Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q2 2015 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 2015
Slide 1: CIBC Investor Presentation Second Quarter, 2015
CIBC Investor Presentation Second Quarter, 2015 May 2015
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 Victor Dodig President and Chief Executive Officer
Slide 4: Q2 2015 Overview
Q2 2015 Overview Solid financial results in Q2 2015 Adjusted EPS(1) of $2.28, up 5% YoY Adjusted revenue(1) growth of 7% from last year Continued strong returns with adjusted ROE(1) of 20.2% Strong Basel III CET1 ratio of 10.8% Quarterly dividend increase of $0.03 to $1.09 per share (1)
Slide 5: Second Quarter, 2015 Financial Review
Second Quarter, 2015 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 6: Second Quarter, 2015 Summary
Second Quarter, 2015 Summary Q2/14 Q1/15 Q2/15 Strong volume growth and margin Net Income ($MM) - Adjusted (1 ) 887 956 924 expansion in Retail Net Income ($MM) - Reported 306 923 911 Solid asset growth in Wealth Management Diluted EPS - Adjusted (1 ) $2.17 $2.36 $2.28 Diluted EPS - Reported $0.
Slide 7: Retail & Business Banking Volume Growth and Margin Expansion
Retail & Business Banking Adjusted ($MM) (1 ) Q2/14 Q1/15 Q2/15 Strong growth with both Personal & Personal Banking 1,536 1,623 1,611 Business Banking 368 402 401 Business Banking clients Other 35 22 25 o Mortgage volumes up 5% YoY Revenue 1,939 2,047 2,037 o Business credit up 10% YoY Provision f
Slide 8: Wealth Management Strong Asset Growth
Wealth Management Adjusted ($MM) (1 ) Q2/14 Q1/15 Q2/15 Solid performance from Asset Retail Brokerage 292 302 312 Management Asset Management 183 210 219 o Record net sales of long-term mutual funds Private Wealth Management 75 109 86 Revenue 550 621 617 Higher fee-based assets and revenue in Pr
Slide 9: Wholesale Banking Strong and Well Diversified Earnings
Wholesale Banking Adjusted ($MM) (1 ) Q2/14 Q1/15 Q2/15 Capital Markets 331 395 417 Strong commodities and foreign Corporate & Investment Banking 275 279 259 exchange trading revenue driven by Other 3 20 (8) client activity Revenue (2 ) 609 694 668 Provision for (Reversal of) Credit (1) 14 (1) H
Slide 10: Corporate & Other
Corporate & Other Adjusted ($MM) (1 ) Q2/14 Q1/15 Q2/15 Net income down YoY International Banking 146 161 163 o Lower Treasury revenue Other (72) (119) (82) Revenue (2 ) 74 42 81 o Higher regulatory costs Provision for Credit Losses 12 9 11 o Partially offset by higher earnings Non-Interest Expens
Slide 11: Capital
Capital Common Equity Tier 1 Ratio Basel III CET1 ratio of 10.8%, up 50bps QoQ (all-in basis) o Strong internal capital generation o Sale of our stake in Butterfield Bank o Reversal of Pension impact experienced in Q1 Risk-Weighted Assets Risk-weighted assets of $147 billion, flat QoQ ($B; all-i
Slide 12: Second Quarter, 2015 Risk Review
Second Quarter, 2015 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 13: Provision for Credit Losses
Provision for Credit Losses Q2/14 Q1/15 Q2/15 vs. Q1/15: Adjusted ($MM) (1) Retail and Business Banking 173 164 188 Higher bankruptcies in credit cards and Wealth Management 1 - (1) personal lending Wholesale Banking (1) 14 (1) CIBC FirstCaribbean 24 13 12 Higher losses in business banking Colle
Slide 14: Impaired Loans and Formations
Impaired Loans and Formations Formations New formations up QoQ but relatively stable YoY Q2/14 Q1/15 Q2/15 Reported ($MM) Gross impaired loans were down Consumer 291 288 298 $86 million QoQ primarily due to Business and Government 46 37 40 decreases in the personal lending Total New Formations 3
Slide 15: Oil & Gas Direct Exposure
Oil & Gas Direct Exposure Direct Exposure(1) ($B) $16.7B of direct exposure(1), 16.7 16.7 unchanged from the last quarter 16.0 15.4 15.0 o 77% of this is investment grade $6.3B drawn exposure(1), down from $6.8B last quarter Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Downstream 4% Integrated 12% Exploration
Slide 16: Oil & Gas Retail Exposure
Oil & Gas Retail Exposure Outstandings $38B of indirect exposure to oil ($MM) Mortgages HELOC Other (1) provinces (or $16B excluding insured mortgages) Insured Uninsured Alberta 17,137 6,545 2,782 3,392 o Alberta accounts for $30B or 78% of the indirect exposure, Saskatchewan & Newfoundland 4,456
Slide 17: Cards
Cards 200 6% 5% 160 4% 120 179 ($MM) 167 3% 156 154 80 142 142 127 2% 113 99 102 40 96 90 99 1% 0 0% Q2/12 Q4/12 Q2/13 Q4/13 Q2/14 Q4/14 Q2/15 (1) (1)(2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate (1) Adjusted results are a Non-GAAP financial measure. See slide
Slide 18: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage Portfolios Canadian residential mortgage Q2/14 Q1/15 Q2/15 ($B) portfolio (includes condos) was Residential Mortgages (excludes Condos) 130 136 137 $155B Condo Mortgages 17 17 18 o 67% insured; average LTV(1) of the Total Canadian Residential Mortgages 147 1
Slide 19: Canadian Condo Developer Exposure
Canadian Condo Developer Exposure Condo Developer Exposure ($B) Drawn developer loans were $1.0 billion or 1.4% of our business & government portfolio 1.0 1.0 Condominium developer exposure 1.0 1.1 0.8 diversified across 87 projects 1.8 1.8 2.0 1.8 1.9 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Undrawn Drawn
Slide 20: Trading Revenue (TEB) Distribution
Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Feb-15 Mar-15 Apr-15 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 29 for further details. (2) Trading r
Slide 21: Appendix
a Appendix
Slide 22: Retail & Business Banking - Loans & Deposits
Retail & Business Banking - Loans & Deposits Average Loans Average Deposits +6% +6% +1% +1% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 5% 1% Personal Deposits & GICs 6% 1% Personal Loans 3% 1% Business Deposits & GICs 6% 0% Credit Card 1% (2)% Business Lending 11% 3% | 22
Slide 23: Wealth - Mutual Funds and Client Asset Balances
Wealth - Mutual Funds and Client Asset Balances Canadian Retail Mutual Funds ($B) +14% +4% AUA ($B) (2) AUM ($B)(1)(2) (1) Excludes American Century Investments. (2) Assets under management (AUM) are included in assets under administration (AUA). | 23
Slide 24: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q2/14 Q1/15 Q2/15 Personal Banking 1,536 1,669 1,611 Business Banking 368 402 401 Other 32 22 25 Revenue 1,936 2,093 2,037 Provision for Credit Losses 173 164 188 Non-Interest Expenses 1,037 1,056 1,058 Income Before Taxes 726 873 791 Taxes 180 223 208 Net In
Slide 25: Wealth Management
Wealth Management Q2/14 Q1/15 Q2/15 Reported ($MM) Retail Brokerage 292 302 312 Asset Management 181 208 217 Private Wealth Management 75 109 86 Revenue 548 619 615 Provision for (Reversal of) Credit Losses 1 - (1) Non-Interest Expenses 395 447 447 Income Before Taxes 152 172 169 Taxes 35 44 40 Net
Slide 26: Wholesale Banking
Wholesale Banking Reported ($MM) Q2/14 Q1/15 Q2/15 Capital Markets 331 395 417 Corporate & Investment Banking 275 302 259 Other - 9 (15) Revenue (1 ) 606 706 661 Provision for (Reversal of) Credit Losses 21 14 (1) Non-Interest Expenses 318 328 337 Income Before Taxes 267 364 325 Taxes (1 ) 54 89 75
Slide 27: Corporate & Other
Corporate & Other Reported ($MM) Q2/14 Q1/15 Q2/15 International Banking 146 161 163 Other (72) (120) (82) Revenue (1 ) 74 41 81 Provision for Credit Losses 135 9 11 Non-Interest Expenses 659 364 262 Income Before Taxes (720) (332) (192) Taxes (1 ) (150) (202) (141) Net Loss - Reported (570) (130) (
Slide 28: Q2 2015 Items of Note
Q2 2015 Items of Note Pre-tax Pre-Tax After-tax After-Tax EPS Effect EPS Operating Effect Effect Effect Effect ($MM) Effect Segments ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q2 2015 Loss on structured credit run-off activities Wholesale Banking 8 5 0.01 Retail & Business Banking
Slide 29: Non-GAAP Financial Measures Adjusted Results
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 see slide 28 of t