608 Business Services 573 Retail & Wholesale 569 Utilities 56

  31. Slide 31: World Markets Review and Q&A

    Second Quarter, 2007 Investor Presentation Second Quarter, 2007 World Markets Review Brian Shaw Chairman and Chief Executive Officer, CIBC World Markets Second Quarter, 2007 Q&A 31

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