Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q1 2008 Earnings Presentation

29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 28, 2008

  1. Slide 1: First Quarter 2008 Investor Presentation

    First Quarter, 2008 Investor Presentation CIBC Investor Presentation February 28, 2008 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 securi

  2. Slide 2: CIBC Overview

    First Quarter, 2008 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer First Quarter, 2008 Financial & Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer 2

  3. Slide 3: Q1 Summary

    First Quarter, 2008 Investor Presentation Q1 Summary $ Per Share Loss Per Includes(3) – ACA Charge (4.51) Share(1): $4.39 – Charge for Monoline Exposure (1.24) Cash Loss – Write-downs re. CDO/RMBS (0.93) Per Share(2): $4.36 – Loss on Sale of some U.S. Businesses/Restructuring (0.19) – Mark-to-Market

  4. Slide 4: Revenue

    First Quarter, 2008 Investor Presentation CIBC Revenue F ‘07 F ‘08 ($MM) Q3 Q4 Q1 vs. Q4 Net Interest Income 1,180 1,240 1,154 • Lower dividend Fees for Services revenue Underwriting and Advisory 192 190 176 Deposit and Payment 205 200 195 Credit 77 59 60 Cards 68 72 77 Investment Mgmt and Custodial

  5. Slide 5: Expenses

    First Quarter, 2008 Investor Presentation CIBC Expenses F ‘07 F ‘08 ($MM) Q3 Q4 Q1 vs. Q4 Employee Comp. and (1) (1) Benefits 1,100 1,006 994 • Lower Stock Appreciation Rights Occupancy Costs 152 148 145 (SARs) Computer and Office Equip. 279 283 262 Communications 77 81 74 Advertising and Bus. Devel

  6. Slide 6: Quarter – Write-downs

    First Quarter, 2008 Investor Presentation First Quarter – Write-downs (U.S.$MM, pre-tax) Total Nov./Dec. Jan. 1st Quarter (announced Jan. 14) (announced today) Unhedged Portfolio 462 13 475 Hedged Portfolio - ACA Financial 2,004 292 2,296 - Other Monolines - 624 624 2,466 929 3,395 11 UNHEDGED CDO/R

  7. Slide 7: Subprime Exposure

    First Quarter, 2008 Investor Presentation Subprime Exposure (1) – HEDGED with Monoline Insurers (U.S.$ B) Value 2.91 Remaining 5.09 Exposure * 7.91 “Monoline Protection” 5.00 Reserve 2.82 taken Face Value (1) Numbers as at January 31, 2008. 13 Tier 1 Capital Ratio Sensitivity to Subprime Losses Addi

  8. Slide 8: Retail Markets Revenue

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Revenue ($MM) (1) 2,794 (1) 2,309 2,386 2,371 2,273 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Affected by an Item of Note, see Slide 48 for details. 15 CIBC Retail Markets Revenue Components F ‘07 F ‘08 ($MM) Q1 Q2 Q3 Q4 Q1 Personal & Small Business

  9. Slide 9: Revenue Components

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Revenue Components F ‘07 F ‘08 Personal & Small ($MM) Q1 Q2 Q3 Q4 Q1 Business Banking Personal & Small vs. Q4: Business 517 501 537 546 544 + spreads up Imperial Service 237 232 247 242 244 – fees down Retail Brokerage 302 294 295 282 276

  10. Slide 10: Revenue Components

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Revenue Components F ‘07 F ‘08 ($MM) Q1 Q2 Q3 Q4 Q1 Retail Brokerage Personal & Small vs. Q4: Business 517 501 537 546 544 + new issues up Imperial Service 237 232 247 242 244 – commissions down Retail Brokerage 302 294 295 282 276 (1) –

  11. Slide 11: Revenue Components

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Revenue Components F ‘07 F ‘08 Mortgages & Personal ($MM) Q1 Q2 Q3 Q4 Q1 Lending Personal & Small vs. Q4: Business 517 501 537 546 544 + mortgage balances up Imperial Service 237 232 247 242 244 – prepayment cash Retail Brokerage 302 294

  12. Slide 12: Revenue Components

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Revenue Components F ‘07 F ‘08 ($MM) Q1 Q2 Q3 Q4 Q1 Other Personal & Small vs. Q4: Business 517 501 537 546 544 + Treasury revenue up Imperial Service 237 232 247 242 244 + securitization revenue Retail Brokerage 302 294 295 282 276 up (1

  13. Slide 13: World Markets Revenue

    First Quarter, 2008 Investor Presentation CIBC World Markets Revenue ($MM) (2) 662 (1) 606 (1) 745 420 (2) (2) 468 (1) (1) 455 5 (1) (2,957) Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Affected by an Item of Note, see Slides 48 and 49 for details. (2) Results excluding write-downs; Non-GAAP financial measures, s

  14. Slide 14: Capital Markets

    First Quarter, 2008 Investor Presentation CIBC World Markets Revenue Components F ‘07 F ‘08 ($MM) Q1 Q2 Q3 Q4 Q1 Capital Markets (1) (1) (1) Capital Markets 449 351 28 (249) (3,169) vs. Q4: Investment Banking + mark-to-market gains (1) (1) (1) (1) (1) & Credit Products 204 247 328 240 283 on credit

  15. Slide 15: Merchant Banking

    First Quarter, 2008 Investor Presentation CIBC World Markets Revenue Components F ‘07 F ‘08 ($MM) Q1 Q2 Q3 Q4 Q1 Merchant Banking (1) (1) (1) Capital Markets 449 351 28 (249) (3,169) vs. Q4: Investment Banking – gains & distributions (1) (1) (1) (1) (1) & Credit Products 204 247 328 240 283 ($42MM v

  16. Slide 16: Common Share Dividends

    First Quarter, 2008 Investor Presentation Common Share Dividends ($ per share) 0.87 0.87 0.77 0.77 0.70 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 31 CIBC Retail Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) 76 (2) ROE 54 52 (2) 48 (2) 54 59 61 59 57 NIX 50 (2) (2) Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Non-GAAP financi

  17. Slide 17: Mortgages & Cards

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Mortgages & Cards(1) ($B; spot; administered assets) 115.1 112.6 Residential 109.2 104.3 Mortgages 101.5 13.3 13.5 12.3 12.7 Card Loans 12.0 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Excludes FirstCaribbean. 33 CIBC Retail Markets Loan Balances(1) (

  18. Slide 18: Loan Balances and Market Share

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Market Share(1)(2) (%) Residential 14.1 14.1 14.1 14.2 14.1 Mortgages Consumer 19.3 19.5 19.8 19.6 19.2 Deposits Consumer 9.6 9.5 9.3 9.1 Loans 9.1 (excl. cards) Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Source: OSFI (consumer deposits); Bank of Can

  19. Slide 19: Market Share

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Mutual Funds/Managed Accounts AUM & Market Share(1) MF/Managed Accts AUM Canadian Market Share 70 11 61.1 62.4 61.8 61.9 59.3 60 Market Share (%) 50 $ Billions 9 40 8.6 8.5 8.5 8.4 8.5 30 7 20 10 0 5 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Source:

  20. Slide 20: Imperial Service and Discount Brokerage

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Imperial Service Funds Managed Funds Managed/Financial Adviser 100 100 82.9 84.4 85.0 85.1 84.6 80 80 $ Millions $ Billions 73.9 75.0 76.1 76.2 60 71.8 60 40 40 20 20 0 0 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 39 CIBC Retail Markets Discount Brokerag

  21. Slide 21: Wood Gundy and Merchant Banking

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Wood Gundy(1) AUA AUA per Investment Adviser 140 120 117.6 120.4 118.5 118.6 120 110.3 100 $ Millions 100 $ Billions 89.9 90.1 91.5 80 87.0 85.6 80 60 60 40 40 20 20 0 0 Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 AUA excludes client cash and short positi

  22. Slide 22: World Markets Market Share

    First Quarter, 2008 Investor Presentation CIBC World Markets Market Share (%) 15.9 16.4 Canadian 13.0 New Equity 11.0 9.5 Issues (1)(2) Equity Trading 7.6 7.2 7.1 6.6 Canada - % 6.4 of shares traded (3) Q1 Q2 Q3 Q4 Q1 F ‘07 F ‘08 (1) Source: CIBC Equity Capital Markets. (2) Based on total amount und

  23. Slide 23: Economic Profit/(Loss) and NIMs

    First Quarter, 2008 Investor Presentation Behind the Reported NIMs F ‘07 F ‘08 Q4 Q1 Reported NIM 1.45% 1.33% (1) Reported NIM (TEB) 1.58% 1.40% NIM (TEB) (1) (2) excluding fixed assets 1.83% 1.65% & excluding trading assets and adding back securitizations 2.38% 2.42% (3) (4) & excluding other NII 2

  24. Slide 24: Tax Reconciliation – Q1/08

    First Quarter, 2008 Investor Presentation Tax Reconciliation – Q1/08 (A) (B) (B ÷ A) Net Tax Tax Rate Tax Rate ($MM) Income/(Loss) Expense/ Q1/08 F ‘08 (1) Before Tax (Benefit) Reported (2,454) (1,002) 40.8% 40.8% Tax 56 - Retail Adjustments Mkts, Corp. & Other (2) (3) Adjusted (2,454) (946) 38.5% 3

  25. Slide 25: Items of Note

    First Quarter, 2008 Investor Presentation Items of Note (Cont’d) Pre-Tax After-Tax EPS Effect Strategic Business Unit Q3 2007 Effect ($MM) Effect ($MM) ($/share) Write-downs re. CDO/RMBS (290) (190) (0.56) World Mkts Mark-to-Market on Credit Derivatives 77 50 0.15 World Mkts Net Reversal of Litigati

  26. Slide 26: Reconciliation of Revenue Split

    First Quarter, 2008 Investor Presentation CIBC Retail Markets Reconciliation of Revenue Split(1) Under approach used in 2007 F`07 F`08 ($MM) Q1 Q4 Q1 Treatment in 2008 Personal & Small Business Banking 517 546 544 Imperial Service 237 242 244 Retail Brokerage 314 295 289 – Invest. Consulting Service

  27. Slide 27: Q1 Credit Review

    First Quarter, 2008 Investor Presentation Q1 Credit Review Total Specific Retail & World Net Impaired Loans Provisions Markets Provisions 171 357 360 World Markets Retail Markets 310 143 134 11 148 152 160 0.36% 0.40% 0.31% (5) (18) Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 Q1 F ‘07 F ‘08 F ‘07 F ‘08 F ‘07 F ‘08 53 Q

  28. Slide 28: Tier 1 Ratio Movement in Q1

    First Quarter, 2008 Investor Presentation Tier 1 Ratio Movement in Q1 0.97% 0.05% 11.4% Lower RWAs and 0.71% 10.4% other Common 9.7% equity issue net of Q1 net loss and Impact of dividends Basel II paid Basel I Basel II Basel II Basis Basis Basis Q4/07 Q1/08 55 Topical Risk Issues As at January 31,

  29. Slide 29: Retail Markets Review

    First Quarter, 2008 Investor Presentation First Quarter, 2008 Retail Markets Review Sonia Baxendale Senior Executive Vice-President First Quarter, 2008 Q&A 29

Canadian Imperial Bank of Commerce (CIBC) — Q1 2008 Earnings Presentation on 6ix