Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q4 2013 Earnings Presentation
30 slides from Canadian Imperial Bank Of Commerce's earnings presentation, December 2013
Slide 1: CIBC Investor Presentation Fourth Quarter, 2013
CIBC Investor Presentation Fourth Quarter, 2013 December 2013
Slide 2: Forward-Looking Statements
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 Annual Report, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communicat
Slide 3: CIBC Overview
CIBC Overview Gerry McCaughey President and Chief Executive Officer
Slide 4: 2013 Highlights
2013 Highlights 2013 Key Messages: Net Income ($MM) – Reported 3,400 Record reported and adjusted earnings (1 ) Net Income ($MM) – Adjusted 3,619 Execution of retail strategic repositioning progressing well Diluted EPS – Reported $8.23 Robust asset growth in Wealth Management (1 ) Diluted EPS
Slide 5: Strategic Overview
Strategic Overview Grow and strengthen our core competencies CIBC Deliver consistent, sustainable earnings Enhance the client experience Retail & Business Banking Accelerate profitable revenue growth Grow organically through client-centric initiatives Wealth Management Grow through acqui
Slide 6: Fourth Quarter, 2013 Financial Review
Fourth Quarter, 2013 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 7: Fourth Quarter, 2013 Summary
Fourth Quarter, 2013 Summary Q4 2013 Net Income ($MM) – Reported 836 Key Messages: (1 ) Net Income ($MM) – Adjusted 905 Strong volumes and NIM growth in Retail & Business Diluted EPS – Reported $2.05 Banking (1 ) Diluted EPS – Adjusted $2.22 Record revenue and earnings in Wealth Management (1 )
Slide 8: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q4/12 Q3/13 Q4/13 Personal Banking 1,616 1,672 1,695 Business Banking 378 384 384 Other 42 58 25 Revenue 2,036 2,114 2,104 (3) Provision for Credit Losses 255 221 215 (3) (3) (3) Non-Interest Expenses 1,028 1,032 1,059 (1 ) Net Income – Adjusted 571 654
Slide 9: Wealth Management
Wealth Management (1 ) Adjusted ($MM) Q4/12 Q3/13 Q4/13 Retail Brokerage 256 267 272 (3) Asset Management 138 159 167 Private Wealth Management 26 32 33 Revenue 420 458 472 Provision for Credit Losses - - 1 (3) Non-Interest Expenses 308 324 334 (1 ) Net Income – Adjusted 84 103 106 Net Income – Repo
Slide 10: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q4/12 Q3/13 Q4/13 (2) Capital Markets 303 349 279 (2) Corporate & Investment Banking 194 243 249 (2) (2) (2) Other 25 11 12 Revenue (TEB) 522 603 540 (2) Provision for Credit Losses 13 14 (1) (2) (2) (2) Non-Interest Expenses 249 302 270 Net Income – Adjusted (1
Slide 11: Capital
Capital Common Equity Tier 1 Ratio (1) Risk-Weighted Assets (2) (all-in basis) ($B; all-in basis) 134 137 9.7% 126 126 9.6% 9.3% 9.4% 115 9.0% Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Basel II Basel III vs. Q3/13: Variance in Common Equity Tier 1 Ratio: - Higher earnings, net of
Slide 12: 2013 Highlights
2013 Highlights CIBC Record reported and adjusted earnings FirstLine conversion executing well Retail & Business Banking Industry leading growth in CIBC Brand mortgages and Mutual Fund sales Accelerating volume growth with NIM expansion Robust asset growth in F2013 Wealth Management - Reco
Slide 13: Fourth Quarter, 2013 Risk Review
Fourth Quarter, 2013 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 14: Provision for Credit Losses
Provision for Credit Losses (1) 320 271 vs. Q3/13: Variances in Provision for Credit Losses: − Higher losses in CIBC FirstCaribbean and commercial banking − Lower losses in credit cards and corporate banking Q3/13 Q4/13 (1) Includes two items of note: (i) provision for a revision of estimated loss
Slide 15: Gross Impaired Loans and Additions
Gross Impaired Loans and Additions Reported ($MM) Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Consumer 375 376 369 374 362 Business and Government 158 65 112 114 62 Total New Additions 533 441 481 488 424 Gross Impaired Loans (by geography) $1,867MM $1,749MM $1,692MM $1,623MM $1,547MM vs. Q3/13: Lower new addit
Slide 16: Cards
Cards 200 6% 5% 160 4% 120 186 183 197 180 193 ($MM) 179 167 3% 156 154 80 142 142 127 2% 40 1% - 0% Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Net Credit Losses (NCL) NCL Rate 30+ Days Delinquency Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies from the acquired M
Slide 17: Canadian Residential Mortgage Portfolio Insured/Uninsured Mix
Canadian Residential Mortgage Portfolio Insured/Uninsured Mix Uninsured 29% Average LTV(1) 60% Insured 71% As at October 31, 2013 (1) Loan to value (LTV) ratio is calculated based on weighted average. The current property values are estimated using Teranet House Price Index as of September 30, 2013.
Slide 18: Canadian Residential Mortgage Portfolio Outstanding Balances ($B)
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $146B $67B 31% $29B $23B 69% 34% 25% $16B $11B 23% 66% 26% 75% 74% 77% ON BC AB QC Other Insured Uninsured | 18
Slide 19: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $16.6B Canadian Condo Developer Portfolio: $3.0B Condo Mortgages Condo Developers $16.6B $3.0B Uninsured 26% Undrawn 70% Insured 74% Drawn 30% As at October 31, 2013 As at October 31, 2013 | 19
Slide 20: Trading Revenue (TEB) Distribution and Daily VaR
Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) 20 20 15 15 10 10 5 5 - - (5) (5) (10) (10) Aug-13 Sep-13 Oct-13 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 30 for further details. (2) Trading revenue (TEB) comprises both tradin
Slide 21: Appendix
_ Appendix
Slide 22: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q4/12 Q3/13 Q4/13 (2) (2) (2) Net Interest Income 1,848 1,883 1,894 (2) (2) (2) Non-Interest Income 1,311 1,380 1,306 Revenue 3,159 3,263 3,200 (2) (2) Provision for Credit Losses 328 320 271 (2) (2) (2) Non-Interest Expenses 1,829 1,874 1,932 Income Befor
Slide 23: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q4/12 Q3/13 Q4/13 Personal Banking 1,616 1,672 1,695 Business Banking 378 384 384 Other 42 58 25 Revenue 2,036 2,114 2,104 (3) Provision for Credit Losses 255 241 215 (3) (3) (3) Non-Interest Expenses 1,030 1,033 1,085 Income Before Taxes 751 840 804 Taxes 18
Slide 24: Wealth Management
Wealth Management Reported ($MM) Q4/12 Q3/13 Q4/13 Retail Brokerage 256 267 272 (3) Asset Management 138 159 165 Private Wealth Management 26 32 33 Revenue 420 458 470 Provision for Credit Losses - - 1 (3) Non-Interest Expenses 308 325 334 Income Before Taxes 112 133 135 Taxes 28 31 31 Net Income –
Slide 25: Wholesale Banking
Wholesale Banking Reported ($MM) Q4/12 Q3/13 Q4/13 (2) Capital Markets 295 349 279 (2) Corporate & Investment Banking 206 243 249 (2) (2) (2) Other 74 4 (6) Revenue (TEB) 575 596 522 (2) Provision for Credit Losses 66 14 (1) (2) (2) (2) Non-Interest Expenses 263 303 272 Income Before Taxes 246 279 2
Slide 26: Balances Retail & Business Banking and Wealth Management
Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q4/12 Q3/13 Q4/13 Cards 15.1 14.8 14.7 CIBC Brand Mortgages 92.2 100.8 106.0 CIBC Brand Personal Lending 30.5 30.3 30.2 CIBC Brand Personal Deposits & GICs 83.4 85.0 85.8 Business Deposits 36.3 36.7 38.0 Business Lending 35.8
Slide 27: Fourth Quarter, 2013 - Structured Credit Run-off
Fourth Quarter, 2013 - Structured Credit Run-off Pre-tax Pre-Tax After-tax EPS Q1/11 Effect Q4/11 After-Tax Effect Effect Q1/12 EPS Effect Effect Effect ($MM) ($MM) ($MM) ($/Share) ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 6 4 0.01 Purchased Credit Derivatives Hedging Lo
Slide 28: 2013 Items of Note and Other Adjustments
2013 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS Effect EPS Operating Effect Effect Effect Effect ($MM) Effect Segments ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2013 Restructuring charge relating to CIBC FirstCaribbean (39) (37) (0.09) Corporat
Slide 29: 2012 Items of Note and Other Adjustments
2012 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS Effect EPS Operating Effect Effect Effect Effect ($MM) Effect Segments ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2012 Loan losses in the exited U.S. leveraged finance portfolio (57) (32) (0.08) Wh
Slide 30: Non-GAAP Financial Measures Adjusted Results
Non–GAAP Financial Measures Adjusted Results These terms are non-GAAP financial measures that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. For further details on items of note and other adjustm
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