Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q4 2009 Earnings Presentation
24 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Dec 3, 2009
Slide 1: Fourth Quarter, 2009 Investor Presentation
Fourth Quarter, 2009 Investor Presentation CIBC Investor Presentation December 3, 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
Slide 2: CIBC Overview
Fourth Quarter, 2009 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer Fourth Quarter, 2009 Financial Review David Williamson Senior Executive Vice-President and Chief Financial Officer 2
Slide 3: Q4 Summary
Fourth Quarter, 2009 Investor Presentation Q4 Summary $ Per Share (1) (3) EPS : $1.56 Includes – Gain on Structured Credit Run-off 0.15 Cash EPS(2): $1.59 – Valuation Adjustments (4) (0.07) – MTM Losses on Corp. Loan Hedges (0.06) – Favourable Tax-Related items 0.16 Tier 1 Capital 0.18 Ratio: 12.1%
Slide 4: Structured Credit Run-off
Fourth Quarter, 2009 Investor Presentation Structured Credit Run-off Q4/09 Pre-Tax After-Tax EPS Effect Effect ($MM) Effect ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 322 219 0.57 Unhedged non-USRMM Gains 43 30 0.08 Unhedged USRMM Gains 15 10 0.03 Purchased Credit Derivat
Slide 5: Retail Markets Revenue Components
Fourth Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 Personal Banking Personal vs. Q4/08: Banking 1,424 1,454 1,398 1,518 1,562 + spreads up Business + volumes up 337 330 312 343 348 Banking Wealth – lower net prepayment 363 323 297 318 3
Slide 6: Retail Markets Revenue Components
Fourth Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 Wealth Management Personal vs. Q4/08: Banking 1,424 1,454 1,398 1,518 1,562 + new issues up Business 337 330 312 343 348 Banking – weaker equity markets Wealth – lower spreads 363 323 2
Slide 7: Retail Markets Revenue Components
Fourth Quarter, 2009 Investor Presentation CIBC Retail Markets Revenue Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 Other Personal vs. Q4/08: Banking 1,424 1,454 1,398 1,518 1,562 – lower Treasury allocations Business 337 330 312 343 348 Banking Wealth 363 323 297 318 337 Management FirstCaribbean 16
Slide 8: Net Interest Margins
Fourth Quarter, 2009 Investor Presentation Net Interest Margins F ‘08 F ‘09 Q4 Q3 Q4 Reported NIM 1.60% 1.59% 1.66% Reported NIM on average interest-earning assets 1.90% 1.95% 1.99% CIBC Retail Markets NIM 2.20% 2.18% 2.19% 15 Wholesale Banking Revenue 531 (1) ($MM) 483 (1) 333 (2) 421 (2) 380 (2) 2
Slide 9: Wholesale Banking Revenue Components
Fourth Quarter, 2009 Investor Presentation Wholesale Banking Revenue Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 Capital Markets (1) Capital Markets 11 307 318 325 253 vs. Q3: Corporate & – lower fixed income & Investment foreign exchange (1) (1) Banking 113 156 200 221 146 revenue (1) (1) (1) (1) (
Slide 10: Wholesale Banking Revenue Components
Fourth Quarter, 2009 Investor Presentation Wholesale Banking Revenue Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 Other (1) Capital Markets 11 307 318 325 253 vs. Q3: Corporate & + lower mark-to-market Investment (1) losses on credit (1) Banking 113 156 200 221 146 derivatives re. Corporate (1) (1) (
Slide 11: Expense Objective
Fourth Quarter, 2009 Investor Presentation CIBC Expense Objective Q4/06 ($MM) Baseline Q4/09 Total Expenses 1,892 1,669 - (18) (1)(2) Less: Items of Note Less: FirstCaribbean - (92) Less: Exited Businesses (116) (7) Total Expenses - "Adjusted" 1,776 1,552 (2) (1) Affected by an Item of Note, see Sli
Slide 12: Non-GAAP Financial Measures
Fourth Quarter, 2009 Investor Presentation Fourth Quarter, 2009 Financial Review Appendix CIBC Revenue F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 (1) (1) (1) (1) (1) Net Interest Income 1,377 1,333 1,273 1,369 1,419 Fees for Services Underwriting and Advisory 79 102 112 132 132 Deposit and Payment 193 193 188
Slide 13: Loan Losses and Expenses
Fourth Quarter, 2009 Investor Presentation CIBC Loan Losses F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 (1) CIBC Retail Markets 231 278 325 417 362 (1) Wholesale Banking (7) (11) 18 129 82 (1) (1) Corporate and Other (2) 17 51 1 (20) Total 222 284 394 547 424 (1) Affected by an Item of Note, see Slides 38 and
Slide 14: Net Income/(Loss) Components
Fourth Quarter, 2009 Investor Presentation CIBC Net Income/(Loss) Components F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 (1) (1) CIBC Retail Markets 572 593 443 420 474 Wholesale Banking 130 (1) (393) (1) (354) (1) 86 (1) 154 (1) (1) (1) (1) (1) (1) Corporate and Other (266) (53) (140) (72) 16 Total 436 147 (5
Slide 15: Retail Markets Balances
Fourth Quarter, 2009 Investor Presentation CIBC Retail Markets Balances (1) F ‘08 F ‘09 ($ B) Q4 Q1 Q2 Q3 Q4 Funds Managed: Cards, Outstanding (2) 14.2 13.9 13.8 13.8 13.9 Residential Mortgages & Personal Loans (2) 151.4 152.2 154.3 157.5 159.8 Consumer Deposits & GICs 85.0 88.3 91.9 99.8 103.1 AUA(
Slide 16: Other Non-Interest Income
Fourth Quarter, 2009 Investor Presentation “Other” Non–Interest Income F ‘08 F ‘09 ($MM) Q4 Q1 Q2 Q3 Q4 (1) Gains/(Losses) 56 1 32 4 15 Income from equity-accounted (2) (2) (2) investments (49) (46) (8) 9 14 Gains/(Losses) on non-trading (2) (2) (2) (2) (2) derivatives 197 40 (151) (161) (22) Cost o
Slide 17: Non-USRMM Summary
Fourth Quarter, 2009 Investor Presentation (1) Non-USRMM Summary (U.S.$MM) Matched Unmatched Total Fair Credit- Net Fair Total Fair Credit- Net Fair (2) (2) Notional Value related VA Value Notional Value related VA Value A B C D=B-C E F G H=F -G # I (3) $ 728 $ 141 $ 104 $ 37 $ 775 $ 622 $ 464 $ 158
Slide 18: Hedged Canadian Conduit Non-USRMM Exposure
Fourth 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 $ 4,568 $ 200 $ 276 MAV I 160 Investment grade corporates 2,598 45
Slide 19: Unhedged USRMM Exposure and Items of Note
Fourth Quarter, 2009 Investor Presentation (1) UNHEDGED USRMM Exposure (U.S.$MM) Write-downs Oct. 31/09 Tranche Type Notional to-date Net Exposure A B C =A -B Super Senior CDO of Mezz RMBS $ 3,379 $ 3,102 $ 277 Warehouse RMBS 248 246 2 Various Various 559 531 28 $ 4,186 $ 3,879 $ 307 (1) There are s
Slide 20: Items of Note (Cont'd)
Fourth Quarter, 2009 Investor Presentation Items of Note (Cont’d) Pre-Tax After-Tax EPS Effect Strategic Business Unit Q2 2009 Effect ($MM) Effect ($MM) ($/share) Loss on Structured Credit Run-off Activities (475) (324) (0.85) Wholesale Bkg Mark-to-Market on Credit Derivatives re. Corporate Loan Hed
Slide 21: Risk Review
Fourth Quarter, 2009 Investor Presentation Fourth Quarter, 2009 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer Q4 Credit Review Total Specific Provisions Gross Impaired Loans ($MM) ($MM) 1,911 490 1,668 408 Q3 Q4 Q3 Q4 F ‘09 F ‘09 42 21
Slide 22: U.S. Commercial Real Estate
Fourth Quarter, 2009 Investor Presentation U.S. Commercial Real Estate As of Q4/09 $MM Gross Loans/BAs GILs Retail 665 38 Multi-family 452 74 Hotel 432 18 Multi-Use 391 106 Office 197 - Other 253 43 Q4/09 Total 2,390 279 43 Cards (Managed) ($MM) 300 8.0% 7.0% 250 6.0% 200 5.0% 150 4.0% 248 224 3.0%
Slide 23: Coverage on Loan Portfolio
Fourth Quarter, 2009 Investor Presentation Coverage on Loan Portfolio Specific Allowance as % of GILs 60.0% 60.0% 50.0% 50.0% CIBC 40.0% 40.0% 30.0% Peer Average(1) 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F ‘07 F ‘08 F ‘09 (1) Based on public disclosure of major Canadian p
Slide 24: Tier 1 Ratio Movement in Q4
Fourth Quarter, 2009 Investor Presentation Tier 1 Ratio Movement in Q4 0.07% (0.33%) 0.56% Capital (0.18%) Issued (0.04%) 12.1% 12.0% Dividend Cards II Other Earnings Trust Q3 Q4 F’09 F’09 47 Fourth Quarter, 2009 Q&A 24