Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — CIBC — Q1 2014 Earnings Presentation

28 slides from Canadian Imperial Bank Of Commerce's earnings presentation, February 2014

  1. Slide 1: CIBC Investor Presentation First Quarter, 2014

    CIBC Investor Presentation First Quarter, 2014 February 2014

  2. 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

  3. Slide 3: CIBC Overview

    CIBC Overview Gerry McCaughey President and Chief Executive Officer

  4. Slide 4: First Quarter, 2014 Financial Review

    First Quarter, 2014 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer

  5. Slide 5: First Quarter, 2014 Summary

    First Quarter, 2014 Summary Q1 2014 Key Messages: Net Income ($MM) – Reported 1,177  Record quarterly earnings (1 ) Net Income ($MM) – Adjusted 951  Strong performance in Retail and Wholesale Banking Diluted EPS – Reported $2.88  Record revenue and earnings in Wealth Management (1 ) Diluted EPS –

  6. Slide 6: Retail & Business Banking

    Retail & Business Banking (1 ) Adjusted ($MM) Q1/13 Q4/13 Q1/14 (3) Personal Banking 1,482 1,555 1,585 Business Banking 383 386 380 (3) Other 145 146 102 Revenue 2,010 2,087 2,067 (3) Provision for Credit Losses 241 215 184 (3) (3) (3) Non-Interest Expenses 995 1,029 1,024 (1 ) Net Income – Adjusted

  7. Slide 7: Wealth Management

    Wealth Management (1 ) Adjusted ($MM) Q1/13 Q4/13 Q1/14 Retail Brokerage 259 272 284 (3) (3) Asset Management 144 167 174 Private Wealth Management 29 33 46 Revenue 432 472 504 Provision for (reversal of) Credit Losses - 1 (1) (3) Non-Interest Expenses 316 335 349 (1 ) Net Income – Adjusted 89 105 1

  8. Slide 8: Wholesale Banking

    Wholesale Banking Adjusted ($MM) (1 ) Q1/13 Q4/13 Q1/14 Capital Markets 327 279 330 Corporate & Investment Banking 211 246 250 (2) (2) (2) Other 13 13 14 Revenue (TEB) 551 538 594 Provision for (reversal of) Credit Losses 10 (1) 2 (2) (2) (2) Non-Interest Expenses 291 269 310 Net Income – Adjusted (

  9. Slide 9: Capital

    Capital Common Equity Tier 1 Ratio Risk-Weighted Assets (all-in basis) ($B; all-in basis) 137 141 134 126 126 9.6% 9.7% 9.3% 9.4% 9.5% Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 vs. Q4/13:  Variance in Common Equity Tier 1 Ratio: - Higher earnings, net of dividends and repurchase o

  10. Slide 10: First Quarter, 2014 Highlights

    First Quarter, 2014 Highlights CIBC  Record reported and adjusted earnings  Aventura launch exceeding expectations Retail & Business  Higher than market growth in CIBC Brand mortgages – up 11% YoY ex. FLM conversion Banking  Mutual Funds up 18% YoY and Deposits up 8% YoY  Record revenue and net

  11. Slide 11: First Quarter, 2014 Risk Review

    First Quarter, 2014 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer

  12. Slide 12: Provision for Credit Losses (Adjusted)

    Provision for Credit Losses (Adjusted) 400 400 300 300 ($MM) 200 200 338 310 307 308 317 283 295 275 265 262 271 244 100 218 100 0 0 (1) Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 vs. Q4/13:  Lower losses in CIBC FirstCaribbean  Recoveries in commercial banking  Good bankruptcy performance across

  13. Slide 13: Gross Impaired Loans and Additions

    Gross Impaired Loans and Additions Reported ($MM) Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Consumer 376 369 374 362 352 Business and Government 65 112 114 62 65 Total New Additions 441 481 488 424 417 Gross Impaired Loans (by geography) $1,749MM $1,692MM $1,623MM $1,587MM $1,547MM vs. Q4/13:  Lower new additi

  14. Slide 14: Cards

    Cards 200 6% 5% 160 4% 120 186 183 197 180 193 ($MM) 179 167 3% 156 154 80 142 142 127 113 2% 40 1% 0 0% (1) Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Adjusted Net Credit Losses (NCL) Adjusted NCL Rate(2) 30+ Days Delinquency Rate(3) Comments:  Credit quality of the portfolio continues to remain hi

  15. Slide 15: Canadian Residential Mortgage Portfolio Outstanding Balances

    Canadian Residential Mortgage Portfolio Outstanding Balances ($B) Canadian Residential Mortgage Portfolio: $146B $68B 32% $29B $23B 68% 36% 26% $15B $11B 24% 64% 28% 74% 72% 76% ON BC AB QC Other Insured Uninsured | 15

  16. Slide 16: Canadian Residential and Condo Mortgage Portfolios

    Canadian Residential and Condo Mortgage Portfolios Canadian Residential Mortgage Portfolio (includes Condo): $146B Canadian Condo Mortgage Sub-Portfolio: $16.6B Residential Mortgages Condo Mortgages (includes Condo) Uninsured 31% Average Uninsured 27% Average LTV(1) of LTV(1) of 60% 60% Insured 73%

  17. Slide 17: Canadian Condo Developer Exposure

    Canadian Condo Developer Exposure Canadian Condo Developer Portfolio: $2.7B $2.7B Undrawn 70% Drawn 30% As at January 31, 2014 | 17

  18. Slide 18: Trading Revenue and VaR Distribution

    Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Nov-13 Dec-13 Jan-14 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 28 for further details. (2) Trading revenue (TEB) compr

  19. Slide 19: Appendix

    CIBC a Appendix

  20. Slide 20: CIBC Statement of Operations

    CIBC Statement of Operations Reported ($MM) Q1/13 Q4/13 Q1/14 (2) (2) (2) Net Interest Income 1,855 1,893 1,905 (2) (2) (2) Non-Interest Income 1,310 1,287 1,729 Revenue 3,165 3,180 3,634 (2) Provision for Credit Losses 265 271 218 (2) (2) (2) Non-Interest Expenses 1,988 1,930 1,979 Income Before Ta

  21. Slide 21: Retail & Business Banking

    Retail & Business Banking Reported ($MM) Q1/13 Q4/13 Q1/14 (3) Personal Banking 1,482 1,555 1,576 Business Banking 383 386 380 (3) Other 145 146 299 Revenue 2,010 2,087 2,255 (3) Provision for Credit Losses 241 215 210 (3) (3) (3) Non-Interest Expenses 997 1,055 1,055 Income Before Taxes 772 817 990

  22. Slide 22: Wealth Management

    Wealth Management Reported ($MM) Q1/13 Q4/13 Q1/14 Retail Brokerage 259 272 284 (3) (3) Asset Management 144 165 172 Private Wealth Management 29 33 46 Revenue 432 470 502 Provision for (reversal of) Credit Losses - 1 (1) (3) Non-Interest Expenses 316 335 351 Income Before Taxes 116 134 152 Taxes 27

  23. Slide 23: Wholesale Banking

    Wholesale Banking Reported ($MM) Q1/13 Q4/13 Q1/14 Capital Markets 327 279 330 Corporate & Investment Banking 211 246 250 (2) (2) (2) Other 19 (5) 100 Revenue (TEB) 557 520 680 Provision for (reversal of) Credit Losses 10 (1) 2 (2) (2) (2) Non-Interest Expenses 445 271 329 Income Before Taxes 102 25

  24. Slide 24: Balances Retail & Business Banking and Wealth Management

    Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q1/13 Q4/13 Q1/14 Cards 15.1 14.7 13.5 CIBC Brand Mortgages 94.6 106.0 109.4 CIBC Brand Personal Lending 30.5 30.2 30.1 CIBC Brand Personal Deposits & GICs 83.9 85.8 86.9 Business Deposits 36.9 38.0 39.2 Business Lending 35.6

  25. Slide 25: First Quarter, 2014 - Structured Credit Run-off

    First Quarter, 2014 - Structured Credit Run-off Pre-tax Pre-Tax After-tax EPS Q1/11 Effect Q4/11 After-Tax Effect Effect Q1/12 EPS Effect Effect Effect ($MM) ($MM) ($MM) ($/Share) ($MM) ($/share) Credit Valuation Adjustments with Financial Guarantors 8 6 0.02 Purchased Credit Derivatives Hedging Loa

  26. Slide 26: 2014 Items of Note

    2014 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 Q1 2014 Gain relating to the Aeroplan transaction, as well as costs relating to the Retail & Business Bankin

  27. Slide 27: 2013 Items of Note

    2013 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 Q4 2013 Restructuring charge relating to CIBC FirstCaribbean (39) (37) (0.09) Corporate & Other Impairment o

  28. Slide 28: Non-GAAP Financial Measures

    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 26 and

CIBC — Q1 2014 Earnings Presentation on 6ix