Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q3 2009 Earnings Presentation
26 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Aug 26, 2009
Slide 1: Third Quarter 2009 Investor Presentation
Third Quarter, 2009 Investor Presentation CIBC Investor Presentation August 26, 2009 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 securiti
Slide 2: CIBC Overview / Financial Review
Third Quarter, 2009 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer Third Quarter, 2009 Financial Review David Williamson Senior Executive Vice-President and Chief Financial Officer 2
Slide 3: Q3 Summary
Third Quarter, 2009 Investor Presentation Q3 Summary $ Per Share EPS(1): $1.02 Includes(3)– Mark-to-Market Losses on Corp. Loan Cash EPS(2): $1.04 Hedges (0.27) – Gain on Structured Credit Run-off Tier 1 Capital Activities 0.17 Ratio: 12.0% – Loan Losses within the Leveraged Loan and Other Run-off P
Slide 4: Structured Credit Run-off
Third Quarter, 2009 Investor Presentation Structured Credit Run-off Q3/09 Pre-Tax After-Tax EPS Effect Effect ($MM) Effect ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors (148) (101) (0.26) Unhedged non-USRMM Write-downs (151) (103) (0.27) Unhedged USRMM Gains 41 28 0.07 Purch
Slide 5: Non-USRMM
Third Quarter, 2009 Investor Presentation Non-USRMM (1) – Purchased Protection from Financial Guarantors (U.S.$MM) Corporate Total Fair (2) S&P Moody's Fitch CLO Debt CMBS Other Notional Value (3) (4) (4) (5) (6) #I BBB B3 - $ 584 $ - $ 777 $ 197 $ 1,558 $ 804 (7) (7) (5) # II CC Caa2 - 873 - - 819
Slide 6: CIBC Retail Markets Revenue Components
Third Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 Personal Banking (1) 1,478 1,424 1,454 1,398 1,518 Business Banking 340 337 330 312 343 Wealth Management 393 363 323 297 318 FirstCaribbean (1) 165 161 180 204 169 Other (5) 76 126 40 (
Slide 7: CIBC Retail Markets Revenue Components
Third Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 Business Banking Personal vs. Q3/08: Banking 1,478 (1) 1,424 1,454 1,398 1,518 + improved customer rate changes Business 340 337 330 312 343 Banking – lower interest rate Wealth 393 363
Slide 8: CIBC Retail Markets Revenue Components
Third Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 FirstCaribbean Personal vs. Q3/08: Banking 1,478 (1) 1,424 1,454 1,398 1,518 + FX rate Business 340 337 330 312 343 Banking – spreads down Wealth – Q3/08 included Visa 393 363 323 297 31
Slide 9: CIBC Retail Markets Quarterly Statement of Operations
Third Quarter, 2009 Investor Presentation CIBC Retail Markets Quarterly Statement of Operations F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 Net Income (1) Revenue 2,371 2,361 2,413 2,251 2,339 vs. Q3/08: Provision for + volumes up (1) Credit Losses 224 267 316 366 423 + lower expenses Non-Interest (1) Expenses
Slide 10: Wholesale Banking Revenue
Third Quarter, 2009 Investor Presentation Wholesale Banking Revenue (1) ($MM) 531 (2) (2) 333 421 (2) 275 229 (2) 132(2) (1) (1) (241) (318) (1) (368) (1) (598) Q3 Q4 Q1 Q2 Q3 F ‘08 F ‘09 (1) Reported results affected by an Item of Note, see Slides 38 – 41 for details. (2) Results excluding Structur
Slide 11: Wholesale Banking Revenue Components
Third Quarter, 2009 Investor Presentation Wholesale Banking Revenue Components F ‘08 F ‘09 Corporate & ($MM) Q3 Q4 Q1 Q2 Q3 Investment Banking (1) Capital Markets 209 11 307 318 325 vs. Q2: Corporate & + higher US Real Estate Investment (1) Finance & Corporate (1) Banking 110 113 156 200 221 Credit
Slide 12: Wholesale Banking Net Income/(Loss)
Third Quarter, 2009 Investor Presentation Wholesale Banking Net Income/(Loss) ($MM) (2) 453 vs. Q2 86 (2) (1) 55 (2) 90 + higher Capital Markets & (2) Corporate & Investment (30) Banking revenue 21 (2) 130 (1) + gain on structured credit run-off activities (vs. loss in Q2/09) + lower valuation charg
Slide 13: Non-GAAP Financial Measures
Third Quarter, 2009 Investor Presentation Non–GAAP Financial Measures Cash Earnings Per Share, Taxable Equivalent Basis, Segmented ROE & Cash Efficiency Ratio For further details, see Non-GAAP measures within the Notes to users section on page i of the Q3/09 Supplementary Financial Information avail
Slide 14: CIBC Revenue
Third Quarter, 2009 Investor Presentation CIBC Revenue F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 (1) (1) (1) (1) (1) Net Interest Income 1,327 1,377 1,333 1,273 1,369 Fees for Services Underwriting and Advisory 68 79 102 112 132 Deposit and Payment 197 193 193 188 199 Credit 58 63 60 72 87 Cards 81 81 95 85
Slide 15: CIBC Expenses
Third Quarter, 2009 Investor Presentation CIBC Expenses F ‘08 F ‘09 ($MM) Q3 Q4 Q1 Q2 Q3 Employee Comp. and (1) (1) (1) (1) (1) Benefits 942 1,048 932 891 901 Occupancy Costs 148 175 134 155 151 Computer and Office (1) (1) Equipment 270 298 245 251 263 Communications 67 71 68 76 74 Advertising and B
Slide 16: Retail Markets ROE & Cash Efficiency
Third Quarter, 2009 Investor Presentation CIBC Retail Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) ROE 45 44 45 (2) 34 33 58 57 58 56 NIX 54 (2) (2) Q3 Q4 Q1 Q2 Q3 F ‘08 F ‘09 (1) Non-GAAP financial measures, see Slide 25. (2) Affected by an Item of Note, see Slides 38, 39 and 41 for details. 31
Slide 17: Wholesale Banking Market Share
Third Quarter, 2009 Investor Presentation Wholesale Banking Market Share (%) 19.5 17.7 Canadian 12.4 13.6 New Equity 10.8 Issues(1)(2) Equity Trading 17.4 18.8 Canada - % of shares 10.5 8.2 8.0 Traded - Total(3) Equity Trading 6.8 6.0 6.4 6.7 6.9 Canada - % of shares Traded - Block(4) Q3 Q4 Q1 Q2 Q3
Slide 18: Unhedged Structured Credit Exposure
Third Quarter, 2009 Investor Presentation (1) UNHEDGED USRMM Exposure (U.S.$MM) Write-downs Jul. 31/09 Tranche Type Notional to-date Net Exposure A B C =A -B Super Senior CDO of Mezz RMBS $ 3,505 $ 3,210 $ 295 Warehouse RMBS 281 280 1 Various Various 685 658 27 $ 4,471 $ 4,148 $ 323 (1) There are se
Slide 19: Hedged Canadian Conduit Non-USRMM Exposure
Third Quarter, 2009 Investor Presentation HEDGED Canadian Conduit Non-USRMM (1) Exposure (U.S.$MM) (2) Mark-to- Collateral (3) Conduit Underlying Notional Market held Great North Trust Investment grade (4) (5) corporate credit index $ 4,586 $ 247 $ 278 MAV I 160 Investment grade corporates 2,598 67
Slide 20: Items of Note (Cont'd)
Third Quarter, 2009 Investor Presentation Items of Note (Cont’d) Pre-Tax After-Tax EPS Effect Strategic Business Unit Q2 2009 Effect ($MM) Effect ($MM) ($/share) Loss on Structured Credit Run-off Activities (475) (324) (0.85) Wholesale Bkg Mark-to-Market on Credit Derivatives re. Corporate Loan Hedg
Slide 21: Items of Note (Cont'd)
Third Quarter, 2009 Investor Presentation Items of Note (Cont’d) Pre-Tax After-Tax EPS Effect Strategic Business Unit Q3 2008 Effect ($MM) Effect ($MM) ($/share) Loss on Structured Credit Run-off Activities (885) (596) (1.56) Wholesale Bkg Losses/Interest Expense re. Pending Tax Settlement of Levera
Slide 22: Q3 Credit Review
Third Quarter, 2009 Investor Presentation Q3 Credit Review Total Specific Provisions Gross Impaired Loans ($MM) ($MM) 505 1,668 1,263 1.21%(1) 329 889 202 0.83%(1) 0.46%(1) Q3 Q2 Q3 Q3 Q2 Q3 F ‘08 F ‘09 F ‘08 F ‘09 (1) Specific provision shown divided by total loans/acceptances outstanding, annualiz
Slide 23: Trading Revenue Distribution
Third Quarter, 2009 Investor Presentation Q3 Trading Revenue (TEB) Distribution (1) (2) Frequency Distribution of Daily Trading Revenue (TEB) for Q3 2009 14 12 Trading Revenue Days 10 8 6 4 2 0 (3) (2) (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 (C$ MM) (1) For further details, see Non-GAAP meas
Slide 24: Topical Risk Issues
Third Quarter, 2009 Investor Presentation Appendix Topical Risk Issues As at July 31, 2009 Direct U.S. Subprime Mortgage Exposure None Unhedged U.S. Subprime Mortgage See Q3, 2009 MD&A Exposure through RMBS and CDOs Hedged U.S. Subprime Mortgage See Q3, 2009 MD&A Exposure through Derivatives A
Slide 25: Retail Markets Review / Wholesale Banking Review
Third Quarter, 2009 Investor Presentation Third Quarter, 2009 Retail Markets Review Sonia Baxendale Senior Executive Vice-President Third Quarter, 2009 Wholesale Banking Review Richard Nesbitt Chairman & CEO Wholesale Banking 25
Slide 26: Q&A
Third Quarter, 2009 Investor Presentation Third Quarter, 2009 Q&A 26
Canadian Imperial Bank of Commerce (CIBC) — Q3 2009 Earnings Presentation on 6ix