Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q2 2012 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 2012
Slide 1: CIBC Investor Presentation Second Quarter, 2012
CIBC Investor Presentation Second Quarter, 2012 May 2012
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 presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communicati
Slide 3: CIBC Overview
CIBC Overview Gerry McCaughey President and Chief Executive Officer
Slide 4: Second Quarter, 2012 Financial Review
Second Quarter, 2012 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Second Quarter, 2012 Summary
Second Quarter, 2012 Summary Q2 2012 Net Income ($MM) – Reported 811 (1 ) Key Messages: Net Income ($MM) – Adjusted 840 Diluted EPS – Reported $1.90 Strong results (1 ) Diluted EPS – Adjusted $2.00 Robust capital position Efficiency Ratio – Reported 57.2% Efficiency Ratio – Adjusted (1 ) 55.1%
Slide 6: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q2/11 Q1/12 Q2/12 Personal Banking 1,594 1,606 1,590 Business Banking 342 373 368 Other (4) 50 46 Revenue 1,932 2,029 2,004 Provision for Credit Losses 267 281 271 (3) (3) (3) Non-Interest Expenses 995 996 998 Income Before Taxes 670 752 735 Taxes 174 185 179
Slide 7: Wealth Management
Wealth Management Reported ($MM) Q2/11 Q1/12 Q2/12 Retail Brokerage 282 249 263 (3) Asset Management 114 162 130 Private Wealth Management 24 24 25 Revenue 420 435 418 Provision for Credit Losses 3 - - (3) (3) Non-Interest Expenses 314 312 313 Income Before Taxes 103 123 105 Taxes 30 23 26 Net Incom
Slide 8: Wholesale Banking
Wholesale Banking Reported ($MM) Q2/11 Q1/12 Q2/12 Capital Markets 293 307 285 Corporate & Investment Banking 164 197 175 (4) (4) (4) Other 20 (9) 3 Revenue (TEB) (1 ) 477 495 463 Revenue 432 438 402 Provision for Credit Losses 4 26 16 (4) (4) (4) Non-Interest Expenses 271 289 279 Income Before Taxe
Slide 9: Second Quarter, 2012 Highlights
Second Quarter, 2012 Highlights Strong results Robust capital position Continued expense discipline 9
Slide 10: Second Quarter, 2012 Financial Review Appendix
Second Quarter, 2012 Financial Review Appendix
Slide 11: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q2/11 Q1/12 Q2/12 (3) (3) (3) Net Interest Income 1,731 1,842 1,753 (3) (3) (3) Non-Interest Income 1,284 1,315 1,331 Revenue 3,015 3,157 3,084 (3) Provision for Credit Losses 245 338 308 (3) (3) (3) Non-Interest Expenses 1,756 1,791 1,764 Income Before Ta
Slide 12: Balances & Market Share
Balances & Market Share Retail & Business Banking and Wealth Management (1) (2) Balances Market Share (%) ($B) Q2/11 Q1/12 Q2/12 (3) Cards 15.4 18.7 18.4 18.4 (3) Mortgages 145.3 13.7 13.4 13.3 CIBC Brand 88.0 7.9 8.0 8.1 (4) Other 57.3 5.8 5.3 5.2 Personal Lending 31.7 8.2 8.1 8.2 Personal Deposits
Slide 13: Second Quarter, 2012 Structured Credit Run-off
Second Quarter, 2012 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 28 21 0.05 Purchased Credit Derivatives Hedging Lo
Slide 14: 2012 Items of Note and Other Adjustments
2012 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q2 2012 Hedge accounting loss on Leveraged Leases (28) (16) (0.04) Wholesale Banking L
Slide 15: 2011 Items of Note and Other Adjustments
2011 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2011 Net Gain on Sale of a Merchant Banking Investment 90 46 0.12 Wholesale Banking
Slide 16: Non–GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results, Taxable Equivalent Basis & Tangible Common Equity For further details, see slide 14 and 15 for items of note and other adjustments; page i for Non-GAAP measures and page ii for reconciliation of Non-GAAP to GAAP measures within the Q2/12 Supplementary
Slide 17: Second Quarter, 2012 Risk Review
Second Quarter, 2012 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 18: Credit Review
Credit Review Provision for Credit Losses ($MM) 338 308 Q1/12 Q2/12 18
Slide 19: Cards
Cards 200 6.0% 5.0% 160 4.0% 120 ($MM) 197 193 3.0% 183 180 179 80 2.0% 40 1.0% - 0.0% Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Net Credit Losses (NCL) NCL Rate 19
Slide 20: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) 78% (uninsured portfolio) 49% As at April 30, 2012 As at February 29, 2012 (1) Ratio calculated based on latest available industry house price estimates from Teranet (February 29, 2012). 20
Slide 21: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $145B $67B 21% $29B 79% $24B 27% 22% $15B $10B 16% 73% 78% 16% 84% 84% ON BC AB QC Other Insured Uninsured 21
Slide 22: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $17B Canadian Condo Developer Portfolio: $2.2B Condo Mortgages Condo Developers $17B $2.2B Uninsured 22% 77% Undrawn Insured 78% Drawn 23% Q2/12 Q2/12 22
Slide 23: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables & As of Q2/12 ($MM) Corporate Sovereign Bank Repo’s (1) Peripheral Countries $1 $- $14 $9 Non-Peripheral Countries 249 375 268 261 Non-Eurozone Countries 1,692 1,164 1,910 106 Total Europe 1,942 1,539 2,192 376 Middle East & North Africa - -
Slide 24: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q2/12 ($MM) Net Loans/BAs(1) Net Impaired Loans(1) Retail 1,117 - Hotel 577 25 Multi-family 513 70 Office 761 28 Joint Venture 417 - Multi-use 513 28 Other 246 33 Q2/12 Total 4,144 184 (1) Net of write-downs and allowance for credit losses. 24
Slide 25: European Leveraged Finance & U.S. Leveraged Finance
European Leveraged Finance & U.S. Leveraged Finance European Leveraged Finance As of Q2/12 ($MM) Drawn Undrawn Total Exposure(1) 401 93 U.S. Leveraged Finance As of Q2/12 ($MM) Drawn Undrawn Total Exposure(1) 139 49 (1) Net of write-downs and allowance for credit losses. 25
Slide 26: Trading Revenue Days
Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue Q2/12 20 18 16 14 Trading Revenue Days 12 10 8 6 4 2 0 (2) (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the
Slide 27: Capital
Capital Strong capital position Basel III Common Equity Ratio estimated at 8.5% Tier 1 Capital Ratio Risk Weighted Assets ($B) 113 111 110 109 14.7% 14.6% 14.7% 106 14.3% 14.1% Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Tier 1 Capital 15.7 15.9 16.2 16.0 15.9 vs. Q1/12: Varian
Slide 28: Second Quarter, 2012 Risk Review Appendix
Second Quarter, 2012 Risk Review Appendix
Slide 29: Loan Loss Provisions
Loan Loss Provisions ($MM) Q1/12 Q2/12 "Individually Assessed" - Consumer (1) - (1) - Business & Gov't 57 52 56 52 (2) (3) "Collective - Impaired" - Consumer 271 260 - Business & Gov't 14 12 285 272 "Collective - Non-Impaired" - Consumer (7) (14) - Business & Gov't 4 (2) (3) (16) 338 308 (1) Include