Canadian Imperial Bank Of Commerce · TSX:CM

Canadian Imperial Bank Of Commerce — Q3 2015 Earnings Presentation

29 slides from Canadian Imperial Bank Of Commerce's earnings presentation, August 2015

  1. Slide 1: CIBC Investor Presentation Third Quarter, 2015

    CIBC Investor Presentation Third Quarter, 2015 August 2015

  2. 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

  3. Slide 3: CIBC Overview

    CIBC Overview Victor Dodig President and Chief Executive Officer

  4. Slide 4: Q3 2015 Overview

    Q3 2015 Overview  Solid financial results in Q3 2015  EPS(1) of $2.45, up 10% YoY  Revenue(1) growth of 7% from last year  Continued strong returns with ROE(1) of 20.6%  Strong Basel III CET1 ratio of 10.8%  Quarterly dividend increase of $0.03 to $1.12 per share (1) Adjusted results are Non-G

  5. Slide 5: Third Quarter, 2015 Financial Review

    Third Quarter, 2015 Financial Review Kevin Glass Senior Executive Vice-President and Chief Financial Officer

  6. Slide 6: Third Quarter, 2015 Summary

    Third Quarter, 2015 Summary Q3/14 Q2/15 Q3/15  Record adjusted earnings Net Income ($MM) - Adjusted (1 ) 908 924 990  Strong volume growth and margin Net Income ($MM) - Reported 921 911 978 expansion in Retail and Business Banking Diluted EPS - Adjusted (1 ) $2.23 $2.28 $2.45 Diluted EPS - Reporte

  7. Slide 7: Retail & Business Banking Broad-Based Volume Growth and Margin

    Retail & Business Banking  Strong volume growth in Personal and Adjusted ($MM) (1 ) Q3/14 Q2/15 Q3/15 Commercial Banking Personal Banking 1,611 1,611 1,693 o Deposits up 6% YoY Business Banking 389 401 410 o Mortgages up 6% YoY Other 29 25 24 o Business credit up 10% YoY Revenue 2,029 2,037 2,127 P

  8. Slide 8: Wealth Management Strong Fee-Based Revenue Growth

    Wealth Management Q3/14 Q2/15 Q3/15  Strong performance in Asset Adjusted ($MM) (1 ) Management driven by net sales and Retail Brokerage 307 312 312 market appreciation Asset Management 187 219 225 Private Wealth Management 75 86 93  Stable revenue in Retail Brokerage Revenue 569 617 630  Solid c

  9. Slide 9: Wholesale Banking Client-Driven Activities Delivering Strong Results

    Wholesale Banking Adjusted ($MM) (1 ) Q3/14 Q2/15 Q3/15  Strong client-driven Capital Markets Capital Markets 336 417 417 revenue across FX, equity and interest rate trading Corporate & Investment Banking 278 259 277 Other 5 (8) 4  Solid YoY balance growth - Lending up Revenue (2 ) 619 668 698 22%

  10. Slide 10: Corporate & Other

    Corporate & Other Q3/14 Q2/15 Q3/15  Higher earnings in CIBC FirstCaribbean Adjusted ($MM) (1 ) driven by favourable FX and strong International Banking 151 163 175 credit performance Other (62) (82) (106) Revenue (2 ) 89 81 69  Lower investment income & gains Provision for Credit Losses 12 11 15

  11. Slide 11: Capital

    Capital Common Equity Tier 1 Ratio  Basel III CET1 ratio of 10.8%, flat QoQ (all-in basis) o Internal capital generation, offset by growth in risk-weighted assets Risk-Weighted Assets  Risk-weighted assets of $154 billion, up $7 ($B; all-in basis) billion QoQ o Strong business growth and impact of

  12. Slide 12: Third Quarter, 2015 Risk Review

    Third Quarter, 2015 Risk Review Laura Dottori-Attanasio Senior Executive Vice-President and Chief Risk Officer

  13. Slide 13: Provision for Credit Losses

    Provision for Credit Losses Q3/14 Q2/15 Q3/15 vs. Q2/15: (1) Adjusted ($MM) Retail and Business Banking 177 188 165  Lower losses in credit cards Wealth Management - (1) - Wholesale Banking 6 (1) 9  Lower losses in business banking CIBC FirstCaribbean 26 12 10  Higher losses in Wholesale Banking

  14. Slide 14: Impaired Loans and Formations

    Impaired Loans and Formations Formations  New formations down QoQ and YoY  Gross impaired loans were relatively Q3/14 Q2/15 Q3/15 Reported ($MM) flat QoQ, as decreases in CIBC Consumer 308 298 293 FirstCaribbean were offset by the Business and Government 53 40 24 impact of the U.S. dollar apprecia

  15. Slide 15: Oil & Gas Direct Exposure

    Oil & Gas Direct Exposure Direct Exposure(1) ($B)  $17.4B of direct exposure(1), up $0.7B 17.4 16.7 16.7 from the last quarter 15.0 15.4 o 79% of this is investment grade  $6.2B drawn exposure(1), down from $6.3B last quarter Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Downstream 3% Integrated 15% Exploration &

  16. Slide 16: Oil & Gas Retail Exposure

    Oil & Gas Retail Exposure Outstandings  $38B of indirect exposure to oil provinces (or $17B excluding ($MM) Mortgages HELOC Other (1) insured mortgages) Insured Uninsured Alberta 17,161 6,774 2,757 3,473 o Alberta accounts for $30B or 78% of the indirect exposure, with a Saskatchewan & Newfoundland

  17. Slide 17: Cards

    Cards 200 6% 5% 160 4% 120 ($MM) 167 3% 156 154 80 142 142 127 113 2% 99 102 96 99 40 90 93 1% 0 0% Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 (1) (1, 2) (3) Adjusted Net Credit Losses (NCL) Adjusted NCL Rate 30+ Days Delinquency Rate (1) Adjusted results are a Non-GAAP financial measure. See slide 2

  18. Slide 18: Canadian Residential and Condo Mortgage Portfolios

    Canadian Residential and Condo Mortgage Portfolios  Canadian residential mortgage Q3/14 Q2/15 Q3/15 ($B) portfolio (includes condos) was $159B Residential Mortgages (excludes Condos) 132 137 141 Condo Mortgages 17 18 18 o 65% insured; average LTV(1) of the uninsured portfolio was 60% Total Canadian

  19. Slide 19: Canadian Condo Developer Exposure

    Canadian Condo Developer Exposure Condo Developer Exposure ($B)  Drawn developer loans were $0.9 billion or 1.3% of our business & government portfolio 1.0 1.0 0.9 1.0 1.1  Condominium developer exposure diversified across 88 projects 1.8 2.0 1.8 1.9 2.0 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Undrawn Drawn

  20. Slide 20: Trading Revenue (TEB) Distribution

    Trading Revenue (TEB)(1) Distribution(2) Daily Trading Revenue versus Value-at-Risk (VaR) ($MM) ($MM) 20 20 15 15 10 10 5 5 0 0 (5) (5) (10) (10) (15) (15) May-15 Jun-15 Jul-15 Trading Revenue (TEB) VaR (1) Non-GAAP financial measure. See slide 29 for further details. (2) Trading revenue (TEB) compr

  21. Slide 21: Appendix

    a Appendix

  22. Slide 22: Retail & Business Banking - Loans & Deposits

    Retail & Business Banking - Loans & Deposits Average Loans Average Deposits +6% +6% +1% +1% Growth YoY QoQ Growth YoY QoQ Residential Mortgages 6% 2% Personal Deposits & GICs 6% 0% Personal Loans 3% 1% Business Deposits & GICs 6% 2% Credit Card 1% 2% Business Lending 10% 1% | 22

  23. Slide 23: Wealth - Mutual Funds and Client Asset Balances

    Wealth - Mutual Funds and Client Asset Balances Canadian Retail Mutual Funds ($B) +13% +2% AUA ($B) (2) AUM ($B)(1)(2) (1) Excludes American Century Investments. (2) Assets under management (AUM) are included in assets under administration (AUA). | 23

  24. Slide 24: Retail & Business Banking

    Retail & Business Banking Reported ($MM) Q3/14 Q2/15 Q3/15 Personal Banking 1,611 1,611 1,693 Business Banking 389 401 410 Other 29 25 24 Revenue 2,029 2,037 2,127 Provision for Credit Losses 177 188 165 Non-Interest Expenses 1,064 1,058 1,097 Income Before Taxes 788 791 865 Taxes 199 208 229 Net In

  25. Slide 25: Wealth Management

    Wealth Management Q3/14 Q2/15 Q3/15 Reported ($MM) Retail Brokerage 307 312 312 Asset Management 186 217 223 Private Wealth Management 75 86 93 Revenue 568 615 628 Reversal of Credit Losses - (1) - Non-Interest Expenses 408 447 443 Income Before Taxes 160 169 185 Taxes 39 40 45 Net Income - Reported

  26. Slide 26: Wholesale Banking

    Wholesale Banking Reported ($MM) Q3/14 Q2/15 Q3/15 Capital Markets 336 417 417 Corporate & Investment Banking 330 259 277 Other 4 (15) 2 Revenue (1 ) 670 661 696 Provision for (Reversal of) Credit Losses 6 (1) 9 Non-Interest Expenses 279 337 339 Income Before Taxes 385 325 348 Taxes (1 ) 103 75 78 N

  27. Slide 27: Corporate & Other

    Corporate & Other Reported ($MM) Q3/14 Q2/15 Q3/15 International Banking 151 163 175 Other (63) (82) (106) (1 ) 88 81 69 Revenue Provision for Credit Losses 12 11 15 Non-Interest Expenses 293 262 300 Income Before Taxes (217) (192) (246) (1 ) (146) (141) (178) Taxes Net Loss - Reported (71) (51) (68

  28. Slide 28: Q3 2015 Items of Note

    Q3 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 Q3 2015 Loss on structured credit run-off activities 6 5 0.01 Wholesale Banking Retail & Business Banking

  29. Slide 29: Non-GAAP Financial Measures Adjusted Results

    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 28 of t

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