Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Barclays Capital Financial Services Conference 2011
22 slides from Canadian Imperial Bank Of Commerce's conference presentation, Sep 13, 2011
Slide 1: Delivering Consistent, Sustainable Earnings
Delivering Consistent, Sustainable Earnings Kevin Glass Senior Executive Vice-President and Chief Financial Officer Barclays Capital Financial Services Conference September 13, 2011
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: Canadian Economy
Canadian Economy Balanced budget for 11 consecutive Canadian Federal Budget Balance(2)($B) years (1998 to 2008) and on track to Projections 13.8 eliminate deficit by 2016 4.5 7.0 7.3 2.1 9.5 2.6 -1.7 Strong record of economic growth -11.5 -29.8 IMF forecasts Canada’s recovery to be -55.6 one o
Slide 4: Canadian Banking System
Canadian Banking System Strong regulator (OSFI) with a clear Canadian banks Tier 1 Ratio – Average mandate (safety and soundness) 13.1% 13.1% 11.7% Canadian banks weathered the 9.6% global recession very well (no systemic support and no dividend cuts) Capital levels are well above 2008 2009 20
Slide 5: About CIBC
About CIBC CIBC (CM: TSX; NYSE) Senior Deposit Ratings/Outlook Canadian-based global financial institution Moody’s Aa2/Stable Approximately 42,000 employees S&P A+/Stable Three strategic business units: Fitch AA-/Stable Retail and Business Banking Wealth Management DBRS AA/Stable Wholesale Ban
Slide 6: Business Mix
Business Mix Economic Capital(1) Year to Date Revenue (TEB) ($MM) Wholesale 5% 2% 23% 16% 14% 64% 77% Retail(2) Retail and Business Banking Wealth Management Wholesale Banking International Other (1) Non GAAP measure. See slide 21 6 (2) Includes Retail and Business Banking, Wealth Management and Int
Slide 7: Strong Capital Position
Strong Capital Position Tier 1 Capital Ratio (%) • Industry leading Basel II 14.6 Tier 1: 14.6% 12.8 • Basel III common equity ratio: 8.2% • Early mover towards meeting Basel III NVCC CIBC Peer Average(1) non-common equity requirements Pro-Forma Basel III Common Equity Ratio (%) • Reducing non-commo
Slide 8: Capital: Active Management and Deployment
Capital: Active Management and Deployment Optimizing capital structure: • Redeeming preferred shares • >$1.0B with call dates in 2012 • >$0.8B with call dates beyond 2012 • Accretive to earnings by ~$0.18 per share Dividends: • +$0.03 common share dividend increase Investing for Growth • Organically
Slide 9: Solid Year To Date Results
Solid Year To Date Results(1) Revenue ($B) Net Income ($MM) 8.8 9.2 2,333 1,958 3.1 3.0 3.1 811 728 794 YTD Q1 Q2 Q3 YTD YTD Q1 Q2 Q3 YTD 2010 2011 2010 2011 Earnings per share ($) Return on Equity (%) 5.63 23.7 21.2 21.5 21.1 22.1 4.77 1.97 1.75 1.91 YTD Q1 Q2 Q3 YTD YTD Q1 Q2 Q3 YTD 2010 2011 2010
Slide 10: Our Strategic Imperative and Priorities
Our Strategic Imperative and Priorities Consistent, sustainable performance over the long term Competitive in core businesses Strong fundamentals Capital Productivity Risk 10
Slide 11: Retail & Business Banking
Retail & Business Banking Y/Y Balances(1) Market Growth ($B) Position (%) Cards, outstandings(2) 15.5 18.5 #1 Mortgages(2) 143.6 13.7 #2 Personal Deposits & GICs 108.1 16.6 #3 Business Deposits 32.6 14.5 #3 Business Lending 32.4 16.8 #4 Personal Lending 31.0 8.1 #5 (1) Spot balances at July 31, 2011
Slide 12: Supporting Growth
Supporting Growth Leadership in Credit Cards Significant Branch Investment Innovation in Mobile Investing in our Brand 12
Slide 13: Retail and Business Banking
Retail and Business Banking Revenue ($MM) Net Income ($MM) 5,904 1,545 5,612 1,338 Q310 YTD Q311 YTD Q310 YTD Q311 YTD 13
Slide 14: Wealth Management
Wealth Management Wood Gundy Balances ($B) Mutual Fund Balances ($B) 115.1 52.1 105.7 46.2 #4 #2 Market Market Position Position Q310 Q311 Q310 Q311 Revenue ($MM) Net Income ($MM) 1,240 214 1,101 171 Q310 YTD Q311 YTD Q310 YTD Q311 YTD 14
Slide 15: American Century Investments
American Century Investments Acquired a 41% equity interest in American Century Transaction closed on August 31, 2011 Expected to be $0.15 accretive to 2012 earnings American Century is ranked 2nd overall among top 25 fund companies in the U.S., with 77% of assets having a 4/5 star Morningst
Slide 16: Wholesale Banking
Wholesale Banking Market Position(1) Equity Trading #1 Equity New Issues #1 Gov’t Debt New Issues #2 Syndicated Lending #2 Corporate Debt New Issues #2 Mergers & Acquisitions #3 Business Lending #4 1 Equity Trading, Equity New Issues and Mergers & Acquisitions are on a fiscal year basis (November 1,
Slide 17: Supporting Growth
Supporting Growth Core Canadian Businesses International Lending US Real Estate Finance Foreign Exchange Infrastructure Finance Investing in Technology 17
Slide 18: Wholesale Banking
Wholesale Banking Wholesale Banking Net Income(1) Value At Risk ($MM) ($MM) 185 7.1 179 162 158 132 121 4.4 4.1 3.5 66 Q110 Q210 Q310 Q410 Q111 Q211 Q311 2009 2010 2011 YTD Q311 (Spot) (1) Excluding items of note. Non-GAAP measure. See slides 21 and 22. 18
Slide 19: Our Strategic Imperative and Priorities
Our Strategic Imperative and Priorities Consistent, sustainable performance over the long term Competitive in core businesses Strong fundamentals Capital Productivity Risk 19
Slide 20: Delivering Consistent, Sustainable Earnings
Delivering Consistent, Sustainable Earnings Kevin Glass Senior Executive Vice-President and Chief Financial Officer Barclays Capital Financial Services Conference September 13, 2011
Slide 21: Notes to Users / Contacts
Notes to Users / Contacts Performance measurement We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with GAAP, while other measures do not have a standardized meaning under GAAP, and, accordingly, these measures may not
Slide 22: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures Non-GAAP CIBC; $MM, unless otherwise indicated YTD 2010 Q111 Q211 Q311 YTD 2011 Revenue Reported 8,831 3,101 2,889 3,057 9,047 Add: Adjustment for TEB 27 39 45 49 133 Revenue (TEB) 8,858 3,140 2,934 3,106 9,180 MTM on Credit Derivatives on Corporate Loans
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