Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q1 2015 Earnings Presentation
32 slides from Canadian Imperial Bank Of Commerce's earnings presentation, February 2015
Slide 1: CIBC Investor Presentation
CIBC Investor Presentation First Quarter, 2015 February 2015
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
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: First Quarter, 2015 Financial Review
First Quarter, 2015 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 5: First Quarter, 2015 Summary
First Quarter, 2015 Summary Q3 Q1/14 2014 Q1/15 Key Messages: Net Income ($MM) – Reported 1,177 923 Net Income ($MM) – Adjusted (1 ) 951 956 Strong volume growth in Retail Solid asset growth in Wealth Management Diluted EPS – Reported $2.88 $2.28 Diluted EPS – Adjusted (1 ) $2.31 $2.36 Record
Slide 6: Retail & Business Banking
Retail & Business Banking (1 ) Adjusted ($MM) Q1/14 Q4/14 Q1/15 Personal Banking 1,582 1,632 1,623 Business Banking 380 393 402 Other 102 27 22 Revenue 2,064 2,052 2,047 Provision for Credit Losses 184 171 164 Non-Interest Expenses 1,021 1,059 1,054 (1 ) Net Income – Adjusted 643 616 618 Net Income
Slide 7: Wealth Management
Wealth Management Adjusted ($MM) (1 ) Q1/14 Q4/14 Q1/15 Retail Brokerage 284 302 302 Asset Management 174 206 210 Private Wealth Management 46 79 109 Revenue 504 587 621 Reversal of Credit Losses (1) - - Non-Interest Expenses 349 424 444 (1 ) Net Income – Adjusted 117 124 132 Net Income – Reported 1
Slide 8: Wholesale Banking
Wholesale Banking (1 ) Adjusted ($MM) Q1/14 Q4/14 Q1/15 Capital Markets 330 308 395 Corporate & Investment Banking 250 265 279 Other 14 4 20 (2 ) Revenue 594 577 694 Provision for Credit Losses 2 14 14 Non-Interest Expenses 310 292 327 (1 ) Net Income – Adjusted 215 216 271 Net Income – Reported 264
Slide 9: Corporate & Other
Corporate & Other (1 ) Adjusted ($MM) Q1/14 Q4/14 Q1/15 International Banking 154 150 161 Other (38) (35) (119) (2 ) Revenue 116 115 42 Provision for Credit Losses 33 9 9 Non-Interest Expenses 241 288 276 (1 ) Net Income (Loss) – Adjusted (24) (45) (65) Net Income (Loss) – Reported 53 (46) (130) vs.
Slide 10: Capital
Capital Common Equity Tier 1 Ratio Risk-Weighted Assets (all-in basis) ($B; all-in basis) 141 141 147 136 140 10.3% 10.3% 10.1% 10.0% 9.5% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 vs. Q4/14: vs. Q4/14: Variance in Common Equity Tier 1 Ratio: Increase in RWAs: Strong internal
Slide 11: First Quarter, 2015 Highlights
First Quarter, 2015 Highlights Record quarterly adjusted earnings CIBC Strong financial results across all businesses Highest revenue on record in Business Banking, with strong volume growth Retail & Business Banking Strong YoY growth in CIBC brand products of 10% Strong asset growth from
Slide 12: First Quarter, 2015 Risk Review
First Quarter, 2015 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 13: Provision for Credit Losses (Adjusted)
Provision for Credit Losses (Adjusted) (1) Adjusted ($MM) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Retail and Business Banking 184 173 177 171 164 Wealth Management (1) 1 - - - Wholesale Banking 2 (1) 6 14 14 CIBC FirstCaribbean 33 24 26 17 13 Collective Provision for Non-Impaired - (12) (14) (8) (4) Corporate
Slide 14: Impaired Loans and Formations
Impaired Loans and Formations Reported ($MM) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Consumer 352 291 308 299 288 Business and Government 65 46 53 25 37 Total New Formations 417 337 361 324 325 Gross and Net Impaired Loans (by geography) 1,587 1,561 1,521 1,492 1,434 vs. Q4/14: New formations 1,012 relative
Slide 15: Oil & Gas Portfolio
Oil & Gas Portfolio Direct Exposure(1) Comments: Downstream 4% $16.7B of direct exposure(1); $6.8B Integrated drawn(1) 11% About 80% of direct exposure(1) is to investment grade names Exploration & Midstream Production 18% $29.7B of indirect exposure to 58% Alberta (or $12.8B excluding insured
Slide 16: Cards
Cards 200 6% 5% 160 193 4% 120 ($MM) 179 167 3% 156 154 80 142 142 127 2% 113 99 102 96 40 90 1% 0 0% Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 (1) (1, 2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate Comments: Credit quality of the portfolio continues to remain
Slide 17: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage Portfolios Canadian Residential Mortgage Portfolio (includes Condo): $153B Residential Mortgages Residential Mortgages Composition (includes condos) Average Uninsured 33% LTV(1) of 60% Condo Residential Mortgage Mortgages $17B (excludes Condo) $136B Insured 67
Slide 18: Canadian Condo Developer Exposure
Canadian Condo Developer Exposure Canadian Condo Developer Portfolio: $2.9B 2.9 2.9 3.0 3.0 2.8 2.8 2.9 2.7 2.6 0.9 0.9 1.0 0.8 0.9 1.1 0.8 0.8 1.0 ($B) 2.0 2.0 2.0 2.1 1.9 2.0 1.8 1.8 1.8 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Undrawn Drawn Number of Projects: 73 75 78 79 70 73 80 88 86 | 18
Slide 19: Trading Revenue (TEB) Distribution
Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Nov-14 Dec-14 Jan-15 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 32 for further details. (2) Trading r
Slide 20: Appendix
—_ Appendix
Slide 21: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q1/14 Q4/14 Q1/15 (2) (2) (2) Net Interest Income 1,905 1,881 1,956 (2) (2) (2) Non-Interest Income 1,726 1,332 1,503 Revenue 3,631 3,213 3,459 (2) Provision for Credit Losses 218 194 187 (2) (2) (2) Non-Interest Expenses 1,976 2,083 2,195 Income Before Ta
Slide 22: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q1/14 Q4/14 Q1/15 (3) (3) (3) Personal Banking 1,573 1,629 1,669 Business Banking 380 393 402 (3) (3) Other 299 24 22 Revenue 2,252 2,046 2,093 (3) Provision for Credit Losses 210 171 164 (3) (3) (3) Non-Interest Expenses 1,052 1,072 1,056 Income Before Taxes
Slide 23: Wealth Management
Wealth Management Reported ($MM) Q1/14 Q4/14 Q1/15 Retail Brokerage 284 302 302 (3) (3) (3) Asset Management 172 203 208 Private Wealth Management 46 79 109 Revenue 502 584 619 Reversal of Credit Losses (1) - - (3) (3) (3) Non-Interest Expenses 351 428 447 Income Before Taxes 152 156 172 Taxes 38 37
Slide 24: Wholesale Banking
Wholesale Banking Reported ($MM) Q1/14 Q4/14 Q1/15 (3) Capital Markets 330 196 395 (3) Corporate & Investment Banking 250 265 302 Other 100 (3) 7 (3) 9 (3) (1 ) Revenue 680 468 706 Provision for Credit Losses 2 14 14 Non-Interest Expenses 329 (3) 293 (3) 328 (3) Income Before Taxes 349 161 364 (1 )
Slide 25: Corporate & Other
Corporate & Other Reported ($MM) Q1/14 Q4/14 Q1/15 International Banking 154 150 161 Other 43 (3) (35) (120) (3) (1 ) Revenue 197 115 41 Provision for Credit Losses 7 9 9 Non-Interest Expenses 244 (3) 290 (3) 364 (3) Income Before Taxes (54) (184) (332) (1 ) Taxes (107) (138) (202) Net Income (Loss)
Slide 26: Balances
Balances Retail & Business Banking and Wealth Management Balances (1) ($B) Q1/14 Q4/14 Q1/15 Cards 13.5 11.5 11.6 CIBC Brand Mortgages 109.4 120.5 124.8 CIBC Brand Personal Lending 30.1 30.9 31.1 CIBC Brand Personal Deposits & GICs 86.9 89.1 91.5 Business Deposits 39.2 42.6 43.8 Business Lending 37.
Slide 27: First Quarter, 2015 - Structured Credit Run-off
First Quarter, 2015 - 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 2 1 0.00 Purchased Credit Derivatives Hedging Loa
Slide 28: Loans and Acceptances
Loans and Acceptances(1) Reported ($MM) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Residential Mortgages 151,785 152,343 154,801 157,317 159,768 Personal 33,918 34,293 34,632 34,998 35,213 Credit Card 11,004 11,131 11,167 11,243 11,179 Net Consumer Loans 196,707 197,767 200,600 203,558 206,160 Non-Residential Mo
Slide 29: Provision for Credit Losses
Provision for Credit Losses Reported ($MM) Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 (1) Retail and Business Banking 210 173 177 171 164 Wealth Management (1) 1 - - - (1) Wholesale Banking 2 21 6 14 14 (1) CIBC FirstCaribbean 33 131 26 17 13 (1) (1) Collective Provision for Non-Impaired (26) 4 (14) (8) (4) Corp
Slide 30: 2015 Items of Note
2015 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 2015 (1) Beginning in the fourth Gain arising from accounting adjustments on credit card-related balance
Slide 31: 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 Q4 2014 (1) Beginning in the fourth Charge relating to the incorporation of funding valuation adjustments (F
Slide 32: 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 30 and