Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q2 2013 Earnings Presentation
30 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 2013
Slide 1: CIBC Investor Presentation Second Quarter, 2013
CIBC Investor Presentation Second Quarter, 2013 May 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: Second Quarter, 2013 Financial Review
Second Quarter, 2013 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Second Quarter, 2013 Summary
Second Quarter, 2013 Summary Q2 2013 Key Messages: Net Income ($MM) – Reported 876 (1 ) Strong earnings in core businesses Net Income ($MM) – Adjusted 876 Execution of retail strategic Diluted EPS – Reported $2.12 repositioning progressing well (1 ) Diluted EPS – Adjusted $2.12 Credit performa
Slide 6: Retail & Business Banking
Retail & Business Banking Adjusted ($MM) (1 ) Q2/12 Q1/13 Q2/13 Personal Banking 1,535 1,623 1,596 Business Banking 368 380 372 Other 101 62 68 Revenue 2,004 2,065 2,036 Provision for Credit Losses 271 241 233 (3) (3) (3) Non-Interest Expenses 996 1,019 1,006 Income Before Taxes 737 805 797 Taxes 17
Slide 7: Wealth Management
Wealth Management Adjusted ($MM) (1 ) Q2/12 Q1/13 Q2/13 Retail Brokerage 263 259 262 Asset Management 130 144 153 Private Wealth Management 25 29 28 Revenue 418 432 443 Provision for Credit Losses - - - (3) (3) Non-Interest Expenses 312 315 322 Income Before Taxes 106 117 121 Taxes 26 27 28 (1) Net
Slide 8: Wholesale Banking
Wholesale Banking Adjusted ($MM) (1 ) Q2/12 Q1/13 Q2/13 Capital Markets 285 328 312 Corporate & Investment Banking 175 213 226 (2) (2) (2) Other 32 16 13 Revenue (TEB) 492 557 551 (2) Provision for Credit Losses 16 10 - (2) (2) (2) Non-Interest Expenses 270 291 297 Income Before Taxes 206 256 254 Ta
Slide 9: Second Quarter, 2013 Highlights
Second Quarter, 2013 Highlights Strong earnings in core businesses Execution of retail strategic repositioning progressing well Credit performance remains resilient Quarterly dividend increase of $0.02 to $0.96 per share 9
Slide 10: Second Quarter, 2013 Financial Review Appendix
Second Quarter, 2013 Financial Review Appendix
Slide 11: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q2/12 Q1/13 Q2/13 (2) (2) (2) Net Interest Income 1,753 1,855 1,823 (2) (2) (2) Non-Interest Income 1,331 1,326 1,316 Revenue 3,084 3,181 3,139 (2) Provision for Credit Losses 308 265 265 (2) (2) (2) Non-Interest Expenses 1,764 1,987 1,821 Income Before Ta
Slide 12: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q2/12 Q1/13 Q2/13 Personal Banking 1,535 1,623 1,596 Business Banking 368 380 372 Other 101 62 68 Revenue 2,004 2,065 2,036 Provision for Credit Losses 271 241 233 (3) (3) (3) Non-Interest Expenses 998 1,021 1,008 Income Before Taxes 735 803 795 Taxes 179 192
Slide 13: Wealth Management
Wealth Management Reported ($MM) Q2/12 Q1/13 Q2/13 Retail Brokerage 263 259 262 Asset Management 130 144 153 Private Wealth Management 25 29 28 Revenue 418 432 443 Provision for Credit Losses - - - (3) (3) Non-Interest Expenses 313 315 323 Income Before Taxes 105 117 120 Taxes 26 27 28 Net Income –
Slide 14: Wholesale Banking
Wholesale Banking Reported ($MM) Q2/12 Q1/13 Q2/13 Capital Markets 285 328 312 Corporate & Investment Banking 175 213 226 (2) (2) (2) Other 3 22 42 Revenue (TEB) 463 563 580 (2) Provision for Credit Losses 16 10 21 (2) (2) (2) Non-Interest Expenses 279 445 299 Income Before Taxes 168 108 260 Taxes 3
Slide 15: Balances & Market Share
Balances & Market Share Retail & Business Banking and Wealth Management (1) (2) Balances Market Share (%) ($B) Q2/12 Q1/13 Q2/13 (3) Cards 14.7 18.4 17.5 17.4 (3) CIBC Brand Mortgages 98.5 8.2 8.5 8.5 CIBC Brand Personal Lending 30.4 7.0 6.9 6.9 CIBC Brand Personal Deposits & GICs 85.3 10.8 10.7 10.
Slide 16: Second Quarter, 2013 Structured Credit Run-off
Second 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 12 9 0.02 Purchased Credit Derivatives Hedging Loa
Slide 17: 2013 Items of Note and Other Adjustments
2013 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 Q2 2013 Gain on structured credit run-off activities 27 20 0.05 Wholesale Banking Loan
Slide 18: 2012 Items of Note and Other Adjustments
2012 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 Q4 2012 Loan losses in the exited U.S. leveraged finance portfolio (57) (32) (0.08) Wh
Slide 19: 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 and other adjustm
Slide 20: Second Quarter, 2013 Risk Review
Second Quarter, 2013 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 21: Credit Review
Credit Review Provision for Credit Losses ($MM) 265 vs. Q1/13: 265 21(1) 244 Variance in Provision for Credit Losses: - Lower losses in the cards portfolio - Offset by higher provisions in the exited European Leverage Finance portfolio Q1/13 Q2/13 (1) Reserve related to the exited European Leverag
Slide 22: Cards
Cards 200 6% 5% 160 4% 120 ($MM) 197 193 3% 186 183 180 179 80 167 156 154 142 2% 40 1% - 0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Net Credit Losses (NCL) NCL Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies from the acquired MasterCard
Slide 23: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) (uninsured portfolio) 74% 54% As at April 30, 2013 As at March 31, 2013 (1) LTV ratio calculated as the sum of all individual account LTVs at the current estimated property values over total number of accounts. The current prope
Slide 24: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $143B $66B 27% $28B $23B 73% 30% $16B 23% $10B 20% 70% 77% 21% 79% 80% ON BC AB QC Other Insured Uninsured 24
Slide 25: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $16.6B Canadian Condo Developer Portfolio: $2.9B Condo Mortgages Condo Developers $16.6B $2.9B Uninsured 25% Undrawn 69% Insured 75% Drawn 31% Q2/13 Q2/13 25
Slide 26: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables(1) & (1) As of Q2/13 ($MM) Corporate Sovereign Bank Repos Peripheral Countries $- $- $2 $4 Non-Peripheral Countries 341 265 280 256 Non-Eurozone Countries 2,577 229 1,320 211 Total Europe(2) 2,918 494 1,602 471 (1) Includes exposure for repo-
Slide 27: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q2/13 ($MM) Net Loans/BAs(1) Net Impaired Loans(1) Retail 1,132 8 Hotel 531 9 Multi-family 622 41 Office 1,326 27 Multi-use 600 15 Other 387 9 Q2/13 Total 4,598 109 (1) Net of write-downs and allowance for credit losses. 27
Slide 28: European Leveraged Finance & U.S. Leveraged Finance
European Leveraged Finance & U.S. Leveraged Finance European Leveraged Finance As of Q2/13 ($MM) Drawn Undrawn Total Exposure(1)(2) 381 61 U.S. Leveraged Finance As of Q2/13 ($MM) Drawn Undrawn Total Exposure(1)(3) 47 17 (1) Net of write-downs and allowance for credit losses. (2) Excludes $17 millio
Slide 29: Trading Revenue Days
Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue Q2/13 20 18 16 Trading Revenue Days 14 12 10 8 6 4 2 0 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the Q2/13 Su
Slide 30: Capital
Capital Common Equity Tier 1 Ratio(1) Risk-Weighted Assets(2) (all-in basis) ($B; all-in basis) 126 126 8.9% 9.6% 9.7% 113 115 115 8.5% 9.0% Q2/12 Q2/12 Q3/12 Q4/12 Q4/12 Q1/13 Q1/13 Q2/13 Q2/12 Q2/12 Q3/12 Q3/12 Q4/12 Q4/12 Q1/13 Q1/13 Q2/13 Q2/13 Basel II Basel III vs. Q1/13: Variance in Basel I