Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q1 2018 Earnings Presentation
26 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 22, 2018
Slide 1: CIBC Investor Presentation Q1 F18
CIBC Investor Presentation Q1 F18 February 22, 2018
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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 report, in other filings with Canadian securities regulators or the SEC and in other communicat
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: First Quarter, 2018 Financial Review
First Quarter, 2018 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: First Quarter, 2018 Highlights
5 First Quarter, 2018 Highlights Adjusted1 Q1/17 Q4/17 Q1/18 Earnings1 ($MM, except for EPS, Efficiency Ratio, ROE, and CET1 Ratio) • EPS growth of 10% YoY Revenue 3,910 4,247 4,432 • Operating Leverage of 2.4% Non-Interest Expenses 2,268 2,420 2,529 • ROE of 18.8% Pre-Provision Earnings 1,642 1,827
Slide 6: Canadian Personal and Small Business Banking
6 Canadian Personal and Small Business Banking Strong, balanced growth from deepening client relationships Adjusted1 Q1/17 Q4/17 Q1/18 • Solid volume growth across products ($MM) Personal & Small Business Banking 1,992 2,086 2,125 • Well-contained expenses driving positive Other 12 10 13 operating l
Slide 7: Canadian Commercial Banking and Wealth Management
Canadian Commercial Banking and 7 Wealth Management Continued volume growth driving strong results Adjusted1 Q1/17 Q4/17 Q1/18 • Strong volume growth in Commercial ($MM) Banking Commercial Banking 323 348 354 − Deposits up 10% YoY Wealth Management 556 574 600 − Loans up 8% YoY Revenue 879 922 954 N
Slide 8: U.S. Commercial Banking and Wealth Management
U.S. Commercial Banking and 8 Wealth Management Continued focus on building profitable client relationships 1 Adjusted Q1/17 Q4/17 Q1/18 • Revenue growth driven by U.S. ($MM) commercial banking and private wealth Commercial Banking 47 264 281 capabilities added during 2017 Wealth Management 64 114 1
Slide 9: CIBC Bank USA (US$)
9 CIBC Bank USA (US$) Adjusted1 (US$MM), 2016 2017 2018 • Loans up US$1.9B, or 13% YoY for the three months ended Dec. 312 Oct. 313 Jan. 313 − Commercial & Industrial up US$1.4B, Revenue 196 226 236 or 15% Non-Interest Expenses 96 119 117 − Commercial Real Estate & Pre-Provision Earnings 100 107 119
Slide 10: Capital Markets
10 Capital Markets Delivering diversified earnings 1 Adjusted Q1/17 Q4/17 Q1/18 • Continued strong results in Global ($MM) Markets and Corporate Banking Global Markets 532 299 486 • Growth in U.S. platform across client Corporate & Investment Banking 288 326 305 segments Other 10 (3) 10 Revenue2 830
Slide 11: Corporate and Other
11 Corporate and Other Adjusted1 Q1/17 Q4/17 Q1/18 • Consistent results in International ($MM) Banking International Banking 179 183 179 • Higher TEB revenue offset QoQ Other (95) 33 (53) • Stable credit performance Revenue2 84 216 126 Non-Interest Expenses 293 297 304 Pre-Provision Earnings (209) (
Slide 12: Capital
12 Capital CET1 Ratio (all-in basis) 14bps 36bps (16)bps 11.0% (7)bps (9)bps 10.8% 10.6% Q4/17 Internal Capital Common RWAs (excl. FX) IFRS 9 Other (incl. Q1/18 Q1/18 Generation Shares Issued1 Day 1 Basel I Floor) Proforma (no Basel I Floor) • Strong internal capital generation • Capital issuance dr
Slide 13: First Quarter, 2018 Risk Review
First Quarter, 2018 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 14: Provision for Credit Losses
14 Provision for Credit Losses IAS 39 IFRS 9 Adjusted 1 Q1/17 Q4/17 Q1/18 Provision for Impaired (vs. Q4/17) ($MM) • Lower losses in Canadian Commercial Canadian Personal and Small Business Banking 196 181 180 Banking and CIBC Bank USA Canadian Commercial Banking and Wealth • Higher losses in CIBC F
Slide 15: Credit Quality — Gross Impaired Loans
15 Credit Quality — Gross Impaired Loans IAS 39 IFRS 9 Reported Q1/17 Q4/17 Q1/18 vs. Q4/17: Canadian Residential Mortgages 0.15% 0.14% 0.23% • Increase in Canadian residential mortgages gross impaired rate mainly Canadian Personal Lending 0.34% 0.29% 0.30% due to adoption of IFRS 9 CIBC Business &
Slide 16: Credit Quality — Net Write-offs
16 Credit Quality — Net Write-offs Reported Q1/17 Q4/17 Q1/18 • Overall net write-off ratio trended lower Canadian Residential Mortgages 0.01% 0.01% 0.01% QoQ Canadian Credit Cards 3.52% 3.06% 2.99% Canadian Personal Lending 0.76% 0.72% 0.72% CIBC Business & Government Loans 1 0.21% 0.08% 0.02% CIBC
Slide 17: Canadian Credit Cards and Unsecured Personal Lending
Canadian Credit Cards and Unsecured 17 Personal Lending IAS 39 IFRS 9 90+ Days Delinquency Rates Q1/17 Q4/17 Q1/18 • 90+ days delinquency rate of cards Canadian Credit Cards 0.88% 0.78% 0.94% portfolio up QoQ, primarily due to adoption of IFRS 9 (+6bps) and Canadian Unsecured Personal Lending1 0.51%
Slide 18: Appendix
Appendix
Slide 19: Strong and Balanced Market Share Growth
19 Strong and Balanced Market Share Growth Q1/18 YoY Most Current Absolute YoY Growth Balances Growth 1 Rank Rank Market Share ($B) Money-In Personal Deposits & GICs 145 4.2% 16.8% 4 3 Canadian Retail Mutual Fund AUM 103 10.9% 15.4% 3 2 Small Business Deposits & GICs 22 1.7% 13.6% 4 5 Money-Out Real
Slide 20: Reported Results ($MM)
20 Reported Results ($MM) Total Bank Q1/17 Q4/17 Q1/18 Canadian Personal & Small Business Banking Q1/17 Q4/17 Q1/18 Revenue 4,209 4,269 4,459 Personal & Small Business Banking 1,992 2,086 2,125 Non-Interest Expenses 2,274 2,570 2,578 Other 311 7 13 Pre-Provision Earnings 1,935 1,699 1,881 Revenue 2,
Slide 21: Canadian Real Estate Secured Personal Lending
21 Canadian Real Estate Secured Personal Lending 90+ Days Delinquency Rates Q1/17 Q4/17 Q1/18 • Uninsured mortgages in the Greater Total Mortgages 0.26% 0.23% 0.23% Vancouver Area1 (GVA) and Greater Toronto Area1 (GTA) have lower 90+ days Uninsured Mortgages 0.19% 0.17% 0.19% delinquency rates than
Slide 22: Canadian Uninsured Residential Mortgages — Q1/18 Originations
Canadian Uninsured Residential Mortgages — 22 Q1/18 Originations Beacon Distribution • $9B of originations in Q1/18 • Average LTV1 in Canada: 64% 38% 37% − GVA2: 57% 32% 30% 31% 35% 17% 15% 17% − GTA2: 62% 7% 6% 6% 9% 11% 9% ≤650 651-700 701-750 751-800 >800 2 2 Canada GVA GTA Loan-to-Value (LTV)1 D
Slide 23: Canadian Uninsured Residential Mortgages
23 Canadian Uninsured Residential Mortgages Beacon Distribution • Better current Beacon and LTV1 distributions in GVA2 and GTA2 than the Canadian average 39% 41% 40% 28% 26% 28% • 1% of this portfolio has a Beacon score of 14% 13% 14% 11% 14% 11% 650 or lower and an LTV1 over 75% 8% 6% 7% • Average
Slide 24: Trading Revenue (TEB) Distribution
24 Trading Revenue (TEB)1 Distribution2 ($MM) ($MM) 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Nov-17 Dec-17 Jan-18 Trading Revenue VaR 1 Non-GAAP financial measure. See slide 26 for further details. 2 Trading revenue (TEB) comprises both trading net interest income and non-interest incom
Slide 25: Q1 2018 Items of Note
25 Q1 2018 Items of Note After-Tax Pre-Tax EPS & NCI Reporting Effect Effect Effect Segments ($MM) ($/Share) ($MM) Charge from net tax adjustments resulting from the U.S. tax reforms enacted in the 88 0.20 Corporate & Other first quarter of 2018 Canadian Personal & Small Business Banking/ U.S. Comme
Slide 26: Non-GAAP Financial Measures
26 Non-GAAP Financial Measures • Adjusted results 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 see slide 25 of this prese