Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — CIBC — Q1 2016 Earnings Presentation
28 slides from Canadian Imperial Bank Of Commerce's earnings presentation, Feb 25, 2016
Slide 1: CIBC Investor Presentation First Quarter, 2016
CIBC Investor Presentation First Quarter, 2016 February 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 presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communica
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President and Chief Executive Officer
Slide 4: Q1 2016 Overview
4 Q1 2016 Overview • Record financial results in Q1 2016 − EPS(1) of $2.55, up 8% YoY − Revenue(1) growth of 6% YoY − Solid returns with ROE(1) of 19.0% − Positive Operating Leverage of 1.8% • Strong capital position, with CET1 ratio of 10.6% • Quarterly dividend increase of $0.03 per share to $1.18
Slide 5: First Quarter, 2016 Financial Review
First Quarter, 2016 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer
Slide 6: First Quarter, 2016 Summary
6 First Quarter, 2016 Summary Q1/15 Q4/15 Q1/16 • Record earnings of $1 billion in Q1/16 Net Income ($MM) - Adjusted (1) 956 952 1,029 • Strong volume growth in Retail and Net Income ($MM) - Reported 923 778 982 Business Banking Diluted EPS - Adjusted (1) $2.36 $2.36 $2.55 • Stable core earnings in
Slide 7: Retail & Business Banking
7 Retail & Business Banking Adjusted ($MM) (1) Q1/15 Q4/15 Q1/16 • Strong volume growth Personal Banking 1,614 1,743 1,749 Business Banking 400 414 425 − Deposits up 8% YoY Other 23 19 16 − Mortgages up 8% YoY Revenue 2,037 2,176 2,190 Provision for Credit Losses 163 163 163 − Business credit up 12%
Slide 8: Wealth Management
8 Wealth Management Adjusted ($MM) (1) Q1/15 Q4/15 Q1/16 • Lower transactional revenue in Retail Brokerage 315 317 308 challenging market conditions Asset Management 172 178 181 Private Wealth Management 109 91 98 • Lower annual performance fees, Other 25 24 15 partially mitigated by favourable FX i
Slide 9: Capital Markets
9 Capital Markets Adjusted ($MM) (1) Q1/15 Q4/15 Q1/16 Global Markets 360 271 391 • Strong client-driven Global Markets Corporate & Investment Banking 309 302 286 revenue in FX and interest rates Other 20 (3) 9 trading Revenue (2) 689 570 686 • Strong YoY balance growth – Lending Provision for Credi
Slide 10: Corporate & Other
10 Corporate & Other Adjusted ($MM) (1) Q1/15 Q4/15 Q1/16 International Banking 161 180 195 • Higher earnings in CIBC FirstCaribbean Other (104) (51) (82) (2) driven by favourable FX and strong Revenue 57 129 113 Provision for Credit Losses 10 13 5 credit performance Non-Interest Expenses 276 297 28
Slide 11: Capital
11 Capital Common Equity Tier 1 (CET1) Ratio (all-in basis) • Basel III CET1 ratio of 10.6%, down 20bps − Higher RWAs as a result of business growth, impact of weaker CAD, and portfolio downgrades − 2.3 million shares repurchased − Partially offset by higher earnings, net of dividends • Basel III Le
Slide 12: First Quarter, 2016 Risk Review
First Quarter, 2016 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer
Slide 13: Provision for Credit Losses
13 Provision for Credit Losses Adjusted ($MM) (1) Q1/15 Q4/15 Q1/16 vs. Q4/15: Retail and Business Banking 163 163 163 Wealth Management - - - • Flat loan losses at Retail and Capital Markets 14 22 25 Business Banking CIBC FirstCaribbean 14 7 5 Collective Provision for Non-Impaired (4) 6 - • Slightl
Slide 14: Impaired Loans and Formations
14 Impaired Loans and Formations Q1/15 Q4/15 Q1/16 • New formations down QoQ Reported ($MM) Consumer 288 275 271 • Gross impaired loans up QoQ, Business and Government 37 106 58 largely due to: Total New Formations 325 381 329 − the impact of the U.S. dollar Gross and Net Impaired Loans ($MM) apprec
Slide 15: Oil & Gas Direct Exposure
15 Oil & Gas Direct Exposure Direct Exposure(1) ($B) • $18.7B of direct exposure(1), up 18.7 from $17.3B last quarter 16.7 16.7 17.4 17.3 − 74% of this is investment grade • $6.9B drawn exposure(1), up from $6.1B last quarter Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Downstream Integrated 3% 15% Exploration Mid
Slide 16: Oil & Gas Retail Exposure
16 Oil & Gas Retail Exposure Outstandings ($MM) • $39B of indirect exposure to oil Mortgages HELOC Other (1) provinces (or $18B excluding Insured Uninsured insured mortgages) Alberta 16,900 7,502 2,714 3,563 Saskatchewan & Newfoundland 4,356 1,998 710 1,360 − Alberta accounts for $31B or Total 21,25
Slide 17: Cards
17 Cards 200 6% 5% 160 4% 120 ($MM) 3% 154 80 142 142 2% 127 113 40 99 102 96 99 90 93 88 92 1% 0 0% Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 (1) (1)(2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate 1 Adjusted results are a Non-GAAP financial measures. See slide 2
Slide 18: Canadian Residential and Condo Mortgage Portfolios
Canadian Residential and Condo Mortgage 18 Portfolios ($B) Q1/15 Q4/15 Q1/16 • Canadian residential mortgage Residential Mortgages (excludes Condos) 136 145 147 portfolio (includes condos) was Condo Mortgages 17 18 19 $166B Total Canadian Residential Mortgages 153 163 166 − 61% insured; average LTV(
Slide 19: Trading Revenue (TEB) Distribution
19 Trading Revenue (TEB)(1) Distribution(2) ($MM) ($MM) 30 30 25 25 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) Nov-15 Dec-15 Jan-16 Trading Revenue (TEB) VaR 1 Non-GAAP financial measure. See slide 28 for further details. 2 Trading revenue (TEB) comprises both trading net interest income
Slide 20: Appendix
Append xX Banking that fits your life.
Slide 21: Retail & Business Banking – Loans & Deposits
21 Retail & Business Banking – Loans & Deposits Average Loans & Acceptances ($B) Average Deposits ($B) +8% +8% +2% +4% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 8% 3% Personal Deposits & GICs 6% 3% Personal Loans 3% 0% Business Deposits & GICs 11% 4% Credit Card 2% 1% Business Lending 12%
Slide 22: Wealth – Mutual Funds & Client Asset Balances
22 Wealth – Mutual Funds & Client Asset Balances Canadian Retail Mutual Funds ($B) +3% -1% 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 ($MM) Q1/15 Q4/15 Q1/16 Personal Banking 1,660 1,743 1,749 Business Banking 400 414 425 Other 23 19 16 Revenue 2,083 2,176 2,190 Provision for Credit Losses 163 163 163 Non-Interest Expenses 1,055 1,100 1,097 Income Before Taxes 865 913 930 Taxes 221 241 246 Net
Slide 24: Wealth Management
24 Wealth Management Reported ($MM) Q1/15 Q4/15 Q1/16 Retail Brokerage 315 317 308 Asset Management 172 178 181 Private Wealth Management 109 91 98 Other 23 21 14 Revenue 619 607 601 Credit Losses - - - Non-Interest Expenses 447 447 439 Income Before Taxes 172 160 162 Taxes 44 38 43 Net Income - Rep
Slide 25: Capital Markets
25 Capital Markets Reported ($MM) Q1/15 Q4/15 Q1/16 Global Markets 360 271 391 Corporate & Investment Banking 332 302 286 Other 9 (2) 6 Revenue (1) 701 571 683 Provision for Credit Losses 14 22 25 Non-Interest Expenses 329 326 344 Income Before Taxes 358 223 314 (1) Taxes 87 42 70 Net Income - Repor
Slide 26: Corporate & Other
26 Corporate & Other Reported ($MM) Q1/15 Q4/15 Q1/16 International Banking 161 180 195 Other (105) (51) (82) Revenue (1) 56 129 113 Provision for Credit Losses 10 13 74 Non-Interest Expenses 364 510 284 Income Before Taxes (318) (394) (245) (1) Taxes (198) (197) (180) Net Loss - Reported (120) (197
Slide 27: Q1 2016 Items of Note
27 Q1 2016 Items of Note Pre-Tax After-Tax & EPS Operating Effect NCI Effect Effect Segments ($MM) ($MM) ($/Share) Q1 2016 Increase in collective allowance 69 51 0.13 Corporate & Other Retail & Business Banking / Amortization of intangibles 9 7 0.02 Wealth Management / Corporate & Other Loss on stru
Slide 28: Non-GAAP Financial Measures
28 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 27 of this prese