Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Investor Presentation (September 2014)
32 slides from Canadian Imperial Bank Of Commerce's investor presentation, September 2014
Slide 1: An Investment Community Introduction to CIBC
An Investment Community Introduction to CIBC September 2014 1
Slide 2: A Note about 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 presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in othe
Slide 3: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 3
Slide 4: Canadian Economy
Canadian Economy On track to eliminate deficit by fiscal Canadian Federal Budget Balance ($B)1,2 year 2015 20.0 Projections 8.1 8.1 10.3 6.4 10.0 0.0 Strong record of economic growth -10.0 -2.9 -20.0 -18.9 -16.6 -30.0 -26.3 -40.0 -33.4 The best job creation record of any -50.0 -60.0 -55.6 Grou
Slide 5: Canadian Banking System
Canadian Banking System Strong regulator (OSFI) with a clear Canadian Banks Common Equity Tier 1 Ratio mandate (safety and soundness) Canadian banks weathered the global recession very well (no systemic support and no dividend cuts) Capital levels are well above regulatory requirements and glo
Slide 6: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business banking Wealth Management Wholesale Banking 6
Slide 7: About CIBC
About CIBC CIBC (CM: TSX; NYSE) Canadian-based global financial institution Senior Deposit Ratings Three major operating groups: Moody’s Aa3 Retail and Business Banking S&P A+ Wealth Management Wholesale Banking Fitch AA- 45,161 employees DBRS AA 11 million individual, small business,
Slide 8: CIBC's Balanced Scorecard
CIBC’s Balanced Scorecard Our key measures of performance(1) 2013 results(2) $8.65, up 8% (3) Adjusted earnings per share (EPS) growth from 2012 Adjusted return on common shareholders’ equity (ROE)(3) 22.9% Capital strength Basel III Common Equity Tier 1 ratio 9.4% Business mix Retail/Wholesale as m
Slide 9: Earnings per Share
Earnings per Share Adjusted 8.65 7.98 7.57 6.45 5.88 Reported 8.11 7.76 6.71 5.95 2.73 2009 2010 2011 2012 2013 Canadian GAAP IFRS Diluted, cash basis. Non-GAAP measures. See slides 31-32. 9
Slide 10: Return on Equity
Return on Equity Adjusted Reported Canadian GAAP IFRS Adjusted Return on Equity is a non-GAAP measure. See slides 31-32. 10
Slide 11: Total Shareholder Return
Total Shareholder Return Rank #5 #1 #1 #5 #3 #1 #3 #3 #5 #3 #1 #5 Fiscal year. Rank among big 5 Canadian banks (BMO, BNS, CM, RY, TD). 11
Slide 12: CIBC is proud to be recognized by:
CIBC is proud to be recognized by: Ranked as One of the Ranked top Canadian Bank One of the 25 Best CIBC Executive Among World’s Strongest Banks for Mobile Banking Canadian Brands Canada’s Most Powerful Women One of the 50 Most One of the Best An Imagine Engaged Workplaces Workplaces in Canada Carin
Slide 13: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 13
Slide 14: Retail and Business Banking Business Overview
Retail and Business Banking Business Overview Retail and Business Banking Personal Banking Business Banking Deposits Deposits – Chequing – Cash Management – Savings – GICs – GICs Lending Lending – Mortgages – Mortgages – Lines/Loans – Credit Cards – Asset-Based – Lines/Loans Lending 14
Slide 15: Retail and Business Banking Strategic Framework
Retail and Business Banking Strategic Framework Accelerate Profitable Revenue Growth Objective + Enhance Client Experience Shift from a Product to a Paradigm Shift Client-Centric Focus Deepen Client Relationships Priorities Sell Improve Sales & Acquire & Retain Service Clients Capabilities Serve Gro
Slide 16: Retail and Business Banking Balances
Retail and Business Banking Balances Balances (1) ($B) Q3/13 Q2/14 Q3/14 Cards 14.8 11.3 11.5 CIBC Brand Mortgages 100.8 111.7 115.5 CIBC Brand Personal Lending 30.3 30.3 30.6 CIBC Brand Personal Deposits & GICs 85.0 87.4 87.9 Business Deposits 36.7 40.7 42.5 Business Lending 36.7 38.0 38.6 Mutual F
Slide 17: Strength in Retail & Business Banking
Strength in Retail & Business Banking A culture of innovation: 1st to mobile banking, mobile brokerage, and mobile payments 1st of Big 5 to launch eDeposit for personal and business banking clients Expanded Aventura travel rewards program Strategic partnerships with GTAA, Tim Hortons 3rd l
Slide 18: Retail and Business Banking Revenue and Profitability
Retail and Business Banking Revenue and Profitability Revenue ($MM) Net Income ($MM)1 2,067 2,032 628 1,942 597 563 Q3 2013 Q2 2014 Q3 2014 Q3 2013 Q2 2014 Q3 2014 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 18
Slide 19: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 19
Slide 20: Wealth Management Business Overview
Wealth Management Business Overview Wealth Management Private Wealth Retail Brokerage Asset Management Management Full-Service Brokerage Investment Private Banking Management Self-Directed Brokerage Estates & Trust - Mutual Funds Administration - Portfolio Products Discretionary Instit
Slide 21: Wealth Management Making Good Progress Against Strategic Priorities
Wealth Management Making Good Progress Against Strategic Priorities Canada U.S. Retail & Innovative Full service High-net-worth Leading U.S. institutional solutions for advice for high- private banking private wealth asset self-directed net-worth & discretionary manager management investor
Slide 22: Wealth Management Pursuing Three Strategic Objectives to Grow Our Business
Wealth Management Pursuing Three Strategic Objectives to Grow Our Business Today Objectives to Achieve our Vision Our Vision Canadian-focused Leader in wealth wealth management management firm solutions for high-net- 1 Enhance experience for existing clients to further strengthen worth individua
Slide 23: Wealth Management Revenue and Profitability
Wealth Management Revenue and Profitability Revenue ($MM)1 Net Income ($MM)1 569 121 124 550 458 103 Q3 2013 Q2 2014 Q3 2014 Q3 2013 Q2 2014 Q3 2014 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 23
Slide 24: Wealth Management Wood Gundy Balances
Wealth Management Wood Gundy Balances ($B) Mutual Fund Balances ($B) 140.0 76.4 120.3 63.8 #2 #4 Market Market Position1 Position1 Q3 2013 Q3 2014 Q3 2013 Q3 2014 WM Revenue ($MM)2 WM Net Income ($MM)2 1,805 389 1,637 301 FY 2012 FY 2013 FY 2012 FY 2013 1 Industry ranking for Wood Gundy is as at Mar
Slide 25: Contents
Contents Canadian Economy and Banking System CIBC Corporate Overview CIBC Core Businesses Overview Retail and Business Banking Wealth Management Wholesale Banking 25
Slide 26: Wholesale Banking Business Overview
Wholesale Banking Business Overview Wholesale Banking Global Global Global Capital Markets Investment Banking1 Corporate Banking1 Debt & Equity Debt & Equity Corporate Cash Underwriting Underwriting Management Commodities Mergers and Corporate Lending Acquisitions (M&A) and Syndicated Lo
Slide 27: Wholesale Banking Strategy and Priorities
Wholesale Banking Strategy and Priorities To be a leading Wholesale Bank in Canada and core Canadian Goal industries in the rest of the world, recognized as a preferred financial partner for energy, mining and infrastructure clients We deliver differentiated products and services to targeted cli
Slide 28: Wholesale Banking Revenue and Profitability
Wholesale Banking Revenue and Profitability Revenue (TEB, $MM)1 Net Income ($MM)1 609 619 254 596 228 218 Q3 2013 Q2 2014 Q3 2014 Q3 2013 Q2 2014 Q3 2014 (1) Non-GAAP measures which excludes items of note as referenced in our quarterly Report to Shareholders. 28
Slide 29: Wholesale Banking Delivering Value to Clients and Supporting Growth
Wholesale Banking Delivering Value to Clients and Supporting Growth Strategic Focus Areas Core Canadian business Energy Infrastructure Mining E-Business platform – @ CIBC Investing in talent 29
Slide 30: Notes to Users
Notes to Users Non-GAAP measures We use a number of financial measures to assess the performance of our business lines as described below. Some measures are calculated in accordance with GAAP (IFRS), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures
Slide 31: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) 2012 Reported net income attributable to diluted common shareholders 3,136 7.76 (Revenue)/Loss re. Structured Credit (Wholesale Banking) (1) (0.00) Expenses re. Structured Credit (Wholesale Banking) 16 0.04 Gains re. equi
Slide 32: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures CIBC CIBC Net Income EPS ($MM) ($) Q1 2014 Reported net income attributable to diluted common shareholders 1,149 2.88 (Revenue)/Loss re. Structured Credit (Wholesale Banking) 8 0.02 Decrease in the collective allowance (Corp & Other) (19) (0.05) Charge res
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