Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q3 2012 Earnings Presentation
27 slides from Canadian Imperial Bank Of Commerce's earnings presentation, August 2012
Slide 1: CIBC Investor Presentation Third Quarter, 2012
CIBC Investor Presentation Third Quarter, 2012 August 2012
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: Third Quarter, 2012 Financial Review
Third Quarter, 2012 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Third Quarter, 2012 Summary
Third Quarter, 2012 Summary Q3 2012 Net Income ($MM) – Reported 841 Key Messages: Net Income ($MM) – Adjusted (1) 866 Strong Retail revenue growth Diluted EPS – Reported $2.00 Diluted EPS – Adjusted (1) $2.06 Solid Wholesale Banking performance Efficiency Ratio – Reported 58.1% Efficiency Ratio
Slide 6: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q3/11 Q2/12 Q3/12 Personal Banking 1,636 1,590 1,659 Business Banking 360 368 382 Other 39 46 44 Revenue 2,035 2,004 2,085 Provision for Credit Losses 291 271 273 (3) (3) (3) Non-Interest Expenses 1,013 998 1,035 Income Before Taxes 731 735 777 Taxes 180 179
Slide 7: Wealth Management
Wealth Management Reported ($MM) Q3/11 Q2/12 Q3/12 Retail Brokerage 263 263 246 Asset Management 116 130 130 Private Wealth Management 25 25 25 Revenue 404 418 401 Provision for Credit Losses 1 - - (3) Non-Interest Expenses 304 313 299 Income Before Taxes 99 105 102 Taxes 29 26 26 Net Income – Repor
Slide 8: Wholesale Banking
Wholesale Banking Reported ($MM) Q3/11 Q2/12 Q3/12 Capital Markets 247 285 308 Corporate & Investment Banking 232 175 223 (3) (3) (3) Other 24 3 (4) Revenue (TEB) 503 463 527 Provision for Credit Losses 9 16 34 (3) (3) (3) Non-Interest Expenses 297 279 284 Income Before Taxes 197 168 209 Taxes 56 37
Slide 9: Third Quarter, 2012 Highlights
Third Quarter, 2012 Highlights Strong Retail revenue growth Solid Wholesale Banking performance Robust capital position 9
Slide 10: Third Quarter, 2012 Financial Review Appendix
Third Quarter, 2012 Financial Review Appendix
Slide 11: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q3/11 Q2/12 Q3/12 (3) (3) (3) Net Interest Income 1,785 1,753 1,883 (3) (3) (3) Non-Interest Income 1,346 1,331 1,266 Revenue 3,131 3,084 3,149 Provision for Credit Losses 310 308 317 (3) (3) (3) Non-Interest Expenses 2,005 1,764 1,831 Income Before Taxes
Slide 12: Balances & Market Share
Balances & Market Share Retail & Business Banking and Wealth Management (1) (2) (2) (1) Balances Market Share (%) ($B) Q3/11 Q2/12 Q3/12 (3) Cards 15.1 18.5 18.2 18.1 (3) Mortgages 145.2 13.6 13.2 13.0 CIBC Brand 90.9 7.9 8.0 8.1 (4) Other 54.3 5.7 5.2 4.9 Personal Lending 31.9 8.2 8.1 8.0 Personal
Slide 13: Third Quarter, 2012 Structured Credit Run-off
Third Quarter, 2012 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 (2) (2) (0.01) Purchased Credit Derivatives Hedging
Slide 14: 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 Q3 2012 Loss on Structured Credit Run-off Activities (26) (19) (0.05) Wholesale Bankin
Slide 15: 2011 Items of Note and Other Adjustments
2011 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 2011 Net Gain on Sale of a Merchant Banking Investment 90 46 0.12 Wholesale Banking
Slide 16: Non-GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results & Tangible Common Equity For further details, see slide 14 and 15 for items of note and other adjustments; page i for Non-GAAP measures and page ii for reconciliation of Non-GAAP to GAAP measures within the Q3/12 Supplementary Financial Information avai
Slide 17: Third Quarter, 2012 Risk Review
Third Quarter, 2012 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 18: Credit Review
Credit Review Provision for Credit Losses ($MM) 308 317 vs. Q2/12: Variance in Provision for Credit Losses: + Higher losses in Commercial Banking + Higher losses in U.S. real estate finance + Losses from a single obligor in the Canadian corporate credit portfolio - Lower losses in CIBC FirstCaribb
Slide 19: Cards
Cards 200 6.0% 5.0% 160 4.0% 120 ($MM) 197 193 3.0% 186 183 180 179 80 167 2.0% 40 1.0% - 0.0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Net Credit Losses (NCL) NCL Rate Comments: Credit quality of the portfolio continues to remain high Delinquencies of the acquired MasterCard portfolio have sta
Slide 20: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value(1) (uninsured portfolio) 77% 49% As at July 31, 2012 As at June 30, 2012 (1) Ratio calculated based on latest available industry house price estimates from Teranet (June 30, 2012). 20
Slide 21: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $145B $67B 23% $29B 77% $24B 28% 22% $15B $10B 17% 72% 78% 17% 83% 83% ON BC AB QC Other Insured Uninsured 21
Slide 22: Canadian Condo Exposure
Canadian Condo Exposure Canadian Condo Mortgage Portfolio: $17.1B Canadian Condo Developer Portfolio: $2.4B Condo Mortgages Condo Developers $17.1B $2.4B Uninsured 23% Undrawn 75% Insured 77% Drawn 25% Q3/12 Q3/12 22
Slide 23: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables (1) & As of Q3/12 (1) ($MM) Corporate Sovereign Bank Repo’s Peripheral Countries $1 $- $13 $12 Non-Peripheral Countries 328 347 875 315 Non-Eurozone Countries 2,093 1,151 1,275 134 Total Europe 2,422 1,498 2,163 461 Middle East & North Africa
Slide 24: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q3/12 ($MM) Net Loans/BAs(1) Net Impaired Loans(1) Retail 1,087 7 Hotel 561 9 Multi-family 410 54 Office 943 28 Multi-use 573 14 Other 245 34 Q3/12 Total 3,819 146 (1) Net of write-downs and allowance for credit losses. 24
Slide 25: European Leveraged Finance & U.S. Leveraged Finance
European Leveraged Finance & U.S. Leveraged Finance European Leveraged Finance As of Q3/12 ($MM) Drawn Undrawn Total Exposure(1) 390 74 U.S. Leveraged Finance As of Q3/12 ($MM) Drawn Undrawn Total Exposure(1) 142 42 (1) Net of write-downs and allowance for credit losses. 25
Slide 26: Trading Revenue Days
Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue 20 Q3/12 18 16 Trading Revenue Days 14 12 10 8 6 4 2 0 (1) 0 1 2 3 4 5($MM) 6 7 8 9 10 11 12 13 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the Q3/12 Suppl
Slide 27: Capital
Capital Strong capital position Basel III Common Equity Ratio estimated at 8.9% Tier 1 Capital Ratio Risk-Weighted Assets ($B) 115 113 111 110 14.6% 14.7% 109 14.3% 14.1% 14.1% Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Tier 1 Capital ($B) 15.9 16.2 16.0 15.9 16.2 vs. Q2/12: V