Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Morgan Stanley Financials Conference 2012
19 slides from Canadian Imperial Bank Of Commerce's conference presentation, Jun 13, 2012
Slide 1: North America’s Strongest Bank
North America’s Strongest Bank David Williamson SEVP and Group Head Retail & Business Banking Morgan Stanley Financials Conference June 13, 2012
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: A Clear and Focused Corporate Identity
A Clear and Focused Corporate Identity First A lower risk Bank Principle North America’s Strongest Bank 1 Deliver consistent sustainable earnings over the long term Strategic Imperative Achieve strategic growth, where there is opportunity and we have competitive capabilities 1 Bloomberg Market
Slide 4: Lower risk bank with industry-leading fundamentals
Lower risk bank with industry-leading fundamentals F2011 Net Income Revenue ($B)(1) Capital CAD 2,878Strength MM (%) (2) 2.1 1.6 8.0 Tier 1 Capital Basel III Pro Retail & Business Banking Forma Ratio Wealth Management Wholesale 1 Revenue for F2011. Excludes “Corporate and Other” revenue of $885MM. T
Slide 5: Retail and Business Banking at a Glance
Retail and Business Banking at a Glance Personal & Business Q2/12 Revenue $2B Personal Banking Personal Banking 79% 8.34 MM Clients 1,091 branches Call centres, ABM, Online Mobile Banking Business Banking $1,590 >365 K Clients Commercial Banking Small Business Banking $368 $46 Business
Slide 6: Retail and Business Banking Strategic Framework
Retail and Business Banking Strategic Framework Accelerate Profitable Revenue Growth Objective + Enhance Client Experience Shift from a Product to a Paradigm Shift Client-Centric Focus Deepen Client Relationships Priorities Sell Improve Sales & Acquire & Service Retain Clients Capabilities Serve Gro
Slide 7: Why is Deepening Client Relationships so Critical?
Why is Deepening Client Relationships so Critical? Strategic Benefit An increase in our net client base Our focus on the client will yield deeper client relationships which will result in…. More products with more of our clients Higher Net Interest Margins (NIMs) Both sides of the balance sh
Slide 8: What Are Examples of the Shift from Product to Client?
What Are Examples of the Shift from Product to Client? Before Now Product Leads Next Best Offer Product-based Incentives Relationship Consolidation Count (RCC) Product-based Organization Structure Retail Distribution & Channel Strategy (RD&CS) / Business Support & Strategic Initiatives (
Slide 9: What Actions Have Been Taken to Deepen Client Relationships?
What Actions Have Been Taken to Deepen Client Relationships? Total Banking Rebate Product Bundles Actions Frontline Productivity Taken Data Mining Capabilities Aligning Incentives 8
Slide 10: Actions Taken to Improve Sales and Service Capabilities
What Actions Have Been Taken to Improve Sales and Service Capabilities? Sales Break Away Talent Development Actions Local Problem Resolution Taken Report Rationalization and Metrics 9
Slide 11: Actions Taken to Improve Sales and Service Capabilities
What Actions Have Been Taken to Improve Sales and Service Capabilities? End to End Lending Workforce Management Call Center Optimization Actions Taken Business Banking Optimization Continuous Improvement Customer Touch Points 10
Slide 12: Actions Taken to Acquire and Retain Clients
What Actions Have Been Taken to Acquire and Retain Clients? Expanding Branch Footprint Expanding Operating Hours Actions Expanding Mobile Sale Force Taken Expanding Outbound Telephone Banking capacity Innovating in Mobile Banking / Mobile Payments 11
Slide 13: Why Are We Exiting the Broker Mortgage Channel?
Why Are We Exiting the Broker Mortgage Channel? Strategic Rationale Not our brand name Very limited cross-sell – no client relationship Thin margins It doesn’t align to our Strategy Higher expenses with two to deepen client relationships mortgage systems Uses balance sheet resources Plan
Slide 14: Margins – stabilizing after recent period of decline
Margins – stabilizing after recent period of decline 2.73 2.69 2.61 2.56 2.53 2.52 % Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 13
Slide 15: Market share - growth in CIBC brand mortgages
Market share - growth in CIBC brand mortgages Market Share (%) Balances ($B) Q2/11 Q1/12 Q2/12 Business Deposits 37.4 14.7 14.8 15.1 Business Lending 34.5 16.4 16.6 16.7 Mutual Funds 55.1 6.9 7.2 7.3 Cards 15.4 18.7 18.4 18.4 Mortgages 145.3 13.7 13.4 13.3 CIBC Brand 88.0 7.9 8.0 8.1 Other 57.3 5.8
Slide 16: A strong record of execution
A strong record of execution Objective was set to lower risk and earnings volatility. Today, we are 7 yrs ago among the best capitalized banks in the world and have been recognized as the Strongest Bank in North America and 3rd Strongest in the world CIBC set a target of achieving an industry me
Slide 17: Industry Recognition
Industry Recognition Best in Mobile Banking Globally One of Canada's 10 Most Admired Corporate Cultures Ranked as one of the world’s strongest banks A Top Employer for the A Best Employer for Greater Toronto Area New Canadians Deal of the Year for our equity investment in A Best Diversity Employer A
Slide 18: Summary
Summary Strategic Growth Today Future State Priorities North America’s Deeper client Create an enhanced Strongest Bank with a relationships client experience strong record of execution Acquire and retain Accelerate Retail and clients Business Banking Strong capital levels revenue growth
Slide 19: Questions
Questions 18