Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q1 2017 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 23, 2017
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation First Quarter, 2017 February 23rd, 2017
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements A NOTE ABOUT 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 communicat
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: First Quarter, 2017 Financial Review
First Quarter, 2017 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: First Quarter, 2017 Summary
5 First Quarter, 2017 Summary Q1/16 Q4/16 Q1/17 • Reported EPS of $3.50, up 44% YoY Net Income ($MM) - Reported (1) 982 931 1,407 • Adjusted(2) EPS of $2.89, up 13% YoY Net Income ($MM) - Adjusted (2) 1,029 1,041 1,166 − Items of note include gain on the sale and lease back of certain retail propert
Slide 6: Retail & Business Banking
6 Retail & Business Banking Adjusted ($MM) (1) Q1/16 Q4/16 Q1/17 • Strong and broad-based volume growth Personal Banking 1,749 1,825 1,836 − Mortgages up 12% Business Banking 425 443 453 Other 16 22 8 − Personal deposits up 8% Revenue 2,190 2,290 2,297 − Business deposits up 10% Provision for Credit
Slide 7: Wealth Management
7 Wealth Management Adjusted ($MM) (1) Q1/16 Q4/16 Q1/17 • Asset growth and higher transactional Retail Brokerage 308 332 352 activity, including debt and equity Asset Management 181 190 194 issuance in Retail Brokerage Private Wealth Management 98 98 107 Other 15 - - Revenue 602 620 653 Non-Interes
Slide 8: Capital Markets
8 Capital Markets Adjusted ($MM) (1) Q1/16 Q4/16 Q1/17 • Revenue up 28% YoY Global Markets 391 365 531 − Higher trading, corporate lending Corporate & Investment Banking 286 313 335 and underwriting revenue Other 9 (2) 11 Revenue (2) 686 676 877 Provision for Credit Losses 25 - 2 • Strong deposits g
Slide 9: Corporate & Other
9 Corporate & Other Adjusted ($MM) (1) Q1/16 Q4/16 Q1/17 International Banking 195 176 179 • Revenue down 27% YoY Other (82) (78) (96) Revenue (2) 113 98 83 − Lower CIBC FirstCaribbean Provision for Credit Losses 5 16 5 revenue mainly driven by FX and Non-Interest Expenses (1) 281 284 292 lower fee
Slide 10: Capital
10 Capital CET1 Ratio (all-in basis) • Strong internal capital generation • Higher share issuance driven by DRIP • Partially offset by higher Risk Weighted Assets
Slide 11: First Quarter, 2017 Risk Review
First Quarter, 2017 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 12: Provision for Credit Losses
12 Provision for Credit Losses (1) Q1/16 Q4/16 Q1/17 Adjusted ($MM) vs. Q4/16: Retail and Business Banking 163 206 205 Wealth Management - - - Capital Markets 25 - 2 • Lower losses in Business CIBC FirstCaribbean 5 10 10 Banking and lower collective Collective Provision for Non-Impaired Loans - 6 (5
Slide 13: Impaired Loans and Formations
13 Impaired Loans and Formations Reported ($MM) Q1/16 Q4/16 Q1/17 • New formations relatively stable Consumer 271 326 314 QoQ Business and Government 58 68 85 Total New Formations 329 394 399 • Gross impaired loans down QoQ, largely due to a reduction in our European portfolio and the Gross and Net
Slide 14: Canadian Real Estate Secured Personal Lending
Canadian Real Estate Secured 14 Personal Lending 90+ Days Delinquency Rates • Uninsured mortgages in the Q1/16 Q4/16 Q1/17 Greater Vancouver Area (GVA) and Total Mortgages 0.27% 0.25% 0.26% Greater Toronto Area (GTA) have Uninsured Mortgages 0.20% 0.19% 0.19% Uninsured Mortgages in GVA 0.07% 0.06% 0
Slide 15: Canadian Uninsured Residential Mortgages – Q1/17 Originations
Canadian Uninsured Residential Mortgages – 15 Q1/17 Originations Beacon Distribution 39% 38% • $12B of originations in Q1/17 35% 31% 29% 29% • Average LTV(1) in Canada: 64% − GVA: 56% 17%17% 16% − GTA: 62% 10% 8% 11% 7% 7% 6% ≤650 651-700 701-750 751-800 >800 Canada GVA GTA Loan-to-Value (LTV)(1) Di
Slide 16: Canadian Uninsured Residential Mortgages
16 Canadian Uninsured Residential Mortgages Beacon Distribution 41% 40% • Better current Beacon and LTV(1) 38% distributions in GVA and GTA than the 28% 27% 29% Canadian average • Less than 1% of this portfolio has a 15%14% 14% 11% 12%10% Beacon score of 650 or lower and an 8% 6% 7% LTV(1) over 75%
Slide 17: Canadian Credit Cards and Unsecured Personal Lending
Canadian Credit Cards and Unsecured 17 Personal Lending 90+ Days Delinquency Rates Q1/16 Q4/16 Q1/17 • 90+ days delinquency rates: Total Credit Cards 0.78% 0.82% 0.88% (1) − Credit Cards up YoY Credit Cards in Oil Provinces 0.82% 0.95% 1.08% Total Unsecured Personal Lending 0.51% 0.50% 0.51% − Unsec
Slide 18: Trading Revenue (TEB) Distribution
18 Trading Revenue (TEB)(1) Distribution(2) ($MM) ($MM) 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Nov-16 Dec-16 Jan-17 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 29 for further details. 2 Trading revenue distribution on which VaR is calculated is not on a TEB
Slide 19: Appendix
Append xX Banking that fits your life.
Slide 20: Retail & Business Banking – Loans & Deposits
20 Retail & Business Banking – Loans & Deposits Average Loans & Acceptances ($B) Average Deposits ($B) +10% +9% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 12% 3% Personal Deposits & GICs 8% 3% Personal Loans 5% 1% Business Deposits & GICs 10% 5% Credit Cards 3% 1% Business Lending 11% 1%
Slide 21: Wealth – Mutual Funds & Client Asset Balances
21 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +11% AUA ($B)(1) AUM ($B)(1) 1 Assets under management (AUM) are included in assets under administration (AUA).
Slide 22: Retail & Business Banking
22 Retail & Business Banking Reported ($MM) Q1/16 Q4/16 Q1/17 Personal Banking 1,749 1,825 1,836 Business Banking 425 443 453 Other 16 22 307 Revenue 2,190 2,290 2,596 Provision for Credit Losses 163 206 205 Non-Interest Expenses 1,097 1,149 1,129 Income Before Income Taxes 930 935 1,262 Income Taxe
Slide 23: Wealth Management
23 Wealth Management Reported ($MM) Q1/16 Q4/16 Q1/17 Retail Brokerage 308 332 352 Asset Management 181 190 194 Private Wealth Management 98 98 107 Other 14 - - Revenue 601 620 653 Non-Interest Expenses 439 444 469 Income Before Income Taxes 162 176 184 Income Taxes 43 50 51 Net Income - Reported 11
Slide 24: Capital Markets
24 Capital Markets Reported ($MM) Q1/16 Q4/16 Q1/17 Global Markets 391 365 531 Corporate & Investment Banking 286 313 335 Other 6 (5) 11 Revenue (1) 683 673 877 Provision for Credit Losses 25 - 2 Non-Interest Expenses 344 333 382 Income Before Income Taxes 314 340 493 (1) Income Taxes 70 64 122 Net
Slide 25: Corporate & Other
25 Corporate & Other Reported ($MM) Q1/16 Q4/16 Q1/17 International Banking 195 176 179 Other (82) (78) (96) Revenue (1) 113 98 83 Provision for Credit Losses 74 16 5 Non-Interest Expenses 284 421 294 Loss Before Income Taxes (245) (339) (216) (1) Income Taxes (180) (181) (166) Net Loss - Reported (
Slide 26: Oil & Gas Corporate & Business Banking Exposure
Oil & Gas Corporate & Business Banking 26 Exposure Direct Exposure(1) ($B) • $16.8B of direct exposure(1), 18.7 17.2 17.7 16.8 down from $17.7B last quarter 16.5 − 69% of this is investment grade • $6.1B drawn exposure(1), down from $6.9B last quarter Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 − 54% of this is i
Slide 27: Oil & Gas Retail Exposure
27 Oil & Gas Retail Exposure Retail Exposure(1) in Oil Provinces(2) ($B) • $40.5B of retail exposure(1) to oil 39.7 40.2 40.5 39.1 39.3 provinces(2) (or $20B excluding insured mortgages) − Alberta accounts for $31.9B or 79% of the retail exposure(1), with a LTV(3) of 66% in the Q1/16 Q2/16 Q3/16 Q4/
Slide 28: Q1 2017 Items of Note
28 Q1 2017 Items of Note Pre-Tax After-Tax & EPS Reporting Effect NCI Effect Effect Segments ($MM) ($MM) ($/Share) Q1 2017 Gain on sale and lease back of certain retail properties (299) (245) (0.62) Retail & Business Banking Retail & Business Banking / Amortization of intangible assets 6 4 0.01 Weal
Slide 29: Non-GAAP Financial Measures
29 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 28 of this prese
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