Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q1 2013 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, February 2013
Slide 1: CIBC Investor Presentation First Quarter, 2013
CIBC Investor Presentation First Quarter, 2013 February 2013
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: First Quarter, 2013 Financial Review
First Quarter, 2013 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: First Quarter, 2013 Summary
First Quarter, 2013 Summary Q1 2013 Key Messages: Net Income ($MM) – Reported 798 Record adjusted bank earnings (1 ) Net Income ($MM) – Adjusted 895 Solid core earnings growth in Diluted EPS – Reported $1.91 Retail & Business Banking Strong client driven Wholesale Banking (1 ) Diluted EPS – Ad
Slide 6: Retail & Business Banking
Retail & Business Banking Adjusted ($MM) (1 ) Q1/12 Q4/12 Q1/13 Personal Banking 1,563 1,616 1,623 Business Banking 373 378 380 Other 93 42 62 Revenue 2,029 2,036 2,065 Provision for Credit Losses 281 255 241 (3) (3) (3) Non-Interest Expenses 993 1,028 1,019 Income Before Taxes 755 753 805 Taxes 186
Slide 7: Wealth Management
Wealth Management Adjusted ($MM) (1 ) Q1/12 Q4/12 Q1/13 Retail Brokerage 249 256 259 (3) Asset Management 125 138 144 Private Wealth Management 24 26 29 Revenue 398 420 432 Provision for Credit Losses - - - Non-Interest Expenses 312 308 315 Income Before Taxes 86 112 117 Taxes 21 28 27 (1) Net Incom
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q1/12 Q4/12 Q1/13 (2) Capital Markets 307 303 328 (2) Corporate & Investment Banking 197 194 213 (2) (2) (2) Other 18 25 16 Revenue (TEB) 522 522 557 (2) Provision for Credit Losses 26 13 10 (2) (2) (2) Non-Interest Expenses 281 249 291 Income Before Taxes 215 2
Slide 9: First Quarter, 2013 Highlights
First Quarter, 2013 Highlights Record adjusted bank earnings Solid core earnings growth in Retail & Business Banking Strong client driven Wholesale Banking earnings Solid fund flows in Wealth Management Improving credit quality 9
Slide 10: First Quarter, 2013 Financial Review Appendix
First Quarter, 2013 Financial Review Appendix
Slide 11: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q1/12 Q4/12 Q1/13 (2) (2) (2) Net Interest Income 1,842 1,848 1,855 (2) (2) (2) Non-Interest Income 1,315 1,311 1,326 Revenue 3,157 3,159 3,181 (2) Provision for Credit Losses 338 328 265 (2) (2) (2) Non-Interest Expenses 1,791 1,829 1,987 Income Before Ta
Slide 12: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q1/12 Q4/12 Q1/13 Personal Banking 1,563 1,616 1,623 Business Banking 373 378 380 Other 93 42 62 Revenue 2,029 2,036 2,065 Provision for Credit Losses 281 255 241 (3) (3) (3) Non-Interest Expenses 996 1,030 1,021 Income Before Taxes 752 751 803 Taxes 185 182
Slide 13: Wealth Management
Wealth Management Reported ($MM) Q1/12 Q4/12 Q1/13 Retail Brokerage 249 256 259 (3) Asset Management 162 138 144 Private Wealth Management 24 26 29 Revenue 435 420 432 Provision for Credit Losses - - - Non-Interest Expenses 312 308 315 Income Before Taxes 123 112 117 Taxes 23 28 27 Net Income – Repo
Slide 14: Wholesale Banking
Wholesale Banking Reported ($MM) Q1/12 Q4/12 Q1/13 (2) Capital Markets 307 295 328 (2) Corporate & Investment Banking 197 206 213 (2) (2) (2) Other (9) 74 22 Revenue (TEB) 495 575 563 (2) Provision for Credit Losses 26 66 10 (2) (2) (2) Non-Interest Expenses 289 263 445 Income Before Taxes 180 246 1
Slide 15: Balances & Market Share
Balances & Market Share Retail & Business Banking and Wealth Management (1) (2) Balances Market Share (%) ($B) Q1/12 Q4/12 Q1/13 (3) Cards 14.7 18.4 17.8 17.8 (3) CIBC Brand Mortgages 95.7 8.1 8.4 8.5 CIBC Brand Personal Lending 30.3 7.0 6.9 6.9 CIBC Brand Personal Deposits & GICs 84.8 10.8 10.8 10.
Slide 16: First Quarter, 2013 Structured Credit Run-off
First Quarter, 2013 Structured Credit Run-off Pre-tax Pre-Tax After-tax EPS Q1/11 Effect Q4/11 After-Tax Effect Effect Q1/12 EPS Effect Effect Effect ($MM) ($MM) ($MM) ($/Share) ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 27 20 0.05 Purchased Credit Derivatives Hedging Loa
Slide 17: Items of Note and Other Adjustments
Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q1 2013 Loss on structured credit run-off activities, including the charge in respect of a
Slide 18: Non–GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results These terms are non-GAAP financial measures that do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. For further details, see slide 17 for items of note and
Slide 19: First Quarter, 2013 Risk Review
First Quarter, 2013 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 20: Credit Review
Credit Review Provision for Credit Losses ($MM) 328 vs. Q4/12: (1) 53 Variance in Provision for Credit Losses: 275 265 - Lower provision in the exited U.S. Leveraged Finance portfolio - Lower losses in Commercial Banking Q4/12 Q1/13 (1) Reserve related to the exited U.S. Leveraged Finance portfoli
Slide 21: Cards
Cards 200 6% 5% 160 4% 120 ($MM) 197 193 3% 186 183 180 179 80 167 156 154 2% 40 1% - 0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Net Credit Losses (NCL) NCL Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies from the acquired MasterCard portfolio
Slide 22: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) (uninsured portfolio) 76% 51% As at January 31, 2013 As at December 31, 2012 (1) Ratio calculated based on latest available industry house price estimates from Teranet (December 31, 2012). 22
Slide 23: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $144B $66B 26% $29B $23B 74% 27% 23% $16B $10B 18% 73% 77% 19% 81% 82% ON BC AB QC Other Insured Uninsured 23
Slide 24: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $16.8B Canadian Condo Developer Portfolio: $2.8B Condo Mortgages Condo Developers $16.8B $2.8B Uninsured 23% Undrawn 72% Insured 77% Drawn 28% Q1/13 Q1/13 24
Slide 25: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables(1) & As of Q1/13 (1) ($MM) Corporate Sovereign Bank Repos Peripheral Countries $2 $- $2 $14 Non-Peripheral Countries 363 336 181 237 Non-Eurozone Countries 2,573 461 1,265 127 Total Europe(2) 2,938 797 1,448 378 (1) Includes exposure for repo
Slide 26: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q1/13 ($MM) Net Loans/BAs(1) Net Impaired Loans(1) Retail 1,047 6 Hotel 524 9 Multi-family 422 42 Office 1,122 27 Multi-use 532 15 Other 425 10 Q1/13 Total 4,072 109 (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 Q1/13 ($MM) Drawn Undrawn Total Exposure(1) 396 73 U.S. Leveraged Finance As of Q1/13 ($MM) Drawn Undrawn Total Exposure(1) 77 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 Q1/13 18 16 Trading Revenue Days 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the Q1/13 Supplementa
Slide 29: Capital
Capital Common Equity Tier 1 Ratio(1) Risk-Weighted Assets(2) (all-in basis) ($B; all-in basis) 126 111 113 115 115 8.5% 8.9% 9.0% 9.6% 8.3% Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Basel II Basel III vs. Q4/12: Variance in Basel III Common Equity Tier 1 Ratio: + Lower Basel III