Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q1 2006 Earnings Presentation

37 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Mar 2, 2006

  1. Slide 1: First Quarter 2006 Investor Presentation

    First Quarter, 2006 Investor Presentation CIBC First Quarter Investor Presentation March 2, 2006 Forward–Looking Statements From time to time, CIBC makes written or oral forward-looking statements within the meaning of certain securities laws, including in this presentation, in filings with Canadian

  2. Slide 2: CIBC Overview

    First Quarter, 2006 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer First Quarter, 2006 Financial Review Tom Woods Senior Executive Vice-President and Chief Financial Officer 2

  3. Slide 3: Q1 Summary

    First Quarter, 2006 Investor Presentation Q1 Summary EPS(1): $1.62 • Capital Ratios continued to strengthen • Results helped by: – Tier 1: 9.0% – Lower expenses (due in part to – Total Capital: 13.1% timing) – Lower loan losses (helped by • ROE: 25.6% reversals) • Efficiency (NIX) ratio (TEB)(2): 64

  4. Slide 4: CIBC Revenue

    First Quarter, 2006 Investor Presentation CIBC Revenue ($MM) Q3/05 Q4/05 Q1/06 Change Net Interest Income 1,219 1,172 (1) 1,148 (24) Fees for Services Underwriting and Advisory 157 147 184 37 Deposit and Payment 203 197 195 (2) Credit 88 100 84 (16) Cards 82 73 64 (9) Investment Mgmt and Custodial 9

  5. Slide 5: CIBC Expenses

    First Quarter, 2006 Investor Presentation CIBC Expenses ($MM) Q3/05 Q4/05 Q1/06 Change Employee Comp. and (1) Benefits 1,078 1,137 1,080 (57) •Lower severance (1) Occupancy Costs 150 175 146 (29) Computer and Office Equip. 294 308 273 (35) •Lower project spending Communications 76 80 75 (5) Advertis

  6. Slide 6: Net Income/(Loss) Components

    First Quarter, 2006 Investor Presentation CIBC – Net Income/(Loss) Components F ‘05 F ‘06 ($MM) Q1 Q2 Q3 Q4 Q1 (1) (1) (1) (1) CIBC Retail Markets 478 341 404 350 438 (1) (1) (1) CIBC World Markets 173 115 (2,287) 328 128 excl. Enron provision (2) 246 (1) (1) Corporate and Other 56 (16) (24) 50 14 T

  7. Slide 7: Retail Markets – Revenue Components

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Revenue Components F ‘05 F ‘06 ($MM) Q1 Q2 Q3 Q4 Q1 Personal & Small Business Banking 615 612 647 618 * 510 * Imperial Service 227 232 246 236 * 229 * Retail Brokerage 277 288 270 296 292 (1) Cards 383 332 368 364 347 Mortgages & Person

  8. Slide 8: Retail Markets – Revenue Components

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Revenue Components F ‘05 F ‘06 ($MM) Q1 Q2 Q3 Q4 Q1 Imperial Service Personal & Small Change in commission Business Banking 615 612 647 618 * 510 * structure in Q1: negative impact of $8MM. Imperial Service 227 232 246 236 * 229 * Retai

  9. Slide 9: Retail Markets – Revenue Components

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Revenue Components F ‘05 F ‘06 ($MM) Q1 Q2 Q3 Q4 Q1 Cards Personal & Small + purchase volumes, Business Banking 615 612 647 618 * 510 * balances and fees up Imperial Service 227 232 246 236 * 229 * Retail Brokerage 277 288 270 296 292 (

  10. Slide 10: Retail Markets – Net Income

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Net Income ($MM) (1) 478 (1) 438 vs. Q4 404 (1) + loan losses down 341 (1) 350 + expenses down - severance, project spending, advertising down o revenue flat Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1) Affected by an Item of

  11. Slide 11: World Markets – Revenue Components

    First Quarter, 2006 Investor Presentation CIBC World Markets – Revenue Components F ‘05 F ‘06 ($MM) Q1 Q2 Q3 Q4 Q1 Capital Markets 359 326 359 347 371 Investment Banking & Credit Products 286 298 251 239 250 Commercial Banking 116 106 114 113 111 (1) Merchant Banking 23 61 239 391 12 (1) Other 6 (1)

  12. Slide 12: World Markets – Revenue Components

    First Quarter, 2006 Investor Presentation CIBC World Markets – Revenue Components F ‘05 F ‘06 Investment ($MM) Q1 Q2 Q3 Q4 Q1 Banking & Credit Capital Markets 359 326 359 347 371 + U.S. Real Estate Finance Investment Banking & transaction Credit Products 286 298 251 239 250 + Canada – M&A up Commerc

  13. Slide 13: World Markets Net Income; Share Repurchases

    First Quarter, 2006 Investor Presentation CIBC World Markets – Net Income/(Loss) ($MM) (2) excl. Enron provision (1)(2) 328 173 (2) vs. Q4 115 128 246 + U.S. Real Estate Finance securitization deal + expenses down + corporate loan loss reversals – lower Merchant Banking gains and higher write-downs

  14. Slide 14: Common Share Dividends

    First Quarter, 2006 Investor Presentation Common Share Dividends ($ per share) 0.65 0.65 0.68 0.68 0.68 Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 27 CIBC Retail Markets – ROE & Efficiency (NIX) Ratio 50% 46% (1) 43% ROE 37% 38% 65% 63% 64% NIX 60% 59% (2) (2) (2) (2) Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 ____________________

  15. Slide 15: Retail Markets – Mortgages & Cards

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Mortgages & Cards ($B; spot) 93.2 93.7 91.0 Residential 88.1 Mortgages 86.0 10.9 10.8 Card Loans 10.5 10.4 10.4 Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 29 CIBC Retail Markets – Loan Balances (1) ($B; spot) 23.3 23.7 23.4 Personal 22.6 21.9 Loans 11.

  16. Slide 16: Retail Markets – Market Share

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – Market Share (1)(2) 14.8% 14.8% Residential 14.7% 14.7% 14.7% Mortgages (3) 19.6% 19.5% Consumer 19.4% 19.4% Deposits 19.3% Consumer 11.4% 11.4% 11.1% Loans 10.8% 10.6% (excl. cards) Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1

  17. Slide 17: Retail Markets – AUA & AUM

    First Quarter, 2006 Investor Presentation CIBC Retail Markets – AUA & AUM (1) ($B) 1,030 973 967 877 826 AUA AUM 69 69 72 71 75 Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1) Includes assets under administration or custody of CIBC Mellon Global Securities Services, which is a 50/50 joint ven

  18. Slide 18: Fixed Term Investments & Market Share

    First Quarter, 2006 Investor Presentation Fixed Term Investments & Market Share (1) Fixed Term Investments Canadian Market Share(2)(3) 40 20 34.3 34.5 34.4 34.3 34.3 Market Share (%) 30 15 $ Billions 15.3 15.4 15.3 15.3 15.3 20 10 10 0 5 Q1 Q2 Q3 Q4 Q1 _______________________ F ‘05 F ‘06 (1) Source:

  19. Slide 19: Discount Brokerage

    First Quarter, 2006 Investor Presentation Discount Brokerage (1) Active Accounts Trades / Day 500 15 430 432 438 409 421 400 Thousands 10 Thousands 300 8.9 8.9 8.1 200 7.3 7.0 5 100 0 0 Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1) Average over the quarter. 37 CIBC Wood Gundy (1) AUA AUA pe

  20. Slide 20: CIBC Wood Gundy

    First Quarter, 2006 Investor Presentation Earnings/(Loss) Per Share by type of (1)(2) Business ($) “Wholesale” 1.70 1.97 1.00 “Retail”(3) 0.27 4.59 3.65 3.66 3.99 1.34 (0.83) F ‘02 F ‘03 F ‘04 F ‘05 Q1 Annual F ‘06 _______________________ (1) Excludes Items of Note (see Slides 55 and 56) and Amicus.

  21. Slide 21: Retail plus Commercial Banking

    First Quarter, 2006 Investor Presentation CIBC Retail plus Commercial Banking (1) ($MM) Revenue Efficiency (NIX) Ratio 2,224 65% 2,173 2,170 63% 64% 2,135 60% 2,077 59% Net Income ROE 517 49% (2) 468 41% 45% 429 37% 365 (2) 372 35% (2) (2) (2) (2) (2) (2) Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 F

  22. Slide 22: World Markets – Merchant Banking

    First Quarter, 2006 Investor Presentation CIBC World Markets – Merchant Banking Q1/06 summary ($MM) 1,710 Carrying Value = $1,388MM as at 1,388 Carrying Value January 31, 2006 Debt: 6% Equity: 23% Funds: 71% Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 43 CIBC World Markets – Merchant Banking Total Portfolio Industry

  23. Slide 23: World Markets – Market Share

    First Quarter, 2006 Investor Presentation CIBC World Markets – Market Share Equity Trading (1) 8.8% 8.7% Canada % of 8.3% 8.3% shares traded 7.6% 1.9% 2.2% 1.9% U.S. % of 1.2% shares traded 0.8% Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1) Source: TSX (Canada); AutEx (U.S.). U.S. volume re

  24. Slide 24: Economic Profit/(Loss)

    First Quarter, 2006 Investor Presentation CIBC Economic Profit/(Loss) (1) ($MM) (2) 536 (2) 516 (2) 385 256 (2) (2,094) Q1 Q2 Q3 Q4 Q1 F ‘05 F ‘06 _______________________ (1) Non-GAAP financial measure, see Slide 58. (2) Affected by an Item of Note, see Slides 55 and 56 for details. 47 CIBC Economic

  25. Slide 25: Behind the Reported NIMs

    First Quarter, 2006 Investor Presentation Behind the Reported NIMs Q4/05 Q1/06 Reported NIM 1.62% 1.59% Reported NIM (TEB)(1) 1.69% 1.66% NIM (TEB)(1) excluding fixed(2) assets 2.00% 1.93% & excluding trading assets and adding back securitizations(3) 2.56% 2.68% & excluding other NII(4) 2.71% 2.68%

  26. Slide 26: Foreign Exchange Other than Trading

    First Quarter, 2006 Investor Presentation Foreign Exchange Other than Trading (1) ($MM) F ‘05 F ‘06 Q1 Q2 Q3 Q4 Q1 Net foreign exchange gains on capital repatriation - - - 301 - AcG-13 Gains/(Losses) on ineffective foreign exchange hedges 2 19 21 27 28 Other 54 52 43 36 36 56 71 64 364 64 __________

  27. Slide 27: Reconciliation of Trading Revenue/Non-Controlling Interests

    First Quarter, 2006 Investor Presentation Reconciliation of Trading Revenue/Non –Controlling Interests ($MM) Q4/05 Q1/06 Equity trading revenue (TEB)(1) 91 71 less(2): Revenue in certain VIE's(3) required to be consolidated in trading revenue (20) 6 71 77 _______________________ (1) Taxable equivale

  28. Slide 28: Items of Note – Prior Quarters

    First Quarter, 2006 Investor Presentation Items of Note – Prior Quarters Pre-Tax After-Tax EPS Effect Strategic Business Unit Q4 2005 Effect ($MM) Effect ($MM) ($/share) Revenue Premium Paid on Preferred Share Redemptions (15) (15) (0.04) All SBUs Gain on Sale of Investments 294 241 0.72 World Mkts

  29. Slide 29: Reconciliation of Q4/05 Income Taxes

    First Quarter, 2006 Investor Presentation Reconciliation of Q4/05 Income Taxes (1) Net Income Tax Tax Rate ($MM) Before Tax Expense Reported 1,196 436 36.5% Add back/(subtract): Higher than normal Severance Expense (All SBUs) 100 35 Net Adjustment to the Provision for Credit Losses in the Retail por

  30. Slide 30: Risk Review

    First Quarter, 2006 Investor Presentation First Quarter, 2006 Risk Review First Quarter, 2006 Risk Review Steven McGirr Senior Executive Vice-President and Chief Risk Officer Treasury and Risk Management 30

  31. Slide 31: Key Messages - Credit

    First Quarter, 2006 Investor Presentation Key Messages - Credit ƒ Specific Loan Losses at $166 million in Q1 • Down $12 million year-over-year, and $54 million quarter-over-quarter – Decline in the quarter primarily due to: Q4 Net Adjustment to Retail Loan Losses: $23 million Q1 Business & Governmen

  32. Slide 32: Consumer Portfolio Specific Provisions

    First Quarter, 2006 Investor Presentation Consumer Portfolio Specific Provisions ($MM) 150 130 110 Personal & Specific provisions in 90 Student Loans Personal and Student 70 Credit Loans reduced from 50 Card Loans 30 elevated Q4 levels Residential 10 Mortgages (10) 1999* 2000* 2001* 2002* 2003* 2004

  33. Slide 33: Loan Portfolio Mix

    First Quarter, 2006 Investor Presentation Loan Portfolio Mix Business & Business & Gov't Loans Student Loans Gov't Loans Student Loans $35.7 $1.5 $34.9 $2.0 Personal Personal Loans Loans $24.2 $25.5 Residential Residential Mortgages Credit Cards Credit Mortgages $73.4 $8.2 Cards $76.6 $6.3 January 3

  34. Slide 34: Tier 1 Ratio Improved in Q1

    First Quarter, 2006 Investor Presentation Tier 1 Ratio Improved in Q1 9.0% 0.22% 0.23% 0.05% 0.50% 0.07% Other RWA 8.5% Common Preferred Reductions and Shares Q1 Preferred Net Dividends Income Q4/05 Q1/06 67 RWA and Capital Ratio Trends 140 Risk Weighted Assets Tier 1 Capital 12.0% 135 11.0% Tier 1

  35. Slide 35: Appendix: Specific Provision for Credit Losses

    First Quarter, 2006 Investor Presentation Appendix Specific Provision for Credit Losses ($MM) 400 Consumer Business & Government 350 101 300 250 138 91 200 156 150 274 77 161 198 100 184 185 154 169 140 164 50 73 87 22 9 19 38 22 0 2 -50 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 1999* 2000* 2001* 2002* 2003* 20

  36. Slide 36: Business & Government Loan Diversification

    First Quarter, 2006 Investor Presentation Business & Government Loan Diversification (Net Loans and Acceptances excl. Reverse Repos - $34.9B*) as at January 31, 2006 20% 18.2% Loans and Acceptances % of Business & Gov't 15% 11.4% 9.5% 9.3% 9.2% 10% 7.4% 6.4% 4.4% 3.9% 4.1% 4.1% 5% 2.8% 2.8% 1.8% 1.8

  37. Slide 37: Q1 Formations

    First Quarter, 2006 Investor Presentation Q1 Formations (Business & Government - $89MM) New Formations ($MM) New Formations as a % of Loans & Acceptances ** 800 5.0% Annualized % of Loans and Acceptances 600 4.0% $MM 3.0% 400 2.0% 200 1.0% 0 0.0% 1999* 2000* 2001* 2002* 2003* 2004* Q1/05 Q2/05 Q3/05

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