Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q1 2012 Earnings Presentation
28 slides from Canadian Imperial Bank Of Commerce's earnings presentation, March 2012
Slide 1: CIBC Investor Presentation First Quarter, 2012
CIBC Investor Presentation First Quarter, 2012 March 2012
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 Gerry McCaughey President and Chief Executive Officer
Slide 4: CIBC Retail & Business Banking Overview
CIBC Retail & Business Banking Overview David Williamson Senior Executive Vice-President and Group Head, Retail & Business Banking
Slide 5: First Quarter, 2012 Financial Review
First Quarter, 2012 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 6: First Quarter, 2012 Summary
First Quarter, 2012 Summary Q1 2012 Net Income ($MM) – Reported 835 Key Messages: (1 ) Net Income ($MM) – Adjusted 833 Strong volume growth Diluted EPS – Reported $1.93 Diluted EPS – Adjusted (1 ) $1.97 Solid Wholesale Banking performance Efficiency Ratio – Reported 56.7% Continued expense dis
Slide 7: Retail & Business Banking
Retail & Business Banking Reported ($MM) Q1/11 Q4/11 Q1/12 Personal Banking 1,657 1,613 1,606 Business Banking 351 358 373 Other (6) 105 50 Revenue 2,002 2,076 2,029 Provision for Credit Losses 272 266 281 (4) (4) (4) Non-Interest Expenses 1,003 1,023 996 Income Before Taxes 727 787 752 Taxes 187 19
Slide 8: Wealth Management
Wealth Management Reported ($MM) Q1/11 Q4/11 Q1/12 Retail Brokerage 281 256 249 (3) Asset Management 111 115 162 Private Wealth Management 24 25 24 Revenue 416 396 435 Provision for Credit Losses - - - Non-Interest Expenses 324 299 312 Income Before Taxes 92 97 123 Taxes 26 27 23 Net Income – Report
Slide 9: Wholesale Banking
Wholesale Banking Reported ($MM) Q1/11 Q4/11 Q1/12 Capital Markets 317 242 307 Corporate & Investment Banking 224 328 (4) 197 (4) (4) Other (24) (4) (9) (9) (1 ) Revenue (TEB) 517 561 495 Revenue 478 505 438 (4) Provision for Credit Losses 2 32 26 (4) (4) (4) Non-Interest Expenses 303 347 289 Income
Slide 10: First Quarter, 2012 Highlights
First Quarter, 2012 Highlights Strong volume growth Solid Wholesale Banking performance Continued expense discipline Robust capital position 10
Slide 11: First Quarter, 2012 Financial Review Appendix
First Quarter, 2012 Financial Review Appendix
Slide 12: CIBC Statement of Operations
CIBC Statement of Operations Reported ($MM) Q1/11 Q4/11 Q1/12 (3) (3) Net Interest Income 1,770 1,776 (3) 1,842 (3) (3) (3) Non-Interest Income 1,324 1,419 1,315 Revenue 3,094 3,195 3,157 (3) Provision for Credit Losses 283 306 338 (3) (3) (3) Non-Interest Expenses 1,805 1,920 1,791 Income Before Ta
Slide 13: Retail & Business Banking and Wealth Management Balances & Market Share
Retail & Business Banking and Wealth Management Balances & Market Share (1) (2) Balances Market Share (%) ($B) Q4/11 Q1/12 (3) Cards 15.3 18.4 18.7 (3) Mortgages 145.1 13.6 13.4 CIBC Brand 86.4 8.0 8.0 (4) Other 58.7 5.6 5.4 Personal Lending 31.4 8.1 8.0 Personal Deposits & GICs 108.7 16.2 16.0 CIBC
Slide 14: Wholesale Banking Market Share
Wholesale Banking Market Share 13.5% 13.2% 13.2% 13.3% 13.1% Canadian Equity New Issues (1) 19.6% 19.5% 19.6% Equity Trading Canada - % 19.0% 18.9% of shares Traded – Total (2) 17.7% 16.4% Corporate Debt New Issues (3) 15.5% 15.8% 14.9% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 M&A Rank (4) #5 #4 #3 #1 #5 (1) S
Slide 15: First Quarter, 2012 Structured Credit Run-off
First Quarter, 2012 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 24 17 0.04 Purchased Credit Derivatives Hedging Loa
Slide 16: Items of Note and Other Adjustments
Items of Note and Other Adjustments Pre-tax Pre-Tax After-tax After-Tax EPS EPS Operating Effect Effect Effect Effect Effect Effect Segments ($MM) ($MM) ($MM) ($MM) ($/Share) ($/share) Strategic Business Unit Q1 2012 Gains re. equity-accounted investment 37 35 0.09 Wealth Management Loss on Structur
Slide 17: Non–GAAP Financial Measures
Non–GAAP Financial Measures Adjusted Results, Taxable Equivalent Basis & Tangible Common Equity For further details, see slide 16 for items of note and other adjustments; page i for Non-GAAP measures and page ii for reconciliation of Non-GAAP to GAAP measures within the Q1/12 Supplementary Financi
Slide 18: First Quarter, 2012 Risk Review
First Quarter, 2012 Risk Review Tom Woods Senior Executive Vice-President and Chief Risk Officer
Slide 19: Q1 Credit Review
Q1 Credit Review Provision for Credit Losses (1) ($MM) 341 (2) 75 307 (2) 232 Q4/11 Specific IFRS Adjustments Q4/11 Provision Q1/12 Provision Provision (Canadian (IFRS) (IFRS) GAAP) (1) Excludes the change in collective allowance on all credit cards; personal and scored small business loans that are
Slide 20: Cards
Cards 200 6.0% 5.0% 160 4.0% 120 ($MM) 197 193 3.0% 186 183 180 80 2.0% 40 1.0% - 0.0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Net Credit Losses (NCL) NCL Rate 20
Slide 21: Canadian Residential Mortgage Portfolio
Canadian Residential Mortgage Portfolio % Insured Average Loan/Value (1) 79% (uninsured portfolio) 48% As at January 31, 2012 As at November 30, 2011 (1) Ratio calculated based on latest available industry house price estimates from Teranet (November 30, 2011). 21
Slide 22: Exposure to Certain Countries and Regions
Exposure to Certain Countries and Regions MTM Receivables As of Q1/12 ($MM) Corporate Sovereign Bank & Repo’s (1) Peripheral Countries - - 14 27 Non-Peripheral Countries 187 482 592 280 Non-Eurozone Countries 1,520 1,238 1,294 130 Total Europe 1,707 1,720 1,900 437 Middle East & North Africa - - 3 1
Slide 23: U.S. Real Estate Finance
U.S. Real Estate Finance As of Q1/12 ($MM) Net Loans/BAs (1) Net Impaired Loans (1) Retail 1,028 7 Hotel 551 9 Multi-family 511 85 Office 767 28 Joint Venture 412 - Multi-use 478 28 Other 301 40 Q1/12 Total 4,048 197 (1) Net of write-downs and allowance for credit losses. 23
Slide 24: European Leveraged Finance & U.S. Leveraged Finance
European Leveraged Finance & U.S. Leveraged Finance European Leveraged Finance As of Q1/12 ($MM) Drawn Undrawn Total Exposure (1) 410 88 U.S. Leveraged Finance As of Q1/12 ($MM) Drawn Undrawn Total Exposure (1) 134 69 (1) Net of write-downs and allowance for credit losses. 24
Slide 25: Trading Revenue Days
Q1 Trading Revenue (TEB)(1) Distribution(2) Frequency Distribution of Daily Trading Revenue 18 16 Trading Revenue Days 14 12 10 8 6 4 2 0 (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ($MM) (1) For further details, see Non-GAAP measures within the Notes to Users section on page i of the Q1/12 Supplementary
Slide 26: Capital
Capital Strong capital position Basel III Common Equity Ratio estimated at 8.3% Tier 1 Capital Ratio Risk Weighted Assets ($B) 111 110 109 107 14.7% 14.6% 14.7% 106 14.3% 14.3% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Tier 1 Capital 15.3 15.7 15.9 16.2 16.0 Notes: Variance i
Slide 27: First Quarter, 2012 Risk Review Appendix
First Quarter, 2012 Risk Review Appendix
Slide 28: Loan Loss Provisions
Loan Loss Provisions ($MM) Canadian GAAP – Q4/11 IFRS Q4/11 Q1/12 "Specific" -Consumer 190 "Individually Assessed" -Consumer - (1) (1) -Business & Gov't 67 -Business & Gov't 64 (1) 57 (2)(3) 257 64 (4) 56 (4) (6) "Collective-Impaired" -Consumer (5) 260 270 -Business & Gov't 8 15 268(4) 285(4) (7) "G