Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q2 2009 Earnings Presentation
27 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 28, 2009
Slide 1: Second Quarter 2009 Investor Presentation
Second Quarter, 2009 Investor Presentation CIBC Investor Presentation May 28, 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 securities
Slide 2: CIBC Overview
Second Quarter, 2009 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer Second Quarter, 2009 Financial Review David Williamson Senior Executive Vice-President and Chief Financial Officer 2
Slide 3: Q2 Summary
Second Quarter, 2009 Investor Presentation Q2 Summary $ Per Share (3) Loss Per Includes – Loss on Structured Credit Run-off Share(1): $(0.24) Activities (0.85) – Mark-to-Market Losses on Corp. Loans (0.30) Cash Loss – Valuation Charges (0.17) Per Share(2): $(0.21) – Write-off of Future Tax Assets (0
Slide 4: Structured Credit Run-off
Second Quarter, 2009 Investor Presentation Structured Credit Run-off Q2/09 Pre-Tax After-Tax EPS Effect Effect ($MM) Effect ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors (657) (448) (1.17) Unhedged USRMM Write-downs (37) (25) (0.07) Unhedged non-USRMM Write-downs (53) (36) (
Slide 5: Non-USRMM Protection from Financial Guarantors
Second 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 (3) (4) (5) (6) #I BBB+ B3 - $ 609 $ - $ 777 $ 228 $ 1,614 $ 838 (4) (7) (5) # II A Ba3 - 878 - - 821 1,69
Slide 6: Retail Markets Revenue Components
Second Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 Personal Banking Personal vs. Q2/08: Banking 1,409 (1) 1,484 (1) 1,430 1,457 1,399 + volumes up Business + Q2/08 included Visa 328 340 337 330 312 Banking IPO Adj. ($12MM) Wealth 380 39
Slide 7: Retail Markets Revenue Components
Second Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 Wealth Management Personal vs. Q2/08: Banking 1,409 (1) 1,484 (1) 1,430 1,457 1,399 – weaker equity markets Business 328 340 337 330 312 Banking Wealth 380 393 363 323 297 Management (1
Slide 8: Retail Markets Statement of Operations
Second Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 Personal Banking 1,409 (1) 1,484 (1) 1,430 1,457 1,399 Business 328 340 337 330 312 Banking Wealth 380 393 363 323 297 Management (1) (1) FirstCaribbean 122 165 161 180 204 Other 45 (5)
Slide 9: Net Interest Margins and Wholesale Banking Revenue
Second Quarter, 2009 Investor Presentation Net Interest Margins F ‘08 F ‘09 Q2 Q1 Q2 Reported NIM 1.57% 1.43% 1.48% Reported NIM on average interest-earning assets 1.85% 1.77% 1.85% CIBC Retail Markets NIM 2.34% 1.91% 1.93% 17 Wholesale Banking Revenue ($MM) 333 (2) (2) 275 229 (2) 246 (2) 132 (2) (
Slide 10: Wholesale Banking Revenue Components
Second Quarter, 2009 Investor Presentation Wholesale Banking Revenue Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 Capital Markets (1) Capital Markets 194 209 11 307 318 vs. Q1: Corporate & + trading revenue up Investment (1) (1) + equity new issues up Banking 109 110 113 156 200 (1) (1) (1) (1) (1) O
Slide 11: Wholesale Banking Revenue Components and Net Income
Second Quarter, 2009 Investor Presentation Wholesale Banking Revenue Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 Other (1) Capital Markets 194 209 11 307 318 vs. Q1: Corporate & + reduced loss on Investment (1) structured credit run-off (1) Banking 109 110 113 156 200 activities (1) (1) (1) (1) (1)
Slide 12: Expense Objective and Non-GAAP Financial Measures
Second Quarter, 2009 Investor Presentation CIBC Expense Objective Q4/06 ($MM) Baseline Q2/09 Total Expenses 1,892 1,639 - (5) (1)(2) Less: Items of Note Less: FirstCaribbean - (120) Less: Exited Businesses (116) (4) Total Expenses - "Adjusted" 1,776 1,510 (2) (1) Affected by an Item of Note, see Sli
Slide 13: CIBC Revenue
Second Quarter, 2009 Investor Presentation Second Quarter, 2009 Financial Review Appendix CIBC Revenue F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 (1) (1) (1) (1) Net Interest Income 1,349 1,327 1,377 1,333 1,273 Fees for Services Underwriting and Advisory 88 68 79 102 112 Deposit and Payment 191 197 193 193 1
Slide 14: Loan Losses and CIBC Expenses
Second Quarter, 2009 Investor Presentation CIBC Loan Losses F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 (1) CIBC Retail Markets 209 221 266 327 403 (1) Wholesale Banking 2 7 (10) 19 46 (1) Corporate and Other (35) (25) (34) (62) (55) Total 176 203 222 284 394 (1) Affected by an Item of Note, see Slide 40 for d
Slide 15: Net Income/(Loss) Components
Second Quarter, 2009 Investor Presentation CIBC Net Income/(Loss) Components F ‘08 F ‘09 ($MM) Q2 Q3 Q4 Q1 Q2 (1) (1) (1) CIBC Retail Markets 516 572 554 562 390 Wholesale Banking (1,637) (1) (538) (1) 133 (1) (413) (1) (373) (1) (1) (1) (1) (1) (1) Corporate and Other 10 37 (251) (2) (68) Total (1,
Slide 16: Mutual Funds and Residential Mortgages Market Share
Second Quarter, 2009 Investor Presentation CIBC Retail Markets Mutual Funds/Managed Accounts AUM & Market Share(1) MF/Managed Accts AUM Canadian Market Share 70 13 61.5 61.7 60 56.8 Market Share (%) 50.2 48.7 11 50 $ Billions 40 9 30 8.6 8.6 8.7 8.5 8.6 20 7 10 0 5 Q2 Q3 Q4 Q1 Q2 F ‘08 F ‘09 (1) Sou
Slide 17: Personal Deposits and Cards Balances & Market Share
Second Quarter, 2009 Investor Presentation CIBC Retail Markets Personal Deposits & Fixed Term Investments (1)(2) Balances & Market Share Balances Canadian Market Share 100 95.4 20 91.8 86.9 88.2 84.6 Market Share (%) 80 $ Billions 16.0 16.2 16.1 15 15.7 60 15.6 40 10 20 0 5 Q2 Q3 Q4 Q1 Q2 F ‘08 F ‘0
Slide 18: Wholesale Banking Market Share and Other Non-Interest Income
Second Quarter, 2009 Investor Presentation Wholesale Banking Market Share (%) 19.5 17.7 Canadian 12.2 11.0 12.4 New Equity Issues (1)(2) Equity Trading 7.3 6.8 6.7 Canada - % 6.0 6.4 of shares traded (3) Q2 Q3 Q4 Q1 Q2 F ‘08 F ‘09 (1) Source: CIBC Equity Capital Markets. (2) Based on total amount un
Slide 19: Unhedged Structured Credit Exposure
Second Quarter, 2009 Investor Presentation (1) UNHEDGED USRMM Exposure (U.S.$MM) Write-downs Apr. 30/09 Tranche Type Notional to-date Net Exposure A B C =A -B Super Senior CDO of Mezz RMBS $ 1,364 $ 1,358 $ 6 Warehouse RMBS 310 309 1 Various Various 644 634 10 $ 2,318 $ 2,301 $ 17 (1) There are seve
Slide 20: Hedged Canadian Conduit Non-USRMM Exposure
Second Quarter, 2009 Investor Presentation HEDGED Canadian Conduit Non-USRMM (1) Exposure (U.S.$MM) (2) Mark-to- Collateral (3) Conduit Underlying Notional Market held Great North Trust Investment grade (4) (5) corporate credit index $ 4,142 $ 235 $ 348 MAV I 160 Investment grade corporates 2,598 18
Slide 21: Items of Note
Second Quarter, 2009 Investor Presentation Items of Note Pre-Tax After-Tax EPS Effect Strategic Business Unit Q4 2008 Effect ($MM) Effect ($MM) ($/share) Favourable Tax-related Items: 1 Enron Related Increased Tax Benefit 486 1.27 Wholesale Bkg 2 Impact of Tax Loss Carryback/Carryforward (23) (0.06)
Slide 22: Q2 Credit Review
Second Quarter, 2009 Investor Presentation Second Quarter, 2009 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer Q2 Credit Review Total Specific Provisions Gross Impaired Loans ($MM) ($MM) 329 1,263 1,125 247 0.83%(1) 894 174 0.56%(1) 0.41%(1) Q2 Q1 Q2 Q2 Q1 Q2 F ‘08 F ‘0
Slide 23: Cards (Managed) Credit Losses
Second Quarter, 2009 Investor Presentation Cards (Managed) ($MM) 250 7.0% 41 6.0% 200 38 5.0% 36 150 4.0% 11 9 3 11 3.0% 100 5 1 192 170 138 2.0% 131 107 113 50 96 96 103 1.0% 0 0.0% (1) (1) (1) 2005 2006 2007 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Net Credit Loss Change in Allowance Net Credit Loss Ra
Slide 24: Trading Revenue Days and Tier 1 Ratio Movement
Second Quarter, 2009 Investor Presentation Q2 Trading Revenue (TEB) Distribution (1) (2) 18 16 14 Trading Revenue Days 12 10 8 6 4 2 0 (5) (4) (3) (2) (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (C$ MM) (1) For further details, see Non-GAAP measures within the Notes to users section on page i of the Q
Slide 25: Appendix: Topical Risk Issues
Second Quarter, 2009 Investor Presentation Appendix Topical Risk Issues As at April 30, 2009 Direct U.S. Subprime Mortgage Exposure • None Unhedged U.S. Subprime Mortgage • See Q2, 2009 MD&A Exposure through RMBS and CDOs Hedged U.S. Subprime Mortgage • See Q2, 2009 MD&A Exposure through Derivatives
Slide 26: Retail Markets Review / Wholesale Banking Review
Second Quarter, 2009 Investor Presentation Second Quarter, 2009 Retail Markets Review Sonia Baxendale Senior Executive Vice-President Second Quarter, 2009 Wholesale Banking Review Richard Nesbitt Chairman & CEO Wholesale Banking 26
Slide 27: Q&A
Second Quarter, 2009 Investor Presentation Second Quarter, 2009 Q&A 27
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