Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q1 2009 Earnings Presentation

30 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 26, 2009

  1. Slide 1: First Quarter, 2009 Investor Presentation

    First Quarter, 2009 Investor Presentation CIBC Investor Presentation February 26, 2009 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 securi

  2. Slide 2: CIBC Overview

    First Quarter, 2009 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer First Quarter, 2009 Financial Review David Williamson Senior Executive Vice-President and Chief Financial Officer 2

  3. Slide 3: Q1 Summary

    First Quarter, 2009 Investor Presentation Q1 Summary $ Per Share EPS(1): $0.29 Includes(3) – Loss on Structured Credit Run-off Cash EPS(2): $0.31 Activities (1.27) – Mark-to-Market Gains on Corp. Loans 0.17 – Losses re. Leveraged Leases (0.13) Tier 1 Capital – Merchant Banking Losses/Write-downs (0.

  4. Slide 4: Structured Credit Run-off

    First Quarter, 2009 Investor Presentation Structured Credit Run-off Q1/09 Pre-Tax After-Tax EPS Effect Effect ($MM) Effect ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors (636) (434) (1.14) Unhedged USRMM Write-downs (16) (11) (0.03) Unhedged non-USRMM Write-downs (71) (48) (0

  5. Slide 5: Non-USRMM

    First Quarter, 2009 Investor Presentation Non-USRMM (1) – Purchased Protection from Financial Guarantors (U.S.$MM) Corporate Total Fair (2) S&P Moody's Fitch CLO Debt CMBS Other Notional Value (5) (5) (6) #I AA Baa1 - $ 616 $ - $ 777 $ 264 $ 1,657 $ 575 (3) (4) (6) # II A Baa1 - 892 - - 831 1,723 47

  6. Slide 6: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 Personal Banking Personal vs. Q1/08: Banking 1,415 1,409 (1) 1,484 (1) 1,430 1,457 + volumes up Business 352 328 340 337 330 Banking – spreads down Wealth 396 380 393 363 323 Management

  7. Slide 7: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 Wealth Management Personal vs. Q1/08: Banking 1,415 1,409 (1) 1,484 (1) 1,430 1,457 – weaker equity markets Business • trading 352 328 340 337 330 commissions down Banking • lower asset

  8. Slide 8: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 Personal Banking 1,415 1,409 (1) 1,484 (1) 1,430 1,457 Business 352 328 340 337 330 Banking Wealth 396 380 393 363 323 Management (1) (1) (1) FirstCaribbean 126 122 165 161 180 Other 121

  9. Slide 9: World Markets

    First Quarter, 2009 Investor Presentation CIBC World Markets Revenue ($MM) 420 (2) 333 (2) 275 (2) (2) 246 132 (2) (1) (1) (318) (368) (1) (598) (1) (2,166) (1) (2,957) Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Reported results affected by an Item of Note, see Slides 47 – 50 for details. (2) Results excluding

  10. Slide 10: World Markets

    First Quarter, 2009 Investor Presentation CIBC World Markets Revenue Components F ‘08 F ‘09 Corporate & ($MM) Q1 Q2 Q3 Q4 Q1 Investment Banking (1) Capital Markets 224 194 209 11 307 vs. Q4: Corporate & + higher US Real Estate Investment (1) Finance & Corporate (1) Banking 181 109 110 113 156 Credit

  11. Slide 11: World Markets

    First Quarter, 2009 Investor Presentation CIBC World Markets Quarterly Statement of Operations F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 Expenses (1) (1) (1) (1) (1) Revenue (2,957) (2,166) (598) (318) (368) vs. Q4: Provision for • lower expenses in Credit Losses 17 2 7 (10) 19 structured credit run- Non-Int

  12. Slide 12: Expense Objective

    First Quarter, 2009 Investor Presentation CIBC Expense Objective Q4/06 ($MM) Baseline Q1/09 Total Expenses 1,892 1,653 - (7) (1)(2) Less: Items of Note Less: FirstCaribbean - (108) Less: Exited Businesses (116) (5) Total Expenses - "Adjusted" 1,776 1,533 (2) (1) Affected by an Item of Note, see Slid

  13. Slide 13: CIBC Revenue

    First Quarter, 2009 Investor Presentation First Quarter, 2009 Financial Review Appendix CIBC Revenue F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 (1) (1) (1) Net Interest Income 1,154 1,349 1,327 1,377 1,333 Fees for Services Underwriting and Advisory 176 88 68 79 102 Deposit and Payment 195 191 197 193 193 Cre

  14. Slide 14: Loan Losses

    First Quarter, 2009 Investor Presentation CIBC Loan Losses F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 CIBC Retail Markets 189 209 221 266 327 CIBC World Markets 17 2 7 (10) 19 Corporate and Other (34) (35) (25) (34) (62) Total 172 176 203 222 284 27 CIBC Expenses F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 Employee Comp

  15. Slide 15: Net Income/(Loss) Components

    First Quarter, 2009 Investor Presentation CIBC Net Income/(Loss) Components F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 (1) (1) (1) CIBC Retail Markets 660 516 572 554 562 (1) (1) (1) (1) (1) CIBC World Markets (2,159) (1,637) (538) 133 (413) (1) (1) (1) (1) (1) Corporate and Other 43 10 37 (251) (2) Total (1,

  16. Slide 16: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) ROE 54 43 46 45 46 60 56 58 57 NIX 54 (2) (2) (2) Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Non-GAAP financial measures, see Slide 24. (2) Affected by an Item of Note, see Slides 49 and 50 for details. 31 CIB

  17. Slide 17: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Mortgages & Cards(1) ($B; spot; administered assets) 121.8 123.7 123.7 117.7 Residential 115.1 Mortgages 13.5 13.9 14.2 14.2 13.9 Card Loans Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Excludes FirstCaribbean. 33 CIBC Retail Markets Loan Balances(1) (

  18. Slide 18: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Market Share(1)(2) (%) Residential 14.1 14.1 14.1 14.1 14.0 Mortgages Consumer 19.6 19.5 19.4 19.2 19.0 Deposits Consumer 8.8 8.8 8.8 8.8 8.8 Loans (excl. cards) Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Source: OSFI (consumer deposits); Bank of Can

  19. Slide 19: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Fixed Term Investments & Market Share(1)(2) Fixed Term Investments Canadian Market Share 48.6 49.8 50 45.4 46.3 46.4 25 Market Share (%) 40 20 $ Billions 30 17.6 17.5 17.4 17.4 17.1 15 20 10 10 0 5 Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Source: O

  20. Slide 20: Retail Markets

    First Quarter, 2009 Investor Presentation CIBC Retail Markets Discount Brokerage(1) Active Accounts Trades/Day 481 486 489 488 489 500 15 400 Thousands Thousands 11.3 11.3 11.6 10 10.7 10.8 300 200 5 100 0 0 Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Average over the quarter. 39 CIBC Retail Markets Wood Gundy(1

  21. Slide 21: World Markets

    First Quarter, 2009 Investor Presentation CIBC World Markets Market Share (%) 19.5 16.3 Canadian 12.2 11.0 12.4 New Equity Issues (1)(2) Equity Trading 6.6 7.3 6.8 6.4 Canada - % 6.0 of shares traded (3) Q1 Q2 Q3 Q4 Q1 F ‘08 F ‘09 (1) Source: CIBC Equity Capital Markets. (2) Based on total amount un

  22. Slide 22: Other Non-Interest Income

    First Quarter, 2009 Investor Presentation “Other” Non–Interest Income F ‘08 F ‘09 ($MM) Q1 Q2 Q3 Q4 Q1 (1) (2) (2) Gains/(Losses) (71) (31) (6) 56 1 Income from equity-accounted (2) (2) investments 7 (2) (11) (49) (46) Gains/(Losses) on non-trading (2) (2) (2) (2) (2) derivatives 169 46 85 197 40 Co

  23. Slide 23: Unhedged Structured Credit Non-USRMM Exposure

    First Quarter, 2009 Investor Presentation UNHEDGED Structured Credit Non-USRMM Exposure (U.S.$MM) Write-downs Jan. 31/09 Oct. 31/08 Tranche Notional to-date Net Exposure Net Exposure A B C =A -B CLO $ 338 $ 76 $ 262 $ 329 Corporate Debt 170 62 108 110 Montreal Accord notes 629 209 420 465 Warehouse

  24. Slide 24: Items of Note

    First Quarter, 2009 Investor Presentation Items of Note Pre-Tax After-Tax EPS Effect Strategic Business Unit Q1 2009 Effect ($MM) Effect ($MM) ($/share) Loss on Structured Credit Run-off Activities (708) (483) (1.27) World Mkts Mark-to-Market on Credit Derivatives re. Corporate Loans 94 64 0.17 Worl

  25. Slide 25: Items of Note (Cont'd)

    First Quarter, 2009 Investor Presentation Items of Note (Cont’d) Pre-Tax After-Tax EPS Effect (1) Strategic Business Unit Q3 2008 Effect ($MM) Effect ($MM) ($/share) Loss on Structured Credit Run-off Activities (885) (596) (1.56) World Mkts Losses/Interest Expense re. Pending Tax Settlement of Lever

  26. Slide 26: Risk Review

    First Quarter, 2009 Investor Presentation First Quarter, 2009 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer Q1 Credit Review Total Specific Provisions Net Impaired Loans 424 247 219 360 352 171 0.56% 0.48% 0.40% Q1 Q4 Q1 Q1 Q4 Q1 F ‘08 F ‘09 F ‘08 F ‘09 52 26

  27. Slide 27: Trading Revenue Days

    First Quarter, 2009 Investor Presentation Q1 Trading Revenue (TEB) Distribution (1) (2) 11 10 9 Trading Revenue Days 8 7 6 5 4 3 2 1 0 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 (C$ MM) (1) For further details, see Non-GAAP measures within the Notes to users section on page i of the Q1

  28. Slide 28: Appendix: Topical Risk Issues

    First Quarter, 2009 Investor Presentation Appendix Topical Risk Issues As at January 31, 2009 Direct U.S. Subprime Mortgage Exposure • None Unhedged U.S. Subprime Mortgage • See Q1, 2009 MD&A Exposure through RMBS and CDOs Hedged U.S. Subprime Mortgage • See Q1, 2009 MD&A Exposure through Derivative

  29. Slide 29: Select Retail Portfolio Specific Provisions

    First Quarter, 2009 Investor Presentation Select Retail Portfolio Specific Provisions ($MM) 240 Cards LLE 7.00% 200 Loss Ratio 6.00% Specific provisions in 160 5.00% Cards portfolio … 4.00% 120 3.00% 80 2.00% 40 1.00% 0 0.00% 2004* 2005* 2006* 2007* Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 ($MM) 125 Personal &

  30. Slide 30: World Markets Review / Q&A

    First Quarter, 2009 Investor Presentation First Quarter, 2009 World Markets Review Richard Nesbitt Chairman & CEO CIBC World Markets First Quarter, 2009 Q&A 30

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