Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Investor Day (September 2010)
60 slides from Canadian Imperial Bank Of Commerce's investor day presentation, Sep 30, 2010
Slide 1: CIBC Retail Markets Investor Forum
CIBC Retail Markets Investor Forum September 30, 2010
Slide 2: A Note about 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 presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in othe
Slide 3: Strategic Overview
CIBC Retail Markets Strategic Overview Sonia Baxendale President, CIBC Retail Markets
Slide 4: CIBC Retail Markets Revenue YTD Q3 2010 of $7.2 billion
CIBC Retail Markets FCIB 6% Wealth 14% Personal Business 66% 14% Revenue YTD Q3 2010 of $7.2 billion Excludes Retail Markets Other 4
Slide 5: Solid Financial Performance
Solid Financial Performance Improving Core Revenue Trends Revenue ($MM) Solid growth in Funds Managed and +9% Assets Under Administration 6,792 Stable margins with higher credit spreads 6,256 offset by lower deposit margins YTD 09 YTD 10 Strong Net Income Growth Net Income ($MM) Positive Opera
Slide 6: Each Segment Contributing to Growth
Each Segment Contributing to Growth Revenue ($MM) Personal Banking +9% Funds managed growth of 6% led by 4,760 mortgages and deposits 4,370 Competitive franchise supported by continued investments in products and access Consistent trend of annual growth YTD 09 YTD 10 Business Banking +6% Fun
Slide 7: Improving Credit Quality
Improving Credit Quality Loan Losses down 30% from peak 4 consecutive quarters of decline for credit card provisions Personal lending loan losses at lowest quarterly level in 6 quarters Business loan losses at expected levels, with improving trends Provisions for Credit Losses ($MM) 403 -30% 3
Slide 8: Balancing Expenses & Investment
Balancing Expenses & Investment Investing in Growth While Improving our NIX Ratio Total Expenses ($MM) NIX Ratio +4% -220 bps 3,722 56.3% 3,563 54.1% YTD 09 YTD 10 Q3/09 Q3/10 8
Slide 9: Investing in Growth
Investing in Growth Furthering leadership in Credit Cards Strengthening Business Banking Significant branch investment Innovation in Mobile Investing in our Brand 9
Slide 10: Solid Market Position
Solid Market Position Q3 Market Share (1) Balances Rank (%) ($B, Spot) Cards 13.8 16.6 1 Cards (including Citi) 15.8 18.7 Personal Mortgages 136.4 13.9 2 Personal Deposits & GICs 106.9 16.9 3 Personal Lending 30.2 8.3 5 Business Deposits 30.1 14.6 3 Business Business Lending 29.2 16.2 4 Wood Gundy 1
Slide 11: Building toward a $3 Billion Retail Bank
Building toward a $3 Billion Retail Bank Aligned Aligned to sustainable to CIBC’s strategic earningsimperative and risk of appetite consistent and sustainable earnings, while managing within our stated risk appetite Net Income ($MM) 3,000 100 200 540 2,160 F10 YTD Q3 Personal Business Wealth 3 Year
Slide 12: CIBC Retail Markets Executive Presenters
CIBC Retail Markets Executive Presenters Christina Kramer Cheryl Longo Todd Lawrence Colette Delaney Integrated Channels Card Products Consumer Deposits Mortgages and Personal Lending Victor Dodig Jon Hountalas Stephen Forbes Bijal Patel Wealth Management Business Banking Marketing and Finance Spons
Slide 13: Strategic Overview
CIBC Retail Markets Strategic Overview Sonia Baxendale President, CIBC Retail Markets
Slide 14: Integrated Channels
Integrated Channels Christina Kramer Executive Vice President, Distribution Services
Slide 15: Strong Competitive Position on Access and Choice
Strong Competitive Position on Access and Choice 3rd largest branch network Over 400 branches open evenings and Saturdays Sunday banking leader 2nd largest FI ABM network Top ranked IVR Best consumer internet bank 1st to introduce a mobile banking application 15
Slide 16: Investing in More Locations, Days and Hours
Investing in More Locations, Days and Hours Built, relocated and expanded 70 Branch Network Investment Continues branches by 2011 more than one year early 84 70 16 Expanded evening and Saturday hours 15 to over 400 branches 31 22 Introduced 7 day-a-week branch 37 banking at almost 50 branches
Slide 17: Strengthening the Integrated Channel Experience
Strengthening the Integrated Channel Experience Continue to upgrade ABMs with state-of- the-art technology and security Doubled outbound sales call capacity to 2 million/year Expanded welcome call program to more clients Implemented leading edge information security initiatives 17
Slide 18: Innovation in Mobile
Innovation in Mobile Launched 1st Canadian mobile 14 Million Mobile Transactions And Growing (MM) banking Application 2.8 Rapid client adoption 2.6 2.4 2.2 Growing demand for more mobile – More banking 1.6 – Brokerage 1.3 – Payments 0.8 Feb Mar Apr May Jun Jul Aug 18
Slide 19: Key Priorities
Key Priorities Maintain strong position in access and choice Invest to meet ongoing client needs Focus growth of business in high growth markets Grow business through an integrated channel experience Leverage technology and product investments across channels Promote paperless statements Con
Slide 20: Integrated Channels
Integrated Channels Christina Kramer Executive Vice President, Distribution Services
Slide 21: Card Products
Card Products Cheryl Longo Executive Vice President, Card Products and National Collections
Slide 22: CIBC #1 in Credit Cards
CIBC #1 in Credit Cards #1 market share – $14 Billion in balances representing a 16.6% share Leader in premium card segment – 20.3% share driven by Aerogold travel reward card 19 year Aeroplan partnership Purchase volume growth 22
Slide 23: Credit Quality Remains Strong
Credit Quality Remains Strong NCL Rate and Delinquency Rate 7.09% Focused on profitable growth 5.71% 6.39% 6.11% and improving ongoing credit 4.75% 5.67% 5.17% quality 3.10% 3.23% 2.92% 2.93% 2.80% 2.63% 2.53% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 NCL Rate (%) 30+ Delinquency (%) Credit Cards
Slide 24: MasterCard Further Strengthens Leadership
MasterCard Further Strengthens Leadership MasterCard solidifies share Strengthened #1 Position leadership position ($B; Q3 F10 Spot Outstandings) Acquired $2 Billion in 15.8 outstandings +14.5% 2.0 MasterCard Acquired 570,000 active accounts 13.8 13.8 Visa Increase share to 18.7% Before Portfo
Slide 25: MasterCard Broadens Customer Offer and Reach
MasterCard Broadens Customer Offer and Reach Known credit quality and spending behavior Portfolio acquisition is an effective means of growth vs organic customer origination Extended reach in mass market segment and broad choice in premium and no annual fee reward cards Immediate positive im
Slide 26: Increased Client Value
Increased Client Value Provide MasterCard clients: – Added value – Greater access – Greater servicing channels Significant CIBC product cross sell opportunities: – Creditor insurance – Deposits – Mortgages 26
Slide 27: CIBC Continues to Innovate
CIBC Continues to Innovate Leverage the strengths of Visa and MasterCard to offer choice and value Build on CIBC’s #1 position in the marketplace: – Leading Premium cards – Innovator in Travel, Loyalty and Cash Back rewards – Value-added features and benefits 27
Slide 28: Card Products
Card Products Cheryl Longo Executive Vice President, Card Products and National Collections
Slide 29: Consumer Deposits
Consumer Deposits Todd Lawrence Senior Vice President, Deposit Products
Slide 30: Deposits – Business Overview
Deposits – Business Overview CIBC Deposit & GIC Market Share (%) Increased overall market share from #4 position to #3 16.9 16.2 70bps Solid progress in Deposits – Consistent and sustainable growth in a competitive market environment Q3 F09 Q3 F10 – Growth in market share CIBC Deposit & GIC Bala
Slide 31: Key Accomplishments
Key Accomplishments Product innovations positioned us to capitalize on shift in market demand – Launched eAdvantage Savings Account in retail channels – Leveraged broker channel to grow balances with Renaissance High Interest Account – Launched new Equity Linked GICs linked to stocks and mutual fu
Slide 32: Key Priorities
Key Priorities Sustain strong growth and momentum – Continued focus on chequing acquisition as the foundation for client relationships – Maintain a competitive and client- focused product suite – Supplement strong core product offering with relevant functionality 32
Slide 33: Consumer Deposits
Consumer Deposits Todd Lawrence Senior Vice President, Deposit Products
Slide 34: Residential Mortgages and Personal Lending
Residential Mortgages and Personal Lending Colette Delaney Senior Vice President, Mortgages and Lending
Slide 35: Mortgages and Lending – Business Overview
Mortgages and Lending – Business Overview Residential Mortgage Balances ($B) Solid performance in mortgages in a 136.4 highly competitive market 127.8 +7% Good credit quality across both mortgage and lending portfolios – 78% of mortgage portfolio Q3 F09 Q3 F10 insured – Loan losses down in lendi
Slide 36: Changing Market Conditions
Changing Market Conditions Industry Mortgage Growth (%) Economic outlook is for slower growth in 5.7 mortgages and lending in F11 – Mortgage market slower in recent quarters after busy spring 3.8 High credit quality, distribution strength foundational to continued momentum in mortgages F10E F11E
Slide 37: Driving Relative Performance in Mortgages and Lending
Driving Relative Performance in Mortgages and Lending Leverage distribution strength in mortgages Continued focus on strategic offers that leverage advice, cross sell opportunities in retail channels In Progress Capitalize on lending opportunity within our client base through targeted campaign
Slide 38: Residential Mortgages and Personal Lending
Residential Mortgages and Personal Lending Colette Delaney Senior Vice President, Mortgages and Lending
Slide 39: CIBC Retail Markets Investor Forum
CIBC Retail Markets Investor Forum September 30, 2010
Slide 40: Wealth Management
Wealth Management Victor Dodig Executive Vice President Retail Distribution and Wealth Management
Slide 41: Wealth Management Business Overview
Wealth Management Business Overview An integrated wealth management business focused on delivering innovative advice and investment solutions to our clients CIBC Asset Solid long-term net sales growth and strong Management investment performance CIBC Wood Leading brokerage providing clients with a b
Slide 42: Strong Investment Platform Holding Market Share
Strong Investment Platform Holding Market Share Leading Mutual Fund Platform Asset Growth ($B) #3 among Big 5 banks 47 #5 overall in the industry 44 +7.1% #1 in managed solutions Aug F09 Aug F10 Market Share Growth Market Share (Percent; By Assets) Total and long-term market share 6.9 7.0 tr
Slide 43: Long-Term Net Sales Growth Driven by Solid Performance
Long-Term Net Sales Growth Driven by Solid Performance Positive Sales Trend YTD Long-Term Net Sales ($MM) Best long-term net sales year since 2,074 2004 Growth in managed solutions Renaissance net sales driven by 913 active wholesaling and new high- yield products to meet investor demand Aug F
Slide 44: A Leading Full Service Brokerage in Canada
A Leading Full Service Brokerage in Canada Leading Brokerage Platform Asset Growth ($B, YoY Q3 F10) #2 full service brokerage in Canada 1000+ experienced Advisors to serve +10.0% 106 96 higher net worth client needs New leadership focused on both advisor quality and client experience Q3 F09 Q3
Slide 45: Advisor and Client Quality Moving Up-Market
Advisor and Client Quality Moving Up-Market Focused on Quality of Advice Household Asset Growth (%;YoY Q3 F10) Highly experienced and accredited advisors 18% Investing in specialized advisory services including business transition and 10% tax/estate planning Attracting High Net Worth Clients Tot
Slide 46: Key Opportunities for Growth in Wealth Management
Key Opportunities for Growth in Wealth Management Increase Sales Penetration Increase mutual fund sales in all channels Integrated Extend expert financial planning and Advisory Offer specialized advisory expertise Deepen Client Consolidate more of our clients’ business Relationships across CIBC 46
Slide 47: Wealth Management
Wealth Management Victor Dodig Executive Vice President Retail Distribution and Wealth Management
Slide 48: Business Banking
Business Banking Jon Hountalas Executive Vice President, Business Banking
Slide 49: Making Progress and Building Momentum
Making Progress and Building Momentum Business Banking Loan Growth ($B; Q3’10) New leadership and renewed focus on Business Banking segment 28.8 29.2 27.7 27.5 Acquisition of 100% of Asset-Based 7.1 7.4 7.6 7.6 Lending business Policies and procedures being 20.6 20.1 21.2 21.6 streamlined Cl
Slide 50: Business Banking: A Growth Opportunity
Business Banking: A Growth Opportunity Focused on growth across all segments and geographies Economic environment in 2009 providing “switching” opportunities as companies seek true relationship banking Commercial Bankers expanding target market Dedicated small business advisors gaining tract
Slide 51: Key Priorities
Key Priorities Instill more disciplined sales management, driving growth in $1-$25 million credit segment Maintain competitive risk posture while ensuring speed to market and simplicity Leverage ABL acquisition Increase alignment between Small Business and Commercial Banking Upgrade cash m
Slide 52: Business Banking
Business Banking Jon Hountalas Executive Vice President, Business Banking
Slide 53: Brand and Sponsorship
Brand and Sponsorship Stephen Forbes Executive Vice President, Marketing, Strategy, Communications and President’s Choice Financial
Slide 54: Significant Investment in CIBC's Brand and Sponsorship
Significant Investment in CIBC’s Brand and Sponsorship In 2010, CIBC has focused on investing in its brand and image to further build pride among employees and engage directly with our clients National Brand Marketing Campaign Investment in Sponsorships Marketing Innovation and Leadership 54
Slide 55: Positive Reaction to 2010 Employee Brand Campaign
Positive Reaction to 2010 Employee Brand Campaign The Brand Enterprise campaign demonstrated CIBC’s commitment to our clients, communities and our employees Launched National marketing campaign Showcased CIBC employees Strong, positive feedback from employees Strong connection / resonance wi
Slide 56: New and Existing Sponsorships Driving Brand Awareness
New and Existing Sponsorships Driving Brand Awareness Exclusive financial media broadcast sponsor of the 2010 FIFA World Cup in Canada CIBC will sponsor the CIBC Run for the Cure for 14th consecutive year. 56
Slide 57: Building Profile of Our Innovation and Leadership
Building Profile of Our Innovation and Leadership Continued investments in advertising and promotion in support of our leadership and innovation positions as well as growth focus Innovation in mobile banking Award winning online banking capabilities Enhanced focus on business banking -- Unlimi
Slide 58: Brand and Sponsorship Investments Showing Results
Brand and Sponsorship Investments Showing Results In 2010, CIBC focused on investing in its brand and image to further build pride among employees and engage directly with our clients CIBC Employee Commitment National Brand Marketing up for 5th consecutive year to Campaign highest level ever #2 Shar
Slide 59: Brand and Sponsorship
Brand and Sponsorship Stephen Forbes Executive Vice President, Marketing, Strategy, Communications and President’s Choice Financial
Slide 60: CIBC Retail Markets Investor Forum
CIBC Retail Markets Investor Forum September 30, 2010
Canadian Imperial Bank of Commerce (CIBC) — Investor Day (September 2010) on 6ix