Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q3 2016 Earnings Presentation
29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Aug 25, 2016
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation Third Quarter, 2016 August 25, 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: Third Quarter, 2016 Financial Review
Third Quarter, 2016 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: Third Quarter, 2016 Summary
5 Third Quarter, 2016 Summary Q3/15 Q2/16 Q3/16 Net Income ($MM) - Reported (1) 978 941 1,441 • Record Net Income (2) Net Income ($MM) - Adjusted 990 962 1,072 • Strong YoY EPS growth Diluted EPS - Reported $2.42 $2.35 $3.61 • Continued improvement in efficiency Diluted EPS - Adjusted (2) $2.45 $2.4
Slide 6: Retail & Business Banking
6 Retail & Business Banking Adjusted ($MM) (1) Q3/15 Q2/16 Q3/16 • Strong and broad-based YoY volume Personal Banking 1,686 1,713 1,779 growth Business Banking 410 423 435 − Personal deposits up 7% Other 22 14 11 Revenue 2,118 2,150 2,225 − Mortgages up 9% Provision for Credit Losses 165 199 197 − B
Slide 7: Wealth Management
7 Wealth Management Adjusted ($MM) (1) Q3/15 Q2/16 Q3/16 • Lower transactional volumes in Retail Retail Brokerage 326 312 317 Brokerage Asset Management 180 179 196 Private Wealth Management 93 91 94 Other 31 1 - • Strong revenue growth in Asset Revenue 630 583 607 Management driven by higher AUM No
Slide 8: Capital Markets
8 Capital Markets Adjusted ($MM) (1) Q3/15 Q2/16 Q3/16 • Strong client-driven revenue growth Global Markets 363 469 415 across interest rate, FX and equity Corporate & Investment Banking 324 296 364 trading Other 6 (9) (1) Revenue (2) 693 756 778 Provision for Credit Losses 10 81 7 • Higher Corporat
Slide 9: Corporate & Other
9 Corporate & Other Adjusted ($MM) (1) Q3/15 Q2/16 Q3/16 International Banking 174 175 176 • Higher YoY earnings from CIBC Other (91) (86) (109) (2) FirstCaribbean driven by improved Revenue 83 89 67 Provision for (Reversal of) credit performance 14 4 (1) Credit Losses Non-Interest Expenses 298 269
Slide 10: Capital
10 Capital Common Equity Tier 1 (CET1) Ratio (all-in basis) • Basel III CET1 ratio of 10.9%, up 50bps − Reflecting divestiture of our investment in ACI − Strong internal capital generation Partly offset by: − Business growth, standardized floors applied to our operational risk model and impact of a
Slide 11: Third Quarter, 2016 Risk Review
Third Quarter, 2016 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 12: Provision for Credit Losses
12 Provision for Credit Losses Adjusted ($MM) (1) Q3/15 Q2/16 Q3/16 vs. Q2/16: Retail and Business Banking 165 199 197 Wealth Management - - - • Lower loan losses in the oil & Capital Markets 10 81 7 gas portfolio CIBC FirstCaribbean 10 4 3 Collective Provision for Non-Impaired 4 - (4) • Loan losses
Slide 13: Impaired Loans and Formations
13 Impaired Loans and Formations Reported ($MM) Q3/15 Q2/16 Q3/16 • New formations down QoQ Consumer 293 334 291 Business and Government 24 691 283 • Gross impaired loans down QoQ, Total New Formations 317 1,025 574 largely due to: − Improvement in the oil & gas Gross and Net Impaired Loans ($MM) se
Slide 14: Oil & Gas Corporate & Business Banking Exposure
Oil & Gas Corporate & Business Banking 14 Exposure Direct Exposure(1) ($B) • $17.2B of direct exposure(1), up 18.7 from $16.5B last quarter 17.4 17.3 16.5 17.2 − 68% of this is investment grade • $7.1B drawn exposure(1), up from $6.6B last quarter − 57% of this is investment Q3/15 Q4/15 Q1/16 Q2/16
Slide 15: Oil & Gas Retail Exposure
15 Oil & Gas Retail Exposure Outstandings ($MM) • $40B of retail exposure to oil Mortgages HELOC Other (1) provinces (or $19B excluding Insured Uninsured insured mortgages) Alberta 16,644 8,150 2,737 3,690 Saskatchewan & Newfoundland 4,282 2,110 707 1,411 − Alberta accounts for $31B or Total 20,926
Slide 16: Canadian Credit Cards and Unsecured Personal Lending
Canadian Credit Cards and Unsecured 16 Personal Lending Credit Cards(1) • Canadian credit cards and 3.1% 2.9% 3.0% 3.8% 3.4% unsecured personal lending loss 0.6% 0.8% 0.8% 0.8% rates up YoY, mainly driven by the 0.6% oil provinces 11.6 11.7 11.7 11.8 11.9 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 (2) (3) Spot O
Slide 17: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage 17 Portfolios ($B) Q3/15 Q2/16 Q3/16 • Canadian residential mortgage Residential Mortgages (excludes Condos) 141 150 155 portfolio (includes condos) was Condo Mortgages 18 19 20 $175B Total Canadian Residential Mortgages 159 169 175 − 57% insured; average LTV(
Slide 18: Canadian Uninsured Mortgages and HELOC
18 Canadian Uninsured Mortgages and HELOC Uninsured Mortgages(1) • Loss rates of both Canadian 0.2% 0.2% 0.2% 0.2% 0.2% uninsured mortgages and HELOC 0.02% 0.02% 0.02% 0.02% 0.02% continue to remain low and stable 65 67 75 55 59 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 (2) (3) Spot Outstandings ($B) 90+ Days D
Slide 19: Trading Revenue and 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) May-16 Jun-16 Jul-16 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 29 for further details. 2 Trading revenue (TEB) comprises both trading net interest income and no
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) +9% +8% +3% +1% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 9% 2% Personal Deposits & GICs 7% 1% Personal Loans 3% 2% Business Deposits & GICs 10% 2% Credit Card 3% 3% Business Lending 14%
Slide 22: Wealth – Mutual Funds & Client Asset Balances
22 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +4% +5% AUA ($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) Q3/15 Q2/16 Q3/16 Personal Banking 1,686 1,713 1,779 Business Banking 410 423 435 Other 22 14 11 Revenue 2,118 2,150 2,225 Provision for Credit Losses 165 199 197 Non-Interest Expenses 1,096 1,105 1,121 Income Before Income Taxes 857 846 907 Income Taxes 2
Slide 24: Wealth Management
24 Wealth Management Reported ($MM) Q3/15 Q2/16 Q3/16 Retail Brokerage 326 312 317 Asset Management 180 179 196 Private Wealth Management 93 91 94 Other 29 1 428 Revenue 628 583 1,035 Non-Interest Expenses 443 432 438 Income Before Income Taxes 185 151 597 Income Taxes 45 38 91 Net Income - Reported
Slide 25: Capital Markets
25 Capital Markets Reported ($MM) Q3/15 Q2/16 Q3/16 Global Markets 363 469 415 Corporate & Investment Banking 324 296 364 Other 4 (15) 30 Revenue (1) 691 750 809 Provision for Credit Losses 10 81 47 Non-Interest Expenses 339 351 370 Income Before Income Taxes 342 318 392 (1) Income Taxes 77 66 88 Ne
Slide 26: Corporate & Other
26 Corporate & Other Reported ($MM) Q3/15 Q2/16 Q3/16 International Banking 174 175 176 Other (91) (27) (109) Revenue (1) 83 148 67 Provision for (Reversal of) 14 44 (1) Credit Losses Non-Interest Expenses 301 354 289 Loss Before Income Taxes (232) (250) (221) Income Taxes (1) (175) (174) (186) Net
Slide 27: Provision for Credit Losses
27 Provision for Credit Losses Reported ($MM) Q3/15 Q2/16 Q3/16 Retail and Business Banking 165 199 197 Wealth Management - - - Capital Markets 10 81 47 CIBC FirstCaribbean 10 4 3 Collective Provision for Non-Impaired 4 40 (4) Corporate and Other 14 44 (1) Total Provision for Credit Losses 189 324 2
Slide 28: Q3 2016 Items of Note
28 Q3 2016 Items of Note Pre-Tax After-Tax & EPS Reporting Effect NCI Effect Effect Segments ($MM) ($MM) ($/Share) Q3 2016 Gain, net of related transaction costs, on the sale of our (428) (383) (0.97) Wealth Management minority investment in ACI Loan losses in our exited European leveraged finance 4
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