Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q3 2013 Earnings Presentation
27 slides from Canadian Imperial Bank Of Commerce's earnings presentation, August 2013
Slide 1: CIBC Investor Presentation Third Quarter, 2013
CIBC Investor Presentation Third Quarter, 2013 August 2013
Slide 2: Forward-Looking Statements
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 other communicati
Slide 3: CIBC Overview
CIBC Overview Gerry McCaughey President and Chief Executive Officer
Slide 4: Third Quarter, 2013 Financial Review
Third Quarter, 2013 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Third Quarter, 2013 Summary
Third Quarter, 2013 Summary Q3 2013 Key Messages: Net Income ($MM) – Reported 890 Record reported and adjusted earnings (1 ) Net Income ($MM) – Adjusted 943 Execution of retail re-positioning continues to progress well Diluted EPS – Reported $2.16 (1 ) Solid performance across all Wealth Dilut
Slide 6: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q3/12 Q2/13 Q3/13 Personal Banking 1,595 1,596 1,672 Business Banking 382 372 384 Other 108 68 58 Revenue 2,085 2,036 2,114 (3) Provision for Credit Losses 273 233 221 (3) (3) (3) Non-Interest Expenses 1,033 1,006 1,032 Income Before Taxes 779 797 861 Ta
Slide 7: Wealth Management
Wealth Management (1 ) Adjusted ($MM) Q3/12 Q2/13 Q3/13 Retail Brokerage 246 262 267 Asset Management 130 153 159 Private Wealth Management 25 28 32 Revenue 401 443 458 Provision for Credit Losses - - - (3) (3) Non-Interest Expenses 299 322 324 Income Before Taxes 102 121 134 Taxes 26 28 31 (1) Net
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q3/12 Q2/13 Q3/13 Capital Markets 308 312 349 Corporate & Investment Banking 223 226 243 (2) (2) (2) Other 20 13 11 Revenue (TEB) 551 551 603 (2) Provision for Credit Losses 34 0 14 (2) (2) (2) Non-Interest Expenses 282 297 302 Income Before Taxes 235 254 287 Ta
Slide 9: Capital
Capital Common Equity Tier 1 Ratio (1) Risk-Weighted Assets (2) (all-in basis) ($B; all-in basis) 134 126 126 9.6% 9.7% 115 115 8.9% 9.0% 9.3% Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Basel II Basel III vs. Q2/13: Variance in Common Equity Tier 1 Ratio: - Higher risk-weighted as
Slide 10: Third Quarter, 2013 Highlights
Third Quarter, 2013 Highlights Record reported and adjusted earnings Execution of retail re-positioning continues to progress well Solid performance across all Wealth Management businesses Strong client-based earnings in Wholesale Banking Renewal of share buyback program 10
Slide 11: Third Quarter, 2013 Financial Review Appendix
Third Quarter, 2013 Financial Review Appendix
Slide 12: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q3/12 Q2/13 Q3/13 (2) (2) (2) Net Interest Income 1,883 1,823 1,883 (2) (2) (2) Non-Interest Income 1,266 1,316 1,380 Revenue 3,149 3,139 3,263 (2) (2) Provision for Credit Losses 317 265 320 (2) (2) (2) Non-Interest Expenses 1,831 1,821 1,874 Income Befor
Slide 13: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q3/12 Q2/13 Q3/13 Personal Banking 1,595 1,596 1,672 Business Banking 382 372 384 Other 108 68 58 Revenue 2,085 2,036 2,114 (3) Provision for Credit Losses 273 233 241 (3) (3) (3) Non-Interest Expenses 1,035 1,008 1,033 Income Before Taxes 777 795 840 Taxes 1
Slide 14: Wealth Management
Wealth Management Reported ($MM) Q3/12 Q2/13 Q3/13 Retail Brokerage 246 262 267 Asset Management 130 153 159 Private Wealth Management 25 28 32 Revenue 401 443 458 Provision for Credit Losses - - - (3) (3) Non-Interest Expenses 299 323 325 Income Before Taxes 102 120 133 Taxes 26 28 31 Net Income –
Slide 15: Wholesale Banking
Wholesale Banking Reported ($MM) Q3/12 Q2/13 Q3/13 Capital Markets 308 312 349 Corporate & Investment Banking 223 226 243 (2) (2) (2) Other (4) 42 4 Revenue (TEB) 527 580 596 (2) Provision for Credit Losses 34 21 14 (2) (2) (2) Non-Interest Expenses 284 299 303 Income Before Taxes 209 260 279 Taxes
Slide 16: Balances
Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q3/12 Q2/13 Q3/13 Cards 15.2 14.6 14.8 CIBC Brand Mortgages 89.2 96.7 100.8 CIBC Brand Personal Lending 30.3 30.4 30.3 CIBC Brand Personal Deposits & GICs 83.0 84.3 85.0 Business Deposits 35.6 36.9 36.7 Business Lending 34.7
Slide 17: Third Quarter, 2013 Structured Credit Run-off
Third Quarter, 2013 Structured Credit Run-off Pre-tax Pre-Tax After-tax EPS Q1/11 Effect Q4/11 After-Tax Effect Effect Q1/12 EPS Effect Effect Effect ($MM) ($MM) ($MM) ($/Share) ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 4 3 0.01 Other (12) (9) (0.02) Net Income (8) (6) (
Slide 18: 2013 Items of Note and Other Adjustments
2013 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS Effect EPS Operating Effect Effect Effect Effect ($MM) Effect Segments ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q3 2013 Increase in collective allowance (38) (28) (0.07) Corporate & Other Revision o
Slide 19: 2012 Items of Note and Other Adjustments
2012 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS Effect EPS Operating Effect Effect Effect Effect ($MM) Effect Segments ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2012 Loan losses in the exited U.S. leveraged finance portfolio (57) (32) (0.08) Wh
Slide 20: Non-GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results These terms 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 and other adjustm
Slide 21: Third Quarter, 2013 Risk Review
Third Quarter, 2013 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 22: Credit Review
Credit Review Provision for Credit Losses ($MM) 320 20(2) (3) 265 38 vs. Q2/13: 21(1) 262 244 Variances in Provision for Credit Losses: Collective provision for estimated credit losses relating to the Alberta floods Provision for a revision of estimated loss parameters on unsecured lending por
Slide 23: Cards
Cards 200 6% 5% 160 4% 120 ($MM) 197 193 3% 186 183 180 179 80 167 156 154 142 142 2% 40 1% - 0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Net Credit Losses (NCL) NCL Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies from the acquired M
Slide 24: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) 72% (uninsured portfolio) 54% As at July 31, 2013 As at June 30, 2013 (1) LTV ratio calculated as the sum of all individual account LTVs at the current estimated property values over total number of accounts. The current propert
Slide 25: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $144B $66B 30% $29B $23B 70% 33% 24% $15B $11B 21% 67% 25% 76% 75% 79% ON BC AB QC Other Insured Uninsured 25
Slide 26: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $16.6B Canadian Condo Developer Portfolio: $2.9B Condo Mortgages Condo Developers $16.6B $2.9B Uninsured 26% Undrawn 68% Insured 74% Drawn 32% As at July 31, 2013 As at July 31, 2013 26
Slide 27: Trading Revenue Days
Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue 14 Q3/13 12 10 Trading Revenue Days 8 6 4 2 0 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the Q3/13 Suppl