Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q2 2014 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 2014
Slide 1: CIBC Investor Presentation Second Quarter, 2014
CIBC Investor Presentation Second Quarter, 2014 May 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: Second Quarter, 2014 Financial Review
Second Quarter, 2014 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Second Quarter, 2014 Summary
Second Quarter, 2014 Summary Q2/13 Q2/14 Key Messages: Net Income ($MM) – Reported 862 306 Client focused strategy progressing well (1 ) Net Income ($MM) – Adjusted 862 887 Strong CIBC Brand products growth Diluted EPS – Reported $2.09 $0.73 Double digit revenue growth across Wealth businesses
Slide 6: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q2/13 Q1/14 Q2/14 (3) Personal Banking 1,463 1,585 1,539 Business Banking 374 380 368 (3) (3) Other 148 102 35 Revenue 1,985 2,067 1,942 (3) Provision for Credit Losses 233 184 173 (3) (3) (3) Non-Interest Expenses 986 1,024 1,019 (1 ) Net Income – Adjus
Slide 7: Wealth Management
Wealth Management (1 ) Adjusted ($MM) Q2/13 Q1/14 Q2/14 Retail Brokerage 262 284 292 (3) (3) Asset Management 153 174 183 Private Wealth Management 28 46 75 Revenue 443 504 550 Provision for (reversal of) Credit Losses - (1) 1 (3) (3) (3) Non-Interest Expenses 323 349 392 (1 ) Net Income – Adjusted
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q2/13 Q1/14 Q2/14 Capital Markets 311 330 331 Corporate & Investment Banking 222 250 275 (2) (2) (2) Other 12 14 3 Revenue (TEB) 545 594 609 (2) (2) Provision for (reversal of) Credit Losses - 2 (1) (2) (2) (2) Non-Interest Expenses 296 310 317 Net Income – Adju
Slide 9: Capital
Capital Common Equity Tier 1 Ratio Risk-Weighted Assets (all-in basis) ($B; all-in basis) 137 141 136 134 126 9.7% 9.4% 9.5% 10.0% 9.3% Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 vs. Q1/14: Variance in Common Equity Tier 1 Ratio: - Internal capital generation; and - Lower risk-wei
Slide 10: Second Quarter, 2014 Highlights
Second Quarter, 2014 Highlights CIBC Client focused strategy progressing well Aventura card sales continue to exceed expectations Retail & Business Higher than market growth in CIBC Brand mortgages – up 12% YoY ex. FLM conversion Banking Mutual Funds up 19% YoY and CIBC Brand Deposits up 9%
Slide 11: Second Quarter, 2014 Risk Review
Second Quarter, 2014 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 12: Provision for Credit Losses (Adjusted)
Provision for Credit Losses (Adjusted) (1) Adjusted ($MM) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 (2) (2) Retail and Business Banking 233 221 215 184 173 Wealth Management - - 1 (1) 1 (2) Wholesale Banking - (2) 14 (1) 2 (1) (2) CIBC FirstCaribbean 27 27 54 33 24 (2) (2) Collective Provision for Non-Impaired
Slide 13: Impaired Loans and Formations
Impaired Loans and Formations Reported ($MM) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Consumer 369 374 362 352 291 Business and Government 112 114 62 65 46 Total New Formations 481 488 424 417 337 Gross and Net Impaired Loans (by geography) $1,692MM $1,623MM $1,587MM $1,547MM $1,521MM vs. Q1/14: Lower new fo
Slide 14: Cards
Cards 200 6% 5% 160 197 4% 120 183 193 ($MM) 180 179 167 3% 156 154 80 142 142 127 2% 113 99 40 1% 0 0% Q2/11 Q4/11 Q2/12 Q4/12 Q2/13 Q4/13 Q2/14 (1, 2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate Comments: Credit quality of the portfolio continues to remain hi
Slide 15: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage Portfolios Canadian Residential Mortgage Portfolio (includes Condo): $147B Canadian Condo Mortgage Sub-Portfolio: $16.7B Residential Mortgages Condo Mortgages (includes Condo) 30% Average Uninsured 27% Average Uninsured LTV(1) of LTV(1) of 60% 60% Insured 73%
Slide 16: Canadian Condo Developer Exposure
Canadian Condo Developer Exposure Canadian Condo Developer Portfolio: $2.6B $2.6B Undrawn 70% Drawn 30% As at April 30, 2014 | 16
Slide 17: Trading Revenue (TEB) Distribution
Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Feb-14 Mar-14 Apr-14 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 29 for further details. (2) Trading revenue (TEB) compr
Slide 18: Appendix
CIBC a Appendix
Slide 19: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q2/13 Q1/14 Q2/14 (2) (2) (2) Net Interest Income 1,822 1,905 1,798 (2) (2) (2) Non-Interest Income 1,302 1,729 1,369 Revenue 3,124 3,634 3,167 (2) (2) (2) Provision for Credit Losses 265 218 330 (2) (2) (2) Non-Interest Expenses 1,825 1,979 2,412 Income B
Slide 20: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q2/13 Q1/14 Q2/14 (3) Personal Banking 1,463 1,576 1,539 Business Banking 374 380 368 (3) (3) Other 148 299 32 Revenue 1,985 2,255 1,939 (3) Provision for Credit Losses 233 210 173 (3) (3) (3) Non-Interest Expenses 988 1,055 1,040 Income Before Taxes 764 990
Slide 21: Wealth Management
Wealth Management Reported ($MM) Q2/13 Q1/14 Q2/14 Retail Brokerage 262 284 292 (3) (3) Asset Management 153 172 181 Private Wealth Management 28 46 75 Revenue 443 502 548 Provision for (reversal of) Credit Losses - (1) 1 (3) (3) (3) Non-Interest Expenses 324 351 395 Income Before Taxes 119 152 152
Slide 22: Wholesale Banking
Wholesale Banking Reported ($MM) Q2/13 Q1/14 Q2/14 Capital Markets 311 330 331 Corporate & Investment Banking 222 250 275 (2) (2) (2) Other 41 100 - Revenue (TEB) 574 680 606 (2) (2) Provision for (reversal of) Credit Losses 21 2 21 (2) (2) (2) Non-Interest Expenses 298 329 318 Income Before Taxes 2
Slide 23: Balances
Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q2/13 Q1/14 Q2/14 Cards 14.6 13.5 11.3 CIBC Brand Mortgages 96.7 109.4 111.7 CIBC Brand Personal Lending 30.4 30.1 30.3 CIBC Brand Personal Deposits & GICs 84.3 86.9 87.4 Business Deposits 36.9 39.2 40.7 Business Lending 36.4
Slide 24: Second Quarter, 2014 - Structured Credit Run-off
Second 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 3 2 0.01 Purchased Credit Derivatives Hedging Lo
Slide 25: Loans and Acceptances
Loans and Acceptances(1) Reported ($MM) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Residential mortgages 148,685 149,292 150,778 151,785 152,343 Credit card 14,261 14,288 14,255 11,004 11,131 Personal 34,254 34,084 33,990 33,918 34,293 Net Consumer Loans 197,200 197,664 199,023 196,707 197,767 Real estate and co
Slide 26: Provision for Credit Losses
Provision for Credit Losses Reported ($MM) Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Retail and Business Banking 233 241 215 210 173 Wealth Management - - 1 (1) 1 Wholesale Banking 21 14 (1) 2 21 CIBC FirstCaribbean 27 27 54 33 131 Collective Provision for Non-Impaired (16) 38 2 (26) 4 Corporate and Other 11 65
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 Q2 2014 Charges relating to CIBC FirstCaribbean, comprising a non-cash goodwill impairment charge and loan l
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