Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q2 2016 Earnings Presentation
28 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 26, 2016
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation Second Quarter, 2016 May 26, 2016
Slide 2: Forward-Looking Statements
2 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 communica
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: Second Quarter, 2016 Financial Review
Second Quarter, 2016 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Second Quarter, 2016 Summary
5 Second Quarter, 2016 Summary Q2/15 Q1/16 Q2/16 • Strong broad-based performance Net Income ($MM) - Adjusted (1) 924 1,029 962 − EPS(1) of $2.40, up 5% YoY Net Income ($MM) - Reported 911 982 941 − Revenue(1) growth of 5% YoY (1) $2.28 $2.55 $2.40 − ROE(1) of 18.4% Diluted EPS - Adjusted Diluted EP
Slide 6: Retail & Business Banking
6 Retail & Business Banking Adjusted ($MM) (1) Q2/15 Q1/16 Q2/16 • Continued volume growth Personal Banking 1,604 1,749 1,713 − Business lending up 13% YoY Business Banking 399 425 423 Other 26 16 14 − Mortgages up 9% YoY Revenue 2,029 2,190 2,150 − Deposits up 8% YoY Provision for Credit Losses 179
Slide 7: Wealth Management
7 Wealth Management Adjusted ($MM) (1) Q2/15 Q1/16 Q2/16 • Lower transactional volumes driven by Retail Brokerage 324 308 312 market uncertainty Asset Management 177 181 179 Private Wealth Management 86 98 91 • Stable revenue in Asset Management Other 29 15 1 reflecting underlying business Revenue 6
Slide 8: Capital Markets
8 Capital Markets Adjusted ($MM) (1) Q2/15 Q1/16 Q2/16 • Client-driven trading revenue growth Global Markets 359 391 469 across FX, equity and interest rate Corporate & Investment Banking 315 286 296 trading Other (10) 9 (9) Revenue (2) 664 686 756 • Continued Balance Sheet strength Provision for Cr
Slide 9: Corporate & Other
9 Corporate & Other Adjusted ($MM) (1) Q2/15 Q1/16 Q2/16 International Banking 163 195 175 • Higher earnings YoY in CIBC Other (69) (82) (86) FirstCaribbean driven by favourable Revenue (2) 94 113 89 FX and improved credit Provision for Credit Losses 11 5 4 Non-Interest Expenses 259 281 269 performa
Slide 10: Capital
10 Capital Common Equity Tier 1 (CET1) Ratio (all-in basis) • Basel III CET1 ratio of 10.4%, down 20bps − Higher RWAs as a result of business growth and portfolio downgrades − Partially offset by higher earnings, net of dividends • Basel III Leverage ratio of 3.8%, flat to Q1
Slide 11: Second Quarter, 2016 Risk Review
Second Quarter, 2016 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 12: Provision for Credit Losses
12 Provision for Credit Losses Adjusted ($MM) (1) Q2/15 Q1/16 Q2/16 vs. Q1/16: Retail and Business Banking 179 163 199 Wealth Management (1) - - • Higher loan losses in Capital Capital Markets 8 25 81 Markets driven by the oil & gas CIBC FirstCaribbean 12 5 4 Collective Provision for Non-Impaired (1
Slide 13: Impaired Loans and Formations
13 Impaired Loans and Formations Reported ($MM) Q2/15 Q1/16 Q2/16 • New formations up QoQ, largely Consumer 298 271 334 due to an increase in the oil & Business and Government 40 58 691 gas portfolio Total New Formations 338 329 1,025 • Gross impaired loans up QoQ, largely due to: Gross and Net Impa
Slide 14: Oil & Gas Direct Exposure
14 Oil & Gas Direct Exposure Direct Exposure(1) ($B) • $16.5B of direct exposure(1), 18.7 down from $18.7B last quarter 16.7 17.4 17.3 16.5 − 63% of this is investment grade • $6.6B drawn exposure(1), down from $6.9B last quarter Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Downstream Integrated 3% 12% Midstream 1
Slide 15: Oil & Gas Retail Exposure
15 Oil & Gas Retail Exposure Outstandings ($MM) • $39B of indirect exposure to oil Mortgages HELOC Other (1) provinces (or $18B excluding Insured Uninsured insured mortgages) Alberta 16,922 7,631 2,731 3,614 Saskatchewan & Newfoundland 4,356 2,006 705 1,379 − Alberta accounts for $31B or Total 21,27
Slide 16: Cards
16 Cards 200 6% 5% 160 4% 120 ($MM) 3% 80 142 142 2% 127 40 113 102 108 99 99 96 90 93 92 1% 88 0 0% Q2/13 Q4/13 Q2/14 Q4/14 Q2/15 Q4/15 Q2/16 (1) (1)(2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate 1 Adjusted results are a Non-GAAP financial measures. See slide 2
Slide 17: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage 17 Portfolios ($B) Q2/15 Q1/16 Q2/16 • Canadian residential mortgage Residential Mortgages (excludes Condos) 137 147 150 portfolio (includes condos) was Condo Mortgages 18 19 19 $169B Total Canadian Residential Mortgages 155 166 169 − 61% insured; average LTV(
Slide 18: Trading Revenue (TEB) Distribution
18 Trading Revenue (TEB)(1) Distribution(2) ($MM) ($MM) 30 30 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Feb-16 Mar-16 Apr-16 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 28 for further details. 2 Trading revenue (TEB) comprises both trading net interest income
Slide 19: Appendix
Append xX Banking that fits your life.
Slide 20: Retail & Business Banking – Loans & Deposits
20 Retail & Business Banking – Loans & Deposits Average Loans & Acceptances ($B) Average Deposits ($B) +8% +8% +2% +1% 257 262 182 184 242 171 46 48 57 57 43 51 12 12 11 34 34 33 168 125 127 165 120 155 Q2/15 Q1/16 Q2/16 Q2/15 Q1/16 Q2/16 Growth YoY QoQ Growth YoY QoQ Residential Mortgages 9% 2% Per
Slide 21: Wealth – Mutual Funds & Client Asset Balances
21 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +1% 2% 84 86 84 83 85 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 AUA ($B)(1) AUM ($B)(1) 1 Assets under management (AUM) are included in assets under administration (AUA).
Slide 22: Retail & Business Banking
22 Retail & Business Banking Reported ($MM) Q2/15 Q1/16 Q2/16 Personal Banking 1,604 1,749 1,713 Business Banking 399 425 423 Other 26 16 14 Revenue 2,029 2,190 2,150 Provision for Credit Losses 179 163 199 Non-Interest Expenses 1,058 1,097 1,105 Income Before Taxes 792 930 846 Taxes 208 246 194 Net
Slide 23: Wealth Management
23 Wealth Management Reported ($MM) Q2/15 Q1/16 Q2/16 Retail Brokerage 324 308 312 Asset Management 177 181 179 Private Wealth Management 86 98 91 Other 27 14 1 Revenue 614 601 583 Reversal of Credit Losses (1) - - Non-Interest Expenses 447 439 432 Income Before Taxes 168 162 151 Taxes 40 43 38 Net
Slide 24: Capital Markets
24 Capital Markets Reported ($MM) Q2/15 Q1/16 Q2/16 Global Markets 359 391 469 Corporate & Investment Banking 315 286 296 Other (17) 6 (15) Revenue (1) 657 683 750 Provision for Credit Losses 8 25 81 Non-Interest Expenses 338 344 351 Income Before Taxes 311 314 318 (1) Taxes 71 70 66 Net Income - Re
Slide 25: Corporate & Other
25 Corporate & Other Reported ($MM) Q2/15 Q1/16 Q2/16 International Banking 163 195 175 Other (69) (82) (27) Revenue (1) 94 113 148 Provision for Credit Losses 11 74 44 Non-Interest Expenses 261 284 354 Income Before Taxes (178) (245) (250) (1) Taxes (137) (180) (174) Net Loss - Reported (41) (65) (
Slide 26: Provision for Credit Losses
26 Provision for Credit Losses Reported ($MM) Q2/15 Q1/16 Q2/16 Retail and Business Banking 179 163 199 Wealth Management (1) - - Capital Markets 8 25 81 CIBC FirstCaribbean 12 5 4 Collective Provision for Non-Impaired (1) 69 40 Corporate and Other 11 74 44 Total Provision for Credit Losses 197 262
Slide 27: Q2 2016 Items of Note
27 Q2 2016 Items of Note Pre-Tax After-Tax & EPS Operating Effect NCI Effect Effect Segments ($MM) ($MM) ($/Share) Q2 2016 Increase in legal provisions 77 56 0.14 Corporate & Other Gain, net of related transaction and severance costs, on the (53) (47) (0.12) Corporate & Other sale of a processing ce
Slide 28: Non-GAAP Financial Measures
28 Non-GAAP Financial Measures • Adjusted results 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 of this prese