Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q4 2016 Earnings Presentation
30 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Dec 1, 2016
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation Fourth Quarter, 2016 December 1st, 2016
Slide 2: Forward-Looking Statements
2 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 report, in other filings with Canadian securities regulators or the SEC and in other communications. All such statements are made pursua
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: Fourth Quarter, 2016 Financial Review
Fourth Quarter, 2016 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: 2016 Summary
5 2016 Summary FY15 FY16 • Adjusted(1) EPS of $10.22, up 8% YoY Net Income ($MM) - Reported 3,590 4,295 − Broad-based revenue(1) growth of 5% Net Income ($MM) - Adjusted (1) 3,822 4,104 − ROE(1) of 19.0% Diluted EPS - Reported $8.87 $10.70 • Record adjusted net income(1) of $4.1B Diluted EPS - Adjus
Slide 6: Fourth Quarter, 2016 Summary
6 Fourth Quarter, 2016 Summary Q4/15 Q3/16 Q4/16 • Reported EPS of $2.32, up 20% YoY Net Income ($MM) - Reported (1) 778 1,441 931 • Adjusted(2) EPS of $2.60, up 10% YoY Net Income ($MM) - Adjusted (2) 952 1,072 1,041 − Items of note include restructuring Diluted EPS - Reported $1.93 $3.61 $2.32 cha
Slide 7: Restructuring
7 Restructuring • Provisions − Q4/16: $134MM pre-tax/$98MM after-tax − FY15 + FY16: $430MM pre-tax/$321MM after-tax • Cumulative Savings − Realized in FY16: ~$200MM − Expected: ~$350MM by FY17 and ~$500MM by FY19 Efficiency Ratio Adjusted TEB (1) 1 Adjusted results are Non-GAAP financial measures. S
Slide 8: Retail & Business Banking
8 Retail & Business Banking Adjusted ($MM) (1) Q4/15 Q3/16 Q4/16 • Strong and broad-based volume growth Personal Banking 1,743 1,779 1,825 − Mortgages up 11% Business Banking 414 435 443 Other 19 11 22 − Personal deposits up 8% Revenue 2,176 2,225 2,290 − Business deposits up 10% Provision for Credi
Slide 9: Wealth Management
9 Wealth Management Adjusted ($MM) (1) Q4/15 Q3/16 Q4/16 • Higher fee-based assets in Retail Retail Brokerage 317 317 332 Brokerage Asset Management 178 196 190 Private Wealth Management 91 94 98 Other 24 - - • Strong AUM growth in Asset Revenue 610 607 620 Management Non-Interest Expenses 443 434 4
Slide 10: Capital Markets
10 Capital Markets Adjusted ($MM) (1) Q4/15 Q3/16 Q4/16 • Revenue up 19% YoY Global Markets 271 415 365 − Higher trading, corporate lending Corporate & Investment Banking 302 364 313 Other (3) (1) (2) and underwriting revenue Revenue (2) 570 778 676 − Lower advisory fees Provision for Credit Losses
Slide 11: Corporate & Other
11 Corporate & Other Adjusted ($MM) (1) Q4/15 Q3/16 Q4/16 International Banking 180 176 176 • Revenue down 24% YoY Other (51) (109) (78) Revenue (2) 129 67 98 − Lower Treasury revenue Provision for (Reversal of) 13 (1) 16 − Higher TEB revenue offset Credit Losses Non-Interest Expenses 297 287 284 Ne
Slide 12: Capital
12 Capital CET1 Ratio (all-in basis) • Strong internal capital generation • Higher share issuance driven by DRIP • Excluding FX, RWAs comparable to Q3
Slide 13: Fourth Quarter, 2016 Risk Review
Fourth Quarter, 2016 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 14: Provision for Credit Losses
14 Provision for Credit Losses (1) Q4/15 Q3/16 Q4/16 Adjusted ($MM) vs. Q3/16: Retail and Business Banking 163 197 206 Wealth Management - - - • Higher losses in Business Capital Markets 22 7 - Banking CIBC FirstCaribbean 7 3 10 Collective Provision for Non-Impaired 6 (4) 6 Corporate and Other 13 (1
Slide 15: Impaired Loans and Formations
15 Impaired Loans and Formations Q4/15 Q3/16 Q4/16 • New formations down QoQ Reported ($MM) Consumer 275 291 326 Business and Government 106 283 68 • Gross impaired loans down QoQ, Total New Formations 381 574 394 largely due to improvements in the oil & gas sector Gross and Net Impaired Loans ($MM)
Slide 16: Canadian Real Estate Secured Personal Lending
Canadian Real Estate Secured 16 Personal Lending 90+ Days Delinquency Rates • Uninsured mortgages in the Q4/15 Q3/16 Q4/16 Greater Vancouver Area (GVA) and Total Mortgages 0.26% 0.26% 0.25% Greater Toronto Area (GTA) have Uninsured Mortgages 0.20% 0.19% 0.19% Uninsured Mortgages in GVA 0.09% 0.04% 0
Slide 17: Canadian Uninsured Residential Mortgages
17 Canadian Uninsured Residential Mortgages Beacon Distribution 40% 40% • Better current Beacon and LTV(1) 37% distributions in GVA and GTA than the 29% 28% 29% Canadian average 15% 14% 14% • Less than 1% of this portfolio has a 12% 8% 11% 10% Beacon score of 650 or lower and an 6% 7% LTV(1) over 75
Slide 18: Canadian Credit Cards and Unsecured Personal Lending
Canadian Credit Cards and Unsecured 18 Personal Lending 90+ Days Delinquency Rates Q4/15 Q3/16 Q4/16 • 90+ days delinquency rates in Total Credit Cards 0.64% 0.77% 0.82% both portfolios up YoY Credit Cards in Oil Provinces(1) 0.62% 0.90% 0.95% Total Unsecured Personal Lending 0.48% 0.51% 0.50% Unsec
Slide 19: Trading Revenue (TEB) Distribution
19 Trading Revenue (TEB)(1) Distribution(2) ($MM) ($MM) 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Aug-16 Sep-16 Oct-16 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 30 for further details. 2 Trading revenue distribution on which VaR is calculated is not on a TEB
Slide 20: Appendix
Append xX Banking that fits your life.
Slide 21: Retail & Business Banking – Loans & Deposits
21 Retail & Business Banking – Loans & Deposits Average Loans & Acceptances ($B) Average Deposits ($B) +10% +9% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 11% 4% Personal Deposits & GICs 8% 2% Personal Loans 4% 1% Business Deposits & GICs 10% 4% Credit Cards 3% 1% Business Lending 13% 3%
Slide 22: Wealth – Mutual Funds & Client Asset Balances
22 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +8% AUA ($B)(1) AUM ($B)(1) 1 Assets under management (AUM) are included in assets under administration (AUA).
Slide 23: Retail & Business Banking
23 Retail & Business Banking Reported ($MM) Q4/15 Q3/16 Q4/16 Personal Banking 1,743 1,779 1,825 Business Banking 414 435 443 Other 19 11 22 Revenue 2,176 2,225 2,290 Provision for Credit Losses 163 197 206 Non-Interest Expenses 1,100 1,121 1,149 Income Before Income Taxes 913 907 935 Income Taxes 2
Slide 24: Wealth Management
24 Wealth Management Reported ($MM) Q4/15 Q3/16 Q4/16 Retail Brokerage 317 317 332 Asset Management 178 196 190 Private Wealth Management 91 94 98 Other 21 428 - Revenue 607 1,035 620 Non-Interest Expenses 447 438 444 Income Before Income Taxes 160 597 176 Income Taxes 38 91 50 Net Income - Reported
Slide 25: Capital Markets
25 Capital Markets Reported ($MM) Q4/15 Q3/16 Q4/16 Global Markets 271 415 365 Corporate & Investment Banking 302 364 313 Other (2) 30 (5) Revenue (1) 571 809 673 Provision for Credit Losses 22 47 - Non-Interest Expenses 326 370 333 Income Before Income Taxes 223 392 340 (1) Income Taxes 42 88 64 Ne
Slide 26: Corporate & Other
26 Corporate & Other Reported ($MM) Q4/15 Q3/16 Q4/16 International Banking 180 176 176 Other (51) (109) (78) Revenue (1) 129 67 98 Provision for (Reversal of) 13 (1) 16 Credit Losses Non-Interest Expenses 510 289 421 Loss Before Income Taxes (394) (221) (339) Income Taxes (1) (197) (186) (181) Net
Slide 27: Oil & Gas Corporate & Business Banking Exposure
Oil & Gas Corporate & Business Banking 27 Exposure Direct Exposure(1) ($B) 18.7 • $17.7B of direct exposure(1), up 17.3 17.2 17.7 16.5 from $17.2B last quarter − 70% of this is investment grade • $6.9B drawn exposure(1), down from $7.1B last quarter Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 − 57% of this is inv
Slide 28: Oil & Gas Retail Exposure
28 Oil & Gas Retail Exposure Outstandings ($MM) (1) • $40B of retail exposure to oil Mortgages HELOC Other Insured Uninsured provinces (or $20B excluding Alberta 16,459 8,643 2,750 3,766 insured mortgages) Saskatchewan & Newfoundland 4,201 2,236 714 1,442 Total 20,660 10,879 3,464 5,208 − Alberta ac
Slide 29: Q4 2016 Items of Note
29 Q4 2016 Items of Note Pre-Tax After-Tax & EPS Reporting Effect NCI Effect Effect Segments ($MM) ($MM) ($/Share) Q4 2016 Restructuring charge primarily relating to employee 134 98 0.25 Corporate & Other severance Loss from the structured credit run-off business 9 7 0.02 Capital Markets Retail & Bu
Slide 30: Non-GAAP Financial Measures
30 Non-GAAP Financial Measures • Adjusted results 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 29 of this prese