Canadian Imperial Bank Of Commerce · TSX:CM
Canadian Imperial Bank Of Commerce — Q2 2025 Earnings Presentation
55 slides from Canadian Imperial Bank Of Commerce's earnings presentation, May 29, 2025
Slide 1: Quarterly Results Presentation
Quarterly Results Presentation Second Quarter 2025 May 29, 2025 All amounts are in Canadian dollars unless otherwise indicated.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Second 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 o
Slide 3: CIBC Overview
CIBC Overview Victor Dodig President & Chief Executive Officer
Slide 4: Key Messages
Key Messages Strong Leadership Continued Momentum Smooth CEO Transition Exceptional High quality, diversified Active engagement leadership team earnings streams with stakeholder driving our success Top-tier shareholder groups Continued execution returns Strong partnerships of our client-
Slide 5: Q2/25 Overview
Q2/25 Overview Strong results across our businesses underpinned by our client-focused strategy and financial strength FI NAN CIAL RE SU LTS CREDIT STRENGTH Diluted EPS ROE4 Revenue Allowance Coverage Ratio6 Total PCL Ratio7 Adjusted1,2 $2.05 | +17% YoY Adjusted2,5 13.9% | +50 bps YoY Adjusted2 $7.0B
Slide 6: Our Strategy
Our Strategy Driving strong momentum in a rapidly changing environment Progress Against Our Strategic Priorities Imperial Service NPS of 74.7 CIBC Adapta Our highest score-to-date reflects our team’s Launched a new credit card offering clients commitment to exceptional client experiences1 everyday r
Slide 7: In Closing
In Closing Positioning CIBC for consistent, strong, profitable growth Results demonstrate Proactively Well-positioned to continued managing our execute on our momentum and business and strategy to deliver consistency in a helping clients relative period of elevated achieve their long- outperformance
Slide 8: Financial Overview
Financial Overview Robert Sedran Senior Executive Vice-President & Chief Financial Officer
Slide 9: Q2/25 Results Snapshot
Q2/25 Results Snapshot Second quarter results highlight strong performance driven by our client-focused strategy Diluted Earnings Per Share Return on Equity Revenue Operating Leverage1 Reported $2.04 Reported 13.8% $7.0B Reported 4.9% +14% YoY Adjusted2 $2.05 Adjusted2 13.9% Reported & Adjusted2 Adj
Slide 10: Financial Overview
Financial Overview Strong, diversified revenue growth driving double-digit net income and PPPT1 growth Reported ($MM) Q2/25 YoY QoQ Q2/25 YoY Highlights: Revenue 7,022 14% (4)% Revenue Non-Trading Net Interest Income 4,010 16% (3)% • Broad-based revenue growth of 14% driven by strong trading revenue
Slide 11: Net Interest Income (NII)
Net Interest Income (NII) NII (ex-trading) grew 16% YoY, continuing to benefit from volume growth and spread expansion NII and NIM Total Bank NIM (ex. Trading)3,4 1.89% +16 bps YoY 1.88% 1.72% (1) bps 1.50% YoY 3 bps 1.54% 1.46% 3,801 3,788 +15% (317) 1.89% 3,281 (222) 1.88% (162) (3) bps (1) bps 4,
Slide 12: Non-Interest Income
Non-Interest Income Continued growth driven by strong trading and higher market-related fees Non-Interest Income by Category ($MM)4 Market-Related Fees4 Transactional Fees4 +12% 3,480 YoY Other 3,234 +5% YoY 2,883 1,130 +45% Investment 969 Deposit & 666 Mgmt. & Custodial Credit Payment Trading +10%
Slide 13: Non-Interest Expenses
Non-Interest Expenses Balanced approach to expense management drives positive operating leverage Adjusted1 Expenses ($MM) and YoY Expense Growth +10% +6% 128 3,808 206 3,680 3,474 Operating Leverage Adj.1: 4.3% Rpt.: 4.9% Q2/24 Operating costs Performance-based Q2/25 and investments2 compensation Re
Slide 14: Capital and Liquidity
Capital and Liquidity Capital deployed for organic growth and returned to shareholders Capital Position $B Q2/24 Q1/25 Q2/25 • Balance sheet continues to remain well positioned to support organic growth Average Loans and Acceptances 1 540.4 564.7 568.4 1 • CET1 ratio of 13.4%, down 10 basis points f
Slide 15: Canadian Personal & Business Banking
Canadian Personal & Business Banking Continued margin expansion and positive operating leverage Q2/25 YoY Highlights: Reported Adjusted1 • Net interest income up 10% driven by strong margin ($MM) Q2/25 YoY QoQ Q2/25 YoY QoQ expansion and modest volume growth Revenue 2,859 8% (2)% 2,859 8% (2)% • Net
Slide 16: Canadian Commercial Banking & Wealth Management
Canadian Commercial Banking & Wealth Management Double-digit earnings growth YoY driven by strong volume growth Q2/25 YoY Highlights: Reported & Adjusted1 ($MM) Q2/25 YoY QoQ • Net interest income up 46% Revenue 1,640 13% (4)% • Excluding impact of benchmark reform (offset by Net Interest Income 707
Slide 17: U.S. Commercial Banking & Wealth Management
U.S. Commercial Banking & Wealth Management Strong earnings growth driven by core business and lower PCLs Q2/25 YoY Highlights: Reported Adjusted1 • Net interest income up 12% primarily driven by higher loan (US$MM) Q2/25 YoY QoQ Q2/25 YoY QoQ and deposit volumes and rates Revenue 541 10% (9)% 541 1
Slide 18: Capital Markets
Capital Markets Strong trading, record Corporate Banking and IB revenues, and positive operating leverage Q2/25 YoY Highlights: Reported Adjusted1 • Revenue up 24% on a reported basis, and up 32% on an ($MM) Q2/25 YoY QoQ Q2/25 YoY QoQ adjusted basis: Revenue2 1,545 24% (2)% 1,545 32% (2)% • Global
Slide 19: Corporate & Other
Corporate & Other Q2/25 YoY Highlights: Reported Adjusted1 • Revenue up on a reported basis, and down on an adjusted1 ($MM) Q2/25 YoY QoQ Q2/25 YoY QoQ basis • Net interest income down due to lower Treasury- Revenue2 209 59 (25) 209 (12) (25) related revenues, reported impacted by TEB offset Net Int
Slide 20: In Closing
In Closing Positioning CIBC for consistent, strong, profitable growth Delivered another Balance Sheet Well-positioned to quarter of strong strength and continue executing results, while disciplined on our strategic navigating resource priorities and deliver uncertainty management profitable growth p
Slide 21: Risk Overview
Risk Overview Frank Guse Senior Executive Vice-President & Chief Risk Officer
Slide 22: Key Messages
Key Messages Gross impaired Strong allowance for Impaired loan credit losses loans have losses continue to continues to adjust remained flat trend at the lower to the economic compared to the end of guidance outlook prior quarter Second Quarter 2025 21
Slide 23: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses was up QoQ Our total provision for credit losses was $605MM in Q2/25, compared to $573MM last quarter Allowance for Credit Losses ($MM) – Q2/25 Movements +$341MM 359 104 4,376 142 4,455 4,086 4,114 ( 526 ) Impaired Provisions $463MM Q2/24 Allow
Slide 24: PCL on Impaired Loans
PCL on Impaired Loans1 Total impaired provisions were up QoQ Total Bank ($MM, bps) Canadian Personal & Business Banking ($MM, bps) • Total bank impaired PCL was up QoQ • Canadian Personal & Business Banking impaired 600 50 700 44 50 PCL was up due to higher provisions and write- 34 33 offs 550 31 40
Slide 25: Credit Performance – Gross Impaired Loans
Credit Performance – Gross Impaired Loans Gross impaired loan ratio was flat QoQ • Gross impaired loan ratio was flat QoQ, with an increase in consumer, offset Gross Impaired Loan Ratios Q2/24 Q1/25 Q2/25 by a decrease in business and government loans Canadian Residential Mortgages 1 0.26% 0.31% 0.3
Slide 26: Canadian Consumer Lending
Canadian Consumer Lending Net write-offs and delinquencies trending in line with our expectations Net Write-offs: Reported Net Write-offs Q2/24 Q1/25 Q2/25 • Overall consumer net write-offs increased QoQ, driven by seasonal lending behaviours in Canadian Residential Mortgages1 <0.01% <0.01% <0.01% c
Slide 27: In Summary
In Summary Credit We will continue to Allowance coverage performance take proactive continues to grow continues to be at measures to in response to the lower end of ensure we support evolving our guidance clients and macroeconomic minimize losses conditions Second Quarter 2025 26
Slide 28: Appendix
Appendix CIBC®
Slide 29: Our Commitment to the Environmental, Social, and Governance
Our Commitment to the Environmental, Social, and Governance Furthering our inclusive culture, and supporting our clients’ sustainability goals OUR PROGRESS Building Building Integrity Integrity and Trust 2025 Canada’s Greenest Employer For the 4th consecutive year AI Code of Conduct Signatory Became
Slide 30: 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) 87.8% 7.9 7.9 87.6% 413 409 382 391 393 86.7% 7.5 86.3% 7.4 86.1% 7.3 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24
Slide 31: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking1 Continued margin expansion driven by volume growth Revenue ($MM) Net Interest Margin3 Mortgage Portfolio Spreads4 3,479 3,598 3,521 3,393 2.73% 3,235 2.72% 662 666 660 714 769 2.65% 2,679 2,817 2,932 2,861 2.63% 2,466 2.60% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24
Slide 32: Balance Sheet
Balance Sheet Modest growth in loans and deposits; yields down reflecting rate decreases Average Assets ($B) & Yields1,2,3 Average Liabilities and Equity ($B), & Costs1,4,5 5.68% 5.70% 5.48% 5.00% 4.82% 4.22% 4.20% 3.97% 3.51% 3.28% 990 1,012 1,036 1,099 1,096 990 1,012 1,036 1,099 1,096 55 57 59 60
Slide 33: 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 $500B of the total funding base • Funding strategy is suppleme
Slide 34: Interest Rate Sensitivity
Interest Rate Sensitivity Well-positioned in a changing rate environment Net Interest Income Sensitivity to a +/- 100 bps Change ($MM)1 Interest Rate Environment in Canada and the U.S.2 Impact by currency Long-term vs short-term rates D e 121 121 s 84 123 p 37 (2) it (148) (123) e (41) (66) (189) (1
Slide 35: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) PCL trended higher QoQ Provision for Credit Losses up QoQ ($MM) Q2/24 Q1/25 Q2/25 • Impaired provision was up in Q2/25 due to higher impairments in Canadian Cdn. Personal & Business Banking 274 428 389 Personal and Business Banking and Canadian Commercial, partially
Slide 36: Allowance Coverage
Allowance Coverage Allowance coverage trended slightly higher QoQ and YoY Total allowance coverage ratio up slightly QoQ and YoY Total Allowance Coverage Q2/24 Q1/25 Q2/25 • Allowance increase is reflective of an unfavourable change in our overall economic outlook, including the uncertainties of tar
Slide 37: Canadian Real Estate Secured Personal Lending
Canadian Real Estate Secured Personal Lending Mortgage delinquencies performing in line with expectations • Portfolio average Loan-To-Value (LTV) continues to remain healthy • Condominium mortgages account for 16% of our total residential mortgage portfolio; credit quality is in line with the broade
Slide 38: Canadian Mortgages Renewal Profile – 3 Year Outlook
Canadian Mortgages Renewal Profile – 3 Year Outlook Impacts of payment increases at renewal expected to be minimal Current Balances by Renewal Year1 ($B) 86 84 Variable Rate Fixed Rate 25 36 34 • Using illustrative 4.0% and 4.5% mortgage rates at time of renewal, 6 61 and no borrower income growth 4
Slide 39: Canadian Uninsured Residential Mortgages
Canadian Uninsured Residential Mortgages Credit bureau score1 and LTV2 distributions remain healthy Credit Bureau Score1 Distribution 64% 57% 59% 57% 19% 17% 18% 19% 13% 11% 12% 13% 5% 4% 5% 5% 6% 4% 6% 6% ≤650 651-700 701-750 751-800 >800 Canada Total GVA3 GTA 3 Canada Variable Rate Loan-to-Value (
Slide 40: Canadian Uninsured Residential Mortgages – Q2/25 Originations
Canadian Uninsured Residential Mortgages – Q2/25 Originations1 Credit quality of new originations continues to remain high • Originations of $11.1B in Q2/25 • Average LTV2 in Canada: 66%, GVA3: 63%, GTA3: 66% Credit Bureau Score4 Distribution 51% 47% 48% 50% 23% 24% 23% 23% 18% 16% 18% 17% 9% 7% 8%
Slide 41: Credit Portfolio Breakdown
Credit Portfolio Breakdown Lending portfolio has a strong risk profile and is well diversified Overall Loan Mix (Net Outstanding Loans and Acceptances) Auto Lending 2% Industries that may be impacted by Consumer Personal Lending 3% tariffs are diversified, and represent 61% only 4% of the total lend
Slide 42: Commercial Real Estate
Commercial Real Estate Commercial real estate loans outstanding are well diversified • Canada represents 64% of total Canadian & U.S. real estate loans outstanding Multi-Family Portfolio Metrics • Gross impaired loans as a percentage of total Canadian & U.S. real estate is 1.06% Canada US Total outs
Slide 43: Trading Revenue Distribution
Trading Revenue Distribution Robust trading performance in recent volatile market ($MM) ($MM) 40 40 30 30 20 20 10 10 0 0 (10) (10) (20) Feb-25 Mar-25 Apr-25 (20) Trading Revenue VaR Second Quarter 2025 42
Slide 44: Forward Looking Information
Forward Looking Information Variables used to estimate our Expected Credit Losses1 Forward-Looking Information Variables Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the Avg. Value over the next 12 months remaining forecast next 12 months remaining
Slide 45: Items of Note
Items of Note Second quarter 2025 Period Q2/25 Reporting Segments Pre-Tax EPS After-Tax & NCI Effect Effect Effect ($MM) ($MM) ($/Share) Canadian Personal and Business Banking Amortization of acquisition-related intangible assets 11 9 0.01 U.S. Commercial Banking and Wealth Management Adjustment to
Slide 46: Endnotes
Endnotes Second Quarter 2025 Slide 4 – CIBC Overview 1. See note 1 in the Glossary section. 2. Adjusted results are non-GAAP measures. See slide 52 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 52 for furth
Slide 47: Endnotes
Endnotes Second Quarter 2025 Slide 9 – Financial Overview 1. Adjusted results are non-GAAP measures. See slide 52 for further details. 2. See note 11 in the Glossary section. 3. For additional information on the composition, see the "Glossary" section in the Q2/25 Quarterly Report to Shareholders, a
Slide 48: Endnotes
Endnotes Second Quarter 2025 Slide 13 - Capital and Liquidity 1. Average balances are calculated as a weighted average of daily closing balances. 2. RWA and our capital balances and ratios are calculated pursuant to OSFI’s CAR Guideline, the leverage ratio is calculated pursuant to OSFI’s Leverage R
Slide 49: Endnotes
Endnotes Second Quarter 2025 Slide 17 – Capital Markets 1. Adjusted results are non-GAAP measures. See slide 52 for further details. 2. Capital Markets reported results include a taxable equivalent basis (TEB) adjustment of $71 million for the three months ended April 30, 2024 3. Pre-provision, pre-
Slide 50: Endnotes
Endnotes Second Quarter 2025 Slide 28 – Our Commitment to the Environmental, Social, and Governance 1. Refer to the Code here: https://ised-isde.canada.ca/site/ised/en/voluntary-code-conduct-responsible-development-and-management-advanced-generative-ai-systems 2. Includes cash and in-kind contributi
Slide 51: Endnotes
Endnotes Second Quarter 2025 Slide 31 – 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 s
Slide 52: Endnotes
Endnotes Second Quarter 2025 Slide 37 – Canadian Mortgages Renewal Profile – 3 Year Outlook 1. Excludes third party mortgages which were not originated by CIBC. 2. Includes remaining renewals only. 3. Based on average original qualification rate of all cohorts. Slide 38 – Canadian Uninsured Resident
Slide 53: Non-GAAP Measures
Non-GAAP Measures Second 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 meas
Slide 54: Glossary
Glossary Second 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, ne
Slide 55: Glossary
Glossary Second Quarter 2025 Definition 12 Adjusted Efficiency Ratio We adjust our reported revenue and non-interest expenses to remove the impact of items of note. 13 Total Allowance Coverage Ratio Total allowance for credit losses to gross carrying amount of loans. The gross carrying amount of loa
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