Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Scotia Capital Financials Summit 2011
24 slides from Canadian Imperial Bank Of Commerce's conference presentation, Sep 7, 2011
Slide 1: Delivering Consistent, Sustainable Earnings
Delivering Consistent, Sustainable Earnings Gerry McCaughey President and Chief Executive Officer Scotia Capital Financials Summit September 7, 2011
Slide 2: A Note about Forward-Looking Statements
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 presentation, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in othe
Slide 3: Solid Year To Date Results
Solid Year To Date Results(1) Revenue ($B) Net Income ($MM) 8.8 9.2 2,333 1,958 3.1 3.0 3.1 811 728 794 YTD Q1 Q2 Q3 YTD YTD Q1 Q2 Q3 YTD 2010 2011 2010 2011 Earnings per share ($) Return on Equity (%) 5.63 23.7 21.2 21.5 21.1 22.1 4.77 1.97 1.75 1.91 YTD Q1 Q2 Q3 YTD YTD Q1 Q2 Q3 YTD 2010 2011 2010
Slide 4: Business Mix
Business Mix Economic Capital(1) Year to Date Revenue (TEB) ($MM) Wholesale 5% 2% 23% 16% 14% 64% 77% Retail(2) Retail and Business Banking Wealth Management Wholesale Banking International Other (1) Non GAAP measure. See slide 21 4 (2) Includes Retail and Business Banking, Wealth Management and Int
Slide 5: Strong Capital Position
Strong Capital Position Tier 1 Capital Ratio (%) • Industry leading Basel II 14.6 Tier 1: 14.6% 12.8 • Basel III common equity ratio: 8.2% • Early mover towards meeting Basel III NVCC CIBC Peer Average(1) non-common equity requirements Pro-Forma Basel III Common Equity Ratio (%) • Reducing non-commo
Slide 6: Capital: Active Management and Deployment
Capital: Active Management and Deployment Dividends: • +$0.03 common share dividend increase Optimizing capital structure: • Redeeming preferred shares • >$1.0B with call dates in 2012 • >$0.8B with call dates beyond 2012 • Accretive to earnings by ~$0.18 per share 6
Slide 7: Capital: Investing For Growth
Capital: Investing For Growth Organic growth: • Branch Expansion • Industry leading mobile banking capabilities • Risk management systems Acquisitions: • American Century Investments • Citibank Canadian MasterCard Portfolio 7
Slide 8: Productivity
Productivity Q3 YTD non-interest expenses to Non-interest expenses to revenue - Canadian Banks(1) (%) revenue - CIBC(1) (%) 60.2 65.9 57.9 58.5 56.5 60.7 53.8 57.3 57.9 BNS TD CM RY BMO 2005 2007 2009 2011 YTD (1) Cash, TEB basis. Adjusted for items of note. Non-GAAP measure. See slides 21 and 23-24
Slide 9: Our Strategic Imperative and Priorities
Our Strategic Imperative and Priorities Consistent, sustainable performance over the long term Competitive in core businesses Strong fundamentals Capital Productivity Risk 9
Slide 10: Retail & Business Banking
Retail & Business Banking Y/Y Balances(1) Market Growth ($B) Position (%) Cards, outstandings(2) 15.5 18.5 #1 Mortgages(2) 143.6 13.7 #2 Personal Deposits & GICs 108.1 16.6 #3 Business Deposits 32.6 14.5 #3 Business Lending 32.4 16.8 #4 Personal Lending 31.0 8.1 #5 (1) Spot balances at July 31, 2011
Slide 11: Supporting Growth
Supporting Growth Leadership in Credit Cards Significant Branch Investment Innovation in Mobile Investing in our Brand 11
Slide 12: Retail and Business Banking
Retail and Business Banking Revenue ($MM) Net Income ($MM) 5,904 1,545 5,612 1,338 Q310 YTD Q311 YTD Q310 YTD Q311 YTD 12
Slide 13: Wealth Management
Wealth Management Wood Gundy Balances ($B) Mutual Fund Balances ($B) 115.1 52.1 105.7 46.2 #4 #2 Market Market Position Position Q310 Q311 Q310 Q311 Revenue ($MM) Net Income ($MM) 1,240 214 1,101 171 Q310 YTD Q311 YTD Q310 YTD Q311 YTD 13
Slide 14: American Century Investments
American Century Investments Acquired a 41% equity interest in American Century Transaction closed on August 31, 2011 Expected to be $0.15 accretive to 2012 earnings American Century is ranked 2nd overall among top 25 fund companies in the U.S., with 77% of assets having a 4/5 star Morningst
Slide 15: Supporting Growth
Supporting Growth Building Wealth Management Product innovation and solid investment performance Building momentum in long-term net sales Enhancing the client experience Investing in our 3rd-party brand 15
Slide 16: Wholesale Banking
Wholesale Banking Market Position(1) Equity Trading #1 Equity New Issues #1 Gov’t Debt New Issues #2 Syndicated Lending #2 Corporate Debt New Issues #2 Mergers & Acquisitions #3 Business Lending #4 1 Equity Trading, Equity New Issues and Mergers & Acquisitions are on a fiscal year basis (November 1,
Slide 17: Supporting Growth
Supporting Growth Core Canadian Businesses International Lending US Real Estate Finance Foreign Exchange Infrastructure Finance Investing in Technology 17
Slide 18: Wholesale Banking
Wholesale Banking Wholesale Banking Net Income(1) Value At Risk ($MM) ($MM) 185 7.1 179 162 158 132 121 4.4 4.1 3.5 66 Q110 Q210 Q310 Q410 Q111 Q211 Q311 2009 2010 2011 YTD Q311 (Spot) (1) Excluding items of note. Non-GAAP measure. See slides 21 and 22. 18
Slide 19: Our Strategic Imperative and Priorities
Our Strategic Imperative and Priorities Consistent, sustainable performance over the long term Competitive in core businesses Strong fundamentals Capital Productivity Risk 19
Slide 20: Delivering Consistent, Sustainable Earnings
Delivering Consistent, Sustainable Earnings Gerry McCaughey President and Chief Executive Officer Scotia Capital Financials Summit September 7, 2011
Slide 21: Notes to Users / Contacts
Notes to Users / Contacts Performance measurement We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with GAAP, while other measures do not have a standardized meaning under GAAP, and, accordingly, these measures may not
Slide 22: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures Non-GAAP CIBC; $MM, unless otherwise indicated YTD 2010 Q111 Q211 Q311 YTD 2011 Revenue Reported 8,831 3,101 2,889 3,057 9,047 Add: Adjustment for TEB 27 39 45 49 133 Revenue (TEB) 8,858 3,140 2,934 3,106 9,180 MTM on Credit Derivatives on Corporate Loans
Slide 23: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures Non-GAAP BNS TD CIBC RY BMO YTD 2011 Non Interest Expense to Revenue Revenue 12,942 15,929 9,047 20,951 9,837 Add: adjustment for TEB 213 217 133 374 169 Revenue (TEB) 13,155 16,146 9,180 21,325 10,006 (Loss)/Gain on Structured Credit Run-off Activities -
Slide 24: Reconciliation of GAAP to Non-GAAP measures
Reconciliation of GAAP to Non-GAAP measures Non-GAAP 2005 2007 2009 YTD 2011 2005 - YTD 2010 Non Interest Expense to Revenue Revenue 12,498 12,066 9,928 9,047 Add: adjustment for TEB 191 297 42 133 Revenue (TEB) 12,689 12,363 9,970 9,180 Higher than normal merchant banking gains 419 - - - Capital re
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