Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q1 2007 Earnings Presentation

32 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Mar 1, 2007

  1. Slide 1: First Quarter 2007 Investor Presentation

    First Quarter, 2007 Investor Presentation CIBC Investor Presentation March 1, 2007 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 filings with Canadian securities regul

  2. Slide 2: CIBC Overview

    First Quarter, 2007 Investor Presentation CIBC Overview Gerry McCaughey President and Chief Executive Officer First Quarter, 2007 Financial Review Tom Woods Senior Executive Vice-President and Chief Financial Officer 2

  3. Slide 3: Q1 Summary

    First Quarter, 2007 Investor Presentation Q1 Summary $ Per Share EPS(1): $2.11 Includes – Premium on Preferred Share Cash EPS(2): $2.12 Redemption (0.05) – Mark-to-Market loss on Corp. Loan Credit Derivative Portfolio (0.01) • Tier 1 Capital Ratio – 9.6% • Results helped by: – Securities gains (see

  4. Slide 4: Revenue vs. Q4

    First Quarter, 2007 Investor Presentation CIBC Revenue F ‘06 F ‘07 vs. Q4 ($MM) Q3 Q4 Q1 A • lower net interest (1) Net Interest Income 1,121 1,130 A 1,059 income due to funding Fees for Services costs and changes re. Underwriting and Advisory 137 165 B 185 new FI standard Deposit and Payment 201 19

  5. Slide 5: Expenses

    First Quarter, 2007 Investor Presentation CIBC Expenses F ‘06 F ‘07 ($MM) Q3 Q4 Q1 vs. Q4 Employee Comp. and • Higher compensation Benefits 1,090 1,064 1,160 (includes higher revenue-driven costs Occupancy Costs 136 136 150 and 1 month of FirstCaribbean) Computer and Office • Lower cost technology E

  6. Slide 6: Retail Markets

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue ($MM) 2,068 (1) 2,038 2,046 2,151 1,975 Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Affected by an Item of Note, see Slide 49 for details. 11 CIBC Retail Markets Revenue Components F ‘06 F ‘07 ($MM) Q1 Q2 Q3 Q4 Q1 Personal & Small Business Ban

  7. Slide 7: Retail Markets Revenue Components

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 Personal & Small ($MM) Q1 Q2 Q3 Q4 Q1 Business Banking Personal & Small vs. Q4: Business Banking 510 490 533 522 517 + deposit balances up Imperial Service 230 227 242 230 237 Retail Brokerage 297 319 275 29

  8. Slide 8: Retail Markets Revenue Components

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 ($MM) Q1 Q2 Q3 Q4 Q1 Retail Brokerage Personal & Small vs. Q4: Business Banking 510 490 533 522 517 + new issues up Imperial Service 230 227 242 230 237 + trading volumes up + annuitized revenue up Retail Br

  9. Slide 9: Retail Markets Revenue Components

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Revenue Components F ‘06 F ‘07 Mortgages & Personal ($MM) Q1 Q2 Q3 Q4 Q1 Lending Personal & Small vs. Q4: Business Banking 510 490 533 522 517 + securitization revenue up Imperial Service 230 227 242 230 237 + mortgage balances up Retail

  10. Slide 10: Retail Markets Net Income

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Net Income ($MM) (1) 530 vs. Q4 487 (1) 501 + revenue up $105MM 438 432 (1) + expenses down, adjusting for FirstCaribbean – higher loan losses (vs. low Q4 levels) Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Affected by an Item of Note, see Slide 49 fo

  11. Slide 11: World Markets Revenue Components

    First Quarter, 2007 Investor Presentation CIBC World Markets Revenue Components F ‘06 F ‘07 ($MM) Q1 Q2 Q3 Q4 Q1 Capital Markets 371 354 325 351 449 Investment Banking & (1) (1) (1) (1) Credit Products 237 119 217 242 204 Commercial Banking 124 119 126 125 121 Merchant Banking 12 69 90 61 77 (1) Oth

  12. Slide 12: World Markets Revenue Components

    First Quarter, 2007 Investor Presentation CIBC World Markets Revenue Components F ‘06 F ‘07 Investment Banking & ($MM) Q1 Q2 Q3 Q4 Q1 Credit Products Capital Markets 371 354 325 351 449 vs. Q4: Investment Banking & (1) + new issues up (1) (1) (1) Credit Products 237 119 217 242 204 Commercial Bankin

  13. Slide 13: World Markets Net Income

    First Quarter, 2007 Investor Presentation CIBC World Markets Net Income ($MM) (1) 218 (1) 210 (1) 190 vs. Q4 (2) + revenue up $72MM + loan loss recoveries 128 (1) 110 – expenses up –compensation Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Affected by an Item of Note, see Slides 48 and 49 for details. (2) Taxable

  14. Slide 14: Retail Markets ROE & Cash Efficiency

    First Quarter, 2007 Investor Presentation CIBC Retail Markets ROE & Cash Efficiency (NIX) Ratio(1) (%) (2) 51 (2) 55 (2) 55 46 47 ROE 63 61 61 NIX 60 60 Q1 Q2 Q3 Q4 Q1 (2) F ‘06 F ‘07 (1) Non-GAAP financial measures, see Slide 50. (2) Affected by an Item of Note, see Slides 48 and 49 for details. 27

  15. Slide 15: Retail Markets Loan Balances

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Loan Balances(1) ($B; spot) 23.9 24.1 24.0 Personal 23.4 23.5 Loans 9.2 9.0 Small Bus. 8.6 8.2 7.9 Loans Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Excludes Retail Brokerage and FirstCaribbean. 29 CIBC Retail Markets Market Share(1)(2) (%) 14.6 14.4

  16. Slide 16: Retail Markets Market Share

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Market Share(1)(2)(3) (cont’d) (%) 18.3 18.2 Cards, 18.1 18.1 outstandings 18.0 Cards, 26.4 26.0 24.9 24.3 purchase 24.3 volumes (4) Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Source: CBA; excludes AMEX and proprietary cards. (2) Two month time lag.

  17. Slide 17: Fixed Term Investments & Market Share

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Fixed Term Investments & Market Share(1)(2) Fixed Term Investments Canadian Market Share(3) 50 25 41.3 42.2 Market Share (%) 39.3 40 36.6 37.8 20 $ Billions 30 16.1 16.1 16.3 16.6 16.9 15 20 10 10 0 5 Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Source

  18. Slide 18: Imperial Service

    First Quarter, 2007 Investor Presentation CIBC Retail Markets Discount Brokerage(1) Active Accounts Trades/Day 500 462 15 450 458 458 438 400 Thousands Thousands 10 300 11.5 8.9 9.3 7.9 200 7.2 5 100 0 0 Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Average over the quarter. 35 CIBC Retail Markets Wood Gundy(1) AU

  19. Slide 19: Earnings per Share by Type of Business

    First Quarter, 2007 Investor Presentation Earnings per Share(1)(2) by type of Business “Wholesale” “Retail”(3) ($) 0.50 0.50 0.32 0.27 0.26 1.48 1.63 1.34 1.42 1.23 Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) Excludes Items of Note (see Slides 48 and 49). (2) EPS shown here excludes earnings/losses not directly

  20. Slide 20: Retail plus Commercial Banking

    First Quarter, 2007 Investor Presentation CIBC Retail plus Commercial Banking(1) ($MM) (%) Revenue Cash Efficiency (NIX) Ratio (2) 2,272 2,192 2,164 2,171 2,094 60 62 61 61 59 Net Income ROE 569 (3) 54 (3) (3) (3) 531 544 51 (3) 54 471 459 45 45 (3) (3) Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 F ‘0

  21. Slide 21: World Markets Merchant Banking

    First Quarter, 2007 Investor Presentation CIBC World Markets Merchant Banking ($MM) 1,388 1,390 Q1/07 summary “Amortized Cost” “Amortized Cost” = $1,390MM as at January 31, 2007(1) Debt: 6% Equity: 21% Funds: 73% Q1 Q2 Q3 Q4 Q1 F ‘06 F ‘07 (1) “Book Value” on the Balance Sheet as at January 31, 2007

  22. Slide 22: Economic Profit

    First Quarter, 2007 Investor Presentation CIBC Economic Profit(1) F ‘06 F ‘07 ($MM) Q1 Q2 Q3 Q4 Q1 (2) (2) (2) CIBC Retail Markets 312 312 363 384 405 (2) (2) (2) (2) CIBC World Markets 64 50 128 154 146 (2) (2) (2) Corporate and Other 9 39 (19) 95 26 Total CIBC 385 401 472 633 577 (1) Non-GAAP fina

  23. Slide 23: Securities Gains

    First Quarter, 2007 Investor Presentation Securities Gains F ‘06 F ‘07 ($MM) Q4 Q1 vs. Q4 Realized net gains on available for + Merchant Banking n/a 132 sale securities gains net of write-downs Investment Securities Gains 27 n/a + Capital Markets • $26MM TSX gain Securities Gains included in Other l

  24. Slide 24: Tax Reconciliation – Q1/07

    First Quarter, 2007 Investor Presentation Tax Reconciliation – Q1/07 (A) (B) (B ÷ A) Net Income Tax ($MM) Tax Rate Before Tax Expense (1) Reported 1,005 231 23.0% TEB Adjustment 62 62 (2) (3) TEB 1,067 293 27.5% (2) (1) Currently expect to be in the 21 – 24% range over time. (2) Taxable equivalent b

  25. Slide 25: Items of Note – 2006

    First Quarter, 2007 Investor Presentation Items of Note – 2006 Pre-Tax After-Tax EPS Effect Strategic Business Unit Q4 2006 Effect ($MM) Effect ($MM) ($/share) Mark-to-Market on Corporate Loan Credit Derivative portfolio re. AcG-13 (13) (8) (0.02) World Mkts Reversal of General Allowance for Credit

  26. Slide 26: Risk Review

    First Quarter, 2007 Investor Presentation First Quarter, 2007 Risk Review Steven McGirr Senior Executive Vice-President and Chief Risk Officer Treasury and Risk Management Q1 Key Messages - Credit 166 131 143 ƒ Specific Loan Losses at $143MM – Up $12MM quarter-over-quarter, and down $23MM year-over-

  27. Slide 27: Specific Provision for Credit Losses

    First Quarter, 2007 Investor Presentation Specific Provision for Credit Losses ($MM) Retail Markets 400 World Markets 1.00% Other Expected Total Loss Ratio 108 Bank Range: 300 0.50% - 0.65% 0.75% 156 102 200 0.50% 171 266 100 89 0.25% 174 163 185 193 153 180 180 159 132 61 72 0 0.00% (4) (7) (1) (14

  28. Slide 28: Caribbean Balance Sheet

    First Quarter, 2007 Investor Presentation FirstCaribbean Balance Sheet $B Loan Portfolio Residential Mortgages 2.2 Personal & Credit Card 0.9 Business & Government 3.9 Gross Loan Portfolio 7.0 Gross Impaired Loans 0.3 Specific Allowance 0.1 Net Impaired Loans 0.2 55 Trading Revenue (TEB) vs. Risk (1

  29. Slide 29: Tier Ratio Movement in Q1

    First Quarter, 2007 Investor Presentation Tier 1 Ratio Movement in Q1 10.4% (1.37%) 0.67% (0.24%) 0.22% 9.6% (0.07%) Common Other Higher and RWAs FirstCaribbean Q1 Preferred (excl. Net Dividends FirstCaribbean) Income Q4 Q1 F ‘06 F ‘07 57 Appendix 29

  30. Slide 30: RWA and Capital Ratio Trends

    First Quarter, 2007 Investor Presentation RWA and Capital Ratio Trends ($B) 140 12.0% Risk Weighted Assets Tier 1 Capital 135 11.0% 130 10.0% 125 Tier 1 Capital 120 Target: 8.5% 9.0% 115 8.0% 110 7.0% 105 100 6.0% 1999 2000 2001 2002 2003 2004 2005 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 59 Loan Portfolio Mix

  31. Slide 31: Business & Government Loan Diversification

    First Quarter, 2007 Investor Presentation Business & Government Loan Diversification (Net Loans and Acceptances excl. Reverse Repos - $40.9B*) as at January 31, 2007 20% 18.8% Loans and Acceptances % of Business & Gov't 15% 13.2% 9.9% 10% 9.1% 8.0% 7.5% 7.3% 5% 4.0% 3.7% 3.5% 3.4% 3.4% 2.3% 2.0% 1.4

  32. Slide 32: Impaired Loans

    First Quarter, 2007 Investor Presentation Impaired Loans Gross Impaired Loans Net Impaired Loans (excluding General Allowance) NIL as a % of Total Loans and BAs 2.5 Net Impaired Loans as % of Loans & BAs (excl. Reverse Repos) 2.0% 1.8% 2.0 1.6% 1.4% 1.5 1.2% $B 1.0% 1.0 0.8% 0.6% 0.5 0.4% 0.2% 0.0 0

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