Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q1 2025 Earnings Presentation
57 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 27, 2025
Slide 1: Quarterly Results Presentation First Quarter 2025
Quarterly Results Presentation First Quarter 2025 February 27, 2025 All amounts are in Canadian dollars unless otherwise indicated.
Slide 2: Forward-Looking Statements
Forward-Looking Statements First Quarter 2025 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 investor presentation, in other filings with Canadian securities regulators or
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President & Chief Executive Officer
Slide 4: Q1/25 Overview
Q1/25 Overview Record performance underpinned by our client-focused strategy and financial strength FI NAN CIAL RE SU LTS CAP ITAL STR E N GTH Diluted EPS ROE4 Revenue Adjusted1,2 $2.20 | +22% YoY Adjusted2,5 15.3% | +150 bps YoY Adjusted2 $7.3B | +17% YoY Reported $2.19 | +24% YoY Reported 15.2% |
Slide 5: Roadmap to Achieving Our Through-the-Cycle ROE Target
Roadmap to Achieving Our Through-the-Cycle ROE Target Driving towards a premium ROE through disciplined execution of our strategy Our Strategic Priorities Grow Our Mass Affluent & Medium-Term ROE Drivers Private Wealth Franchise Deeper Client Relationships Expand Our Digital-First Personal Banking C
Slide 6: Canadian Personal and Business Banking
Canadian Personal and Business Banking Focused on deepening client relationships as we grow our business Key Highlights Revenue ($MM) +9% Mass Affluent1 households represent… 2,923 2,679 4.5x ~80% c Faster 40% of Total Bank of total Investable Assets2 than the rest of the and is growing…. client bas
Slide 7: North American Commercial Banking
North American Commercial Banking1 Strong growth on both sides of the balance sheet, and improved credit performance Commercial Banking Loans2,3 Commercial Banking Deposits2 Revenue1 ($MM) YoY YoY +14% 1,242 100 +8% 1,094 93 97 101 +10% 92 97 17% of Total Bank 35 37 37 +5% 26 28 30 +16% Q1/24 Q4/24
Slide 8: North American Wealth Management
North American Wealth Management1 Strong markets and net sales fuel AUA growth Assets Under Administration2,3 ($B) Revenue1 ($MM) +23% +29% 44 681 1,286 85 996 552 18% of Total Bank Q1/24 Q1/25 Q1/24 Market Driven Net Sales Q1/25 Net Income1 ($MM) +40% 301 #1 8% #1 +4% 215 In long-term mutual fund n
Slide 9: Capital Markets
Capital Markets Expanding cross-sell opportunities and deepening client relationships Key Highlights Adjusted Revenue1 ($MM) +25% +36% +41% 1,574 1,258 Global Markets revenue U.S. region revenue growth YoY (adjusted)1 growth YoY 22% of Total Bank Best Investment Bank 32% Q1/24 Q1/25 Reported: $1,310
Slide 10: In Closing
In Closing Executing on our client-focused strategy and committed to delivering strong shareholder returns Proactively managing Well-positioned to Record earnings with our business and execute on our strategy to prudent reserve build helping clients achieve deliver relative and robust balance their
Slide 11: Financial Overview
Financial Overview Robert Sedran Senior Executive Vice-President & Chief Financial Officer
Slide 12: Q1/25 Results Snapshot
Q1/25 Results Snapshot First quarter results demonstrate continued momentum and strong execution Diluted Earnings Per Share Return on Equity Revenue Operating Leverage1 Reported $2.19 Reported 15.2% $7.3B Reported 5.1% +17% YoY Adjusted2 $2.20 Adjusted2 15.3% Reported & Adjusted2 Adjusted2,3 1.9% PP
Slide 13: Financial Overview
Financial Overview Record revenues and double-digit net income and PPPT growth Reported ($MM) Q1/25 YoY QoQ Q1/25 YoY Highlights: Revenue 7,281 17% 10% Revenue Non-Trading Net Interest Income 4,118 19% 5% • Broad-based revenue growth of 17% driven by margin expansion, volume Non-Trading Non-Interest
Slide 14: Net Interest Income (NII)
Net Interest Income (NII) NII (ex-trading) grew 19% YoY, continuing to benefit from margin expansion and balance sheet growth Net Interest Income Total Bank NIM (ex. Trading)3,4 +17 bps YoY 1.86% 1.89% +3 bps 1.72% 1.50% YoY 1.50% 5 bps 0 bps 1.43% 3,801 +17% 1.89% 3,633 3,249 (303) (317) (2) bps 1.
Slide 15: Non-Interest Income
Non-Interest Income Strong growth driven by trading momentum and higher market-related fees Non-Interest Income by Category ($MM)4 Market-Related Fees4 Transactional Fees4 +17% 3,480 YoY Other 7% 2,972 2,984 1,130 +33% Investment Deposit & 785 Mgmt. & Payment 848 Credit 35% Custodial 21% $2.6B Tradi
Slide 16: Non-Interest Expenses
Non-Interest Expenses Balanced approach to expense management drives positive operating leverage Adjusted1 Expenses ($MM) and YoY Expense Growth +15% +9% 191 3,866 52 3,675 264 3,359 Adjusted1 Operating Adjusted1 Operating Leverage: 1.9% Leverage: 2.1% Q1/24 Operating costs Legal Performance-based Q
Slide 17: Capital and Liquidity
Capital and Liquidity Starting fiscal 2025 with a strong balance sheet Capital Position $B Q1/24 Q4/24 Q1/25 • Balance sheet continues to remain well positioned to support organic growth Average Loans and Acceptances 1 538.8 551.7 564.7 1 • CET1 ratio of 13.5%, up 17 basis points from prior quarter
Slide 18: Canadian Personal & Business Banking
Canadian Personal & Business Banking Double-digit PPPT growth supported by continued revenue momentum and positive operating leverage Q1/25 YoY Highlights: Reported Adjusted1 • Net interest income up 10% driven by strong margin ($MM) Q1/25 YoY QoQ Q1/25 YoY QoQ expansion and volume growth Revenue 2,
Slide 19: Canadian Commercial Banking & Wealth Management
Canadian Commercial Banking & Wealth Management Record revenues drive strong net income and PPPT growth Q1/25 YoY Highlights: Reported & Adjusted1 ($MM) Q1/25 YoY QoQ • Net interest income up 47% Revenue 1,703 19% 6% • Excluding impact of benchmark reform (offset by Net Interest Income 718 47% 6% lo
Slide 20: U.S. Commercial Banking & Wealth Management
U.S. Commercial Banking & Wealth Management Franchise continues to strengthen client relationships in uncertain business environment Q1/25 YoY Highlights: Reported Adjusted1 • Net interest income up 14% mainly driven by higher volumes (US$MM) Q1/25 YoY QoQ Q1/25 YoY QoQ and rates Revenue 592 16% 10%
Slide 21: Capital Markets
Capital Markets Strong earnings growth driven by record trading and corporate and investment banking revenues Q1/25 YoY Highlights: Reported Adjusted1 • Revenue up 20% on a reported basis, and up 25% on an ($MM) Q1/25 YoY QoQ Q1/25 YoY QoQ adjusted basis: Revenue2 1,574 20% 36% 1,574 25% 36% • Globa
Slide 22: Corporate & Other
Corporate & Other Q1/25 YoY Highlights: Reported Adjusted1 • Reported and adjusted1 revenue higher YoY but lower ($MM) Q1/25 YoY QoQ Q1/25 YoY QoQ sequentially • Net interest income higher due to Treasury-related Revenue2 234 126 (51) 234 74 (51) revenues Net Interest Income 125 75 (53) 125 23 (53)
Slide 23: In Closing
In Closing Client-focused strategy and consistent execution position us well to deliver strong shareholder returns Results demonstrate Strong capital position and disciplined Well-positioned to solid momentum resource navigate through through a strategy that management provide uncertainty and delive
Slide 24: Risk Overview
Risk Overview Frank Guse Senior Executive Vice-President & Chief Risk Officer
Slide 25: Key Messages
Key Messages 1 2 3 Credit Performance Portfolio Management Allowance Coverage Impaired loan losses for the Continued proactive reviews Increases in our allowance quarter were better than of portfolios to support our support our ability to full-year guidance clients while navigating manage thro
Slide 26: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses was up QoQ Allowance for Credit Losses ($MM) – Q1/25 Movements 139 4,376 307 4,182 4,114 127 ( 311 ) Impaired Provisions $446MM Q1/24 Allowance Q4/24 Allowance Performing Retail Business and Net write-offs and Q1/25 Allowance Provisions Governm
Slide 27: PCL on Impaired Loans
PCL on Impaired Loans1 Total impaired provisions were up QoQ Total Bank ($MM, bps) Canadian Personal & Business Banking ($MM, bps) • Total bank impaired PCL was up QoQ 700 50 35 35 37 • Canadian Personal & Business Banking impaired 600 40 600 50 PCL was up mainly due to higher provisions in 550 36 5
Slide 28: Credit Performance – Gross Impaired Loans
Credit Performance – Gross Impaired Loans Gross impaired loan ratio was up QoQ • Gross impaired loan ratio was up QoQ primarily due to increases in Gross Impaired Loan Ratios Q1/24 Q4/24 Q1/25 residential mortgages and business and government loans Canadian Residential Mortgages 1 0.25% 0.28% 0.31%
Slide 29: Canadian Consumer Lending
Canadian Consumer Lending Net write-offs and delinquencies trending in line with our expectations Reported Net Write-offs Q1/24 Q4/24 Q1/25 Net Write-offs: Canadian Residential Mortgages1 <0.01% <0.01% <0.01% • Overall consumer net write-offs were lower QoQ, driven by favourable performance of our c
Slide 30: In Summary
In Summary Credit performance continues to be in line with expectations Credit portfolios Our allowance increase We remain committed continue to perform reiterates our focus on to working with our well, and our impaired being prudent and clients to prepare for losses remain stable building coverage
Slide 31: Appendix
Appendix CIBC®
Slide 32: Digital Trends
Digital Trends Growing Digital Adoption & Engagement in Canadian Personal Banking1 Digital Adoption Rate2 Active Digital Banking Users (MM)3 Digital Channel Usage (# of Sessions, MM) 87.6% 7.9 413 86.7% 7.5 391 393 86.3% 7.4 86.1% 7.3 382 85.8% 7.2 374 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/24 Q3/24
Slide 33: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking1 Strong margin expansion driven by volume growth Revenue ($MM) Net Interest Margin3 Mortgage Portfolio Spreads4 2.72% 3,479 3,598 3,300 3,393 3,235 662 666 780 714 769 2.65% 2.64% 2.63% 2,679 2,817 2,932 2,520 2,466 2.60% Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q1/24 Q2/
Slide 34: Balance Sheet
Balance Sheet Modest growth in loans and deposits and strong margin expansion drive NII growth Average Assets ($B) & Yields1,2,3 Average Liabilities and Equity ($B), & Costs1,4,5 5.61% 5.68% 5.70% 5.48% 4.22% 4.20% 4.18% 3.97% 5.00% 3.51% 982 990 1,012 1,036 1,099 982 990 1,012 1,036 1,099 54 55 57
Slide 35: Funding & Liquidity
Funding & Liquidity A well-diversified, high-quality, client-driven balance sheet • Liquidity and funding position continue to remain well-above regulatory requirements • Client deposits are the primary source of funding, comprising over $500B of the total funding base • Funding strategy is suppleme
Slide 36: Interest Rate Sensitivity
Interest Rate Sensitivity Well-positioned in a changing rate environment Net Interest Income Sensitivity to a +/- 100 bps Change ($MM)1 Interest Rate Environment in Canada and the U.S.2 Impact by currency Long-term vs short-term rates D Historic 6.00 e Implied Actuals Forwards 150 150 5.00 4.00 s 10
Slide 37: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) PCL trended higher QoQ Provision for Credit Losses up QoQ and down YoY • Impaired provision was up in Q1/25, due to higher impairments in the U.S. ($MM) Q1/24 Q4/24 Q1/25 Commercial, Canadian Personal and Business Banking, CIBC Caribbean partially offset by decrease
Slide 38: Allowance Coverage
Allowance Coverage Allowance coverage trended higher QoQ Total allowance coverage ratio up QoQ and down slightly YoY • Allowance increase is reflective of an unfavourable change in our overall economic Total Allowance Coverage Q1/24 Q4/24 Q1/25 outlook, including the uncertainties of tariffs, credit
Slide 39: Canadian Real Estate Secured Personal Lending
Canadian Real Estate Secured Personal Lending Mortgage delinquencies perform in line with expectations Canadian Uninsured Mortgage Loan-To-Value1 Ratios 55% 90+ Days Delinquency Rates3 Q1/24 Q4/24 Q1/25 53% 53% 52% Total Mortgages 0.25% 0.28% 0.31% 52% 53% Insured Mortgages 0.30% 0.37% 0.39% 52% 51%
Slide 40: Canadian Mortgages Renewal Profile – 3 Year Outlook
Canadian Mortgages Renewal Profile – 3 Year Outlook Impacts of payment increases at renewal expected to be minimal Current Balances by Renewal Year1 ($B) 87 86 Variable Rate Fixed Rate 26 37 52 9 • Using illustrative 4.0% and 4.5% mortgage rates at time of renewal, 61 and no borrower income growth 4
Slide 41: Canadian Uninsured Residential Mortgages
Canadian Uninsured Residential Mortgages Credit bureau score1 and LTV2 distributions remain healthy Credit Bureau Score1 Distribution 64% 57% 58% 56% 19% 17% 19% 19% 13% 11% 12% 13% 5% 3% 5% 6% 6% 5% 6% 6% ≤650 651-700 701-750 751-800 >800 3 3 Canada Total GVA GTA Canada Variable Rate Loan-to-Value
Slide 42: Canadian Uninsured Residential Mortgages – Q1/25 Originations
Canadian Uninsured Residential Mortgages – Q1/25 Originations1 Credit quality of new originations continues to remain high • Originations of $11.4B in Q1/25 • Average LTV2 in Canada: 66%, GVA3: 63%, GTA3: 66% Credit Bureau Score4 Distribution 54% 52% 52% 49% 23% 23% 22% 23% 17% 14% 15% 16% 9% 7% 9%
Slide 43: Credit Portfolio Breakdown
Credit Portfolio Breakdown Lending portfolio has a strong risk profile and is well diversified Overall Loan Mix (Net Outstanding Loans and Acceptances) Auto Lending 1% Personal Lending 3% Consumer 62% Real Estate Secured Lending 51% $568B Commercial Real Estate 11% Business & Government Retailers 1%
Slide 44: Commercial Real Estate
Commercial Real Estate Commercial real estate loans outstanding are well diversified Multi-Family Portfolio Metrics • Canada represents 62% of total Canadian & U.S. real estate loans outstanding Canada US • Gross impaired loans as a percentage of total Canadian & U.S. real estate is Total outstandin
Slide 45: Trading Revenue Distribution
Trading Revenue Distribution Robust trading performance in recent volatile market ($MM) ($MM) 40 30 30 20 20 10 10 0 0 (10) (10) (20) Nov-24 Dec-24 Jan-25 (20) Trading Revenue VaR First Quarter, 2025 44
Slide 46: Forward Looking Information
Forward Looking Information Variables used to estimate our Expected Credit Losses1 Forward-Looking Information Variables Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the next 12 months remaining forecast next 12 months remaining
Slide 47: Items of Note
Items of Note First quarter 2025 Period Q1/25 Reporting Segments Pre-Tax EPS After-Tax & NCI Effect Effect Effect ($MM) ($MM) ($/Share) Canadian Personal and Business Banking Amortization of acquisition-related intangible assets 12 8 0.01 U.S. Commercial Banking and Wealth Management Adjustment to N
Slide 48: Endnotes
Endnotes First Quarter 2025 Slide 3 – CIBC Overview 1. See note 1 in the Glossary section. 2. Adjusted results are non-GAAP measures. See slide 54 for further details. 3. Pre-provision, pre-tax earnings (PPPT) is revenue net of non-interest expenses and is a non-GAAP measure. See slide 54 for furthe
Slide 49: Endnotes
Endnotes First Quarter 2025 Slide 7 – North American Wealth Management 1. Includes the results of Canadian Wealth Management and U.S. Private Wealth Management. 2. Assets under management (AUM) are included in assets under administration (AUA). For additional information on the composition, see the
Slide 50: Endnotes
Endnotes First Quarter 2025 Slide 13 - Net Interest Income (NII) 1. See note 11 in the Glossary section. 2. See note 3 in the Glossary section. 3. Deposit and loan portfolio include the mix shift between products. 4. Certain additional disclosures for net interest margin on average interest-earning
Slide 51: Endnotes
Endnotes First Quarter 2025 Slide 17 – Canadian Personal & Business Banking 1. Adjusted results are non-GAAP measures. See slide 54 for further details. 2. Pre-provision, pre-tax earnings is revenue net of non-interest expenses and is a non-GAAP measure. See slide 54 for further details. 3. Loan amo
Slide 52: Endnotes
Endnotes First Quarter 2025 Slide 25 – Allowance for Credit Losses 1. See note 13 on slide 56. Slide 26 – PCL on Impaired Loans 1. See note 10 on slide 55. Slide 27 – Credit Performance – Gross Impaired Loans 1. Includes multi-family mortgages. 2. Includes wealth management loans under Canadian Comm
Slide 53: Endnotes
Endnotes First Quarter 2025 Slide 33 – Balance Sheet 1. Average balances are calculated as weighted average of daily closing balances. Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with Bank of Canada, securities, cash collateral on se
Slide 54: Endnotes
Endnotes First Quarter 2025 Slide 39 – Canadian Mortgage Renewal Profile – 3 Year Outlook 1. Excludes third party mortgages which were not originated by CIBC. 2. Based on average original qualification rate of all cohorts. 3. Includes remaining renewals only. Slide 40 – Canadian Uninsured Residentia
Slide 55: Non-GAAP Measures
Non-GAAP Measures First Quarter 2025 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 measu
Slide 56: Glossary
Glossary First Quarter 2025 Definition 1 Adjusted Diluted EPS We adjust our reported diluted EPS to remove the impact of items of note, net of income taxes, to calculate the adjusted EPS. We adjust our reported net income attributable to common shareholders to remove the impact of items of note, net
Slide 57: Glossary
Glossary First Quarter 2025 Definition We adjust our reported revenue and non-interest expenses to remove the impact of items of note. Commencing Q1/24, we no longer gross up tax-exempt revenue to bring it to a TEB 12 Adjusted Efficiency Ratio for the application of this ratio to our consolidated re
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