Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Investor Presentation (December 2013)
35 slides from Canadian Imperial Bank Of Commerce's investor presentation, December 2013
Slide 1: An Investment Community Introduction to CIBC
An Investment Community Introduction to CIBC December 2013 1
Slide 2: A Note about Forward-Looking Statements
A Note about 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 Annual Report, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in oth
Slide 3: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 3
Slide 4: Canadian Economy
Canadian Economy Balanced budget for 11 consecutive Canadian Federal Budget Balance ($B)2 years (1998 to 2008) and on track to 20 Projections 9.8 5.7 eliminate deficit by fiscal year 2016 10 0 3.7 5.0 -10 (5.5) -20 Strong record of economic growth -30 (18.9) (17.9) (26.3) -40 (33.4) -50 -60 Al
Slide 5: Canadian Banking System
Canadian Banking System Strong regulator (OSFI) with a clear Canadian Banks Common Equity Tier 1 Ratio mandate (safety and soundness) 9.4% 9.2% Canadian banks weathered the global recession very well (no systemic support and no dividend cuts) CIBC Average (excluding CIBC) Capital levels are we
Slide 6: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business banking Wealth Management Wholesale Banking 6
Slide 7: About CIBC
About CIBC CIBC (CM: TSX; NYSE) Canadian-based global financial institution Senior Deposit Ratings Three major operating groups: Moody’s Aa3 Retail and Business Banking S&P A+ Wealth Management Wholesale Banking Fitch AA- 43,039 employees DBRS AA 11 million individual, small business,
Slide 8: CIBC's Balanced Scorecard
CIBC’s Balanced Scorecard Our key measures of performance(1) 2013 results $8.78, up 9% (2) Adjusted earnings per share (EPS) growth from 2012 Adjusted return on common shareholders’ equity (ROE)(2) 22.30% Capital strength Basel III Common Equity Tier 1 ratio 9.40% Business mix Retail/Wholesale as me
Slide 9: Earnings per Share
Earnings per Share Adjusted 8.88 8.78 6.83 8.07 7.57 6.90 6.45 5.78 5.88 5.54 Reported 9.3 7.85 8.23 7.49 6.71 5.57 5.95 2.73 -0.44 -5.8 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Canadian GAAP IFRS Diluted, cash basis. Non-GAAP measures. See slides 30-35. 9
Slide 10: Return on Equity
Return on Equity Adjusted 27.3% 25.7% 24.8% 22.3% 22.6% 22.3% 20.1% 20.6% 21.1% 18.6% Reported 27.9% 28.7% 22.2% 22.0% 20.9% 18.7% 19.4% 9.4% -1.6% -19.4% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Canadian GAAP IFRS Adjusted Return on Equity is a non-GAAP measure. See slides 30-35. 10
Slide 11: Total Shareholder Return
Total Shareholder Return 32.4% 29.0% 25.6% 20.2% 21.1% 18.4% 9.8% 1.3% 0.4% -43.5% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Rank #1 #5 #1 #1 #5 #3 #1 #3 #3 #5 Fiscal year. Rank among big 5 Canadian banks (BMO, BNS, CM, RY, TD). 11
Slide 12: Industry Recognition
Industry Recognition One of Canada's 10 Most Admired Corporate Cultures Among the top 10 Safest Banks in North America Among the Best 50 Corporate Citizens in Canada 12
Slide 13: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 13
Slide 14: Retail and Business Banking: Business Overview
Retail and Business Banking Business Overview CIBC Retail and Business Banking Personal Banking Business Banking Deposits Deposits – Chequing – Cash Management – Savings – GICs – GICs Lending Lending – Mortgages – Mortgages – Lines/Loans – Credit Cards – Asset-Based – Lines/Loans Lending 14
Slide 15: Retail and Business Banking Strategic Framework
Retail and Business Banking Strategic Framework Accelerate Profitable Revenue Growth Objective + Enhance Client Experience Shift from a Product to a Paradigm Shift Client-Centric Focus Deepen Client Relationships Priorities Sell Improve Sales & Acquire & Retain Service Clients Capabilities Serve Gro
Slide 16: Retail and Business Banking Balances
Retail and Business Banking Balances Balances (1) ($B) Q4/12 Q3/13 Q4/13 Cards 15.1 14.8 14.7 CIBC Brand Mortgages 92.2 100.8 106.0 CIBC Brand Personal Lending 30.5 30.3 30.2 CIBC Brand Personal Deposits & GICs 83.4 85.0 85.8 Business Deposits 36.3 36.7 38.0 Business Lending 35.8 36.7 37.0 Mutual Fu
Slide 17: Strength in Retail & Business Banking
Strength in Retail & Business Banking 3rd largest branch network in Canada - significant branch expansion over past 5 years – opened over 150 new, relocated or expanded branches Evening and Saturday hours at over 650 branches Sunday hours at over 100 branches 1st to market in Canada: Sunday
Slide 18: Retail and Business Banking Revenue and Profitability
Retail and Business Banking Revenue and Profitability Revenue ($MM) Net Income ($MM)1 2,114 2,104 654 2,036 629 571 Q4 2012 Q3 2013 Q4 2013 Q4 2012 Q3 2013 Q4 2013 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 18
Slide 19: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 19
Slide 20: Wealth Management: Business Overview
Wealth Management Business Overview Wealth Management Retail Brokerage – Full-Service Brokerage – Self-Directed Brokerage Asset Management – Investment Management – Mutual Funds – Portfolio Products – Institutional Money Management – International Asset Management Private Wealth Management – Priv
Slide 21: Wealth Management Strategic Priorities
Wealth Management Strategic Priorities Strategic Priorities Attract and Deepen Seek New Sources Pursue Acquisitions/ Client Relationships of Domestic Assets Investments • Elevate channel • Profitable recruitment of • Build scale in asset productivity Investment Advisors management • Enhance discreti
Slide 22: Wealth Management Revenue and Profitability
Wealth Management Revenue and Profitability Revenue ($MM)1 Net Income ($MM)1 Q4 2012 Q3 2013 Q4 2013 Q4 2012 Q3 2013 Q4 2013 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 22
Slide 23: Wealth Management
Wealth Management Wood Gundy Balances ($B) Mutual Fund Balances ($B) 66.7 57.2 #2 #4 Market Market Position1 Position1 Q4 2012 Q4 2013 Q4 2012 Q4 2013 WM Revenue ($MM)2 WM Net Income ($MM)2 FY 2012 FY 2013 FY 2012 FY 2013 1 Industry ranking for Wood Gundy and Mutual Funds is at Oct/13 (vs. Big 5) 2
Slide 24: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 24
Slide 25: Wholesale Banking: Business Overview
Wholesale Banking Business Overview Wholesale Banking Global Global Global Capital Markets Investment Banking1 Corporate Banking1 Debt & Equity Debt & Equity Corporate Cash Underwriting Underwriting Management Commodities Mergers and Corporate Lending Acquisitions (M&A) and Syndicated Lo
Slide 26: Wholesale Banking Strategy and Priorities
Wholesale Banking Strategy and Priorities To be a leading Wholesale Bank in Canada and core Canadian Goal industries in the rest of the world, recognized as a preferred financial partner for energy, mining and infrastructure clients We deliver differentiated products and services to targeted cli
Slide 27: Wholesale Banking Revenue
Wholesale Banking Revenue (TEB, $MM)1 Net Income ($MM)1 223 218 192 Q4 2012 Q3 2013 Q4 2013 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 27
Slide 28: Wholesale Banking Delivering Value to Clients and Supporting Growth
Wholesale Banking Delivering Value to Clients and Supporting Growth Strategic Focus Areas Core Canadian business Energy Infrastructure Mining E-Business platform – @ CIBC Investing in talent 28
Slide 29: Notes to Users
Notes to Users Performance measurement We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with GAAP, while other measures do not have a standardized meaning under GAAP, and, accordingly, these measures may not be comparab
Slide 30: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2003 Reported 1,950 5.22 Business interruption insurance recovery (11) (0.03) Gains on Oppenheimer sale (32) (0.09) Interest income from overpayment of income taxes (18) (0.05) Loss on loans held for sale 152 0.42 Reversa
Slide 31: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2005 Reported (32) (0.44) Higher than normal merchant banking gains (319) (0.93) Capital repatriation 7 0.02 Gain on ACE Aviation shares (22) (0.06) Gain on sale of Juniper (64) (0.19) Interest expense re. U.S. Tax settle
Slide 32: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2006 Reported 2,646 7.49 Acct'g adjustment re. mortgage loan prepayment fees 7 0.02 Interest expense re. U.S. Tax settlement 12 0.04 Mark-to-market on credit derivative portfolio 9 0.02 Reversal of general loan loss provi
Slide 33: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures 2008 2009 CIBC CIBC CIBC CIBC Net Income EPS Net Income EPS ($MM) ($) ($MM) ($) Reported (2,060) (5.80) 1,174 2.73 Structured credit run-off 4,836 13.01 684 1.80 Mark-to-market on corporate loan hedging (278) (0.75) 182 0.46 Valuation charges 156 0.42 106
Slide 34: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2010 Reported 2,452 5.95 Structured credit run-off 161 0.41 Foreign exchange gains on repatriation activities 117 0.30 Mark-to-market on corporate loan hedging 12 0.03 Reversal of interest expense re. tax audits (17) (0.0
Slide 35: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2012 Reported net income attributable to diluted common shareholders 3,173 7.85 (Revenue)/Loss re. Structured Credit (Wholesale Bkng) 15 0.04 Loan losses in the exited U.S. leveraged finance portfolio (W holesale Bkng) 32