TORONTO, Feb. 29,
2024 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today
announced its financial results for the first quarter ended
January 31, 2024.
First quarter highlights
|
Q1/24
|
Q1/23
(1)
|
Q4/23
(1)
|
YoY
Variance
|
QoQ
Variance
|
Revenue
|
$6,221 million
|
$5,929 million
|
$5,847 million
|
+5 %
|
+6 %
|
Reported Net
Income
|
$1,728 million
|
$433 million
|
$1,485 million
|
+299 %
|
+16 %
|
Adjusted Net Income
(2)
|
$1,770 million
|
$1,842 million
|
$1,522 million
|
-4 %
|
+16 %
|
Adjusted pre-provision,
pre-tax earnings (2)
|
$2,862 million
|
$2,662 million
|
$2,452 million
|
+8 %
|
+17 %
|
Reported Diluted
Earnings Per Share (EPS)
|
$1.77
|
$0.39
|
$1.53
|
+354 %
|
+16 %
|
Adjusted Diluted EPS
(2)
|
$1.81
|
$1.94
|
$1.57
|
-7 %
|
+15 %
|
Reported Return on
Common Shareholders' Equity (ROE) (3)
|
13.5 %
|
3.1 %
|
11.8 %
|
|
Adjusted ROE
(2)
|
13.8 %
|
15.5 %
|
12.2 %
|
Net interest margin on
average interest-earnings assets (3)(4)
|
1.43 %
|
1.49 %
|
1.44 %
|
|
Net interest margin on
average interest-earnings assets (excluding trading)
(3)(4)
|
1.72 %
|
1.66 %
|
1.66 %
|
|
Common Equity Tier 1
(CET1) Ratio (5)
|
13.0 %
|
11.6 %
|
12.4 %
|
|
"These first quarter results demonstrate our success in
executing on our client-focused strategy which is delivering
results for our stakeholders," said Victor
G. Dodig, CIBC President and Chief Executive Officer. "We
have clear momentum in attracting and deepening client
relationships, underpinned by continued expense discipline, a
robust capital position, and strong credit quality, giving us a
strong foundation as we continue to proactively manage our bank to
further our progress and momentum in 2024."
Results for the first quarter of 2024 were affected by the
following items of note aggregating to a negative impact of
$0.04 per share:
- $91 million ($68 million after-tax) charge related to the
special assessment imposed by the Federal Deposit Insurance
Corporation (FDIC) on U.S. depository institutions, which impacted
CIBC Bank USA (U.S. Commercial
Banking and Wealth Management);
- $37 million recovery to income
tax that would be eliminated by a Federal proposal, if enacted in
its current form(6) ($52
million tax equivalent basis (TEB) revenue and tax expense
in Capital Markets and Direct Financial Services with offsets in
Corporate and Other; $37 million tax
recovery in Capital Markets and Direct Financial Services);
and
- $15 million ($11 million after-tax) amortization of
acquisition-related intangible assets.
Our CET1 ratio(5) was 13.0% at January 31, 2024, compared with 12.4% at the end
of the prior quarter. CIBC's leverage ratio(5)(7) and
liquidity coverage ratio(5) at January 31, 2024 were 4.3% and 137%,
respectively.
Core business performance
Canadian Personal and Business Banking reported net
income of $650 million for the first quarter, up
$60 million or 10% from the first quarter a year ago,
primarily due to higher revenue driven by higher net interest
margin and volume growth and lower expenses, partially offset by a
higher provision for credit losses. Adjusted pre-provision, pre-tax
earnings(2) were $1,224 million, up $245 million from
the first quarter a year ago, from higher revenue and lower
adjusted(1) non-interest expenses mainly due to timing
of spend on strategic initiatives.
Canadian Commercial Banking and Wealth Management
reported net income of $498 million for the first quarter, up
$29 million or 6% from the first quarter a year ago, primarily
due to a lower provision for credit losses and higher revenue. The
increase in revenue was primarily due to higher fee-based revenue
from market appreciation and higher commission revenue from
increased client activity in wealth management. Commercial banking
revenue was comparable with the prior year as volume growth and
higher fees were offset by lower loan and deposit margins. Expenses
increased primarily due to higher performance-based compensation.
Adjusted pre-provision, pre-tax earnings(2) were
$705 million, up $19 million from the first quarter a
year ago, primarily due to higher revenue in wealth management.
(1)
|
Certain information has
been restated to reflect the adoption of IFRS 17. For
additional information, see Note 1 to the interim consolidated
financial statements of our Report to Shareholders for the first
quarter of 2024 available on SEDAR+ at
www.sedarplus.com.
|
(2)
|
This measure is a
non-GAAP measure. For additional information, see the "Non-GAAP
measures" section, including the quantitative reconciliations
of reported GAAP measures to: adjusted non-interest expenses and
adjusted net income on pages 3 and 4; and adjusted pre-provision,
pre-tax earnings on page 5.
|
(3)
|
Certain additional
disclosures for these specified financial measures have been
incorporated by reference and can be found in the "Glossary"
section of our Report to Shareholders for the first quarter of 2024
available on SEDAR+ at www.sedarplus.com.
|
(4)
|
Average balances are
calculated as a weighted average of daily closing
balances.
|
(5)
|
Our capital ratios are
calculated pursuant to the Office of the Superintendent of
Financial Institution's (OSFI's) Capital Adequacy Requirements
(CAR) Guideline and the leverage ratio is calculated
pursuant to OSFI's Leverage Requirements Guideline, all of
which are based on the Basel Committee on Banking Supervision
(BCBS) standards. The January 31, 2024 results reflect the impacts
from the implementation of Basel III reforms related to market risk
and credit valuation adjustments that became effective as of
November 1, 2023. The first quarter of 2024 and the fourth quarter
of 2023 reflected the impacts from the implementation of Basel III
reforms that became effective as of February 1, 2023. For
additional information, see the "Capital management" and "Liquidity
risk" sections of our Report to Shareholders for the first quarter
of 2024 available on SEDAR+ at www.sedarplus.com.
|
(6)
|
This item of note
reports the impact on consolidated income tax expense that could be
subject to an adjustment to our reported results in future periods
if a Federal tax proposal were to be substantively enacted in its
current form. The corresponding impact on TEB in Capital Markets
and Direct Financial Services and Corporate and Other is also
included in this item of note with no impact on the consolidated
item of note.
|
(7)
|
The temporary exclusion
of Central bank reserves from the leverage ratio exposure measure
in response to the onset of the COVID-19 pandemic was no longer
applicable beginning in the second quarter of 2023.
|
U.S. Commercial Banking and Wealth Management
reported a net loss of $9 million (US$7 million) for the
first quarter, down $210 million (US$157 million or 105%)
from the first quarter a year ago, primarily due to higher expenses
including a $91 million (US$67 million) charge related to the special
assessment imposed by the FDIC, higher provision for credit losses,
lower annual performance-based mutual fund fees, lower net interest
income due to higher cost of deposits partially offset by higher
loan margins, and higher employee-related compensation. Adjusted
pre-provision, pre-tax earnings(1) were
$302 million (US$224 million), down $40 million
(US$31 million) from the first quarter a year ago, due to
lower revenue and higher expenses.
Capital Markets and Direct Financial Services
reported net income of $612 million for the first quarter,
which was comparable with the first quarter a year ago, primarily
due to higher revenue, offset by higher non-interest expenses and a
higher provision for credit losses. Higher revenue from our global
markets, investment banking and direct financial services
businesses was partially offset by lower corporate banking revenue.
Expenses were up due to higher spending on strategic initiatives
and higher performance-based and employee-related compensation.
Adjusted pre-provision, pre-tax earnings(1) were down
$34 million or 4% from the first quarter a year ago as higher
revenue was more than offset by higher expenses.
Credit quality
Provision for credit losses was $585
million, up $290 million from
the same quarter last year. Provision for credit losses on
performing loans was up as the same quarter last year included a
favourable change in our economic outlook partially offset by a
higher level of unfavourable credit migration. Provision for credit
losses on impaired loans was up mainly due to higher provisions in
Canadian Personal and Business Banking, and U.S. Commercial Banking
and Wealth Management.
(1)
|
This measure is a
non-GAAP measure. For additional information and a reconciliation
of reported results to adjusted results, where applicable, see the
"Non-GAAP measures" section.
|
Non-GAAP measures
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 (International Financial
Reporting Standards), while other measures do not have a
standardized meaning under GAAP, and accordingly, these measures
may not be comparable to similar measures used by other companies.
Investors may find these non-GAAP measures, which include non-GAAP
financial measures and non-GAAP ratios as defined in National
Instrument 52-112 "Non-GAAP and Other Financial Measures
Disclosure", useful in understanding how management views
underlying business performance.
Management assesses results on a reported and adjusted basis and
considers both as useful measures of performance. Adjusted
measures, which include adjusted total revenue, adjusted provision
for credit losses, adjusted non-interest expenses, adjusted income
before income taxes, adjusted income taxes, adjusted net income and
adjusted pre-provision, pre-tax earnings, remove items of note from
reported results to calculate our adjusted results. Adjusted
measures represent non-GAAP measures. Non-GAAP ratios include an
adjusted measure as one or more of their components. Non-GAAP
ratios include adjusted diluted EPS, adjusted efficiency ratio,
adjusted operating leverage, adjusted dividend payout ratio,
adjusted return on common shareholders' equity and adjusted
effective tax rate.
Certain additional disclosures for these specified financial
measures have been incorporated by reference and can be found in
the "Non-GAAP measures" section of our Report to Shareholders for
the first quarter of 2024 available on SEDAR+ at
www.sedarplus.com.
The following table
provides a reconciliation of GAAP (reported) results to non-GAAP
(adjusted) results on a segmented basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
Canadian
|
U.S.
|
Capital
|
|
|
|
|
|
Commercial
|
|
|
|
Canadian
|
Commercial
|
Commercial
|
Markets
|
|
|
|
|
|
Banking
|
|
|
|
Personal
|
Banking
|
Banking
|
and
Direct
|
|
|
|
|
|
and Wealth
|
|
|
|
and
Business
|
and Wealth
|
and Wealth
|
Financial
|
Corporate
|
CIBC
|
|
Management
|
|
$ millions, for the
three months ended January 31, 2024
|
Banking
|
Management
|
Management
|
Services
|
and
Other
|
Total
|
|
(US$ millions)
|
|
Operating results –
reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
2,497
|
$
|
1,374
|
$
|
681
|
$
|
1,561
|
$
|
108
|
$
|
6,221
|
|
$
|
507
|
|
Provision for (reversal
of) credit losses
|
|
329
|
|
20
|
|
244
|
|
8
|
|
(16)
|
|
585
|
|
|
182
|
|
Non-interest
expenses
|
|
1,280
|
|
669
|
|
478
|
|
712
|
|
326
|
|
3,465
|
|
|
356
|
|
Income (loss) before
income taxes
|
|
888
|
|
685
|
|
(41)
|
|
841
|
|
(202)
|
|
2,171
|
|
|
(31)
|
|
Income taxes
|
|
238
|
|
187
|
|
(32)
|
|
229
|
|
(179)
|
|
443
|
|
|
(24)
|
|
Net income
(loss)
|
|
650
|
|
498
|
|
(9)
|
|
612
|
|
(23)
|
|
1,728
|
|
|
(7)
|
|
|
Net income attributable
to non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12
|
|
12
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders
|
|
650
|
|
498
|
|
(9)
|
|
612
|
|
(35)
|
|
1,716
|
|
|
(7)
|
|
Diluted EPS
($)
|
|
|
|
|
|
|
|
|
|
|
$
|
1.77
|
|
|
|
|
Impact of items of
note (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery to income tax
that would be eliminated by a Federal
proposal,
if enacted in its current form (2)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(52)
|
$
|
52
|
$
|
-
|
|
$
|
-
|
|
Impact of items of
note on revenue
|
|
-
|
|
-
|
|
-
|
|
(52)
|
|
52
|
|
-
|
|
|
-
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
(7)
|
|
-
|
|
(8)
|
|
-
|
|
-
|
|
(15)
|
|
|
(6)
|
|
|
Charge related to the
special assessment imposed by the FDIC
|
|
-
|
|
-
|
|
(91)
|
|
-
|
|
-
|
|
(91)
|
|
|
(67)
|
|
Impact of items of
note on non-interest expenses
|
|
(7)
|
|
-
|
|
(99)
|
|
-
|
|
-
|
|
(106)
|
|
|
(73)
|
|
Total pre-tax impact
of items of note on net income
|
|
7
|
|
-
|
|
99
|
|
(52)
|
|
52
|
|
106
|
|
|
73
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
2
|
|
-
|
|
2
|
|
-
|
|
-
|
|
4
|
|
|
1
|
|
|
Recovery to income tax
that would be eliminated by a Federal
proposal,
if enacted in its current form (2)
|
|
-
|
|
-
|
|
-
|
|
(15)
|
|
52
|
|
37
|
|
|
-
|
|
|
Charge related to the
special assessment imposed by the FDIC
|
|
-
|
|
-
|
|
23
|
|
-
|
|
-
|
|
23
|
|
|
17
|
|
Impact of items of
note on income taxes
|
|
2
|
|
-
|
|
25
|
|
(15)
|
|
52
|
|
64
|
|
|
18
|
|
Total after-tax
impact of items of note on net income
|
$
|
5
|
$
|
-
|
$
|
74
|
$
|
(37)
|
$
|
-
|
$
|
42
|
|
$
|
55
|
|
Impact of items of
note on diluted EPS ($)
|
|
|
|
|
|
|
|
|
|
|
$
|
0.04
|
|
|
|
|
Operating results –
adjusted (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
adjusted (4)
|
$
|
2,497
|
$
|
1,374
|
$
|
681
|
$
|
1,509
|
$
|
160
|
$
|
6,221
|
|
$
|
507
|
|
Provision for (reversal
of) credit losses – adjusted
|
|
329
|
|
20
|
|
244
|
|
8
|
|
(16)
|
|
585
|
|
|
182
|
|
Non-interest expenses –
adjusted
|
|
1,273
|
|
669
|
|
379
|
|
712
|
|
326
|
|
3,359
|
|
|
283
|
|
Income (loss) before
income taxes – adjusted
|
|
895
|
|
685
|
|
58
|
|
789
|
|
(150)
|
|
2,277
|
|
|
42
|
|
Income taxes –
adjusted
|
|
240
|
|
187
|
|
(7)
|
|
214
|
|
(127)
|
|
507
|
|
|
(6)
|
|
Net income (loss) –
adjusted
|
|
655
|
|
498
|
|
65
|
|
575
|
|
(23)
|
|
1,770
|
|
|
48
|
|
|
Net income attributable
to non-controlling interests – adjusted
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12
|
|
12
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders – adjusted
|
|
655
|
|
498
|
|
65
|
|
575
|
|
(35)
|
|
1,758
|
|
|
48
|
|
Adjusted diluted
EPS ($)
|
|
|
|
|
|
|
|
|
|
|
$
|
1.81
|
|
|
|
|
(1)
|
Items of note are
removed from reported results to calculate adjusted
results.
|
(2)
|
This item of note
reports the impact on consolidated income tax expense that could be
subject to an adjustment to our reported results in future periods
if a Federal tax proposal were to be substantively enacted in its
current form. The corresponding impact on TEB in Capital Markets
and Direct Financial Services and Corporate and Other is also
included in this item of note with no impact on the consolidated
item of note.
|
(3)
|
Adjusted to exclude the
impact of items of note. Adjusted measures are non-GAAP
measures.
|
(4)
|
CIBC total results
excludes a TEB adjustment of $68 million for the quarter ended
January 31, 2024 (October 31, 2023: $62 million; January 31, 2023:
$62 million).
|
(5)
|
Certain information has
been restated to reflect the adoption of IFRS 17. For
additional information, see Note 1 to the interim consolidated
financial statements of our Report to Shareholders for the first
quarter of 2024 available on SEDAR+ at
www.sedarplus.com.
|
(6)
|
The income tax charge
is comprised of $510 million for the present value of the estimated
amount of the Canada Recovery Dividend (CRD) tax of $555 million,
and a charge of $35 million related to the fiscal 2022 impact of
the 1.5% increase in the tax rate applied to taxable income of
certain bank and insurance entities in excess of $100 million for
periods after April 2022. The discount of
$45 million on
the CRD tax accretes over the four-year payment period from
initial recognition.
|
|
|
The following table
provides a reconciliation of GAAP (reported) results to non-GAAP
(adjusted) results on a segmented basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Canadian
|
U.S.
|
Capital
|
|
|
|
|
|
Commercial
|
|
|
|
Canadian
|
|
Commercial
|
Commercial
|
Markets
|
|
|
|
|
|
Banking
|
|
|
|
Personal
|
|
Banking
|
Banking
|
and Direct
|
|
|
|
|
|
and Wealth
|
|
|
|
and Business
|
|
and Wealth
|
and Wealth
|
Financial
|
Corporate
|
CIBC
|
|
Management
|
|
$ millions, for the
three months ended October 31, 2023
|
Banking(5)
|
|
Management
|
Management
|
Services
|
and Other
|
Total
|
|
(US$
millions)
|
|
Operating results –
reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
2,458
|
|
$
|
1,366
|
$
|
672
|
$
|
1,290
|
$
|
61
|
$
|
5,847
|
|
$
|
492
|
|
Provision for (reversal
of) credit losses
|
|
282
|
|
|
11
|
|
249
|
|
4
|
|
(5)
|
|
541
|
|
|
183
|
|
Non-interest
expenses
|
|
1,307
|
|
|
679
|
|
387
|
|
734
|
|
333
|
|
3,440
|
|
|
284
|
|
Income (loss) before
income taxes
|
|
869
|
|
|
676
|
|
36
|
|
552
|
|
(267)
|
|
1,866
|
|
|
25
|
|
Income taxes
|
|
232
|
|
|
186
|
|
(14)
|
|
169
|
|
(192)
|
|
381
|
|
|
(10)
|
|
Net income
(loss)
|
|
637
|
|
|
490
|
|
50
|
|
383
|
|
(75)
|
|
1,485
|
|
|
35
|
|
|
Net income attributable
to non-controlling interests
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
8
|
|
8
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders
|
|
637
|
|
|
490
|
|
50
|
|
383
|
|
(83)
|
|
1,477
|
|
|
35
|
|
Diluted EPS
($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.53
|
|
|
|
|
Impact of items of
note (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
$
|
(6)
|
|
$
|
-
|
$
|
(9)
|
$
|
-
|
$
|
(30)
|
$
|
(45)
|
|
$
|
(6)
|
|
Impact of items of
note on non-interest expenses
|
|
(6)
|
|
|
-
|
|
(9)
|
|
-
|
|
(30)
|
|
(45)
|
|
|
(6)
|
|
Total pre-tax impact
of items of note on net income
|
|
6
|
|
|
-
|
|
9
|
|
-
|
|
30
|
|
45
|
|
|
6
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
2
|
|
|
-
|
|
3
|
|
-
|
|
3
|
|
8
|
|
|
2
|
|
Impact of items of
note on income taxes
|
|
2
|
|
|
-
|
|
3
|
|
-
|
|
3
|
|
8
|
|
|
2
|
|
Total after-tax
impact of items of note on net income
|
$
|
4
|
|
$
|
-
|
$
|
6
|
$
|
-
|
$
|
27
|
$
|
37
|
|
$
|
4
|
|
Impact of items of
note on diluted EPS ($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.04
|
|
|
|
|
Operating results –
adjusted (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
adjusted (4)
|
$
|
2,458
|
|
$
|
1,366
|
$
|
672
|
$
|
1,290
|
$
|
61
|
$
|
5,847
|
|
$
|
492
|
|
Provision for (reversal
of) credit losses – adjusted
|
|
282
|
|
|
11
|
|
249
|
|
4
|
|
(5)
|
|
541
|
|
|
183
|
|
Non-interest expenses –
adjusted
|
|
1,301
|
|
|
679
|
|
378
|
|
734
|
|
303
|
|
3,395
|
|
|
278
|
|
Income (loss) before
income taxes – adjusted
|
|
875
|
|
|
676
|
|
45
|
|
552
|
|
(237)
|
|
1,911
|
|
|
31
|
|
Income taxes –
adjusted
|
|
234
|
|
|
186
|
|
(11)
|
|
169
|
|
(189)
|
|
389
|
|
|
(8)
|
|
Net income (loss) –
adjusted
|
|
641
|
|
|
490
|
|
56
|
|
383
|
|
(48)
|
|
1,522
|
|
|
39
|
|
|
Net income attributable
to non-controlling interests – adjusted
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
8
|
|
8
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders – adjusted
|
|
641
|
|
|
490
|
|
56
|
|
383
|
|
(56)
|
|
1,514
|
|
|
39
|
|
Adjusted diluted
EPS ($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.57
|
|
|
|
|
See previous page for footnote references
|
The following table
provides a reconciliation of GAAP (reported) results to non-GAAP
(adjusted) results on a segmented basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Canadian
|
U.S.
|
Capital
|
|
|
|
|
|
Commercial
|
|
|
|
Canadian
|
|
Commercial
|
Commercial
|
Markets
|
|
|
|
|
|
Banking
|
|
|
|
Personal
|
|
Banking
|
Banking
|
and Direct
|
|
|
|
|
|
and Wealth
|
|
|
|
and Business
|
|
and Wealth
|
and Wealth
|
Financial
|
Corporate
|
CIBC
|
|
Management
|
|
$ millions, for the
three months ended January 31, 2023
|
Banking(5)
|
|
Management
|
Management
|
Services
|
and Other
|
Total
|
|
(US$
millions)
|
|
Operating results –
reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
2,262
|
|
$
|
1,351
|
$
|
706
|
$
|
1,481
|
$
|
129
|
$
|
5,929
|
|
$
|
526
|
|
Provision for (reversal
of) credit losses
|
|
158
|
|
|
46
|
|
98
|
|
(10)
|
|
3
|
|
295
|
|
|
73
|
|
Non-interest
expenses
|
|
1,290
|
|
|
665
|
|
380
|
|
650
|
|
1,477
|
|
4,462
|
|
|
283
|
|
Income (loss) before
income taxes
|
|
814
|
|
|
640
|
|
228
|
|
841
|
|
(1,351)
|
|
1,172
|
|
|
170
|
|
Income taxes
|
|
224
|
|
|
171
|
|
27
|
|
229
|
|
88
|
|
739
|
|
|
20
|
|
Net income
(loss)
|
|
590
|
|
|
469
|
|
201
|
|
612
|
|
(1,439)
|
|
433
|
|
|
150
|
|
|
Net income attributable
to non-controlling interests
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
9
|
|
9
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders
|
|
590
|
|
|
469
|
|
201
|
|
612
|
|
(1,448)
|
|
424
|
|
|
150
|
|
Diluted EPS
($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.39
|
|
|
|
|
Impact of items of
note (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
$
|
(7)
|
|
$
|
-
|
$
|
(16)
|
$
|
-
|
$
|
(3)
|
$
|
(26)
|
|
$
|
(12)
|
|
|
Increase in legal
provisions
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
(1,169)
|
|
(1,169)
|
|
|
-
|
|
Impact of items of
note on non-interest expenses
|
|
(7)
|
|
|
-
|
|
(16)
|
|
-
|
|
(1,172)
|
|
(1,195)
|
|
|
(12)
|
|
Total pre-tax impact
of items of note on net income
|
|
7
|
|
|
-
|
|
16
|
|
-
|
|
1,172
|
|
1,195
|
|
|
12
|
|
Income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
2
|
|
|
-
|
|
4
|
|
-
|
|
-
|
|
6
|
|
|
3
|
|
|
Increase in legal
provisions
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
325
|
|
325
|
|
|
-
|
|
|
Income tax charge
related to the 2022 Canadian Federal budget
(6)
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
(545)
|
|
(545)
|
|
|
-
|
|
Impact of items of
note on income taxes
|
|
2
|
|
|
-
|
|
4
|
|
-
|
|
(220)
|
|
(214)
|
|
|
3
|
|
Total after-tax
impact of items of note on net income
|
$
|
5
|
|
$
|
-
|
$
|
12
|
$
|
-
|
$
|
1,392
|
$
|
1,409
|
|
$
|
9
|
|
Impact of items of
note on diluted EPS ($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.55
|
|
|
|
|
Operating results –
adjusted (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
adjusted (4)
|
$
|
2,262
|
|
$
|
1,351
|
$
|
706
|
$
|
1,481
|
$
|
129
|
$
|
5,929
|
|
$
|
526
|
|
Provision for (reversal
of) credit losses – adjusted
|
|
158
|
|
|
46
|
|
98
|
|
(10)
|
|
3
|
|
295
|
|
|
73
|
|
Non-interest expenses –
adjusted
|
|
1,283
|
|
|
665
|
|
364
|
|
650
|
|
305
|
|
3,267
|
|
|
271
|
|
Income (loss) before
income taxes – adjusted
|
|
821
|
|
|
640
|
|
244
|
|
841
|
|
(179)
|
|
2,367
|
|
|
182
|
|
Income taxes –
adjusted
|
|
226
|
|
|
171
|
|
31
|
|
229
|
|
(132)
|
|
525
|
|
|
23
|
|
Net income (loss) –
adjusted
|
|
595
|
|
|
469
|
|
213
|
|
612
|
|
(47)
|
|
1,842
|
|
|
159
|
|
|
Net income attributable
to non-controlling interests – adjusted
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
9
|
|
9
|
|
|
-
|
|
|
Net income (loss)
attributable to equity shareholders – adjusted
|
|
595
|
|
|
469
|
|
213
|
|
612
|
|
(56)
|
|
1,833
|
|
|
159
|
|
Adjusted diluted
EPS ($)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See previous pages for
footnote references.
|
The following table
provides a reconciliation of GAAP (reported) net income to non-GAAP
(adjusted) pre-provision, pre-tax earnings on a segmented
basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
|
|
|
Canadian
|
U.S.
|
Capital
|
|
|
|
|
|
Commercial
|
|
|
|
|
Canadian
|
Commercial
|
Commercial
|
Markets
|
|
|
|
|
|
Banking
|
|
|
|
|
Personal
|
Banking
|
Banking
|
and Direct
|
|
|
|
|
|
and Wealth
|
|
|
|
|
and Business
|
and Wealth
|
and Wealth
|
Financial
|
Corporate
|
CIBC
|
|
Management
|
$ millions, for the
three months ended
|
Banking
|
Management
|
Management
|
Services
|
and Other
|
Total
|
|
(US$
millions)
|
2024
|
Net income
(loss)
|
$
|
650
|
$
|
498
|
$
|
(9)
|
$
|
612
|
$
|
(23)
|
$
|
1,728
|
|
$
|
(7)
|
Jan.
31
|
Add: provision for
(reversal of) credit losses
|
|
329
|
|
20
|
|
244
|
|
8
|
|
(16)
|
|
585
|
|
|
182
|
|
Add: income
taxes
|
|
238
|
|
187
|
|
(32)
|
|
229
|
|
(179)
|
|
443
|
|
|
(24)
|
|
|
Pre-provision
(reversal), pre-tax earnings
(losses) (1)
|
|
1,217
|
|
705
|
|
203
|
|
849
|
|
(218)
|
|
2,756
|
|
|
151
|
|
|
Pre-tax impact of
items of note (2)
|
|
7
|
|
-
|
|
99
|
|
(52)
|
|
52
|
|
106
|
|
|
73
|
|
|
Adjusted
pre-provision (reversal), pre-tax earnings
(losses) (3)
|
$
|
1,224
|
$
|
705
|
$
|
302
|
$
|
797
|
$
|
(166)
|
$
|
2,862
|
|
$
|
224
|
2023
|
Net income
(loss)
|
$
|
637
|
$
|
490
|
$
|
50
|
$
|
383
|
$
|
(75)
|
$
|
1,485
|
|
$
|
35
|
Oct.
31(4)
|
Add: provision for
(reversal of) credit losses
|
|
282
|
|
11
|
|
249
|
|
4
|
|
(5)
|
|
541
|
|
|
183
|
|
Add: income
taxes
|
|
232
|
|
186
|
|
(14)
|
|
169
|
|
(192)
|
|
381
|
|
|
(10)
|
|
|
Pre-provision
(reversal), pre-tax earnings (losses) (1)
|
|
1,151
|
|
687
|
|
285
|
|
556
|
|
(272)
|
|
2,407
|
|
|
208
|
|
|
Pre-tax impact of items
of note (2)
|
|
6
|
|
-
|
|
9
|
|
-
|
|
30
|
|
45
|
|
|
6
|
|
|
Adjusted pre-provision
(reversal), pre-tax earnings (losses) (3)
|
$
|
1,157
|
$
|
687
|
$
|
294
|
$
|
556
|
$
|
(242)
|
$
|
2,452
|
|
$
|
214
|
2023
|
Net income
(loss)
|
$
|
590
|
$
|
469
|
$
|
201
|
$
|
612
|
$
|
(1,439)
|
$
|
433
|
|
$
|
150
|
Jan.
31(4)
|
Add: provision for
(reversal of) credit losses
|
|
158
|
|
46
|
|
98
|
|
(10)
|
|
3
|
|
295
|
|
|
73
|
|
Add: income
taxes
|
|
224
|
|
171
|
|
27
|
|
229
|
|
88
|
|
739
|
|
|
20
|
|
|
Pre-provision
(reversal), pre-tax earnings (losses) (1)
|
|
972
|
|
686
|
|
326
|
|
831
|
|
(1,348)
|
|
1,467
|
|
|
243
|
|
|
Pre-tax impact of items
of note (2)
|
|
7
|
|
-
|
|
16
|
|
-
|
|
1,172
|
|
1,195
|
|
|
12
|
|
|
Adjusted pre-provision
(reversal), pre-tax earnings (losses) (3)
|
$
|
979
|
$
|
686
|
$
|
342
|
$
|
831
|
$
|
(176)
|
$
|
2,662
|
|
$
|
255
|
(1)
|
Non-GAAP
measure.
|
(2)
|
Items of note are
removed from reported results to calculate adjusted
results.
|
(3)
|
Adjusted to exclude the
impact of items of note. Adjusted measures are non-GAAP
measures.
|
(4)
|
Certain information has
been restated to reflect the adoption of IFRS 17. For additional
information, see Note 1 to the interim consolidated financial
statements of our Report to Shareholders for the first quarter of
2024 available on SEDAR+ at www.sedarplus.com.
|
Making a difference in our communities
At CIBC, we believe there should be no limits to ambition. We
invest our time and resources to remove barriers to ambitions and
demonstrate that when we come together, positive change happens
that helps our communities thrive. This quarter:
- CIBC announced that $6 million
will be donated to children's charities globally, following the
39th annual CIBC Miracle Day held on December 6, 2023.
- CIBC made an additional donation of $5
million to the CIBC Foundation, reinforcing its commitment
to grow the CIBC Foundation and advancing the bank's efforts to
creating a world without limits to ambition by creating access to
opportunities.
- CIBC donated $500,000 to
establish a suite of scholarships at Concordia
University to empower women students, students of colour,
Indigenous students, students with disabilities and students from
the LGBTQ+ community.
- CIBC teamed up with professional hockey player Connor Bedard of the Chicago Blackhawks to be
ambassador for the bank and increased its donation to the Christine
Sinclair Foundation to a total of $190,000 in honour of Christine ending her
international soccer career with a world-record 190 goals for
Canada.
The Board of Directors of CIBC reviewed this news release prior
to it being issued. CIBC's controls and procedures support the
ability of the President and Chief Executive Officer (CEO) and the
Chief Financial Officer (CFO) of CIBC to certify CIBC's first
quarter financial report and controls and procedures. CIBC's CEO
and CFO will voluntarily provide to the
United States (U.S.) Securities and Exchange Commission a
certification relating to CIBC's first quarter financial
information, including the unaudited interim consolidated financial
statements, and will provide the same certification to the Canadian
Securities Administrators.
All amounts are in Canadian dollars and are based on financial
statements prepared in compliance with International Accounting
Standard 34 Interim Financial Reporting, unless otherwise
noted.
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 news release, in other filings with Canadian securities
regulators or the U.S. Securities and Exchange Commission, in other
reports to shareholders, and in other communications. All such
statements are made pursuant to the "safe harbour" provisions of,
and are intended to be forward-looking statements under applicable
Canadian and U.S. securities legislation, including the U.S.
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements about our operations,
business lines, financial condition, risk management, priorities,
targets and sustainability commitments (including with respect to
net-zero emissions and our environmental, social and governance
(ESG) related activities), ongoing objectives, strategies, the
regulatory environment in which we operate and outlook for calendar
year 2024 and subsequent periods. Forward-looking statements are
typically identified by the words "believe", "expect",
"anticipate", "intend", "estimate", "forecast", "target",
"predict", "commit", "ambition", "goal", "strive", "project",
"objective" and other similar expressions or future or conditional
verbs such as "will", "may", "should", "would" and "could". By
their nature, these statements require us to make assumptions, and
are subject to inherent risks and uncertainties that may be general
or specific. Given the continuing impact of high inflation, rising
interest rates, ongoing adverse developments in the U.S. banking
sector which adds pressure on liquidity and funding conditions for
the financial industry, the impact of hybrid work arrangements and
higher interest rates on the U.S. real estate sector, potential
recession and the war in Ukraine
and conflict in the Middle East on
the global economy, financial markets, and our business, results of
operations, reputation and financial condition, there is inherently
more uncertainty associated with our assumptions as compared to
prior periods. A variety of factors, many of which are beyond our
control, affect our operations, performance and results, and could
cause actual results to differ materially from the expectations
expressed in any of our forward-looking statements. These factors
include: inflationary pressures; global supply-chain disruptions;
geopolitical risk, including from the war in Ukraine and conflict in the Middle East, the occurrence, continuance or
intensification of public health emergencies, such as the impact of
post-pandemic hybrid work arrangements, and any related government
policies and actions; credit, market, liquidity, strategic,
insurance, operational, reputation, conduct and legal, regulatory
and environmental risk; currency value and interest rate
fluctuations, including as a result of market and oil price
volatility; the effectiveness and adequacy of our risk management
and valuation models and processes; legislative or regulatory
developments in the jurisdictions where we operate, including the
Organisation for Economic Co-operation and Development Common
Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking
Supervision's global standards for capital and liquidity reform,
and those relating to bank recapitalization legislation and the
payments system in Canada;
amendments to, and interpretations of, risk-based capital
guidelines and reporting instructions, and interest rate and
liquidity regulatory guidance; exposure to, and the resolution of,
significant litigation or regulatory matters, our ability to
successfully appeal adverse outcomes of such matters and the
timing, determination and recovery of amounts related to such
matters; the effect of changes to accounting standards, rules and
interpretations; changes in our estimates of reserves and
allowances; changes in tax laws; changes to our credit ratings;
political conditions and developments, including changes relating
to economic or trade matters; the possible effect on our business
of international conflicts, such as the war in Ukraine and conflict in the Middle East, and terrorism; natural disasters,
disruptions to public infrastructure and other catastrophic events;
reliance on third parties to provide components of our business
infrastructure; potential disruptions to our information technology
systems and services; increasing cyber security risks which may
include theft or disclosure of assets, unauthorized access to
sensitive information, or operational disruption; social media
risk; losses incurred as a result of internal or external
fraud; anti-money laundering; the accuracy and
completeness of information provided to us concerning clients and
counterparties; the failure of third parties to comply with their
obligations to us and our affiliates or associates; intensifying
competition from established competitors and new entrants in the
financial services industry including through internet and mobile
banking; technological change including the use of data and
artificial intelligence in our business; global capital market
activity; changes in monetary and economic policy; general business
and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we
have operations, including increasing Canadian household debt
levels and global credit risks; climate change and other ESG
related risks including our ability to implement various
sustainability-related initiatives internally and with our clients
under expected time frames and our ability to scale our sustainable
finance products and services; our success in developing and
introducing new products and services, expanding existing
distribution channels, developing new distribution channels and
realizing increased revenue from these channels; changes in client
spending and saving habits; our ability to attract and retain key
employees and executives; our ability to successfully execute our
strategies and complete and integrate acquisitions and joint
ventures; the risk that expected benefits of an acquisition, merger
or divestiture will not be realized within the expected time frame
or at all; and our ability to anticipate and manage the risks
associated with these factors. This list is not exhaustive of the
factors that may affect any of our forward-looking statements.
These and other factors should be considered carefully and readers
should not place undue reliance on our forward-looking statements.
Additional information about these factors can be found in the
"Management of risk" section of our 2023 Annual Report, as updated
by our quarterly reports. Any forward-looking statements contained
in this news release represent the views of management only as of
the date hereof and are presented for the purpose of assisting our
shareholders and financial analysts in understanding our financial
position, objectives and priorities and anticipated financial
performance as at and for the periods ended on the dates presented,
and may not be appropriate for other purposes. We do not undertake
to update any forward-looking statement that is contained in this
news release or in other communications except as required by
law.
Conference Call/Webcast
The conference call will be held at 7:30
a.m. (ET) and is available in English (416-340-2217, or
toll-free 1-800-806-5484, passcode 1073773#) and French
(514-392-1587, or toll-free 1-800-898-3989, passcode 5601311#).
Participants are asked to dial in 10 minutes before the call.
Immediately following the formal presentations, CIBC executives
will be available to answer questions.
A live audio webcast of the conference call will also be
available in English and French at
www.cibc.com/ca/investor-relations/quarterly-results.html.
Details of CIBC's fiscal 2024 first quarter results, as well as
a presentation to investors, will be available in English and
French at www.cibc.com, Investor Relations section, prior to the
conference call/webcast. We are not incorporating information
contained on the website in this news release.
A telephone replay will be available in English (905-694-9451 or
1-800-408-3053, passcode 8797228#) and French (514-861-2272 or
1-800-408-3053, passcode 6432963#) until 11:59 p.m. (ET) March 14, 2024. The audio
webcast will be archived at
www.cibc.com/ca/investor-relations/quarterly-results.html.
About CIBC
CIBC is a leading North American financial institution with
14 million personal banking, business, public sector and
institutional clients. Across Personal and Business Banking,
Commercial Banking and Wealth Management, and Capital Markets and
Direct Financial Services businesses, CIBC offers a full range of
advice, solutions and services through its leading digital banking
network, and locations across Canada, in the
United States and around the world. Ongoing news releases
and more information about CIBC can be found at
https://www.cibc.com/en/about-cibc/media-centre.html.
SOURCE CIBC