Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q4 2012 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, December 2012
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation Fourth Quarter, 2012 December 2012
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: Fourth Quarter, 2012 Financial Review
Fourth Quarter, 2012 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Fourth Quarter, 2012 Summary
Fourth Quarter, 2012 Summary Q4 2012 Net Income ($MM) – Reported 852 Key Messages: (1 ) Net Income ($MM) – Adjusted 858 Execution of Retail Strategy progressing well Diluted EPS – Reported $2.02 Strong Wholesale Banking results (1 ) Diluted EPS – Adjusted $2.04 Record net sales of long term mu
Slide 6: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q4/11 Q3/12 Q4/12 Personal Banking 1,568 1,595 1,616 Business Banking 358 382 378 Other 150 108 42 Revenue 2,076 2,085 2,036 Provision for Credit Losses 266 273 255 (3) (3) (3) Non-Interest Expenses 1,020 1,033 1,028 Income Before Taxes 790 779 753 Taxes
Slide 7: Wealth Management
Wealth Management Reported ($MM) Q4/11 Q3/12 Q4/12 Retail Brokerage 256 246 256 Asset Management 115 130 138 Private Wealth Management 25 25 26 Revenue 396 401 420 Provision for Credit Losses - - - Non-Interest Expenses 299 299 308 Income Before Taxes 97 102 112 Taxes 27 26 28 Net Income – Reported
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q4/11 Q3/12 Q4/12 (2) Capital Markets 242 308 303 (2) (2) Corporate & Investment Banking 187 223 194 (2) (2) (2) Other 27 20 25 Revenue (TEB) 456 551 522 (2) (2) Provision for Credit Losses 7 34 13 (2) (2) (2) Non-Interest Expenses 284 282 249 Income Before Taxe
Slide 9: 2012 Highlights
2012 Highlights 2012 Net Income ($MM) – Reported 3,339 Key Messages: (1 ) Net Income ($MM) – Adjusted 3,397 Strong core Retail growth Diluted EPS – Reported $7.85 Solid Wholesale Banking performance (1 ) Diluted EPS – Adjusted $8.07 Record net sales of long term mutual funds in Asset Managemen
Slide 10: Fourth Quarter, 2012 Financial Review Appendix
Fourth Quarter, 2012 Financial Review Appendix
Slide 11: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q4/11 Q3/12 Q4/12 (3) (3) (3) Net Interest Income 1,776 1,883 2,016 (3) (3) (3) Non-Interest Income 1,419 1,266 1,143 Revenue 3,195 3,149 3,159 (3) (3) Provision for Credit Losses 306 317 328 (3) (3) (3) Non-Interest Expenses 1,920 1,831 1,829 Income Befor
Slide 12: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q4/11 Q3/12 Q4/12 Personal Banking 1,568 1,595 1,616 Business Banking 358 382 378 Other 150 108 42 Revenue 2,076 2,085 2,036 Provision for Credit Losses 266 273 255 (3) (3) (3) Non-Interest Expenses 1,023 1,035 1,030 Income Before Taxes 787 777 751 Taxes 190
Slide 13: Wholesale Banking
Wholesale Banking Reported ($MM) Q4/11 Q3/12 Q4/12 (2) Capital Markets 242 308 295 (2) (2) Corporate & Investment Banking 328 223 206 (2) (2) (2) Other (9) (4) 74 Revenue (TEB) 561 527 575 (2) (2) Provision for Credit Losses 32 34 66 (2) (2) (2) Non-Interest Expenses 347 284 263 Income Before Taxes
Slide 14: Balances & Market Share
Balances & Market Share Retail & Business Banking and Wealth Management (1) (2) Balances Market Share (%) ($B) Q4/11 Q3/12 Q4/12 (3) Cards 15.0 18.4 18.0 17.9 (3) CIBC Brand Mortgages 93.6 8.0 8.1 8.2 CIBC Brand Personal Lending 30.6 7.3 7.2 7.3 CIBC Brand Personal Deposits & GICs 83.9 11.0 10.9 10.
Slide 15: Fourth Quarter, 2012 Structured Credit Run-off
Fourth Quarter, 2012 Structured Credit Run-off Pre-tax Pre-Tax After-tax EPS Q1/11 Effect Q4/11 After-Tax Effect Effect Q1/12 EPS Effect Effect Effect ($MM) ($MM) ($MM) ($/Share) ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 45 33 0.08 Purchased Credit Derivatives Hedging Lo
Slide 16: 2012 Items of Note and Other Adjustments
2012 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2012 Loan losses in the exited U.S. leveraged finance portfolio (57) (32) (0.08) Wh
Slide 17: 2011 Items of Note and Other Adjustments
2011 Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q4 2011 Net Gain on Sale of a Merchant Banking Investment 90 46 0.12 Wholesale Banking
Slide 18: Non–GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results & Tangible Common Equity These terms are non-GAAP financial measures that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. For further details, see slide
Slide 19: Fourth Quarter, 2012 Risk Review
Fourth Quarter, 2012 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 20: Credit Review
Credit Review Provision for Credit Losses ($MM) vs. Q3/12: 328 317 (1) Variance in Provision for Credit Losses: 53 275 + Higher provision in run-off U.S. Leveraged Finance portfolio - Lower losses in U.S. Real Estate Finance - Lower losses in Commercial Banking - Lower losses in CIBC FirstCaribbea
Slide 21: Cards
Cards 200 6% 5% 160 4% 120 ($MM) 197 193 3% 186 183 180 179 80 167 156 2% 40 1% - 0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Net Credit Losses (NCL) NCL Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies from the acquired MasterCard portfolio have stabi
Slide 22: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) 76% (uninsured portfolio) 50% As at October 31, 2012 As at September 30, 2012 (1) Ratio calculated based on latest available industry house price estimates from Teranet (September 30, 2012). 22
Slide 23: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $144B $66B 25% $29B 27% $24B 75% 23% $15B $10B 18% 73% 77% 18% 82% 82% ON BC AB QC Other Insured Uninsured 23
Slide 24: Canadian Condo Exposure
Canadian Condo Exposure $16.9B Canadian Condo Mortgage Portfolio: $16.9B Uninsured 23% Insured 77% Canadian Condo Developer Portfolio: $2.7B Q4/12 Condo Mortgages Condo Developers $16.9B $2.7B Uninsured 23% Undrawn 74% Insured 77% Drawn 26% Q4/12 Q4/12 24
Slide 25: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables(1) & As of Q4/12 (1) ($MM) Corporate Sovereign Bank Repos Peripheral Countries $6 $- $12 $10 Non-Peripheral Countries 338 333 285 273 Non-Eurozone Countries 2,194 530 1,180 78 Total Europe 2,538 863 1,477 361 Middle East & North Africa - 2 2
Slide 26: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q4/12 ($MM) Net Loans/BAs(1) Net Impaired Loans(1) Retail 1,214 6 Hotel 520 9 Multi-family 440 35 Office 1,069 28 Multi-use 562 14 Other 372 14 Q4/12 Total 4,177 106 (1) Net of write-downs and allowance for credit losses. 26
Slide 27: European Leveraged Finance & U.S. Leveraged Finance
European Leveraged Finance & U.S. Leveraged Finance European Leveraged Finance As of Q4/12 ($MM) Drawn Undrawn Total Exposure(1) 404 60 U.S. Leveraged Finance As of Q4/12 ($MM) Drawn Undrawn Total Exposure(1) 91 19 (1) Net of write-downs and allowance for credit losses. 27
Slide 28: Trading Revenue Days
Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue 16 Q4/12 14 Trading Revenue Days 12 10 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 19 20 21 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of th
Slide 29: Capital
Capital Strong capital position Basel III Common Equity Ratio estimated at 9.0% Tier 1 Capital Ratio Risk-Weighted Assets ($B) 111 113 115 115 110 14.7% 14.3% 14.1% 14.1% 13.8% Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Tier 1 Capital ($B) 16.2 16.0 15.9 16.2 15.9 vs. Q3/12: V