Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q3 2014 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, August 2014
Slide 1: CIBC Investor Presentation Third Quarter, 2014
CIBC Investor Presentation Third Quarter, 2014 August 2014
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, 2014 Financial Review
Third Quarter, 2014 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Third Quarter, 2014 Summary
Third Quarter, 2014 Summary Q3/13 Q3/14 Key Messages: Net Income ($MM) – Reported 878 921 Net Income ($MM) – Adjusted (1 ) 931 908 Solid financial results across all businesses Strong volume growth in CIBC Brand products Diluted EPS – Reported $2.13 $2.26 Diluted EPS – Adjusted (1 ) $2.26 $2.23
Slide 6: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q3/13 Q2/14 Q3/14 Personal Banking 1,534 1,539 1,614 Business Banking 386 368 389 (3) Other 147 35 29 Revenue 2,067 1,942 2,032 (3) Provision for Credit Losses 221 173 177 (3) (3) (3) Non-Interest Expenses 1,010 1,019 1,057 (1 ) Net Income – Adjusted 628
Slide 7: Wealth Management
Wealth Management (1 ) Adjusted ($MM) Q3/13 Q2/14 Q3/14 Retail Brokerage 267 292 307 (3) (3) Asset Management 159 183 187 Private Wealth Management 32 75 75 Revenue 458 550 569 Provision for (reversal of) Credit Losses - 1 - (3) (3) (3) Non-Interest Expenses 325 392 405 (1 ) Net Income – Adjusted 10
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q3/13 Q2/14 Q3/14 Capital Markets 348 331 336 (2) Corporate & Investment Banking 240 275 278 (2) (2) (2) Other 8 3 5 Revenue (TEB) 596 609 619 (2) Provision for (reversal of) Credit Losses 14 (1) 6 (2) (2) (2) Non-Interest Expenses 302 317 278 Net Income – Adjus
Slide 9: Capital
Capital Common Equity Tier 1 Ratio Risk-Weighted Assets (all-in basis) ($B; all-in basis) 137 141 136 140 134 9.5% 10.0% 10.1% 9.3% 9.4% Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 vs. Q2/14: Variance in Common Equity Tier 1 Ratio: - Higher earnings, net of dividends - Partially of
Slide 10: Third Quarter, 2014 Highlights
Third Quarter, 2014 Highlights Client focused strategy progressing well CIBC Solid financial results across all businesses Successful launch of new CIBC Tim Hortons Double Double card Retail & Business Banking Strong growth in CIBC Brand products Revenue up 24% YoY; up 15% excl. Atlantic T
Slide 11: Third Quarter, 2014 Risk Review
Third Quarter, 2014 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 12: Provision for Credit Losses (Adjusted)
Provision for Credit Losses (Adjusted) (1) Adjusted ($MM) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (2) (2) Retail and Business Banking 221 215 184 173 177 Wealth Management - 1 (1) 1 - (2) Wholesale Banking 14 (1) 2 (1) 6 (2) CIBC FirstCaribbean 27 54 33 24 26 (2) (2) (2) Collective Provision for Non-Impaired
Slide 13: Impaired Loans and Formations
Impaired Loans and Formations Reported ($MM) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Consumer 374 362 352 291 308 Business and Government 114 62 65 46 53 Total New Formations 488 424 417 337 361 Gross and Net Impaired Loans (by geography) $1,623MM $ 1,587MM $1,547MM $1,521MM $1,492MM vs. Q2/14: Higher new f
Slide 14: Cards
Cards 200 6% 5% 160 197 193 4% 120 ($MM) 180 179 167 3% 156 154 80 142 142 127 2% 113 99 102 40 1% 0 0% Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 (1) (1, 2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate Comments: Credit quality of the portfolio continues to remai
Slide 15: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage Portfolios Canadian Residential Mortgage Portfolio (includes Condo): $149B Canadian Condo Mortgage Sub-Portfolio: $16.9B Residential Mortgages Condo Mortgages (includes Condo) Average Uninsured 28% Average 30% Uninsured LTV(1) of LTV(1) of 59% 60% Insured Insu
Slide 16: Canadian Condo Developer Exposure
Canadian Condo Developer Exposure Canadian Condo Developer Portfolio: $2.8B $2.8B Undrawn 64% Drawn 36% As at July 31, 2014 | 16
Slide 17: Trading Revenue (TEB) Distribution
Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) May-14 Jun-14 Jul-14 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 29 for further details. (2) Trading revenue (TEB) compr
Slide 18: Appendix
CIBC a Appendix
Slide 19: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q3/13 Q2/14 Q3/14 (2) (2) (2) Net Interest Income 1,883 1,798 1,875 (2) (2) (2) Non-Interest Income 1,366 1,369 1,483 Revenue 3,249 3,167 3,358 (2) (2) Provision for Credit Losses 320 330 195 (2) (2) (2) Non-Interest Expenses 1,878 2,412 2,047 Income Befor
Slide 20: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q3/13 Q2/14 Q3/14 Personal Banking 1,534 1,539 1,614 Business Banking 386 368 389 (3) Other 147 32 29 Revenue 2,067 1,939 2,032 (3) Provision for Credit Losses 241 173 177 (3) (3) (3) Non-Interest Expenses 1,011 1,040 1,067 Income Before Taxes 815 726 788 Tax
Slide 21: Wealth Management
Wealth Management Reported ($MM) Q3/13 Q2/14 Q3/14 Retail Brokerage 267 292 307 (3) (3) Asset Management 159 181 186 Private Wealth Management 32 75 75 Revenue 458 548 568 Provision for (reversal of) Credit Losses - 1 - (3) (3) (3) Non-Interest Expenses 326 395 408 Income Before Taxes 132 152 160 Ta
Slide 22: Wholesale Banking
Wholesale Banking Reported ($MM) Q3/13 Q2/14 Q3/14 Capital Markets 348 331 336 (2) Corporate & Investment Banking 240 275 330 (2) (2) (2) Other 1 - 4 Revenue (TEB) 589 606 670 (2) Provision for (reversal of) Credit Losses 14 21 6 (2) (2) (2) Non-Interest Expenses 303 318 279 Income Before Taxes 272
Slide 23: Balances
Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q3/13 Q2/14 Q3/14 Cards 14.8 11.3 11.5 CIBC Brand Mortgages 100.8 111.7 115.5 CIBC Brand Personal Lending 30.3 30.3 30.6 CIBC Brand Personal Deposits & GICs 85.0 87.4 87.9 Business Deposits 36.7 40.7 42.5 Business Lending 36.
Slide 24: Third Quarter, 2014 - Structured Credit Run-off
Third Quarter, 2014 - 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 5 4 0.01 Purchased Credit Derivatives Hedging Loa
Slide 25: Loans and Acceptances
Loans and Acceptances(1) Reported ($MM) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Residential mortgages 149,292 150,778 151,785 152,343 154,801 Personal 34,084 33,990 33,918 34,293 34,632 Credit card 14,288 14,255 11,004 11,131 11,167 Net Consumer Loans 197,664 199,023 196,707 197,767 200,600 Non-Residential Mo
Slide 26: Provision for Credit Losses
Provision for Credit Losses Reported ($MM) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Retail and Business Banking 241 215 210 173 177 Wealth Management - 1 (1) 1 - Wholesale Banking 14 (1) 2 21 6 CIBC FirstCaribbean 27 54 33 131 26 Collective Provision for Non-Impaired 38 2 (26) 4 (14) Corporate and Other 65 56
Slide 27: 2014 Items of Note
2014 Items of Note 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 2014 Gain within an equity-accounted investment in our merchant banking portfolio 52 30 0.08 Wholesale Ba
Slide 28: 2013 Items of Note
2013 Items of Note 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 2013 Restructuring charge relating to CIBC FirstCaribbean (39) (37) (0.09) Corporate & Other Impairment o
Slide 29: 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 see slide 27 and