CIBC announces fourth quarter and fiscal 2023 results
CIBC’s 2023 audited annual consolidated financial statements and accompanying management’s discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2023 Annual Report is available on SEDAR+ at www.sedarplus.ca. All amounts are expressed in Canadian dollars, unless otherwise indicated.
TORONTO, Nov. 30, 2023 /CNW/ – CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2023.
“In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses,” said Victor Dodig, CIBC President and Chief Executive Officer. “We enter the new fiscal year with a robust balance sheet and strong credit quality, foundational to our progress as we enable and simplify our bank, focus on driving growth in the mass affluent and private wealth segments, build on our strength in digital, and leverage our connected culture to grow our commercial and capital markets business. Our CIBC team remains steadfast in its commitment to our purpose, helping make ambitions real as we serve our clients through the economic cycle and build strong, sustainable communities.”
Q4/23
Q4/22
Q3/23
YoY
Variance
QoQ
Variance
Revenue
$5,844 million
$5,388 million
$5,850 million
+8 %
0 %
Reported Net Income
$1,483 million
$1,185 million
$1,430 million
+25 %
+4 %
Adjusted Net Income (1)
$1,520 million
$1,308 million
$1,473 million
+16 %
+3 %
Adjusted pre-provision, pre-tax earnings (1)
$2,449 million
$2,072 million
$2,600 million
+18 %
-6 %
Reported Diluted Earnings Per Share (EPS) (2)
$1.53
$1.26
$1.47
+21 %
+4 %
Adjusted Diluted EPS (1)(2)
$1.57
$1.39
$1.52
+13 %
+3 %
Reported Return on Common Shareholders’ Equity (ROE) (3)
11.8 %
10.1 %
11.6 %
Adjusted ROE (1)
12.1 %
11.2 %
11.9 %
Common Equity Tier 1 (CET1) Ratio (4)
12.4 %
11.7 %
12.2 %
CIBC’s results for the fourth quarter of 2023 were affected by the following items of note aggregating to a negative impact of $0.04 per share:
$45 million ($37 million after-tax) amortization and impairment of acquisition-related intangible assets.
For the year ended October 31, 2023, CIBC reported net income of $5.0 billion and adjusted net income(1) of $6.5 billion, compared with reported net income of $6.2 billion and adjusted net income(1) of $6.6 billion for 2022, and adjusted pre-provision, pre-tax earnings(1) of $10.2 billion, compared with $9.4 billion for 2022.
(1)
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 14 to 18; and adjusted pre-provision, pre-tax earnings on page 19.
(2)
On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
(3)
For additional information on the composition of these specified financial measures, see the “Fourth quarter financial highlights” section.
(4)
Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution’s (OSFI’s) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of February 1, 2023. For additional information, see the “Capital management” section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
The following table summarizes our performance in 2023 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.
Financial Measure
Medium-term target
2023 Reported Results
2023 Adjusted Results (2)
Diluted EPS growth (3)
7%–10% annually (1)(6)
3-year CAGR (4) = 7.9%
5-year CAGR (4) = (2.4)%
3-year CAGR (4) = 11.5%
5-year CAGR (4) = 1.9%
ROE (5)
At least 16% (1)(6)
3-year average = 13.5%
5-year average = 13.0%
3-year average = 14.9%
5-year average = 14.4%
Operating leverage (5)
Positive (1)(6)
3-year average = (0.6)%
5-year average = (1.5)%
3-year average = 0.0%
5-year average = (0.1)%
CET1 ratio
Strong buffer to regulatory requirement
12.4 %
Dividend payout ratio (5)
40%–50% (1)(6)
3-year average = 52.4%
5-year average = 55.6%
3-year average = 45.9%
5-year average = 48.9%
Total shareholder return
Outperform the S&P/TSX Composite
Banks Index over a rolling three- and five-
year period
3-year 5-year
CIBC: 15.0% 12.7%
S&P/TSX Composite Banks Index: 36.2% 29.8%
F2023 Financial Highlights
(C$ million)
F2023
F2022
YoY Variance
Canadian Personal and Business Banking
Reported Net Income
$2,358
$2,249
up 5%
Adjusted Net Income (2)
$2,403
$2,396
0 %
Pre-provision, pre-tax earnings (2)
$4,233
$3,934
up 8%
Adjusted pre-provision, pre-tax earnings (2)
$4,293
$4,039
up 6%
Canadian Commercial Banking and Wealth Management
Reported Net Income
$1,878
$1,895
down 1%
Adjusted Net Income (2)
$1,878
$1,895
down 1%
Pre-provision, pre-tax earnings (2)
$2,712
$2,598
up 4%
Adjusted pre-provision, pre-tax earnings (2)
$2,712
$2,598
up 4%
U.S. Commercial Banking and Wealth Management
Reported Net Income
$379
$760
down 50%
Adjusted Net Income (2)
$420
$810
down 48%
Pre-provision, pre-tax earnings (2)
$1,226
$1,129
up 9%
Adjusted pre-provision, pre-tax earnings (2)
$1,282
$1,197
up 7%
Capital Markets and Direct Financial Services
Reported Net Income
$1,986
$1,908
up 4%
Adjusted Net Income (2)
$1,986
$1,908
up 4%
Pre-provision, pre-tax earnings (2)
$2,767
$2,564
up 8%
Adjusted pre-provision, pre-tax earnings (2)
$2,767
$2,564
up 8%
(1)
Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the “Non-GAAP measures” section.
(2)
This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section.
(3)
On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
(4)
The 3-year compound annual growth rate (CAGR) is calculated from 2020 to 2023 and the 5-year CAGR is calculated from 2018 to 2023.
(5)
For additional information on the composition of these specified financial measures, see the “Fourth quarter financial highlights” section.
(6)
Medium-term targets are defined as through the cycle. For additional information, see the “Overview” section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2023, CIBC maintained its capital strength and sound risk management practices:
Capital ratios were strong, with a CET1 ratio(1) of 12.4% as noted above, and Tier 1(1) and Total capital ratios(1) of 13.9% and 16.0%, respectively, at October 31, 2023;Market risk, as measured by average Value-at-Risk, was $9.2 million in 2023 compared with $8.7 million in 2022;We continued to have solid credit performance, with a loan loss ratio(2) of 30 basis points compared with 14 basis points in 2022;Liquidity Coverage Ratio(1) was 135% for the three months ended October 31, 2023; andLeverage Ratio(1)(3) was 4.2% at October 31, 2023.
CIBC announced an increase in its quarterly common share dividend from $0.87 per share to $0.90 per share for the quarter ending January 31, 2024.
(1)
Our capital ratios are calculated pursuant to the OSFI’s CAR Guideline, the leverage ratio is calculated pursuant to OSFI’s Leverage Requirements Guideline, and the liquidity coverage ratio is calculated pursuant to OSFI’s Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on the BCBS standards. Beginning in the second quarter of 2023, results reflect 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 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
(2)
For additional information on the composition of these specified financial measures, see the “Fourth quarter financial highlights” section.
(3)
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.
Credit quality
Provision for credit losses was $541 million for the fourth quarter, up $105 million or 24% from the same quarter last year. Provision for credit losses on performing loans was down $154 million, largely due to a more unfavourable change in our economic outlook in the same quarter last year. Provision for credit losses on impaired loans was up $259 million, mainly attributable to Canadian Personal and Business Banking, and U.S. Commercial Banking and Wealth Management.
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:
More than 50,000 participants, including over 11,000 Team CIBC participants from across the country came together on October 1, 2023 for the Canadian Cancer Society CIBC Run for the Cure. In total, more than $14.5 million was raised, including over $2.4 million by Team CIBC, to assist in advancing breast cancer research, education and support programs.CIBC donated $250,000 to the United Jewish Appeal and the Canadian Red Cross Middle East Humanitarian Crisis Appeal, aimed at supporting immediate and ongoing humanitarian relief efforts, shelter and safety for Israeli and Palestinian civilians affected by the conflict. A further $250,000 was donated by CIBC and its employees through an employee matching program to charities providing aid in the region.CIBC donated $100,000 through the CIBC Foundation Northwest Territories Emergency Relief Fund and the CIBC Foundation British Columbia Emergency Relief Fund to provide immediate and long-term assistance to those affected by the wildfires and evacuation efforts across the Northwest Territories and British Columbia. In addition, $50,000 was donated to provide critical aid to the people of Morocco following a devastating earthquake.To help newcomers learn about their new country and navigate settling in, CIBC announced a partnership with the Institute of Canadian Citizenship (ICC), a national charity that supports newcomers on their journey towards full and active citizenship including through the ICC’s digital app, Canoo. With this partnership, Canoo members will have access to CIBC’s financial tools, advice and resources to help them settle in Canada.
Fourth quarter financial highlights
As at or for the
As at or for the
three months ended
twelve months ended
2023
2023
2022
2023
2022
Unaudited
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Financial results ($ millions)
Net interest income
$
3,197
$
3,236
$
3,185
$
12,825
$
12,641
Non-interest income
2,647
2,614
2,203
10,498
9,192
Total revenue
5,844
5,850
5,388
23,323
21,833
Provision for credit losses
541
736
436
2,010
1,057
Non-interest expenses
3,440
3,307
3,483
14,349
12,803
Income before income taxes
1,863
1,807
1,469
6,964
7,973
Income taxes
380
377
284
1,931
1,730
Net income
$
1,483
$
1,430
$
1,185
$
5,033
$
6,243
Net income attributable to non-controlling interests
8
10
7
38
23
Preferred shareholders and other equity instrument holders
62
66
37
267
171
Common shareholders
1,413
1,354
1,141
4,728
6,049
Net income attributable to equity shareholders
$
1,475
$
1,420
$
1,178
$
4,995
$
6,220
Financial measures
Reported efficiency ratio (1)
58.9
%
56.5
%
64.6
%
61.5
%
58.6
%
Reported operating leverage (1)
9.7
%
1.1
%
(4.7)
%
(5.2)
%
(1.9)
%
Loan loss ratio (2)
0.35
%
0.35
%
0.16
%
0.30
%
0.14
%
Reported return on common shareholders’ equity (1)(3)
11.8
%
11.6
%
10.1
%
10.3
%
14.0
%
Net interest margin (1)
1.32
%
1.36
%
1.33
%
1.35
%
1.40
%
Net interest margin on average interest-earning assets (1)(4)
1.44
%
1.49
%
1.51
%
1.49
%
1.58
%
Return on average assets (1)(4)
0.61
%
0.60
%
0.50
%
0.53
%
0.69
%
Return on average interest-earning assets (1)(4)
0.67
%
0.66
%
0.56
%
0.58
%
0.78
%
Reported effective tax rate
20.4
%
20.9
%
19.3
%
27.7
%
21.7
%
Common share information
Per share ($) (5)
– basic earnings
$
1.53
$
1.47
$
1.26
$
5.16
$
6.70
– reported diluted earnings
1.53
1.47
1.26
5.16
6.68
– dividends
0.870
0.870
0.830
3.440
3.270
– book value (6)
51.61
50.05
49.95
51.61
49.95
Closing share price ($) (5)
48.91
58.08
61.87
48.91
61.87
Shares outstanding (thousands) (5)
– weighted-average basic
924,798
918,551
905,120
915,631
903,312
– weighted-average diluted
924,960
919,063
906,533
916,223
905,684
– end of period
931,099
924,034
906,040
931,099
906,040
Market capitalization ($ millions)
$
45,540
$
53,668
$
56,057
$
45,540
$
56,057
Value measures
Total shareholder return
(14.38)
%
3.85
%
(3.17)
%
(15.85)
%
(13.56)
%
Dividend yield (based on closing share price)
7.1
%
5.9
%
5.3
%
7.0
%
5.3
%
Reported dividend payout ratio (1)
56.9
%
59.0
%
65.9
%
66.6
%
48.8
%
Market value to book value ratio
0.95
1.16
1.24
0.95
1.24
Selected financial measures – adjusted (7)
Adjusted efficiency ratio (8)
57.5
%
55.2
%
60.9
%
55.8
%
56.4
%
Adjusted operating leverage (8)
6.2
%
0.1
%
(5.8)
%
1.2
%
(1.9)
%
Adjusted return on common shareholders’ equity (3)
12.1
%
11.9
%
11.2
%
13.3
%
14.7
%
Adjusted effective tax rate
20.3
%
21.0
%
20.1
%
21.0
%
21.9
%
Adjusted diluted earnings per share (5)
$
1.57
$
1.52
$
1.39
$
6.72
$
7.05
Adjusted dividend payout ratio
55.4
%
57.2
%
59.5
%
51.2
%
46.3
%
On- and off-balance sheet information ($ millions)
Cash, deposits with banks and securities
$
267,066
$
247,525
$
239,740
$
267,066
$
239,740
Loans and acceptances, net of allowance for credit losses
540,153
538,216
528,657
540,153
528,657
Total assets
975,719
943,001
943,597
975,719
943,597
Deposits
723,376
704,505
697,572
723,376
697,572
Common shareholders’ equity (1)
48,056
46,250
45,258
48,056
45,258
Average assets (4)
962,405
943,640
947,830
948,121
900,213
Average interest-earning assets (1)(4)
882,196
862,064
834,639
861,136
799,224
Average common shareholders’ equity (1)(4)
47,435
46,392
44,770
46,130
43,354
Assets under administration (AUA) (1)(9)(10)
2,853,007
3,003,629
2,854,828
2,853,007
2,854,828
Assets under management (AUM) (1)(10)
300,218
313,635
291,513
300,218
291,513
Balance sheet quality and liquidity measures (11)
Risk-weighted assets (RWA) ($ millions)
$
326,120
$
317,773
$
315,634
$
326,120
$
315,634
CET1 ratio (12)
12.4
%
12.2
%
11.7
%
12.4
%
11.7
%
Tier 1 capital ratio (12)
13.9
%
13.7
%
13.3
%
13.9
%
13.3
%
Total capital ratio (12)
16.0
%
15.9
%
15.3
%
16.0
%
15.3
%
Leverage ratio (13)
4.2
%
4.2
%
4.4
%
4.2
%
4.4
%
Liquidity coverage ratio (LCR) (14)
135
%
131
%
129
%
n/a
n/a
Net stable funding ratio (NSFR)
118
%
117
%
118
%
118
%
118
%
Other information
Full-time equivalent employees
48,074
48,718
50,427
48,074
50,427
(1)
Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the “Glossary” section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca.
(2)
The ratio is calculated as the provision for (reversal of) credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.
(3)
Annualized.
(4)
Average balances are calculated as a weighted average of daily closing balances.
(5)
On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
(6)
Common shareholders’ equity divided by the number of common shares issued and outstanding at end of period.
(7)
Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section.
(8)
Calculated on a taxable equivalent basis (TEB).
(9)
Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $2,241.9 billion (July 31, 2023: $2,368.8 billion; October 31, 2022: $2,258.1 billion).
(10)
AUM amounts are included in the amounts reported under AUA.
(11)
RWA and our capital ratios are calculated pursuant to OSFI’s CAR Guideline, the leverage ratio is calculated pursuant to OSFI’s Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to OSFI’s LAR Guideline, all of which are based on BCBS standards. Beginning in the second quarter of 2023, results reflect 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 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
(12)
The 2022 ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020, in response to the onset of the COVID-19 pandemic. Effective November 1, 2022, the ECL transitional arrangement was no longer applicable.
(13)
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.
(14)
Average for the three months ended for each respective period.
n/a
Not applicable.
Review of Canadian Personal and Business Banking fourth quarter results
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
$
2,455
$
2,412
$
2,262
Provision for (reversal of) credit losses
Impaired
259
244
158
Performing
23
179
147
Total provision for credit losses
282
423
305
Non-interest expenses
1,307
1,303
1,313
Income before income taxes
866
686
644
Income taxes
231
189
173
Net income
$
635
$
497
$
471
Net income attributable to:
Equity shareholders
$
635
$
497
$
471
Total revenue
Net interest income
$
1,908
$
1,898
$
1,720
Non-interest income (1)
547
514
542
$
2,455
$
2,412
$
2,262
Net interest margin on average interest-earning assets (2)(3)
2.38
%
2.38
%
2.19
%
Efficiency ratio
53.2
%
54.0
%
58.0
%
Operating leverage
9.0
%
4.7
%
(7.7)
%
Return on equity (4)
25.7
%
20.2
%
22.1
%
Average allocated common equity (4)
$
9,781
$
9,778
$
8,437
Full-time equivalent employees
13,208
13,231
13,840
Net income for the quarter was $635 million, up $164 million from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $1,154 million, up $186 million from the fourth quarter of 2022, due to higher revenue, partially offset by higher expenses.
Revenue of $2,455 million was up $193 million from the fourth quarter of 2022, primarily due to higher net interest income, mainly from higher deposit margins that benefited from the rising rate environment, and volume growth.
Net interest margin on average interest-earning assets was up 19 basis points mainly due to higher deposit margins, partially offset by lower loan margins.
Provision for credit losses of $282 million was down $23 million from the fourth quarter of 2022, due to a lower provision for credit losses on performing loans from a more unfavourable change in our economic outlook in the fourth quarter of 2022, partially offset by a higher provision for credit losses on impaired loans from higher write-offs and higher impaired balances.
Non-interest expenses of $1,307 million were comparable to the fourth quarter of 2022.
(1)
Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.
(2)
Average balances are calculated as a weighted average of daily closing balances.
(3)
Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the “Glossary” section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca.
(4)
This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section.
Review of Canadian Commercial Banking and Wealth Management fourth quarter results
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
Commercial banking
$
634
$
626
$
601
Wealth management
732
724
715
Total revenue
1,366
1,350
1,316
Provision for (reversal of) credit losses
Impaired
11
38
14
Performing
–
2
7
Total provision for (reversal of) credit losses
11
40
21
Non-interest expenses
679
674
658
Income before income taxes
676
636
637
Income taxes
186
169
168
Net income
$
490
$
467
$
469
Net income attributable to:
Equity shareholders
$
490
$
467
$
469
Total revenue
Net interest income
$
452
$
443
$
452
Non-interest income (1)
914
907
864
$
1,366
$
1,350
$
1,316
Net interest margin on average interest-earning assets (2)(3)
3.37
%
3.35
%
3.38
%
Efficiency ratio
49.7
%
49.9
%
50.0
%
Operating leverage
0.7
%
0.3
%
4.1
%
Return on equity (4)
23.1
%
22.0
%
21.6
%
Average allocated common equity (4)
$
8,401
$
8,411
$
8,598
Full-time equivalent employees
5,433
5,442
5,711
Net income for the quarter was $490 million, up $21 million from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $687 million, up $29 million from the fourth quarter of 2022, due to higher revenue, partially offset by higher expenses.
Revenue of $1,366 million was up $50 million from the fourth quarter of 2022, driven mainly by higher deposit margins, volume growth and higher fees, partially offset by lower loan margins in commercial banking. Revenue in wealth management increased due to higher fee-based asset balances, partially offset by lower net interest income mainly from deposits.
Net interest margin on average interest-earning assets was down 1 basis point primarily due to higher deposit margins that were more than offset by lower loan margins.
Provision for credit losses of $11 million was down $10 million from the fourth quarter of 2022, due to lower provisions on both performing loans and impaired loans.
Non-interest expenses of $679 million were up $21 million from the fourth quarter of 2022, primarily due to higher performance-based compensation.
(1)
Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.
(2)
Average balances are calculated as a weighted average of daily closing balances.
(3)
Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the “Glossary” section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca.
(4)
This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section.
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in Canadian dollars
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
Commercial banking
$
462
$
452
$
432
Wealth management
210
214
221
Total revenue (1)
672
666
653
Provision for (reversal of) credit losses
Impaired
205
174
34
Performing
44
81
66
Total provision for (reversal of) credit losses
249
255
100
Non-interest expenses
387
345
356
Income before income taxes
36
66
197
Income taxes
(14)
(7)
36
Net income
$
50
$
73
$
161
Net income attributable to:
Equity shareholders
$
50
$
73
$
161
Total revenue (1)
Net interest income
$
476
$
477
$
466
Non-interest income
196
189
187
$
672
$
666
$
653
Net interest margin on average interest-earning assets (2)(3)
3.44
%
3.46
%
3.49
%
Efficiency ratio
57.6
%
51.9
%
54.5
%
Return on equity (4)
1.7
%
2.6
%
5.8
%
Average allocated common equity (4)
$
11,267
$
11,386
$
11,015
Full-time equivalent employees
2,780
2,760
2,472
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in U.S. dollars
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
Commercial banking
$
338
$
339
$
320
Wealth management
154
160
163
Total revenue (1)
492
499
483
Provision for (reversal of) credit losses
Impaired
151
130
25
Performing
32
61
51
Total provision for (reversal of) credit losses
183
191
76
Non-interest expenses
284
258
264
Income before income taxes
25
50
143
Income taxes
(10)
(5)
27
Net income
$
35
$
55
$
116
Net income attributable to:
Equity shareholders
$
35
$
55
$
116
Total revenue (1)
Net interest income
348
358
346
Non-interest income
144
141
137
492
499
483
Operating leverage
(5.7)
%
6.7
%
(4.1)
%
Net income for the quarter was $50 million (US$35 million), down $111 million (down US$81 million) from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $294 million (US$214 million), down $20 million (down US$18 million) from the fourth quarter of 2022, due to higher net interest income, partially offset by higher expenses and lower fee income.
Revenue of US$492 million was up US$9 million from the fourth quarter of 2022, primarily due to higher asset management fees, deposit margins, and loan volumes, partially offset by lower loan margins and deposit volumes.
Net interest margin on average interest-earning assets was down 5 basis points primarily due to lower deposit volumes, partially offset by higher deposit margins.
Provision for credit losses of US$183 million was up US$107 million from the fourth quarter of 2022, primarily due to higher provisions on impaired loans, attributable to the real estate and construction sector. Partially offsetting this increase, provision for credit losses on performing loans was down as the fourth quarter of 2022 included an increased provision resulting from model parameter updates.
Non-interest expenses of US$284 million were up US$20 million from the fourth quarter of 2022, primarily due to higher employee-related compensation.
(1)
Included nil (US$ nil) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2023 (July 31, 2023: $1 million (US$1 million); October 31, 2022: $2 million (US$1 million)).
(2)
Average balances are calculated as a weighted average of daily closing balances.
(3)
Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the “Glossary” section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca.
(4)
This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section.
Review of Capital Markets and Direct Financial Services fourth quarter results
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
Global markets
$
555
$
604
$
463
Corporate and investment banking
423
430
440
Direct financial services
312
321
279
Total revenue (1)
1,290
1,355
1,182
Provision for (reversal of) credit losses
Impaired
6
5
(5)
Performing
(2)
1
4
Total provision for (reversal of) credit losses
4
6
(1)
Non-interest expenses
734
673
656
Income before income taxes
552
676
527
Income taxes (1)
169
182
149
Net income
$
383
$
494
$
378
Net income attributable to:
Equity shareholders
$
383
$
494
$
378
Efficiency ratio
56.9
%
49.7
%
55.4
%
Operating leverage
(2.8)
%
(0.3)
%
(7.1)
%
Return on equity (2)
18.8
%
24.1
%
15.8
%
Average allocated common equity (2)
$
8,122
$
8,143
$
9,522
Full-time equivalent employees
2,411
2,500
2,384
Reported net income for the quarter was $383 million, compared with reported net income of $378 million for the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(2) were up $30 million or 6% from the fourth quarter of 2022, due to higher revenue partially offset by higher expenses.
Revenue of $1,290 million was up $108 million from the fourth quarter of 2022. In global markets, revenue increased due to higher equity derivatives trading and financing revenue. In corporate and investment banking, weaker underwriting and advisory activity and lower investment portfolio gains were partially offset by higher corporate banking revenue. Direct Financial Services revenue increased due to higher deposit margins in Simplii Financial.
The current quarter included a provision for credit losses of $4 million, up $5 million from the fourth quarter of 2022, mainly attributable to a provision for credit losses on impaired loans. The fourth quarter of 2022 included a provision reversal of credit losses of $1 million.
Non-interest expenses of $734 million were up $78 million from the fourth quarter of 2022, primarily due to higher employee-related costs, including from higher employee termination costs and performance-based compensation.
Review of Corporate and Other fourth quarter results
2023
2023
2022
$ millions, for the three months ended
Oct. 31
Jul. 31
Oct. 31
Revenue
International banking
$
234
$
245
$
220
Other
(173)
(178)
(245)
Total revenue (1)
61
67
(25)
Provision for (reversal of) credit losses
Impaired
(3)
17
18
Performing
(2)
(5)
(7)
Total provision for (reversal of) credit losses
(5)
12
11
Non-interest expenses
333
312
500
Loss before income taxes
(267)
(257)
(536)
Income taxes (1)
(192)
(156)
(242)
Net loss
$
(75)
$
(101)
$
(294)
Net income (loss) attributable to:
Non-controlling interests
$
8
$
10
$
7
Equity shareholders
(83)
(111)
(301)
Full-time equivalent employees (2)
24,242
24,785
26,020
Net loss for the quarter was $75 million, compared with a net loss of $294 million for the fourth quarter of 2022. Adjusted pre-provision, pre-tax losses(3) were down $152 million or 39% from the fourth quarter of 2022, due to higher revenue and lower expenses.
Revenue was up $86 million from the fourth quarter of 2022, due to higher treasury revenue, and higher revenue in International banking driven by higher net interest margins and the impact of foreign exchange translation.
The current quarter included a provision reversal for credit losses of $5 million, down $16 million from the fourth quarter of 2022, attributable to a moderate reversal on both performing loans and impaired loans in International banking. The fourth quarter of 2022 included a provision for credit losses of $11 million, reflective of a provision on impaired loans, partially offset by a moderate provision reversal on performing loans in International banking.
Non-interest expenses of $333 million were down $167 million from the fourth quarter of 2022. Adjusted non-interest expenses(3) of $303 million were down $66 million from the fourth quarter of 2022, primarily due to lower corporate costs, including from a pension plan amendment gain.
Income tax benefit was down $50 million from the fourth quarter of 2022 primarily due to a lower loss.
(1)
Revenue and income taxes of Capital Markets and Direct Financial Services are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $62 million for the quarter ended October 31, 2023 (July 31, 2023: $66 million; October 31, 2022: $51 million).
(2)
Includes full-time equivalent employees for which the expenses are allocated to the business lines within the SBUs. The majority of the full-time equivalent employees for functional and support costs of CIBC Bank USA are included in the U.S. Commercial Banking and Wealth Management SBU.
(3)
This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section.
Consolidated balance sheet
$ millions, as at October 31
2023
2022
ASSETS
Cash and non-interest-bearing deposits with banks
$
20,816
$
31,535
Interest-bearing deposits with banks
34,902
32,326
Securities
211,348
175,879
Cash collateral on securities borrowed
14,651
15,326
Securities purchased under resale agreements
80,184
69,213
Loans
Residential mortgages
274,244
269,706
Personal
45,587
45,429
Credit card
18,538
16,479
Business and government
194,870
188,542
Allowance for credit losses
(3,902)
(3,073)
529,337
517,083
Other
Derivative instruments
33,243
43,035
Customers’ liability under acceptances
10,816
11,574
Property and equipment
3,251
3,377
Goodwill
5,425
5,348
Software and other intangible assets
2,742
2,592
Investments in equity-accounted associates and joint ventures
669
632
Deferred tax assets
629
480
Other assets
27,706
35,197
84,481
102,235
$
975,719
$
943,597
LIABILITIES AND EQUITY
Deposits
Personal
$
239,035
$
232,095
Business and government
412,561
397,188
Bank
22,296
22,523
Secured borrowings
49,484
45,766
723,376
697,572
Obligations related to securities sold short
18,666
15,284
Cash collateral on securities lent
8,081
4,853
Obligations related to securities sold under repurchase agreements
87,118
77,171
Other
Derivative instruments
41,290
52,340
Acceptances
10,820
11,586
Deferred tax liabilities
40
45
Other liabilities
26,632
28,072
78,782
92,043
Subordinated indebtedness
6,483
6,292
Equity
Preferred shares and other equity instruments
4,925
4,923
Common shares
16,082
14,726
Contributed surplus
109
115
Retained earnings
30,402
28,823
Accumulated other comprehensive income (AOCI)
1,463
1,594
Total shareholders’ equity
52,981
50,181
Non-controlling interests
232
201
Total equity
53,213
50,382
$
975,719
$
943,597
Consolidated statement of income
For the three
For the twelve
months ended
months ended
2023
2023
2022
2023
2022
$ millions, except as noted
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Interest income (1)
Loans
$
8,215
$
7,830
$
5,806
$
30,235
$
16,874
Securities
2,165
1,870
1,243
7,341
3,422
Securities borrowed or purchased under resale agreements
1,357
1,186
669
4,566
1,175
Deposits with banks and other
720
733
474
2,877
708
12,457
11,619
8,192
45,019
22,179
Interest expense
Deposits
7,569
6,966
4,177
26,633
7,887
Securities sold short
109
105
121
408
380
Securities lent or sold under repurchase agreements
1,299
1,107
564
4,283
943
Subordinated indebtedness
120
117
84
458
203
Other
163
88
61
412
125
9,260
8,383
5,007
32,194
9,538
Net interest income
3,197
3,236
3,185
12,825
12,641
Non-interest income
Underwriting and advisory fees
137
143
143
519
557
Deposit and payment fees
229
261
221
924
880
Credit fees
369
355
331
1,385
1,286
Card fees
100
67
102
379
437
Investment management and custodial fees
454
451
428
1,768
1,760
Mutual fund fees
421
428
418
1,743
1,776
Insurance fees, net of claims
82
84
80
338
351
Commissions on securities transactions
81
82
79
338
378
Gains (losses) from financial instruments measured/designated at
fair value through profit or loss (FVTPL), net
611
562
309
2,346
1,172
Gains (losses) from debt securities measured at fair value through
other comprehensive income (FVOCI) and amortized cost, net
15
27
(6)
83
35
Foreign exchange other than trading
74
82
25
360
242
Income from equity-accounted associates and joint ventures
(5)
3
9
30
47
Other
79
69
64
285
271
2,647
2,614
2,203
10,498
9,192
Total revenue
5,844
5,850
5,388
23,323
21,833
Provision for credit losses
541
736
436
2,010
1,057
Non-interest expenses
Employee compensation and benefits
1,890
1,888
1,897
7,550
7,157
Occupancy costs
216
199
253
823
853
Computer, software and office equipment
658
613
598
2,467
2,297
Communications
91
88
89
364
352
Advertising and business development
87
76
101
304
334
Professional fees
77
51
82
245
313
Business and capital taxes
26
28
33
124
123
Other
395
364
430
2,472
1,374
3,440
3,307
3,483
14,349
12,803
Income before income taxes
1,863
1,807
1,469
6,964
7,973
Income taxes
380
377
284
1,931
1,730
Net income
$
1,483
$
1,430
$
1,185
$
5,033
$
6,243
Net income attributable to non-controlling interests
$
8
$
10
$
7
$
38
$
23
Preferred shareholders and other equity instrument holders
$
62
$
66
$
37
$
267
$
171
Common shareholders
1,413
1,354
1,141
4,728
6,049
Net income attributable to equity shareholders
$
1,475
$
1,420
$
1,178
$
4,995
$
6,220
Earnings per share (in dollars) (2)
Basic
$
1.53
$
1.47
$
1.26
$
5.16
$
6.70
Diluted
1.53
1.47
1.26
5.16
6.68
Dividends per common share (in dollars) (2)
0.87
0.87
0.83
3.44
3.27
(1)
Interest income included $11.7 billion for the quarter ended October 31, 2023 (July 31, 2023: $11.0 billion; October 31, 2022: $7.6 billion) calculated based on the effective interest rate method.
(2)
On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
Consolidated statement of comprehensive income
For the three
For the twelve
months ended
months ended
2023
2023
2022
2023
2022
$ millions
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Net income
$
1,483
$
1,430
$
1,185
$
5,033
$
6,243
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent
reclassification to net income
Net foreign currency translation adjustments
Net gains (losses) on investments in foreign operations
2,594
(1,205)
2,691
1,163
4,043
Net gains (losses) on hedges of investments in foreign operations
(1,600)
676
(1,510)
(812)
(2,290)
994
(529)
1,181
351
1,753
Net change in debt securities measured at FVOCI
Net gains (losses) on securities measured at FVOCI
(72)
83
(107)
274
(784)
Net (gains) losses reclassified to net income
(13)
(20)
5
(65)
(25)
(85)
63
(102)
209
(809)
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges
(217)
(686)
(488)
(222)
(1,351)
Net (gains) losses reclassified to net income
173
165
50
(142)
552
(44)
(521)
(438)
(364)
(799)
OCI, net of income tax, that is not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans
(95)
18
(198)
(240)
198
Net gains (losses) due to fair value change of fair value option (FVO) liabilities
attributable to changes in credit risk
80
(45)
40
(106)
262
Net gains (losses) on equity securities designated at FVOCI
–
6
(5)
19
(35)
(15)
(21)
(163)
(327)
425
Total OCI (1)
850
(1,008)
478
(131)
570
Comprehensive income
$
2,333
$
422
$
1,663
$
4,902
$
6,813
Comprehensive income attributable to non-controlling interests
$
8
$
10
$
7
$
38
$
23
Preferred shareholders and other equity instrument holders
$
62
$
66
$
37
$
267
$
171
Common shareholders
2,263
346
1,619
4,597
6,619
Comprehensive income attributable to equity shareholders
$
2,325
$
412
$
1,656
$
4,864
$
6,790
(1)
Includes $11 million of gains for the quarter ended October 31, 2023 (July 31, 2023: $6 million of losses; October 31, 2022: $48 million of losses), relating to our investments in equity-accounted associates and joint ventures.
For the three
For the twelve
months ended
months ended
2023
2023
2022
2023
2022
$ millions
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Income tax (expense) benefit allocated to each component of OCI
Subject to subsequent reclassification to net income
Net foreign currency translation adjustments
Net gains (losses) on investments in foreign operations
$
(72)
$
39
$
(91)
$
(26)
$
(136)
Net gains (losses) on hedges of investments in foreign operations
93
(56)
82
26
131
21
(17)
(9)
–
(5)
Net change in debt securities measured at FVOCI
Net gains (losses) on securities measured at FVOCI
32
(34)
15
(65)
160
Net (gains) losses reclassified to net income
5
7
(2)
25
9
37
(27)
13
(40)
169
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges
84
264
174
106
482
Net (gains) losses reclassified to net income
(67)
(63)
(18)
46
(197)
17
201
156
152
285
Not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans
36
(7)
44
75
(97)
Net gains (losses) due to fair value change of FVO liabilities attributable
to changes in credit risk
(30)
17
(14)
38
(93)
Net gains (losses) on equity securities designated at FVOCI
–
(2)
2
(6)
9
6
8
32
107
(181)
$
81
$
165
$
192
$
219
$
268
Consolidated statement of changes in equity
For the three
For the twelve
months ended
months ended
2023
2023
2022
2023
2022
$ millions
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Preferred shares and other equity instruments
Balance at beginning of period
$
4,925
$
4,925
$
4,325
$
4,923
$
4,325
Issue of preferred shares and limited recourse capital notes
–
–
600
–
1,400
Redemption of preferred shares
–
–
–
–
(800)
Treasury shares
–
–
(2)
2
(2)
Balance at end of period
$
4,925
$
4,925
$
4,923
$
4,925
$
4,923
Common shares
Balance at beginning of period
$
15,742
$
15,389
$
14,643
$
14,726
$
14,351
Issue of common shares
338
357
81
1,358
401
Purchase of common shares for cancellation
–
–
–
–
(29)
Treasury shares
2
(4)
2
(2)
3
Balance at end of period
$
16,082
$
15,742
$
14,726
$
16,082
$
14,726
Contributed surplus
Balance at beginning of period
$
103
$
118
$
107
$
115
$
110
Compensation expense arising from equity-settled share-based awards
5
3
9
13
24
Exercise of stock options and settlement of other equity-settled share-based awards
–
(17)
(1)
(20)
(20)
Other
1
(1)
–
1
1
Balance at end of period
$
109
$
103
$
115
$
109
$
115
Retained earnings
Balance at beginning of period
$
29,796
$
29,240
$
28,439
$
28,823
$
25,793
Net income attributable to equity shareholders
1,475
1,420
1,178
4,995
6,220
Dividends and distributions
Preferred and other equity instruments
(62)
(66)
(37)
(267)
(171)
Common
(804)
(799)
(752)
(3,149)
(2,954)
Premium on purchase of common shares for cancellation
–
–
–
–
(105)
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI
(4)
2
(1)
–
45
Other
1
(1)
(4)
–
(5)
Balance at end of period
$
30,402
$
29,796
$
28,823
$
30,402
$
28,823
AOCI, net of income tax
AOCI, net of income tax, that is subject to subsequent reclassification to net income
Net foreign currency translation adjustments
Balance at beginning of period
$
1,168
$
1,697
$
630
$
1,811
$
58
Net change in foreign currency translation adjustments
994
(529)
1,181
351
1,753
Balance at end of period
$
2,162
$
1,168
$
1,811
$
2,162
$
1,811
Net gains (losses) on debt securities measured at FVOCI
Balance at beginning of period
$
(322)
$
(385)
$
(514)
$
(616)
$
193
Net change in securities measured at FVOCI
(85)
63
(102)
209
(809)
Balance at end of period
$
(407)
$
(322)
$
(616)
$
(407)
$
(616)
Net gains (losses) on cash flow hedges
Balance at beginning of period
$
(982)
$
(461)
$
(224)
$
(662)
$
137
Net change in cash flow hedges
(44)
(521)
(438)
(364)
(799)
Balance at end of period
$
(1,026)
$
(982)
$
(662)
$
(1,026)
$
(662)
AOCI, net of income tax, that is not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans
Balance at beginning of period
$
687
$
669
$
1,030
$
832
$
634
Net change in post-employment defined benefit plans
(95)
18
(198)
(240)
198
Balance at end of period
$
592
$
687
$
832
$
592
$
832
Net gains (losses) due to fair value change of FVO liabilities attributable to changes
in credit risk
Balance at beginning of period
$
48
$
93
$
194
$
234
$
(28)
Net change attributable to changes in credit risk
80
(45)
40
(106)
262
Balance at end of period
$
128
$
48
$
234
$
128
$
234
Net gains (losses) on equity securities designated at FVOCI
Balance at beginning of period
$
10
$
6
$
(1)
$
(5)
$
75
Net gains (losses) on equity securities designated at FVOCI
–
6
(5)
19
(35)
Realized gains (losses) on equity securities designated at FVOCI reclassified to retained
earnings
4
(2)
1
–
(45)
Balance at end of period
$
14
$
10
$
(5)
$
14
$
(5)
Total AOCI, net of income tax
$
1,463
$
609
$
1,594
$
1,463
$
1,594
Non-controlling interests
Balance at beginning of period
$
216
$
215
$
195
$
201
$
182
Net income attributable to non-controlling interests
8
10
7
38
23
Dividends
(2)
(2)
(2)
(8)
(8)
Other
10
(7)
1
1
4
Balance at end of period
$
232
$
216
$
201
$
232
$
201
Equity at end of period
$
53,213
$
51,391
$
50,382
$
53,213
$
50,382
Consolidated statement of cash flows
For the three
For the twelve
months ended
months ended
2023
2023
2022
2023
2022
$ millions
Oct. 31
Jul. 31
Oct. 31
Oct. 31
Oct. 31
Cash flows provided by (used in) operating activities
Net income
$
1,483
$
1,430
$
1,185
$
5,033
$
6,243
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
Provision for credit losses
541
736
436
2,010
1,057
Amortization and impairment (1)
310
274
278
1,143
1,047
Stock options and restricted shares expense
5
3
9
13
24
Deferred income taxes
39
(62)
(118)
(87)
(46)
Losses (gains) from debt securities measured at FVOCI and amortized cost
(15)
(27)
6
(83)
(35)
Net losses (gains) on disposal of land, buildings and equipment
–
–
3
(3)
(6)
Other non-cash items, net
179
1,582
(786)
1,822
(1,126)
Net changes in operating assets and liabilities
Interest-bearing deposits with banks
(8,035)
4,483
(12,942)
(2,576)
(9,902)
Loans, net of repayments
(2,643)
(1,040)
(13,188)
(14,301)
(65,000)
Deposits, net of withdrawals
17,515
(1,803)
20,188
17,045
74,511
Obligations related to securities sold short
917
1,018
(4,895)
3,382
(7,506)
Accrued interest receivable
(528)
108
(532)
(1,272)
(959)
Accrued interest payable
474
406
839
2,521
1,228
Derivative assets
(3,215)
(1,015)
(6,740)
9,826
(7,073)
Derivative liabilities
2,972
2,298
12,991
(10,382)
20,622
Securities measured at FVTPL
(291)
(13,015)
3,718
(15,427)
4,949
Other assets and liabilities measured/designated at FVTPL
2,955
1,197
2,173
8,259
9,404
Current income taxes
111
46
171
361
(809)
Cash collateral on securities lent
2,989
(585)
1,554
3,228
2,390
Obligations related to securities sold under repurchase agreements
3,699
5,944
13,233
9,319
3,680
Cash collateral on securities borrowed
(1,154)
(3,240)
(49)
675
(2,958)
Securities purchased under resale agreements
(6,296)
(4,098)
(9,078)
(10,971)
(1,641)
Other, net
94
(1,135)
409
2,619
(5,379)
12,106
(6,495)
8,865
12,154
22,715
Cash flows provided by (used in) financing activities
Issue of subordinated indebtedness
–
–
–
1,750
1,000
Redemption/repurchase/maturity of subordinated indebtedness
–
–
(2)
(1,500)
(2)
Issue of preferred shares and limited recourse capital notes, net of issuance cost
–
–
597
–
1,395
Redemption of preferred shares
–
–
–
–
(800)
Issue of common shares for cash
45
46
40
183
228
Purchase of common shares for cancellation
–
–
–
–
(134)
Net sale (purchase) of treasury shares
2
(4)
–
–
1
Dividends and distributions paid
(573)
(571)
(750)
(2,261)
(2,972)
Repayment of lease liabilities
(82)
(84)
(86)
(331)
(326)
(608)
(613)
(201)
(2,159)
(1,610)
Cash flows provided by (used in) investing activities
Purchase of securities measured/designated at FVOCI and amortized cost
(17,193)
(19,689)
(16,689)
(79,487)
(70,954)
Proceeds from sale of securities measured/designated at FVOCI and amortized cost
6,479
9,965
6,298
26,914
23,183
Proceeds from maturity of debt securities measured at FVOCI and amortized cost
6,653
8,758
7,555
32,824
27,574
Acquisition of Canadian Costco credit card portfolio
–
–
(7)
–
(3,085)
Net sale (purchase) of property, equipment, software and other intangible assets
(290)
(238)
(392)
(1,014)
(1,109)
(4,351)
(1,204)
(3,235)
(20,763)
(24,391)
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks
124
(84)
156
49
248
Net increase (decrease) in cash and non-interest-bearing deposits with banks
during the period
7,271
(8,396)
5,585
(10,719)
(3,038)
Cash and non-interest-bearing deposits with banks at beginning of period
13,545
21,941
25,950
31,535
34,573
Cash and non-interest-bearing deposits with banks at end of period (2)
$
20,816
$
13,545
$
31,535
$
20,816
$
31,535
Cash interest paid
$
8,786
$
7,977
$
4,168
$
29,673
$
8,310
Cash interest received
11,598
11,404
7,368
42,600
20,120
Cash dividends received
331
323
292
1,147
1,100
Cash income taxes paid
230
394
231
1,657
2,585
(1)
Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets.
(2)
Includes restricted cash of $491 million (July 31, 2023: $471 million; October 31, 2022: $493 million) and interest-bearing demand deposits with Bank of Canada.
We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), 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 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
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
Management
Management
Services
and Other
Total
(US$ millions)
Operating results – reported
Total revenue
$
2,455
$
1,366
$
672
$
1,290
$
61
$
5,844
$
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
866
676
36
552
(267)
1,863
25
Income taxes
231
186
(14)
169
(192)
380
(10)
Net income (loss)
635
490
50
383
(75)
1,483
35
Net income attributable to non-controlling interests
–
–
–
–
8
8
–
Net income (loss) attributable to equity shareholders
635
490
50
383
(83)
1,475
35
Diluted EPS ($)
$
1.53
Impact of items of note (1)
Non-interest expenses
Amortization and impairment 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 and impairment 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 (2)
Total revenue – adjusted (3)
$
2,455
$
1,366
$
672
$
1,290
$
61
$
5,844
$
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
872
676
45
552
(237)
1,908
31
Income taxes – adjusted
233
186
(11)
169
(189)
388
(8)
Net income (loss) – adjusted
639
490
56
383
(48)
1,520
39
Net income attributable to non-controlling interests – adjusted
–
–
–
–
8
8
–
Net income (loss) attributable to equity shareholders – adjusted
639
490
56
383
(56)
1,512
39
Adjusted diluted EPS ($)
$
1.57
(1)
Items of note are removed from reported results to calculate adjusted results.
(2)
Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures.
(3)
CIBC total results excludes a tax equivalent basis (TEB) adjustment of $62 million (July 31, 2023: $66 million; October 31, 2022: $51 million). Our adjusted efficiency ratio and adjusted operating leverage are calculated on a TEB.
(4)
On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC’s issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
(5)
Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables. Provision for credit losses for performing loans associated with the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022 included the stage 1 ECL allowance established immediately after the acquisition date and the impact of the migration of stage 1 accounts to stage 2 during the second quarter of 2022.
(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.
(7)
Relates to the net legal provisions recognized in the first and second quarters of 2023.
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 July 31, 2023
Banking
Management
Management
Services
and Other
Total
(US$ millions)
Operating results – reported
Total revenue
$
2,412
$
1,350
$
666
$
1,355
$
67
$
5,850
$
499
Provision for (reversal of) credit losses
423
40
255
6
12
736
191
Non-interest expenses
1,303
674
345
673
312
3,307
258
Income (loss) before income taxes
686
636
66
676
(257)
1,807
50
Income taxes
189
169
(7)
182
(156)
377
(5)
Net income (loss)
497
467
73
494
(101)
1,430
55
Net income attributable to non-controlling interests
–
–
–
–
10
10
–
Net income (loss) attributable to equity shareholders
497
467
73
494
(111)
1,420
55
Diluted EPS ($)
$
1.47
Impact of items of note (1)
Revenue
Commodity tax charge related to the retroactive impact of the 2023
Canadian Federal budget
$
34
$
–
$
–
$
–
$
–
$
34
$
–
Impact of items of note on revenue
34
–
–
–
–
34
–
Non-interest expenses
Amortization and impairment of acquisition-related intangible assets
(7)
–
(13)
–
(3)
(23)
(10)
Impact of items of note on non-interest expenses
(7)
–
(13)
–
(3)
(23)
(10)
Total pre-tax impact of items of note on net income
41
–
13
–
3
57
10
Income taxes
Amortization and impairment of acquisition-related intangible assets
2
–
3
–
–
5
3
Commodity tax charge related to the retroactive impact of the 2023
Canadian Federal budget
9
–
–
–
–
9
–
Impact of items of note on income taxes
11
–
3
–
–
14
3
Total after-tax impact of items of note on net income
$
30
$
–
$
10
$
–
$
3
$
43
$
7
Impact of items of note on diluted EPS ($)
$
0.05
Operating results – adjusted (2)
Total revenue – adjusted (3)
$
2,446
$
1,350
$
666
$
1,355
$
67
$
5,884
$
499
Provision for (reversal of) credit losses – adjusted
423
40
255
6
12
736
191
Non-interest expenses – adjusted
1,296
674
332
673
309
3,284
248
Income (loss) before income taxes – adjusted
727
636
79
676
(254)
1,864
60
Income taxes – adjusted
200
169
(4)
182
(156)
391
(2)
Net income (loss) – adjusted
527
467
83
494
(98)
1,473
62
Net income attributable to non-controlling interests – adjusted
–
–
–
–
10
10
–
Net income (loss) attributable to equity shareholders – adjusted
527
467
83
494
(108)
1,463
62
Adjusted diluted EPS ($)
$
1.52
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 October 31, 2022
Banking
Management
Management
Services
and Other
Total
(US$ millions)
Operating results – reported
Total revenue
$
2,262
$
1,316
$
653
$
1,182
$
(25)
$
5,388
$
483
Provision for (reversal of) credit losses
305
21
100
(1)
11
436
76
Non-interest expenses
1,313
658
356
656
500
3,483
264
Income (loss) before income taxes
644
637
197
527
(536)
1,469
143
Income taxes
173
168
36
149
(242)
284
27
Net income (loss)
471
469
161
378
(294)
1,185
116
Net income attributable to non-controlling interests
–
–
–
–
7
7
–
Net income (loss) attributable to equity shareholders
471
469
161
378
(301)
1,178
116
Diluted EPS ($) (4)
$
1.26
Impact of items of note (1)
Revenue
Acquisition and integration-related costs as well as purchase accounting
adjustments (5)
$
(6)
$
–
$
–
$
–
$
–
$
(6)
$
–
Impact of items of note on revenue
(6)
–
–
–
–
(6)
–
Non-interest expenses
Amortization and impairment of acquisition-related intangible assets
(7)
–
(17)
–
(3)
(27)
(13)
Acquisition and integration-related costs as well as purchase accounting
adjustments (5)
(18)
–
–
–
–
(18)
–
Charge related to the consolidation of our real estate portfolio
–
–
–
–
(37)
(37)
–
Increase in legal provisions
–
–
–
–
(91)
(91)
–
Impact of items of note on non-interest expenses
(25)
–
(17)
–
(131)
(173)
(13)
Total pre-tax impact of items of note on net income
19
–
17
–
131
167
13
Income taxes
Amortization and impairment of acquisition-related intangible assets
1
–
5
–
–
6
4
Acquisition and integration-related costs as well as purchase accounting
adjustments (5)
4
–
–
–
–
4
–
Charge related to the consolidation of our real estate portfolio
–
–
–
–
10
10
–
Increase in legal provisions
–
–
–
–
24
24
–
Impact of items of note on income taxes
5
–
5
–
34
44
4
Total after-tax impact of items of note on net income
$
14
$
–
$
12
$
–
$
97
$
123
$
9
Impact of items of note on diluted EPS ($) (4)
$
0.13
Operating results – adjusted (2)
Total revenue – adjusted (3)
$
2,256
$
1,316
$
653
$
1,182
$
(25)
$
5,382
$
483
Provision for (reversal of) credit losses – adjusted
305
21
100
(1)
11
436
76
Non-interest expenses – adjusted
1,288
658
339
656
369
3,310
251
Income (loss) before income taxes – adjusted
663
637
214
527
(405)
1,636
156
Income taxes – adjusted
178
168
41
149
(208)
328
31
Net income (loss) – adjusted
485
469
173
378
(197)
1,308
125
Net income attributable to non-controlling interests – adjusted
–
–
–
–
7
7
–
Net income (loss) attributable to equity shareholders – adjusted
485
469
173
378
(204)
1,301
125
Adjusted diluted EPS ($) (4)
$
1.39
See previous pages 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 twelve months ended October 31, 2023
Banking
Management
Management
Services
and Other
Total
(US$ millions)
Operating results – reported
Total revenue
$
9,407
$
5,403
$
2,692
$
5,488
$
333
$
23,323
$
1,994
Provision for (reversal of) credit losses
986
143
850
19
12
2,010
630
Non-interest expenses
5,174
2,691
1,466
2,721
2,297
14,349
1,086
Income (loss) before income taxes
3,247
2,569
376
2,748
(1,976)
6,964
278
Income taxes
889
691
(3)
762
(408)
1,931
(2)
Net income (loss)
2,358
1,878
379
1,986
(1,568)
5,033
280
Net income attributable to non-controlling interests
–
–
–
–
38
38
–
Net income (loss) attributable to equity shareholders
2,358
1,878
379
1,986
(1,606)
4,995
280
Diluted EPS ($)
$
5.16
Impact of items of note (1)
Revenue
Commodity tax charge related to the retroactive impact of the 2023
Canadian Federal budget
$
34
$
–
$
–
$
–
$
–
$
34
$
–
Impact of items of note on revenue
34
–
–
–
–
34
–
Non-interest expenses
Amortization and impairment of acquisition-related intangible assets
(26)
–
(56)
–
(39)
$
(121)
(41)
Increase in legal provisions (7)
–
–
–
–
(1,055)
(1,055)
–
Impact of items of note on non-interest expenses
(26)
–
(56)
–
(1,094)
(1,176)
(41)
Total pre-tax impact of items of note on net income
60
–
56
–
1,094
1,210
41
Income taxes
Amortization and impairment of acquisition-related intangible assets
6
–
15
–
4
25
11
Commodity tax charge related to the retroactive impact of the 2023
Canadian Federal budget
9
–
–
–
–
9
–
Increase in legal provisions (7)
–
–
–
–
293
293
–
Income tax charge related to the 2022 Canadian Federal budget (6)
–
–
–
–
(545)
(545)
–
Impact of items of note on income taxes
15
–
15
–
(248)
(218)
11
Total after-tax impact of items of note on net income
$
45
$
–
$
41
$
–
$
1,342
$
1,428
$
30
Impact of items of note on diluted EPS ($)
$
1.56
Operating results – adjusted (2)
Total revenue – adjusted (3)
$
9,441
$
5,403
$
2,692
$
5,488
$
333
$
23,357
$
1,994
Provision for (reversal of) credit losses – adjusted
986
143
850
19
12
2,010
630
Non-interest expenses – adjusted
5,148
2,691
1,410
2,721
1,203
13,173
1,045
Income (loss) before income taxes – adjusted
3,307
2,569
432
2,748
(882)
8,174
319
Income taxes – adjusted
904
691
12
762
(656)
1,713
9
Net income (loss) – adjusted
2,403
1,878
420
1,986
(226)
6,461
310
Net income attributable to non-controlling interests – adjusted
–
–
–
–
38
38
–
Net income (loss) attributable to equity shareholders – adjusted
2,403
1,878
420
1,986
(264)
6,423
310
Adjusted diluted EPS ($)
$
6.72
See previous pages 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 twelve months ended October 31, 2022
Banking
Management
Management
Services
and Other
Total
(US$ millions)
Operating results – reported
Total revenue
$
8,909
$
5,254
$
2,457
$
5,001
$
212
$
21,833
$
1,902
Provision for (reversal of) credit losses
876
23
218
(62)
2
1,057
169
Non-interest expenses
4,975
2,656
1,328
2,437
1,407
12,803
1,028
Income (loss) before income taxes
3,058
2,575
911
2,626
(1,197)
7,973
705
Income taxes
809
680
151
718
(628)
1,730
117
Net income (loss)
2,249
1,895
760
1,908
(569)
6,243
588
Net income attributable to non-controlling interests
–
–
–
–
23
23
–
Net income (loss) attributable to equity shareholders
2,249
1,895
760
1,908
(592)
6,220
588
Diluted EPS ($) (4)
$
6.68
Impact of items of note (1)
Revenue
Acquisition and integration-related costs as well as purchase accounting
adjustments and provision for credit losses for performing loans (5)
$
(16)
$
–
$
–
$
–
$
–
$
(16)
$
–
Impact of items of note on revenue
(16)
–
–
–
–
(16)
–
Provision for (reversal of) credit losses
Acquisition and integration-related costs as well as purchase accounting
adjustments and provision for credit losses for performing loans (5)
(94)
–
–
–
–
(94)
–
Impact of items of note on provision for (reversal of) credit losses
(94)
–
–
–
–
(94)
–
Non-interest expenses
Amortization and impairment of acquisition-related intangible assets
(18)
–
(68)
–
(12)
(98)
(53)
Acquisition and integration-related costs as well as purchase accounting
adjustments and provision for credit losses for performing loans (5)
(103)
–
–
–
–
(103)
–
Charge related to the consolidation of our real estate portfolio
–
–
–
–
(37)
(37)
–
Increase in legal provisions
–
–
–
–
(136)
(136)
–
Impact of items of note on non-interest expenses
(121)
–
(68)
–
(185)
(374)
(53)
Total pre-tax impact of items of note on net income
199
–
68
–
185
452
53
Income taxes
Amortization and impairment of acquisition-related intangible assets
4
–
18
–
1
23
14
Acquisition and integration-related costs as well as purchase accounting
adjustments and provision for credit losses for performing loans (5)
48
–
–
–
–
48
–
Charge related to the consolidation of our real estate portfolio
–
–
–
–
10
10
–
Increase in legal provisions
–
–
–
–
36
36
–
Impact of items of note on income taxes
52
–
18
–
47
117
14
Total after-tax impact of items of note on net income
$
147
$
–
$
50
$
–
$
138
$
335
$
39
Impact of items of note on diluted EPS ($) (4)
$
0.37
Operating results – adjusted (2)
Total revenue – adjusted (3)
$
8,893
$
5,254
$
2,457
$
5,001
$
212
$
21,817
$
1,902
Provision for (reversal of) credit losses – adjusted
782
23
218
(62)
2
963
169
Non-interest expenses – adjusted
4,854
2,656
1,260
2,437
1,222
12,429
975
Income (loss) before income taxes – adjusted
3,257
2,575
979
2,626
(1,012)
8,425
758
Income taxes – adjusted
861
680
169
718
(581)
1,847
131
Net income (loss) – adjusted
2,396
1,895
810
1,908
(431)
6,578
627
Net income attributable to non-controlling interests – adjusted
–
–
–
–
23
23
–
Net income (loss) attributable to equity shareholders – adjusted
2,396
1,895
810
1,908
(454)
6,555
627
Adjusted diluted EPS ($) (4)
$
7.05
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)
2023
Net income (loss)
$
635
$
490
$
50
$
383
$
(75)
$
1,483
$
35
Oct. 31
Add: provision for (reversal of) credit losses
282
11
249
4
(5)
541
183
Add: income taxes
231
186
(14)
169
(192)
380
(10)
Pre-provision (reversal), pre-tax earnings (losses) (1)
1,148
687
285
556
(272)
2,404
208
Pre-tax impact of items of note (2)
6
–
9
–
30
45
6
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)
$
1,154
$
687
$
294
$
556
$
(242)
$
2,449
$
214
2023
Net income (loss)
$
497
$
467
$
73
$
494
$
(101)
$
1,430
$
55
Jul. 31
Add: provision for (reversal of) credit losses
423
40
255
6
12
736
191
Add: income taxes
189
169
(7)
182
(156)
377
(5)
Pre-provision (reversal), pre-tax earnings (losses) (1)
1,109
676
321
682
(245)
2,543
241
Pre-tax impact of items of note (2)
41
–
13
–
3
57
10
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)
$
1,150
$
676
$
334
$
682
$
(242)
$
2,600
$
251
2022
Net income (loss)
$
471
$
469
$
161
$
378
$
(294)
$
1,185
$
116
Oct. 31
Add: provision for (reversal of) credit losses
305
21
100
(1)
11
436
76
Add: income taxes
173
168
36
149
(242)
284
27
Pre-provision (reversal), pre-tax earnings (losses) (1)
949
658
297
526
(525)
1,905
219
Pre-tax impact of items of note (2)
19
–
17
–
131
167
13
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)
$
968
$
658
$
314
$
526
$
(394)
$
2,072
$
232
$ millions, for the twelve months ended
2023
Net income (loss)
$
2,358
$
1,878
$
379
$
1,986
$
(1,568)
$
5,033
$
280
Oct. 31
Add: provision for (reversal of) credit losses
986
143
850
19
12
2,010
630
Add: income taxes
889
691
(3)
762
(408)
1,931
(2)
Pre-provision (reversal), pre-tax earnings (losses) (1)
4,233
2,712
1,226
2,767
(1,964)
8,974
908
Pre-tax impact of items of note (2)
60
–
56
–
1,094
1,210
41
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)
$
4,293
$
2,712
$
1,282
$
2,767
$
(870)
$
10,184
$
949
2022
Net income (loss)
$
2,249
$
1,895
$
760
$
1,908
$
(569)
$
6,243
$
588
Oct. 31
Add: provision for (reversal of) credit losses
876
23
218
(62)
2
1,057
169
Add: income taxes
809
680
151
718
(628)
1,730
117
Pre-provision (reversal), pre-tax earnings (losses) (1)
3,934
2,598
1,129
2,564
(1,195)
9,030
874
Pre-tax impact of items of note (2)(4)
105
–
68
–
185
358
53
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)
$
4,039
$
2,598
$
1,197
$
2,564
$
(1,010)
$
9,388
$
927
(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)
Excludes the impact of the provision for credit losses for performing loans from the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022, as the amount is included in the add back of provision for (reversal of) credit losses.
The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim consolidated financial statements follow the same accounting policies and methods of application as CIBC’s consolidated financial statements as at and for the year ended October 31, 2023.
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 6992806#) and French (514-392-1587, or toll-free 1-877-395-0279, passcode 6514906#). 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/en/about-cibc/investor-relations/quarterly-results.html.
Details of CIBC’s 2023 fourth quarter and fiscal year 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 4645396#) and French (514-861-2272 or 1-800-408-3053, passcode 7957917#) until 11:59 p.m. (ET) December 14, 2023. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.
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.
The information below forms a part of this news release.
Nothing in CIBC’s corporate website (www.cibc.com) should be considered incorporated herein by reference.
The Board of Directors of CIBC reviewed this news release prior to it being issued.
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 made in the “Core business performance”, “Strong fundamentals”, and “Making a difference in our Communities” sections of this news release, and the Management’s Discussion and Analysis in our 2023 Annual Report under the heading “Economic and market environment – Outlook for calendar year 2024” and other 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, including the economic assumptions set out in the “Economic and market environment – Outlook for calendar year 2024” section of our 2023 Annual Report, as updated by quarterly reports, 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; 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.
SOURCE CIBC
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