Skip to Content
News Releases
Back
CIBC Announces Second Quarter 2008 Results

    TORONTO, May 29 /CNW/ - CIBC (CM: TSX; NYSE) announced a net loss of
$1,111 million for the second quarter ended April 30, 2008, compared to net
income of $807 million for the same period last year. Diluted loss per share
was $3.00, compared to diluted earnings per share (EPS) of $2.27 a year ago.
Cash diluted loss per share was $2.98(1), compared to cash diluted EPS of
$2.29(1) a year ago.
    CIBC's Tier 1 capital ratio at April 30, 2008 was 10.5%.Results for the second quarter of 2008 were positively affected by the
following item:

    -   $14 million ($9 million after tax, or $0.02 per share) positive
        impact of changes in credit spreads on the mark-to-market of credit
        derivatives in CIBC's corporate loan hedging program.

    Results for the second quarter of 2008 were negatively affected by the
following items:

    -   $2.48 billion loss on structured credit run-off activities
        ($1.67 billion after tax, or $4.37 per share);
    -   $65 million ($21 million after tax, or $0.05 per share) foreign
        exchange loss on the repatriation of retained earnings from CIBC's
        U.S. operations;
    -   $50 million ($34 million after tax, or $0.09 per share) of valuation
        charges against credit exposures to derivatives from counterparties
        other than financial guarantors;
    -   $26 million ($18 million after tax, or $0.05 per share) of higher
        than normal severance expense in CIBC World Markets;
    -   $22 million ($19 million after tax and minority interest, or
        $0.05 per share) loss on Visa initial public offering adjustment
        (VISA IPO adjustment).The net loss, diluted loss per share and cash diluted loss per share for
the second quarter of 2008 compared with a net loss of $1,456 million, diluted
loss per share of $4.39 and cash diluted loss per share of $4.36(1),
respectively, for the prior quarter, which included items of note that
aggregated to a negative impact on results of $6.36 per share.
    The deterioration in credit and liquidity conditions, particularly for
securities with exposure to the U.S. residential mortgage market (USRMM), has
required CIBC to record asset write-downs and counterparty credit reserves
within its structured credit business. In addition, market conditions have had
a negative impact on performance in other areas, particularly within CIBC's
wholesale and retail brokerage operations.
    "While the current environment is challenging, CIBC's franchise remains
solid," says Gerald T. McCaughey, President and Chief Executive Officer. "Our
capital position is strong and our core businesses are well positioned for
growth. In support of our strategy of consistent and sustainable performance,
we are taking further steps to adapt our business profile and risk management
processes to evolving financial market risks."

    Update on business priorities

    CIBC's strategy is supported by three priorities - business strength,
productivity and balance sheet strength. Despite the challenging market
conditions during the quarter, CIBC made progress against its priorities in
several areas.

    Business strength

    CIBC Retail Markets reported revenue of $2,239 million, down 3% from
$2,309 million for the same quarter last year. Net income for the second
quarter was $509 million, which included the VISA IPO adjustment, versus
$617 million a year ago, which included an $80 million tax recovery. Excluding
these items, CIBC Retail Markets net income was down 2%.
    CIBC's retail business in Canada continues to perform well overall, with
solid profitability driven by volume growth, expense discipline and good
credit experience.
    CIBC's credit card business is the market leader in Canada by purchase
volumes and outstandings and continues to deliver solid growth. Balances were
up 12.8% over the second quarter of last year. CIBC has achieved double digit
growth in its cards business over several quarters, while reducing its loan
loss rate.
    In CIBC's mortgages and personal lending business, net interest margins
have declined over the past year, primarily due to higher funding costs, which
more than offset growth of 12.5% in mortgage balances.
    Retail brokerage revenue was lower than a year ago, as less favourable
market conditions negatively impacted trading volumes.
    CIBC's retail strategy in Canada is to become the primary financial
institution for more of its clients. During the quarter, CIBC continued to
focus on its key priorities of providing clients with strong advisory
solutions, enhancing their client experience and offering highly competitive
products:-   CIBC continued to invest in its branch network so that clients will
        have greater flexibility, access and choice to meet their banking
        needs. CIBC announced the locations of 13 new full service branches
        as part of a strategic plan to build, relocate and expand over 70 new
        branches across the country by 2011.
    -   CIBC announced the expansion of its Sunday hours program to an
        additional 6 branches (from 6 currently) in the Greater Toronto Area
        and Vancouver Lower Mainland this summer.
    -   Enhancements to CIBC's ABM network included the introduction of a
        Chinese language option to all of CIBC's more than 3,700 ABMs across
        Canada.
    -   CIBC's client website, www.cibc.com again received the highest score
        in an independent competitive site assessment of the public websites
        of Canada's seven largest banks and credit unions by
        Forrester Research Inc.(2)
    -   CIBC continues to lead the market with innovative products to further
        its relationship with its clients. CIBC announced the launch of the
        CIBC Aerogold Visa Infinite card, a new addition to its leading
        Aerogold family of credit cards, as well as a market trial of chip
        card technology on CIBC Visa and debit cards that provides clients
        with enhanced security and fraud protection.CIBC World Markets reported a loss of $1.64 billion. This result includes
the $1.67 billion loss on structured credit run-off activities.
    Market and economic conditions relating to the financial guarantors may
change in the future, which could result in significant future losses.
    Market conditions during the second quarter were significantly more
challenging than a year ago. The combination of the lower industry volumes and
the restructuring activities that are ongoing within CIBC's wholesale business
had a negative impact on performance in the second quarter.
    CIBC continues to take steps to reposition CIBC World Markets for
consistent and sustainable performance.
    CIBC has exited business activities that do not have a risk-adjusted
return profile that aligns with CIBC's strategy of consistent and sustainable
performance. Earlier this year, CIBC closed the sale of its U.S. domestic
investment banking business and exited its European leveraged finance
business.
    CIBC has curtailed its activities in the structured credit area where its
U.S. residential mortgage exposures were originated. A dedicated team is
managing CIBC's existing exposures with a mandate to reducing risk and current
positions. During the quarter, CIBC sold several of its USRMM exposures that
were hedged by ACA Financial Guaranty Corp. and also reduced non-USRMM written
credit derivative notional exposures in its trading book.
    As a result of the ongoing refocusing of CIBC World Markets on its most
profitable and competitive activities, in May CIBC announced plans to
eliminate 100 positions across the firm. This is expected to result in a total
reduction to staffing levels across CIBC World Markets by more than 15% over
the course of fiscal 2008. This does not include the approximately 600
employees transferred to Oppenheimer Holdings Inc. as part of the sale of U.S.
investment banking, equities and leveraged finance activities earlier in this
fiscal year.

    These and other actions CIBC is taking to restructure CIBC World Markets
have the common purpose of sustaining CIBC's position as a leading
Canadian-based investment bank. During the quarter, the strength of CIBC's
franchise was evident in several notable achievements:-   No.1 in Equity Underwriting - CIBC World Markets secured its position
        as No.1 in volume of new issues underwritten at the end of the first
        calendar quarter, based on the strength of its co-lead manager role
        on the $19.6 billion IPO of Visa Inc., joint book runner roles on a
        $357 million Aeroplan Income Fund secondary offering from
        ACE Aviation Holdings Inc. and a $250 million financing of
        convertible debentures for Harvest Energy Trust, as well as placement
        agent on a US$350 million private placement of convertible debentures
        for AbitibiBowater Inc.
    -   Canadian dealmaker of the year for 2007 - The Globe and Mail's
        inaugural Canadian Dealmakers awards recognized CIBC World Markets as
        Canadian Dealmaker of the year in 2007 for its key role as exclusive
        financial advisor to Fortis Inc. on its $3.7 billion acquisition of
        Terasen Inc.
    -   No.1 in 2007 Canadian analyst rankings - The equities research team
        at CIBC World Markets took top spot in the 2007 Financial
        Post/StarMine ranking of brokerages and analysts, receiving
        19 Top Analyst awards.Productivity

    In addition to continuing to invest and position its core businesses for
long term performance, CIBC remains committed to its strategic objective of
achieving a median efficiency ratio among the major Canadian banks.
    CIBC's target for 2008 is to hold expenses flat relative to annualized
2006 fourth quarter expenses, excluding expenses related to CIBC's
FirstCaribbean International Bank subsidiary, its U.S. restructuring and
structured credit run-off activities.
    Expenses for the second quarter were $1,788 million, down 9.5% from
$1,976 million a year ago (due primarily to lower compensation related
expenses).
    CIBC's focus in the area of productivity remains on achieving
improvements in revenue growth, while maintaining expense discipline.

    Balance sheet strength

    CIBC's third priority is to build balance sheet strength. In 2008, CIBC
is placing additional emphasis on this priority, given the uncertain market
conditions.
    Earlier this year, CIBC strengthened its capital position by raising
$2.9 billion of common equity.
    "Our capital raise has enabled us to maintain a strong capital position
despite the impact of deteriorating market conditions on our performance,"
says McCaughey. "Our Tier 1 ratio of 10.5% at the end of April is above our
target of 8.5% and also places CIBC in a leading position among North American
banks."

    Update on risk management enhancements

    In addition to furthering its business priorities, CIBC is enhancing its
risk management capabilities.
    The first priority in CIBC's risk assessment has been to ensure risks are
effectively managed within the front-line businesses. This process has led to
the series of business exits described above.

    CIBC is also improving its risk management capabilities, both within CIBC
World Markets and its Risk Management function, taking into account evolving
financial market risks. This process has involved a complete review of risk
management processes and a number of actions being taken:-   CIBC has developed a more robust risk appetite statement and
        supporting metrics.
    -   CIBC has established additional forums for senior management debate
        of risk issues and review of new products, both within
        CIBC World Markets and its Risk Management function.
    -   CIBC has hired two new senior executives to report directly to its
        Chief Risk Officer.
    -   CIBC has adapted reporting and agendas for the Risk Management
        Committee of the Board to provide additional focus on emerging risk
        issues.
    -   CIBC has launched bank-wide business risk reviews, including scenario
        analyses and stress testing for risks that could emerge in the
        future.Each of these actions has a common purpose of ensuring that all of CIBC's
risk management policies, procedures and practices are aligned with best
practices in the industry and enable CIBC to react quickly to changes in the
external environment.

    Making a difference in communities

    As a leader in community investment, CIBC is committed to supporting
causes that matter to its clients, its employees and its communities. During
the quarter, CIBC continued to demonstrate leadership in this area.
    CIBC renewed its commitment to the CIBC Youthvision Scholarship
Program™, a unique partnership with Big Brothers Big Sisters Canada and the
YMCA, for an additional three years. Since the program's inception in 1999,
CIBC has committed more than $10 million to help young people achieve their
dreams.
    CIBC contributed $1 million to the Canadian Women's Foundation, Canada's
only national public foundation dedicated to improving the lives of women and
girls. Post quarter end, CIBC announced a first in Canada program with the
Richard Ivey School of Business that directly addresses the growing talent gap
in corporate Canada. ReConnect: Career Renewal for Returning Professional
Women™ will help professional women re-enter their careers after taking
time out of the workforce to pursue other activities. CIBC is committing
$1 million to the program over five years as the founding sponsor.
    CIBC donated $100,000 to the National Aboriginal Achievement Foundation's
education program. Since 2001, CIBC has committed a total of $800,000 to
scholarships and bursaries to help meet the financial needs of First Nations,
Inuit and Métis students.
    These are a few examples of CIBC's ongoing commitment to make a
difference in communities through corporate donations, sponsorships and the
volunteer spirit of employees.--------------------------------------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) Source: 2008 Canadian Bank Public Web Site Rankings,
        Forrester Research Inc., May 2008.The information on the following pages forms a part of this press
    release.

    (The board of directors of CIBC reviewed this press release prior to it
    being issued. CIBC's controls and procedures support the ability of the
    President and Chief Executive Officer and the Chief Financial Officer of
    CIBC to certify CIBC's second quarter financial report and controls and
    procedures. CIBC's CEO and CFO will voluntarily provide to the Securities
    and Exchange Commission a certification relating to CIBC's second quarter
    financial information, including the attached unaudited interim
    consolidated financial statements, and will provide the same
    certification to the Canadian Securities Administrators.)


    Management's Discussion And Analysis
    -------------------------------------------------------------------------

    Management's discussion and analysis (MD&A) should be read in conjunction
with the unaudited interim consolidated financial statements included in this
report and with the MD&A contained in our 2007 Annual Accountability Report.
The unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles (GAAP) and
are expressed in Canadian dollars. This MD&A is current as of May 29, 2008.
Additional information relating to CIBC is available on SEDAR at www.sedar.com
and on the U.S. Securities and Exchange Commission's website at www.sec.gov.
No information on CIBC's website (www.cibc.com) should be considered
incorporated herein by reference. Certain comparative amounts have been
reclassified to conform with the presentation adopted in the current period. A
glossary of terms used throughout this quarterly report can be found on pages
149 and 150 of our 2007 Annual Accountability Report.External reporting changes

    The following is a summary of the external reporting changes adopted in
the first quarter of 2008:

    -   We adopted the Internal Convergence of Capital Measurement and
        Capital Standards: a Revised Framework, commonly named as Basel II.
        See "Management of risk" section for additional details.
    -   We moved our commercial banking line of business from CIBC World
        Markets to CIBC Retail Markets. Prior period information was
        restated.
    -   We moved our securitization-related revenue from the lines of
        businesses (cards, mortgages and personal lending) to other within
        CIBC Retail Markets. Prior period information was restated.
    -   We moved the investment consulting service revenue from retail
        brokerage to asset management, both within CIBC Retail Markets. Prior
        period information was restated.
    -   We allocated the general allowance for credit losses between the
        strategic business lines (CIBC Retail Markets and CIBC World
        Markets). Prior to 2008, the general allowance (excluding
        FirstCaribbean International Bank) was included within Corporate and
        Other. Prior period information was not restated.
    -   We reclassified the allowance for credit losses related to the
        undrawn credit facilities to other liabilities. Prior to 2008, it was
        included in allowance for credit losses. Prior period information was
        not restated.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 report, in
other filings with Canadian securities regulators or the U.S. Securities and
Exchange Commission and in other communications. These statements include, but
are not limited to, statements made in the "Update on business priorities",
"Overview - Significant events", "Overview - Outlook", "Run-off businesses",
"Other selected activities" and "Financial performance review - Income taxes"
sections, of this report and other statements about our operations, business
lines, financial condition, risk management, priorities, targets, ongoing
objectives, strategies and outlook for 2008 and subsequent periods.
Forward-looking statements are typically identified by the words "believe",
"expect", "anticipate", "intend", "estimate" and other similar expressions or
future or conditional verbs such as "will", "should", "would" and "could". By
their nature, these statements require us to make assumptions, including the
economic assumptions set out in the "Overview - Outlook" section of this
report, and are subject to inherent risks and uncertainties that may be
general or specific. 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: legislative or
regulatory developments in the jurisdictions where we operate; amendments to,
and interpretations of, risk-based capital guidelines and reporting
instructions; the resolution of legal proceedings and related matters; the
effect of changes to accounting standards, rules and interpretations; changes
in our estimates of reserves and allowances; changes in tax laws; that our
estimate of sustainable effective tax rate will not be achieved; political
conditions and developments; the possible effect on our business of
international conflicts and the war on terror; natural disasters, public
health emergencies, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide components of our
business infrastructure; the accuracy and completeness of information provided
to us by clients and counterparties; the failure of third parties to comply
with their obligations to us and our affiliates; intensifying competition from
established competitors and new entrants in the financial services industry;
technological change; global capital market activity; interest rate and
currency value fluctuations; general economic conditions worldwide, as well as
in Canada, the U.S. and other countries where we have operations; changes in
market rates and prices which may adversely affect the value of financial
products; 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; 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. We do not undertake to update any
forward-looking statement that is contained in this report or in other
communications except as required by law.Second Quarter Financial Highlights
    -------------------------------------------------------------------------
                                        As at or for the    As at or for the
                                      three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited                Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Common share information
    Per share
      - basic (loss)
         earnings           $  (3.00) $  (4.39) $   2.29  $  (7.31) $   4.42
      - cash basic (loss)
         earnings(1)           (2.98)    (4.36)     2.32     (7.26)     4.46
      - diluted (loss)
         earnings              (3.00)    (4.39)     2.27     (7.31)     4.37
      - cash diluted (loss)
         earnings(1)           (2.98)    (4.36)     2.29     (7.26)     4.41
      - dividends               0.87      0.87      0.77      1.74      1.47
      - book value             29.01     32.76     32.67     29.01     32.67
    Share price
      - high                   74.17     99.81    104.00     99.81    104.00
      - low                    56.94     64.70     97.70     56.94     88.96
      - closing                74.17     73.25     97.70     74.17     97.70
    Shares outstanding
     (thousands)
      - average basic        380,754   338,732   337,320   359,512   336,896
      - average diluted      382,377   340,811   340,613   361,366   340,272
      - end of period        380,770   380,650   337,487   380,770   337,487
    Market capitalization
     ($ millions)           $ 28,242  $ 27,883  $ 32,972  $ 28,242  $ 32,972
    ----------------------------------------------------- -------------------
    Value measures
    Price to earnings multiple
     (12 month trailing)         n/m      26.9      11.4       n/m      11.4
    Dividend yield (based on
     closing share price)       4.8%      4.7%      3.2%      4.7%      3.0%
    Dividend payout ratio        n/m       n/m     33.7%       n/m     33.3%
    Market value to book
     value ratio                2.56      2.24      2.99      2.56      2.99
    ----------------------------------------------------- -------------------
    Financial results
     ($ millions)
    Total revenue           $    126  $   (521) $  3,050  $   (395) $  6,141
    Provision for credit
     losses                      176       172       166       348       309
    Non-interest expenses      1,788     1,761     1,976     3,549     3,919
    Net (loss) income         (1,111)   (1,456)      807    (2,567)    1,577
    ----------------------------------------------------- -------------------
    Financial measures
    Efficiency ratio             n/m       n/m     64.8%       n/m     63.8%
    Cash efficiency ratio,
     taxable equivalent
     basis (TEB)(1)              n/m       n/m     63.2%       n/m     62.3%
    Return on equity         (37.6)%   (52.9)%     28.9%   (45.0)%     28.0%
    Net interest margin        1.57%     1.33%     1.36%     1.45%     1.34%
    Net interest margin on
     average interest-
     earning assets            1.85%     1.57%     1.55%     1.71%     1.54%
    Return on average assets (1.29)%   (1.68)%     1.02%   (1.49)%     0.99%
    Return on average
     interest-earning assets (1.52)%   (1.98)%     1.16%   (1.75)%     1.13%
    Total shareholder return   2.59%   (27.3)%    (2.4)%  (25.42)%     13.2%
    ----------------------------------------------------- -------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits with
     banks and securities   $ 92,189  $ 99,411  $100,204  $ 92,189  $100,204
    Loans and acceptances    174,580   171,090   164,797   174,580   164,797
    Total assets             343,063   347,734   326,580   343,063   326,580
    Deposits                 238,203   239,976   221,169   238,203   221,169
    Common shareholders'
     equity                   11,046    12,472    11,025    11,046    11,025
    Average assets           349,005   344,528   326,088   346,742   321,023
    Average interest-
     earning assets          296,427   293,166   285,127   294,778   280,895
    Average common
     shareholders' equity     12,328    11,181    10,964    11,748    10,715
    Assets under
     administration        1,205,077 1,169,570 1,165,585 1,205,077 1,165,585
    ----------------------------------------------------- -------------------
    Balance sheet quality
     measures
    Common equity to risk-
     weighted assets(2)         9.6%     10.6%      8.7%      9.6%      8.7%
    Risk-weighted assets
     ($ billions)(2)        $  114.8  $  117.4  $  127.2  $  114.8  $  127.2
    Tier 1 capital ratio(2)    10.5%     11.4%      9.5%     10.5%      9.5%
    Total capital ratio(2)     14.4%     15.2%     14.1%     14.4%     14.1%
    ----------------------------------------------------- -------------------
    Other information
    Retail/wholesale
     ratio(3)                68%/32%   71%/29%   73%/27%   68%/32%   73%/27%
    Regular workforce
     headcount                40,345    40,237    40,488    40,345    40,488
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) Q1/08 and Q2/08 are based upon Basel II framework whereas the prior
        quarters were based upon Basel I methodology.
    (3) The ratio represents the amount of capital attributed to the business
        lines as at the end of the period.
    n/m Not meaningful due to the net loss.OVERVIEW
    -------------------------------------------------------------------------

    Net loss for the quarter was $1,111 million, compared to net income of
$807 million for the same quarter last year and net loss of $1,456 million for
the prior quarter. Net loss for the six months ended April 30, 2008 was
$2,567 million, compared with net income of $1,577 million for the same period
in 2007.

    Our results for the current quarter were affected by the following items:-   Loss on structured credit run-off business of $2.48 billion
        ($1.67 billion after-tax), which includes mark-to-market losses, net
        of gains on index hedges, on unhedged exposures related to the U.S.
        residential mortgage market (USRMM) ($114 million, $77 million
        after-tax), charges on credit protection purchased from ACA Financial
        Guaranty Corp. (ACA) and other financial guarantors ($2.17 billion,
        $1.46 billion after-tax), gain on credit hedges on structured credit
        counterparties ($63 million, $42 million after-tax), losses on sales
        of certain positions, and direct expenses related to managing the
        run-off activities;
    -   $50 million ($34 million after-tax) of valuation charges against
        credit exposures to derivatives counterparties, other than financial
        guarantors;
    -   $26 million ($18 million after-tax) of severance accruals;
    -   $22 million ($19 million after-tax and minority interest) loss on
        Visa initial public offering adjustment (Visa IPO adjustment);
    -   $65 million ($21 million after-tax) foreign exchange loss on the
        repatriation of retained earnings from our U.S. operations; and
    -   $14 million ($9 million after-tax) positive impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging programs.Compared with Q2, 2007

    The loss on structured credit run-off business noted above was the main
factor for the significant drop of revenue from the same quarter last year.
The impact of the sale of some of our U.S. businesses, lower revenue from U.S.
real estate finance, higher funding costs for retail lending products, and
lower retail brokerage revenue also contributed to the decline. Revenue
benefited from volume growth in cards, mortgages and deposits. Provision for
credit losses was up mainly due to the reversal of general allowance in the
same quarter last year. Non-interest expenses were down largely due to lower
performance-related compensation, partially offset by higher litigation
expenses.

    Compared with Q1, 2008

    Revenue was up mainly due to lower charges on credit protection purchased
from financial guarantors and lower mark-to-market losses related to our USRMM
positions. Revenue in the quarter was negatively impacted by lower gains on
our corporate loan credit derivatives, lower Canadian investment banking
revenue, the Visa IPO adjustment noted above, and two fewer days. Non-interest
expenses were up as a result of higher litigation expenses. The lower loss in
the quarter resulted in a lower tax benefit.

    Compared with the six months ended April 30, 2007

    Revenue in the current period was significantly lower due to the charges
on credit protection purchased from financial guarantors and mark-to-market
losses related to our USRMM positions. Lower revenue from U.S. real estate
finance, the impact of the sale of some of our U.S. businesses, and higher
funding costs for retail lending products also contributed to the decline.
Revenue benefited from higher gains on our corporate loan credit derivatives,
volume growth in cards, mortgages and deposits, and the FirstCaribbean
International Bank (FirstCaribbean) acquisition. Provision for credit losses
was up mainly due to the reversal of general allowance in the same period last
year and higher losses in the corporate lending portfolio. Non-interest
expenses were down largely due to lower performance-related compensation and
the sale of some of our U.S. businesses. The loss for the period resulted in a
tax benefit.

    Our results for the prior periods were affected by the following items:-------------------------------------------------------------------------
    Q1, 2008
    --------
    -   $171 million ($115 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives ($128 million,
        $86 million after-tax) and financial guarantors credit hedges
        ($43 million, $29 million after-tax);
    -   $56 million positive impact of favourable tax-related items;
    -   $2.28 billion ($1.54 billion after-tax) charge on the credit
        protection purchased from ACA;
    -   $626 million ($422 million after-tax) charge on the credit protection
        purchased from financial guarantors other than ACA;
    -   $473 million ($316 million after-tax) mark-to-market losses, net of
        gains on related hedges, on collateralized debt obligations (CDOs)
        and residential mortgage-backed securities (RMBS) related to the
        USRMM; and
    -   $108 million ($64 million after-tax) combined loss related to the
        sale of some of our U.S. businesses to Oppenheimer Holdings Inc.
        (Oppenheimer), management changes and the exit and restructuring of
        certain other businesses.

    Q2, 2007
    --------
    -   $91 million of favourable tax recoveries and reversals;
    -   $24 million ($17 million after-tax) reversal of the general allowance
        for credit losses; and
    -   $10 million ($7 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives.

    Q1, 2007
    --------
    -   $6 million ($4 million after-tax) negative impact of credit spreads
        on corporate loan credit derivatives.
    -------------------------------------------------------------------------Significant events

    Global market credit issues

    Problems originating in the U.S. sub-prime mortgage market last year
continued to have global impact during the second quarter, particularly in
March. Our structured credit business, within CIBC World Markets, had losses
for the quarter of $2.48 billion, primarily due to further deterioration in
the credit quality of financial guarantors and mark-to-market of the
underlying assets which resulted in significant increases in valuation
adjustments to the value of credit protection bought. During the quarter we
continued to actively manage our exposures, reducing notional exposures by
approximately $30 billion and unwound related purchased credit derivatives of
a similar amount.
    In April, the Financial Stability Forum (a group of G7 central banks and
supervision groups) tabled recommendations with the G7 countries to enhance
disclosure of what are deemed to be high risk activities. Based on these
recommendations we have presented a number of related disclosures in the
"Run-off businesses" and "Other selected activities" sections of the MD&A.

    Sale of some of our U.S. businesses

    Effective January 1, 2008, we sold our U.S. based investment banking,
leveraged finance, equities and related debt capital markets businesses and
our Israeli investment banking and equities businesses to Oppenheimer. During
the first and second quarters, we recorded a loss of $82 million on the sale.
It is anticipated that the sale of certain other U.S. capital markets related
businesses located in the U.K. and Asia to Oppenheimer will close in the third
quarter of 2008.
    CIBC restricted share awards (RSAs) held by employees transferred to
Oppenheimer will continue to vest in accordance with their original terms. To
support this compensation arrangement, Oppenheimer will reimburse CIBC for the
cost of these RSAs to the extent they vest, at which time we will record the
reimbursements in other non-interest income.
    Pursuant to the sale agreement, CIBC invested in a US$100 million
subordinated debenture issued by Oppenheimer and is providing certain credit
facilities to Oppenheimer and its investment banking clients to facilitate
Oppenheimer's business, with each loan subject to approval by CIBC's credit
committee.
    The disposition is not expected to have a significant impact on our
ongoing results of operations.

    Issue of share capital

    During the first quarter, we issued 45.3 million common shares for net
proceeds of $2.9 billion, through a combination of private placements and a
public offering.
    We issued 23.9 million common shares for net proceeds of $1.5 billion,
through a private placement to a group of institutional investors, comprising
Manulife Financial Corporation, Caisse de dépôt et placement du Québec, Cheung
Kong (Holdings) Ltd. and OMERS Administration Corporation.
    We also issued 21.4 million common shares for net proceeds of
$1.4 billion, through a public offering.

    Visa Inc.

    In March 2008, Visa Inc. proceeded with the IPO of its Class A shares at
US$44 per share. As a result of the mandatory redemption of 56.19% of our
shares and the final adjustment process, we recorded a pre-tax loss of
$22 million ($19 million after-tax and minority interest) in the current
quarter. Visa's Class A shares have appreciated significantly since the IPO
and as a result we did not record an other-than-temporary impairment on our
remaining holdings.

    Outlook

    Canadian economic growth is expected to remain very sluggish in the
coming quarter, held back by weak exports as the U.S. appears to be entering a
mild recession. We expect both economies should return to moderate growth by
the final calendar quarter of 2008, helped by ongoing central bank interest
rate cuts and fiscal stimulus. Healthy global resource markets and a stable
housing market are expected to keep the Canadian economy from an outright
recession.
    CIBC Retail Markets should benefit from continued low unemployment rates
and stable housing markets, which support lending and deposit growth. A slower
pace of real estate price increases may moderate mortgage growth rates.
    For CIBC World Markets, mergers and acquisition and equity activity will
likely remain slower than in the prior year due to credit concerns affecting
global leveraged deals. We expect loan demand to increase due to reduced
investor appetite for asset-backed securities. U.S. economic softness and a
strong Canadian dollar could lead to a less favourable period for corporate
credit risk in certain parts of the Canadian economy.

    RUN-OFF BUSINESSES
    -------------------------------------------------------------------------

    Given the uncertain market conditions and to focus on our core businesses
in CIBC World Markets, we have curtailed activity in our structured credit and
leveraged finance businesses and have established a focused team with the
mandate to manage and reduce the residual exposures.

    -------------------------------------------------------------------------
    Background information on special purpose entities

    Structured credit activities usually involve special purpose entities
    (SPEs). SPEs are legal vehicles, often in the form of trusts, which are
    designed to fulfill specific and narrow needs. SPEs are used to provide
    market liquidity to clients and to create investment products by
    aggregating either pools of homogenous assets or a variety of different
    assets, and issuing either single tranche short term debt securities,
    referred to as asset-backed commercial paper (ABCP) or longer term multi-
    tiered debt instruments which include super senior, senior, subordinated
    or mezzanine, and equity tranches. Often SPEs are referred to by
    reference to the type of assets that are aggregated within the SPE such
    as RMBS which aggregate mortgage loans or collateralized loan obligations
    (CLOs) which aggregate corporate loans. In addition, SPEs can also
    aggregate debt securities issued by other SPEs, such as RMBS, and are
    referred to as CDOs. In more complex structures, SPEs which aggregate
    securities issued by other CDOs and then issue a further tranche of debt
    securities are referred to as CDOs squared. Our involvement with SPEs
    is discussed in the "Off balance sheet arrangements" section of the MD&A.
    -------------------------------------------------------------------------

    Structured credit run-off business

    Overview and results

    Our structured credit business, within CIBC World Markets, comprises our
activities as principal and for client facilitation. These activities include
warehousing of assets and structuring of SPEs which could result in the
holding of unhedged positions. Other activities include intermediation,
correlation, and flow trading which earn a spread on matching positions.

    Exposures

    Our exposures largely consist of the following categories:Unhedged -
        -  USRMM
        -  non-USRMM
    Hedged -
        -  financial guarantors (USRMM and non-USRMM)
        -  other counterparties (USRMM and non-USRMM)


    Results, before taxes
    --------------------------------------------------------------- ---------
                                                                         For
                                                                     the six
                                                           For the    months
                                                three months ended     ended
                                                ------------------- ---------
                                                    2008      2008      2008
    $ millions                                   Apr. 30   Jan. 31   Apr. 30
    --------------------------------------------------------------- ---------
    Trading                                     $  2,340  $  3,378  $  5,718
    Available-for-sale (AFS)                         144        86       230
    --------------------------------------------------------------- ---------
                                                $  2,484  $  3,464  $  5,948
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------

    The structured credit business had losses during the quarter of
$2.48 billion, compared to losses of $3.46 billion in the prior quarter. These
losses were primarily driven by further deterioration in the credit quality of
financial guarantors and the mark-to-market of the underlying assets, which
resulted in significant increases in credit valuation adjustments.

    Change in exposures

    During the quarter, we had three main changes in our exposures:

    -   We reduced exposures in the correlation and flow trading books by
        approximately $30 billion and unwound related purchased credit
        derivatives of a similar amount for a total reduction in credit
        derivatives of $60 billion. These transactions resulted in a net loss
        of $18 million.
    -   We unwound several of our USRMM exposures that were hedged by ACA.
    -   We assumed $1.8 billion of assets and unwound the related written
        credit derivatives of the same amount with no impact to our results.

    -------------------------------------------------------------------------
                                                              2008      2008
    US$ millions, as at                                    Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Notional
      Investments & loans(1)                              $ 10,678  $  7,468
      Written credit derivatives(2)                         35,832    72,965
    -------------------------------------------------------------------------
    Total gross exposures                                 $ 46,510  $ 80,433
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Purchased credit derivatives and index hedges         $ 44,963  $ 75,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Notional for investments and loans represent original investment
        costs.
    (2) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.

    Total exposures

    The exposures held within our structured credit run-off business within
CIBC World Markets are summarized in the table below. Our subsidiary,
FirstCaribbean, within CIBC Retail Markets, also has holdings in securities
with USRMM exposure, commercial mortgage backed securities (CMBS) and asset
backed securities (ABS), which are being managed separately and are included
in the table below.

    US$ millions, as at April 30, 2008
    -------------------------------------------------------------------------
                                         Exposures(1)              Hedged by
                           -------------------------------------- -----------
                                                  Written credit    Purchased
                                                     derivatives       credit
                                                   and liquidity  derivatives
                                                      and credit    and index
                            Investments & loans    facilities(2)       hedges
                           -------------------- ----------------- -----------
                                                                    Financial
                                                                   guarantors
                                                                  -----------
                                         Fair               Fair
                            Notional  value(4)   Notional  value(3)  Notional
                           ---------- --------- --------- --------- ---------
    USRMM(6)
    Unhedged
    --------
      Super senior
        CDO of Mezzanine
         RMBS               $      -  $      -  $    283  $    256  $      -
        CDO Squared              234         -       183       183         -
      Warehouse - RMBS           388        54         -         -         -
      Mezzanine - CDO
       Squared                   116         -         -         -         -
      Various(7)                 153        24         -         -         -
      Index hedges                 -         -         -         -         -
                           --------------------------------------------------
                                 891        78       466       439         -
    Hedged
    ------
      Other CDO                1,532       461     5,509     4,082     6,338
    Unmatched purchased
     credit derivatives(9)         -         -         -         -     1,541
                           --------------------------------------------------
    Total USRMM             $  2,423  $    539  $  5,975  $  4,521  $  7,879
                           --------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO                   $    252  $    215  $     94  $     13  $      -
      Corporate debt             337       308         -         -         -
      CMBS(7)                    201       199         -         -         -
      Third party sponsored
        ABCP conduits(2)(10)     381       272       892       n/a         -
      Warehouse - non-RMBS       159        84         -         -         -
      Others(7)                  136       136         -         -         -
                           --------------------------------------------------
                               1,466     1,214       986        13         -
    Hedged
    ------
      CLO                      6,037     5,136     8,563       632    14,075
      Corporate debt               -         -    16,215       494     6,959
      CMBS                         -         -       777       144       777
      Others                     752       640     3,316       269     2,942
    Unmatched purchased
     credit derivatives            -         -         -         -         -
                           --------------------------------------------------
    Total non-USRMM            8,255     6,990    29,857     1,552    24,753
    -------------------------------------------------------------------------
    Total                   $ 10,678  $  7,529  $ 35,832  $  6,073  $ 32,632
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    US$ millions, as at April 30, 2008
    -------------------------------------------------------------------------
                                       Hedged by           Unhedged  Unhedged
                           ------------------------------ exposures   USRMM
                            Purchased
                              credit
                           derivatives
                            and index
                              hedges
                           ------------------------------
                            Financial
                           guarantors       Others
                           ---------- ------------------- --------- ---------
                               Fair                                    Net
                              value                Fair      Net      expo-
                              (3)(4)  Notional   value(3) notional   sure(5)
                           ---------- --------- --------- --------- ---------

    USRMM(6)
    Unhedged
    --------
      Super senior
        CDO of Mezzanine
         RMBS               $      -  $      -  $      -  $    283  $     27
        CDO Squared                -         -         -       417         -
      Warehouse - RMBS             -         -         -       388        54
      Mezzanine - CDO
       Squared                     -         -         -       116         -
      Various(7)                   -         -         -       153        24
      Index hedges                 -       300       197      (300)     (103)
                           ----------------------------------------
                                   -       300       197     1,057

    Hedged
    ------
      Other CDO                4,771     591(8)      288       112
    Unmatched purchased
     credit derivatives(9)     1,452         -         -       n/a
                           ----------------------------------------
    Total USRMM             $  6,223  $    891  $    485  $  1,169
                           ----------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO                   $      -  $      -  $      -  $    346
      Corporate debt               -         -         -       337
      CMBS(7)                      -         -         -       201
      Third party sponsored
        ABCP conduits(2)(10)       -         -         -     1,273
      Warehouse - non-RMBS         -         -         -       159
      Others(7)                    -         -         -       136
                           ----------------------------------------
                                   -         -         -     2,452
    Hedged
    ------
      CLO                      1,122       529         1        (4)
      Corporate debt             249     9,256       245         -
      CMBS                       144         -         -         -
      Others                     325     1,308        45      (182)
    Unmatched purchased
     credit derivatives            -       347         -       n/a
                           ----------------------------------------
    Total non-USRMM            1,840    11,440       291     2,266
    ---------------------------------------------------------------
    Total                   $  8,063  $ 12,331  $    776  $  3,435
    ---------------------------------------------------------------
    ---------------------------------------------------------------
    (1)  We have excluded from the table above our holdings in securities
         issued by entities established by Federal National Mortgage
         Association (Fannie Mae), Federal Home Loan Mortgage Corporation
         (Freddie Mac), Government National Mortgage Association (Ginnie Mae)
         and Student Loan Marketing Association (Sally Mae) with notional
         value of US$1,526 million and fair value of US$1,508 million as at
         April 30, 2008.
    (2)  Liquidity and credit facilities only apply to third party sponsored
         ABCP conduits.
    (3)  This is the value of the contracts, which were typically
         zero, or close to zero, at the time they were entered into.
    (4)  Gross of Valuation Adjustments (VA) for investments and loans of
         $14 million and for purchased credit derivatives of $5.17 billion.
    (5)  After write-downs.
    (6)  As at April 30, 2008, the rating for super senior CDO of Mezzanine
         RMBS and CDO squared was B- and CCC- (negative watch) respectively.
         The rating for the warehouse RMBS was approximatley 81% investment
         grade and 19% non-investment grade (based on % of market value). The
         rating for the mezzanine CDO squared was CC and the rating for the
         remaining various positions not written down was AAA.
    (7)  Includes the following exposures held in FirstCaribbean as at
         April 30, 2008: USRMM with a notional of US$25 million and fair
         value of US$24 million that mature in 6 to 35 years and are rated
         AA1 to AAA; CMBS with a notional of US$201 million and fair value of
         US$199 million; and other ABS with a notional of US$14 million and
         fair value of US$14 million that mature in 4 to 24 years and are
         rated AAA. As at April 30, 2008, FirstCaribbean also had commercial
         mortgage index hedges with a notional of US$46 million and a
         positive fair value of US$2 million which partly mitigate the risk
         of its overall investment portfolio exposure. These commercial
         mortgage index hedges are excluded from the table above.
    (8)  Hedged with a large American diversified multi-national insurance
         and financial services company with which CIBC has market standard
         collateral arrangements.
    (9)  During the quarter, we have sold and unwound some of our USRMM
         exposures that were previously hedged, leaving the purchased credit
         derivatives unmatched.
    (10) Estimated USRMM exposure in the third party sponsored ABCP conduits
         was $20 million as at April 30, 2008.
    n/a  not applicableUnhedged USRMM exposures

    Our remaining unhedged exposure to the USRMM, after write downs, was
US$105 million ($106 million) as at April 30, 2008. To mitigate this exposure,
we also have subprime index hedges with a notional amount of US$300 million
($302 million) and a fair value of US$197 million ($198 million) as at
April 30, 2008. During the quarter, we had realized and unrealized losses, net
of gains on index hedges, of US$113 million ($114 million) on these exposures.

    Unhedged non-USRMM exposures

    Our unhedged exposures to non-USRMM primarily relates to five categories:
CLO, corporate debt, CMBS in FirstCaribbean, third party sponsored ABCP
conduits, warehouse non-RMBS, and other.

    CLO

    Our unhedged CLO assets with notional of US$346 million ($348 million)
were rated AAA as at April 30, 2008, and are backed by diversified pools of
European based senior secured leveraged loans.

    Corporate debt

    Approximately 51%, 33% and 16% of the unhedged corporate debt exposures
with notional of US$337 million ($339 million) are related to positions in
Europe, Canada and other countries respectively.

    CMBS in FirstCaribbean

    The CMBS held by FirstCaribbean with notional of US$201 million
($202 million) matures in 7 to 42 years and were rated A2 to AAA as at
April 30, 2008.

    Third party sponsored ABCP conduits

    We hold positions in and provide liquidity facilities with a total
notional of US$1,273 million ($1,282 million) to ABCP conduits that are
parties to the "Montreal Accord" and ABCP conduits that are not parties to the
Montreal Accord.

    Montreal Accord
    ------------------------

    As at April 30, 2008 we held $358 million (October 31, 2007:
$358 million) in par value holdings in non-bank sponsored ABCP subject to the
Montreal Accord. In addition, subsequent to quarter end, we purchased
additional non-bank sponsored ABCP with a notional value of $94 million at an
agreed upon price which was in excess of management's estimate of fair value
of these instruments, to settle claims. The costs of the settlement were
accrued within the results for the quarter. We also provided a liquidity
facility of $266 million to one of these conduits which was undrawn as at
April 30, 2008. The conditions of the facility require the conduit's notes,
which are currently unrated, to be rated R-1 (high) by DBRS, hence it is
unlikely to be drawn. If the restructuring plan set out in the Montreal Accord
ultimately prevails as we expect, we will receive $145 million in senior Class
A-1 notes, $154 million in senior Class A-2 notes and $153 million in various
subordinated and tracking notes in exchange for our existing ABCP with par
value of $452 million in the third quarter. The Class A-1 and Class A-2 notes
pay a variable rate of interest that will be below market levels. The
subordinated notes are expected to be zero coupon in nature paying interest
and principal only after the Class A-1 and Class A-2 notes are settled in
full. The tracking notes will pass through the cash flows of the underlying
assets. All of the notes are expected to mature in December 2016. There is
significant uncertainty as to the recoverability of the various subordinated
and tracking notes and accordingly we have ascribed no value to them.
    Based on our estimate of the $258 million combined fair value of these
notes, we recorded losses of $144 million in the second quarter in addition to
losses of $26 million recorded through to the end of the first quarter of
2008. As at April 30, 2008, all amounts previously recorded in accumulated
other comprehensive income (AOCI) have been recognized in the consolidated
statement of operations.
    In addition, pursuant to the restructuring plan, we expect to participate
in a Margin Funding Facility (MFF) to support the collateral requirements of
the restructured conduits. Under the terms of the MFF, we will be committed to
provide a $300 million undrawn loan facility to be used in the unlikely event
that the amended collateral triggers of the related credit derivatives are
breached and the new trusts to be created under the Montreal Accord do not
have sufficient assets to support the collateral requirements. If the loan
facility was fully drawn and more collateral was required, we would then have
the right to limit our commitment to the original $300 million, although the
consequence would likely be the loss of that $300 million loan.

    Other ABCP conduits
    -------------------

    We also provided liquidity and credit related facilities of $632 million,
undrawn as at April 30, 2008, to third party sponsored ABCP conduits that are
not parties to the Montreal Accord. Of this amount, $128 million was subject
to liquidity agreements under which the conduits maintain the right to put
their assets back to CIBC at par. Approximately 58% of the $128 million is
provided to a conduit with U.S. mortgage defeasance loans, and 38% is to
conduits with CDO assets. In addition, as at April 30, 2008, we had
investments of $26 million in third party sponsored ABCP conduits that are not
parties to the Montreal Accord.

    Warehouse non-RMBS

    Of the unhedged warehouse non-RMBS assets with notional of US$159 million
 ($160 million), approximately 70% is investment in CLOs backed by diversified
pools of U.S. based senior secured leveraged loans. Approximately 14% is
investment in CDOs backed by trust preferred securities with exposure to U.S.
real estate investment trusts. Another 10% has exposure to the U.S. commercial
real estate market.

    Other

    Other unhedged exposure with notional and fair value of US$136 million
($137 million) is primarily related to film rights receivable.

    Hedged with financial guarantors (USRMM and non-USRMM)

    During the quarter, we recorded a charge of US$634 million ($643 million)
on our exposures hedged by ACA. In addition, we have increased our valuation
adjustments by US$96 million ($97 million) against the receivable from ACA for
unmatched purchased credit derivatives, bringing the total valuation
adjustments for ACA to US$3.01 billion ($3.03 billion) as at April 30, 2008.
We also recorded a charge of US$1.51 billion ($1.52 billion) on the hedging
contracts provided by other financial guarantors to increase our valuation
adjustments for other financial guarantors to US$2.16 billion ($2.17 billion)
as at April 30, 2008. As at April 30, 2008, the fair value of derivative
contracts with ACA and other financial guarantors net of the valuation
adjustment amounted to US$2.89 billion ($2.91 billion). Further significant
losses could result depending on the performance of both the underlying assets
and the financial guarantors.
    Mitigating our exposure to these financial guarantors are credit hedges
with a notional amount of US$650 million ($654 million) and a fair value of
US$112 million ($113 million) as at April 30, 2008. During the quarter, we
recognized a gain of US$56 million ($56 million) on these hedges.
    In addition, we have loan and tranched securities positions that are
partly secured by direct guarantees from financial guarantors or by bonds
guaranteed by financial guarantors. As at April 30, 2008, each of these
positions was performing and the total amount guaranteed by financial
guarantors was approximately $260 million.
    The following tables present the notional amounts and fair values of
purchased protection from financial guarantors by counterparty. The fair value
net of valuation adjustments is included in derivative instruments in other
assets on the consolidated balance sheet.US$ millions, as at April 30, 2008
    -------------------------------------------------------------------------

                                                         USRMM related
    ------------------------------------- -----------------------------------
             Standard  Moody's                                       Credit-
    Counter-      and investor   Fitch                        Fair   related
    party      Poor's services Ratings          Notional   value(1)       VA
    -------------------------------------------------------------------------
    I           AAA(2)   Aaa(2)   AA(2)         $     85  $      -  $      -
    II          AAA(2)   Aaa(2)   AA(2)              546       363       (59)
    III          A+(2)    A1(3)   A-(2)              623       560      (274)
    IV           BB(2)  Baa3(2)  BBB(2)              566       498      (459)
    V            A-(2)    A3(2)   BB(2)            2,611     1,759      (862)
    VI          CCC(4)       -       -             3,448     3,043    (3,013)
    VII           AAA      Aaa     AAA                 -         -         -
    VIII          AAA      Aaa     AAA                 -         -         -
    IX            AAA      Aaa     AAA                 -         -         -
    X            AA(2)   Aa3(2)   A+(4)(5)             -         -         -
    XI           A+(2)   Aa2(2)   AA(2)                -         -         -
    -------------------------------------------------------------------------
    Total financial guarantors                  $  7,879  $  6,223  $ (4,667)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    US$ millions, as at January 31, 2008
    ------------------------------------
    I           AAA(2)   Aaa(2)    AAA          $     85  $      -  $      -
    II          AAA(2)   Aaa(2)   AA(2)              549       217       (18)
    III         AAA(2)   Aaa(2)    AAA               628       556       (47)
    IV           AA(4)   Aaa(2)   AA(2)              566       362      (101)
    V           AAA(2)   Aaa(2)    A(2)            2,628     1,508      (369)
    VI          CCC(4)       -       -             3,453     2,353    (2,283)
    VII           AAA      Aaa     AAA                 -         -         -
    VIII          AAA      Aaa     AAA                 -         -         -
    IX            AAA      Aaa     AAA                 -         -         -
    X              AA      Aa3    A+(4)                -         -         -
    XI           AA(2)   Aa2(2)   AA(2)                -         -         -
    -------------------------------------------------------------------------
    Total financial guarantors                  $  7,909  $  4,996  $ (2,818)
    -------------------------------------------------------------------------


                                                               Total USRMM
                                         Non-USRMM            and non-USRMM
    ---------------------- ------------------------------ -------------------
                                                 Credit-                 Net
    Counter-                              Fair   related                fair
    party                   Notional   value(1)       VA  Notional     value
    -------------------------------------------------------------------------
    I                       $  2,085  $    219  $    (34) $  2,170  $    185
    II                         1,796       253       (41)    2,342       516
    III                        1,535       165       (81)    2,158       370
    IV                         2,309       166      (153)    2,875        52
    V                          2,678       217      (106)    5,289     1,008
    VI                             -         -         -     3,448        30
    VII                        5,200       199       (31)    5,200       168
    VIII                       5,195       401       (27)    5,195       374
    IX                         1,494       122        (6)    1,494       116
    X                          2,262        94       (23)    2,262        71
    XI                           199         4         -       199         4
    -------------------------------------------------------------------------
    Total financial
     guarantors             $ 24,753  $  1,840  $   (502) $ 32,632  $  2,894
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    US$ millions, as at January 31, 2008
    ------------------------------------
    I                       $  2,333  $    131  $    (11) $  2,418  $    120
    II                         1,819        87        (7)    2,368       279
    III                        1,514        61        (5)    2,142       565
    IV                         2,262        49       (14)    2,828       296
    V                          2,701        74       (18)    5,329     1,195
    VI                             -         -         -     3,453        70
    VII                        5,200       219       (21)    5,200       198
    VIII                       5,103       119       (10)    5,103       109
    IX                         1,668        58        (4)    1,668        54
    X                          2,268        87       (22)    2,268        65
    XI                           199         -         -       199         -
    -------------------------------------------------------------------------
    Total financial
     guarantors             $ 25,067  $    885  $   (112) $ 32,976  $  2,951
    -------------------------------------------------------------------------
    (1) Before VA
    (2) On credit watch with negative implications
    (3) Downgraded to Ba2 in May 2008.
    (4) On credit watch
    (5) Rating withdrawn in May 2008; no longer rated by Fitch ratings.

    The underlying of the exposure hedged by financial guarantors is as
follows:

    US$ millions, as at April 30, 2008
    -------------------------------------------------------------------------
                   USRMM
                  related             Non USRMM related
                  --------- -------------------------------------------------
                  Notional                      Notional
                  -----------------------------------------------------------
                                     Corporate
    Counterparty       CDO     CLO(1)  Debt(2)    CMBS(3)  Other(4)    Total
    -------------------------------------------------------------------------
    I             $     85  $    712  $      -  $    777  $    596  $  2,085
    II                 546       952         -         -       844     1,796
    III                623     1,388         -         -       147     1,535
    IV                 566     2,011         -         -       298     2,309
    V                2,611     2,678         -         -         -     2,678
    VI               3,448         -         -         -         -         -
    VII                  -         -     5,200         -         -     5,200
    VIII                 -     4,945         -         -       250     5,195
    IX                   -     1,314         -         -       180     1,494
    X                    -        75     1,759         -       428     2,262
    XI                   -         -         -         -       199       199
    -------------------------------------------------------------------------
    Total         $  7,879  $ 14,075  $  6,959  $    777  $  2,942  $ 24,753
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    US$ millions, as at January 31, 2008
    ------------------------------------
    I             $     85  $    712  $      -  $    777  $    844  $  2,333
    II                 549     1,033         -         -       786     1,819
    III                628     1,362         -         -       152     1,514
    IV                 566     1,964         -         -       298     2,262
    V                2,628     2,701         -         -         -     2,701
    VI               3,453         -         -         -         -         -
    VII                  -         -     5,200         -         -     5,200
    VIII                 -     4,853         -         -       250     5,103
    IX                   -     1,314         -         -       354     1,668
    X                    -        75     1,759         -       434     2,268
    XI                   -         -         -         -       199       199
    -------------------------------------------------------------------------
    Total         $  7,909  $ 14,014  $  6,959  $    777  $  3,317  $ 25,067
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) AAA-rated; underlyings are senior secured loans made to
        non-investment grade borrowers; subordination of 6-67%, weighted
        average of 32%
    (2) Synthetic CDS with investment grade underlyings; subordination of
        15-30%; weighted average of 19%.
    (3) Synthetic CDO with 62% of underlying rated BBB- and above, and the
        remaining rated BB+ to B.
    (4) Includes non-U.S. RMBS, trust preferred shares, high-yield bonds.USRMM related positions comprise super senior CDOs with underlyings being
approximately 55% subprime RMBS, 21% Alt-A RMBS, 15% ABS CDOs and 9%
non-USRMM. Subprime and Alt-A underlyings consist of approximately 37%
pre-2006 vintage and 63% 2006 and 2007 vintage RMBS. Subprime exposures are
defined as having Fair Isaac Corporation (FICO) scores less than 660; and Alt
A underlyings as those exposures that have FICO scores of 720 or below but
greater than 660.

    Hedged with other counterparties

    The following table provides the notional amounts and fair values of
purchased credit derivatives from counterparties other than financial
guarantors.-------------------------------------------------------------------------
                                         USRMM related         Non-USRMM
                                      ------------------- -------------------


    US$ millions, as at                           Fair                Fair
     April 30, 2008                   Notional    value   Notional    value
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    591  $    288  $    401  $     17
    Banks                                    -         -     1,434        28
    Canadian conduits                        -         -     9,256       245
    Governments                              -         -       347         -
    Others                                   -         -         2         1
    -------------------------------------------------------------------------
                                      $    591  $    288  $ 11,440  $    291
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                      Total
                                      ---------------------------------------
                                           Notional           Fair value
                                      ------------------- -------------------
    US$ millions, as at                   2008      2008      2008      2008
     April 30, 2008                    Apr. 30   Jan. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    992  $ 11,772  $    305  $    366
    Banks                                1,434    19,856        28       546
    Canadian conduits                    9,256    10,281       245       430
    Governments                            347       362         -         -
    Others                                   2         2         1         1
    -------------------------------------------------------------------------
                                      $ 12,031  $ 42,273  $    579  $  1,343
    -------------------------------------------------------------------------

    The underlying of the exposure hedged by counterparties other than
financial guarantors is as follows:

    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                              USRMM         Non-USRMM related
                             related
                            --------- ---------------------------------------
                            Notional             Notional
                            --------- ---------------------------------------
                               CDO       CLO    Corporate   Other
    US$ millions, as at                              debt
     April 30, 2008
    -------------------------------------------------------------------------
    Non-bank financial
     institutions           $    591  $      -  $      -  $    401(1)
    Banks                          -       529         -       905(1)
    Canadian conduits                        -     9,256         -
    Governments                              -         -       347
    Others                                   -         -         2(1)
    -------------------------------------------------------------------------
                            $    591  $    529  $  9,256  $  1,655
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Consists largely of simgle name credit default swaps which hedge
        written single name credit default swaps and securities.Approximately 91% of other counterparties hedging our non-USRMM exposures
have internal credit ratings equivalent to investment grade.

    Canadian conduits

    We purchase credit derivatives protection from Canadian conduits and
create revenue through selling the same protection on to third parties. The
reference portfolios consist of diversified indices of corporate loans and
bonds. These conduits are in compliance with their collateral posting
arrangements and have posted collateral exceeding current market exposure. One
of the conduit counterparties, Great North Trust, is sponsored by CIBC and the
remaining conduit counterparties are parties to the Montreal Accord.-------------------------------------------------------------------------
    US$ millions, as at                                  Mark-to-  Collateral
     April 30, 2008       Underlying          Notional     market     held(2)
    -------------------------------------------------------------------------
    Conduits
    --------

    Great North     Investment grade
     Trust           corporate credit
                     index(1)                $   4,906  $     153  $     297
    Nereus I        160 Investment grade
                     corporates                  2,200         47        248
    Nereus II       160 Investment grade
                     corporates                  2,150         45        221
    -------------------------------------------------------------------------
                                             $   9,256  $     245  $     766
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2008                            $  10,300  $     430  $     911
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Consists of a static portfolio of 125 North American corporate
        reference entities that were investment grade rated when the index
        was created. 50% of the entities are rated Baa1 or higher. 123
        reference entities are listed in the U.S. and financial guarantors
        represent approximately 2.4% of the portfolio. Attachment point is
        30% and there is no direct exposure to USRMM or the U.S. commercial
        real estate market.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, commercial paper issued by
        CIBC sponsored securitization conduits, and CIBC bankers acceptances.Leveraged finance business

    We provide leveraged finance to non-investment grade customers to
facilitate their buyout, acquisition and restructuring activities. We
generally underwrite leveraged financial loans and syndicate the majority of
the loans, earning a fee during the process.
    We are exiting our European leveraged finance (ELF) business. As with the
structured credit run-off business, the risk in the ELF run-off business is
also managed by a focused team with the mandate to manage down the residual
exposures. As at April 30, 2008, we have funded leveraged loans of
$851 million (January 31, 2008: $822 million) and unfunded letter of credits
and commitments of $374 million (January 31, 2008: $383 million), none of
which is considered impaired. During the quarter, we had immaterial realized
losses and no write-downs in exiting the ELF business.
    In addition, we sold our U.S. leveraged finance business as part of our
sale of some of our U.S. businesses to Oppenheimer.

    OTHER SELECTED ACTIVITIES
    -------------------------------------------------------------------------

    In response to the recommendations of the Financial Stability Forum, this
section provides additional details on other selected activities.

    Securitization business

    Our securitization business provides clients access to funding in the
debt capital markets. We sponsor several multi-seller conduits in Canada that
purchase pools of financial assets from our clients, and finance the purchases
by issuing commercial paper to investors. We generally provide the conduits
with commercial paper backstop liquidity facilities, securities distribution,
accounting, cash management and other financial services.
    As at April 30, 2008, our holdings of ABCP issued by our sponsored
conduits were $786 million (October 31, 2007: $3.1 billion), and our committed
backstop liquidity facilities to these conduits were $11.37 billion. We also
provided credit facilities of $70 million to these conduits as at April 30,
2008.

    The following table shows the underlying collateral and the average
maturity for each asset type in our multi-seller conduits:$ millions, as at April 30, 2008
    -------------------------------------------------------------------------
                                                                   Estimated
                                                                    weighted
                                                          Funded   avg. life
                                                          amount      (years)
    -------------------------------------------------------------------------
    Asset class
    Residential mortgages                                  4,075        2.48
    Vehicle leases                                      $  3,109        1.31
    Franchise loans                                        1,873        1.49
    Auto loans                                               769        1.12
    Credit cards                                             975      4.88(1)
    Dealer floorplan                                         600        1.54
    Equipment leases/loans                                   582        1.39
    Other                                                    177        0.27
    -------------------------------------------------------------------------
                                                        $ 12,160        2.00
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Based on the revolving period and amortization period contemplated in
        the transaction.The short-term notes issued by the conduits are backed by the above
assets. The performance of the above assets has met the criteria required to
retain the ratings of the notes issued by the multi-seller conduits.
    In addition, we also securitize our mortgages and credit cards
receivables. Details of our securitization transactions during the quarter are
provided in Note 6 to the consolidated financial statements.

    U.S. real estate finance

    In our U.S. Real Estate Finance business, we operate a full service
platform which originates commercial mortgages to mid-market clients. The
construction and interim programs offer floating rate and fixed rate financing
to development and transitional properties under construction or to be leased.
Once the construction and interim phase is complete and the properties are
ready to become income producing, borrowers are offered fixed rate financing
within the permanent program. These commercial mortgages are then sold into
CMBS programs. The business also maintains CMBS trading and distribution
capabilities although there are no outstanding inventories as at April 30,
2008. The table below provides a summary of our positions in this business as
at April 30, 2008.US$ millions, as at April 30, 2008
    -------------------------------------------------------------------------
                                                           Lines
                                                      of credits       Loans
    -------------------------------------------------------------------------
    Commercial mortgages                                $      -    $    504
    Commercial construction loans                            413       1,440
    -------------------------------------------------------------------------
                                                        $    413    $  1,944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    FINANCIAL PERFORMANCE REVIEW

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net interest income     $  1,349  $  1,154  $  1,079  $  2,503  $  2,138
    Non-interest income       (1,223)   (1,675)    1,971    (2,898)    4,003
    ----------------------------------------------------- -------------------
    Total revenue                126      (521)    3,050      (395)    6,141
    Provision for credit
     losses                      176       172       166       348       309
    Non-interest expenses      1,788     1,761     1,976     3,549     3,919
    ----------------------------------------------------- -------------------
    (Loss) income before taxes
     and non-controlling
     interests                (1,838)   (2,454)      908    (4,292)    1,913
    Income tax (benefit)
     expense                    (731)   (1,002)       91    (1,733)      322
    Non-controlling interests      4         4        10         8        14
    ----------------------------------------------------- -------------------
    Net (loss) income       $ (1,111) $ (1,456) $    807  $ (2,567) $  1,577
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------Net interest income

    Net interest income was up $270 million or 25% from the same quarter last
year, mainly due to decreased trading-related funding costs resulting from
lower trading activities, volume growth in retail products, favourable spreads
in deposits, and the impact of one more day. These factors were offset in part
by higher funding costs for retail lending products.
    Net interest income was up $195 million or 17% from the prior quarter,
primarily due to decreased trading-related funding costs noted above,
favourable spreads in cards and mortgages, higher treasury revenue, and volume
growth in retail products. These factors were offset in part by the impact of
two fewer days in the quarter and spread compression in deposits.
    Net interest income for the six months ended April 30, 2008 was up
$365 million or 17% from the same period in 2007, primarily due to decreased
trading-related funding costs and volume growth in retail products. In
addition, favourable spreads in deposits and the impact of one more day also
contributed to the increase. These factors were offset in part by higher
funding costs for retail lending products and lower treasury revenue.

    Non-interest income

    Non-interest income was down $3,194 million from the same quarter last
year, and was down $6,901 million for the six months ended April 30, 2008 from
the same period in 2007. The significant drop was primarily due to charges on
credit protection purchased from financial guarantors and mark-to-market
losses related to our exposure to the USRMM. In addition, lower trading
activities, the impact of the sale of some of our U.S. businesses in the prior
quarter, lower gains on AFS securities, losses relating to third-party
sponsored ABCP, and the foreign exchange loss on the repatriation of retained
earnings from our U.S. operations also contributed to the decline. These
factors were partially offset by higher gains on credit derivatives resulting
from the widening of credit spreads.
    Non-interest income was up $452 million from the prior quarter, primarily
due to lower charges on credit protection purchased from financial guarantors,
and lower mark-to-market losses related to our exposure to the USRMM. These
factors were partially offset by lower trading activities, lower gains on
credit derivatives, and the foreign exchange loss on the repatriation noted
above.

    Provision for credit losses

    Provision for credit losses was up $10 million or 6% from the same
quarter last year, mainly due to the $24 million reversal of general allowance
in the second quarter of 2007, partially offset by improvements in the
personal lending portfolio.
    Provision for credit losses was up $4 million or 2% from the prior
quarter, primarily due to volume driven higher losses in the cards portfolio,
partially offset by lower losses in the business and government lending
portfolio.
    Provision for credit losses for the six months ended April 30, 2008 was
up $39 million or 13% from the same period in 2007. Higher losses in the cards
and business and government lending portfolios were partially offset by
improvement in the personal lending portfolio. The second quarter of 2007
benefited from the $24 million reversal of the general allowance.

    Non-interest expenses

    Non-interest expenses were down $188 million or 10% from the same quarter
last year, primarily due to lower performance-related compensation, partially
offset by higher litigation expenses. In addition, the current quarter
benefited from lower commission, pension, and computer expenses.
    Non-interest expenses were up $27 million or 2% from the prior quarter
due to higher litigation expenses, professional fees and capital taxes,
partially offset by lower performance-related compensation.
    Non-interest expenses were down $370 million or 9% for the six months
ended April 30, 2008 from the same period in 2007. The decrease was mainly due
to lower performance related compensation, commission and pension expenses,
partially offset by higher litigation expenses.

    Income taxes

    Income tax benefit was $731 million, compared to an expense of
$91 million in the same quarter last year. Income tax benefit for the six
months ended April 30, 2008 was $1,733 million, compared with an expense of
$322 million in the same period in 2007. The income tax benefit was due to the
loss during the current period.
    Income tax benefit was down $271 million from the prior quarter,
primarily due to a lower loss before tax.
    The effective tax recovery rate was 39.8% for the quarter, compared to an
effective tax rate of 10.0% for the same quarter last year and a tax recovery
rate of 40.8% for the prior quarter. The effective tax recovery rate for the
six months ended April 30, 2008 was 40.4% compared to an effective tax rate of
16.8% for the same period in 2007.
    At the end of the quarter, our future income tax asset was $1.06 billion,
net of a US$82 million ($83 million) valuation allowance. Accounting standards
require a valuation allowance when it is more likely than not that all or a
portion of a future income tax asset will not be realized prior to its
expiration. Although realization is not assured, we believe that based on all
available evidence, it is more likely than not that all of the future income
tax asset, net of the valuation allowance, will be realized.
    Included in the future income tax asset are $724 million related to
Canadian non-capital loss carryforwards which expire in 20 years, and
$68 million related to Canadian capital loss carryforwards which have no
expiry date.
    The adjusted effective tax recovery and taxable equivalent (TEB) recovery
rates for the quarter ended April 30, 2008 were 39.8%(1) and 37.7%(1),
respectively.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar appreciated 12%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $180 million decrease in the translated value of our U.S.
dollar functional earnings.
    The Canadian dollar depreciated 1% on average relative to the U.S. dollar
from the prior quarter, resulting in a $10 million increase in the translated
value of our U.S. dollar functional earnings.
    The Canadian dollar appreciated 13% on average relative to the U.S.
dollar for the six months ended April 30, 2008 from the same period in 2007,
resulting in a $253 million decrease in the translated value of our U.S.
dollar functional earnings.

    (1) For additional information, see the "Non-GAAP measures" section.Review of quarterly financial information

                                2008                                    2007
    -------------------------------------------------------------------------
    $ millions,
     except per
     share amounts,
     for the three
     months ended  Apr. 30   Jan. 31   Oct. 31   Jul. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail
       Markets    $  2,239  $  2,371  $  2,794  $  2,386  $  2,309  $  2,273
      CIBC World
       Markets      (2,166)   (2,957)        5       455       606       662
      Corporate
       and Other        53        65       147       138       135       156
    -------------------------------------------------------------------------
    Total revenue      126      (521)    2,946     2,979     3,050     3,091
    Provision for
     credit losses     176       172       132       162       166       143
    Non-interest
     expenses        1,788     1,761     1,874     1,819     1,976     1,943
    -------------------------------------------------------------------------
    (Loss) income
     before taxes
     and non-
     controlling
     interests      (1,838)   (2,454)      940       998       908     1,005
    Income tax
     (benefit)
     expense          (731)   (1,002)       45       157        91       231
    Non-controlling
     interests           4         4        11         6        10         4
    -------------------------------------------------------------------------
    Net (loss)
     income       $ (1,111) $ (1,456) $    884  $    835  $    807  $    770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (Loss) earnings
     per share
       - basic    $  (3.00) $  (4.39) $   2.55  $   2.33  $   2.29  $   2.13
       - diluted
         (1)      $  (3.00) $  (4.39) $   2.53  $   2.31  $   2.27  $   2.11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                2006
    ---------------------------------
    $ millions,
     except per
     share amounts,
     for the three
     months ended  Oct. 31   Jul. 31
    ---------------------------------
    Revenue
      CIBC Retail
       Markets    $  2,171  $  2,164
      CIBC World
       Markets         572       551
      Corporate
       and Other       147       111
    ---------------------------------
    Total revenue    2,890     2,826
    Provision for
     credit losses      92       152
    Non-interest
     expenses        1,892     1,883
    ---------------------------------
    (Loss) income
     before taxes
     and non-
     controlling
     interests         906       791
    Income tax
     (benefit)
     expense            87       125
    Non-controlling
     interests           -         4
    ---------------------------------
    Net (loss)
     income       $    819  $    662
    ---------------------------------
    ---------------------------------
    (Loss) earnings
     per share
       - basic    $   2.34  $   1.88
       - diluted
         (1)      $   2.32  $   1.86
    ---------------------------------
    ---------------------------------
    (1) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be
        anti-dilutive; therefore, basic and diluted earnings (loss)
        per share will be the same.Our quarterly results are modestly affected by seasonal factors. The
first quarter is normally characterized by increased credit card purchases
over the holiday period. The second quarter has fewer days as compared with
the other quarters, generally leading to lower earnings. The summer months
(July - third quarter and August - fourth quarter) typically experience lower
levels of capital markets activity, which affects our brokerage, investment
management and wholesale activities.
    The acquisition of FirstCaribbean resulted in an increase in revenue in
CIBC Retail Markets since the first quarter of 2007. In addition, revenue was
particularly high in the fourth quarter of 2007 due to the gain recorded on
the Visa restructuring. CIBC World Markets revenue has been adversely affected
since the third quarter of 2007 due to the mark-to-market losses on CDOs and
RMBS, and more significantly in the current two quarters due to the charges on
credit protection purchased from financial guarantors. The deconsolidation of
a variable interest entity (VIE) led to lower revenue in the third quarter of
2006.
    Retail lending provisions increased slightly in 2007 largely due to
higher losses in the cards portfolio, resulting from volume growth, and the
impact of the FirstCaribbean acquisition. Corporate lending recoveries and
reversals have decreased from the high levels in the past. Reversals of the
general allowance were included in the second quarter of 2007 and the fourth
quarter of 2006.
    Non-interest expenses were higher in 2007 resulting from the
FirstCaribbean acquisition. Performance-related compensation has been lower
since the third quarter of 2007. The net reversal of litigation accruals also
led to lower expenses in the third and fourth quarters of 2007.
    The first two quarters of 2008 had an income tax benefit resulting from
the loss during the period. Income tax recoveries related to the favourable
resolution of various income tax audits and reduced tax contingencies were
included in the last three quarters of 2007 and the last two quarters of 2006.
Tax-exempt income has generally been increasing over the period, with larger
tax-exempt dividends received in the fourth quarters of 2007 and 2006. The
last quarter of 2007 benefited from a lower tax rate on the gain recorded on
the Visa restructuring and the last two quarters of 2007 benefited from a
lower tax rate on the net reversal of litigation accruals. Income tax benefit
on the foreign exchange loss on the repatriation of retained earnings from our
foreign operations was included in the second quarter of 2008. Income tax
expense on the repatriation of capital and retained earnings from our foreign
operations was included in the fourth quarter of 2007.

    Non-GAAP measures

    We use a number of financial measures to assess the performance of our
business lines. Some measures are calculated in accordance with GAAP, while
other measures do not have a standardized meaning under GAAP, and,
accordingly, these measures may not be comparable to similar measures used by
other companies. Investors may find these non-GAAP financial measures useful
in analyzing financial performance. For a more detailed discussion on our non-
GAAP measures, see page 45 of the 2007 Annual Accountability Report.
    The following tables provide a reconciliation of non-GAAP to GAAP
measures related to CIBC on a consolidated basis. The reconciliation of the
non-GAAP measures of our business lines are provided in their respective
sections.----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
    $ millions,             ----------------------------- -------------------
     except per                 2008      2008      2007      2008      2007
     share amounts           Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net interest income     $  1,349  $  1,154  $  1,079  $  2,503  $  2,138
    Non-interest income       (1,223)   (1,675)    1,971    (2,898)    4,003
    ----------------------------------------------------- -------------------
    Total revenue
     per financial
     statements          A       126      (521)    3,050      (395)    6,141
    TEB adjustment       B        60        61        54       121       116
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(1)            C  $    186  $   (460) $  3,104  $   (274) $  6,257
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Non-interest
     expenses
     per financial
     statements          D  $  1,788  $  1,761  $  1,976  $  3,549  $  3,919
    Less: amortization
     of other
     intangible assets            10        10        12        20        17
    ----------------------------------------------------- -------------------
    Cash non-interest
     expenses(1)         E  $  1,778  $  1,751  $  1,964  $  3,529  $  3,902
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (Loss) income
     before taxes and
     non-controlling
     interests
     per financial
     statements          F  $ (1,838) $ (2,454) $    908  $ (4,292) $  1,913
    TEB adjustment       B        60        61        54       121       116
    ----------------------------------------------------- -------------------
    (Loss) income
     before taxes and
     non-controlling
     interests (TEB)(1)  G  $ (1,778) $ (2,393) $    962  $ (4,171) $  2,029
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Reported income
     taxes per
     financial
     statements          H  $   (731) $ (1,002) $     91  $ (1,733) $    322
    TEB adjustment       B        60        61        54       121       116
    Other tax
     adjustments         I         -        56        91        56        91
    ----------------------------------------------------- -------------------
    Adjusted income
     taxes(1)            J  $   (671) $   (885) $    236  $ (1,556) $    529
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net (loss) income
     applicable to
     common shares       K  $ (1,141) $ (1,486) $    772  $ (2,627) $  1,488
    Add: after tax
     effect of
     amortization of
     other intangible
     assets                        8         8         9        16        13
    ----------------------------------------------------- -------------------
    Cash net (loss)
     income applicable
     to common
     shares(1)           L  $ (1,133) $ (1,478) $    781  $ (2,611) $  1,501
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Basic weighted
     average common
     shares (thousands)  M   380,754   338,732   337,320   359,512   336,896
    Diluted weighted
     average common
     shares (thousands)  N   382,377   340,811   340,613   361,366   340,272
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash efficiency
     ratio (TEB)(1)     E/C      n/m       n/m     63.2%       n/m     62.3%
    Reported effective
     income tax rate
     (TEB)(1)(2)      (H+B)/G  37.7%     39.3%     15.1%     38.6%     21.6%
    Adjusted
     effective income
     tax rate(1)(2)   (H+I)/F  39.8%     38.5%     20.0%     39.1%     21.6%
    Adjusted
     effective income
     tax rate
     (TEB)(1)(2)        J/G    37.7%     37.0%     24.5%     37.3%     26.1%
    Cash basic (loss)
     earnings per
     share(1)           L/M $  (2.98) $  (4.36) $   2.32  $  (7.26) $   4.46
    Cash diluted (loss)
     earnings per
     share(1)(3)        L/N $  (2.98) $  (4.36) $   2.29  $  (7.26) $   4.41
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Non-GAAP measure.
    (2) For the periods ended April 30, 2008 and January 31, 2008,
        represents tax recovery rates applicable to the loss before tax and
        non-controlling interests.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be
        anti-dilutive; therefore, basic and diluted earnings (loss) per share
        will be the same.
    n/m Not meaningful due to the net loss.


    CIBC RETAIL MARKETS
    -------------------------------------------------------------------------

    CIBC Retail Markets provides a full range of financial products and
services to individual and business banking clients, as well as investment
management services globally to retail and institutional clients.

    Results(1)
    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Revenue
      Personal and small
       business banking     $    540  $    544  $    501  $  1,084  $  1,018
      Imperial Service           239       244       232       483       469
      Retail brokerage           264       276       294       540       596
      Cards                      415       423       399       838       809
      Mortgages and
       personal lending          302       319       356       621       737
      Asset management           116       120       124       236       247
      Commercial banking         117       126       121       243       242
      FirstCaribbean             122       126       150       248       200
      Other                      124       193       132       317       264
    ----------------------------------------------------- -------------------
    Total revenue (a)          2,239     2,371     2,309     4,610     4,582
    Provision for credit
     losses                      174       155       186       329       334
    Non-interest
     expenses (b)              1,380     1,353     1,418     2,733     2,771
    ----------------------------------------------------- -------------------
    Income before taxes
     and non-controlling
     interests                   685       863       705     1,548     1,477
    Income tax expense           174       202        81       376       279
    Non-controlling
     interests                     2         4         7         6        11
    ----------------------------------------------------- -------------------
    Net income (c)          $    509  $    657  $    617  $  1,166  $  1,187
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (b/a)     61.6%     57.1%     61.4%     59.3%     60.5%
    Amortization of other
     intangible assets (d)  $      8  $      8  $     10  $     16  $     13
    Cash efficiency
     ratio(2) ((b-d)/a)        61.3%     56.7%     61.0%     58.9%     60.2%
    ROE(2)                     42.0%     54.0%     51.6%     48.0%     52.7%
    Charge for economic
     capital(2) (e)         $   (154) $   (156) $   (153) $   (310) $   (290)
    Economic profit(2)
     (c+e)                  $    355  $    501  $    464  $    856  $    897
    Regular workforce
     headcount                28,253    27,984    27,773    28,253    27,773
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.Financial overview

    Net income was down $108 million or 18% from the same quarter last year,
which benefited from a tax recovery of $80 million. Excluding the tax recovery
and the Visa IPO adjustment this quarter, net income was down slightly mainly
due to lower revenue as a result of higher funding costs, lower retail
brokerage and FirstCaribbean revenues.
    Net income was down $148 million or 23% from the prior quarter, largely
due to lower revenue as a result of decreased treasury revenue allocations,
two fewer days in the quarter and the Visa IPO adjustment.
    Net income for the six months ended April 30, 2008 was down $21 million
or 2% from the same period in 2007. Excluding the tax recovery and the Visa
IPO adjustment, net income was up on higher revenue and lower expenses.

    Revenue

    FirstCaribbean revenue is included from the date of acquisition on
December 22, 2006. Prior to December 22, 2006, FirstCaribbean was equity-
accounted and the revenue was included in other.

    Revenue was down $70 million or 3% from the same quarter last year.
    Personal and small business banking revenue was up $39 million, mainly
due to favourable spreads and volume growth.
    Imperial Service revenue was up $7 million, primarily due to volume
growth.
    Retail brokerage revenue was down $30 million, largely due to lower
trading and new issue activity, offset in part by favourable spreads.
    Cards revenue was up $16 million, driven by volume growth, partially
offset by higher funding costs.
    Mortgages and personal lending revenue was down $54 million, primarily
due to higher funding costs partially offset by volume growth.
    Asset management revenue was down $8 million, largely due to lower fee
income as a result of a change in the asset mix.
    FirstCaribbean revenue was down $28 million, primarily due to a stronger
Canadian dollar and lower securities revenue.
    Other revenue was down $8 million, mainly due to lower treasury revenue
allocations, partially offset by increased revenue in President's Choice
Financial.

    Revenue was down $132 million or 6% from the prior quarter.
    Retail brokerage revenue was down $12 million, primarily due to lower
fee-based revenue and new issue activity.
    Cards revenue was down $8 million, primarily due to the Visa IPO
adjustment, two fewer days in the quarter, and lower fee income, partially
offset by favourable spreads.
    Mortgages and personal lending revenue was down $17 million largely due
to two fewer days in the quarter and lower mortgage refinancing fees.
    Commercial banking revenue was down $9 million, largely due to compressed
deposit spreads.
    Other revenue was down $69 million, primarily due to lower treasury
revenue allocations.

    Revenue for the six months ended April 30, 2008 was up $28 million or 1%
from the same period in 2007.
    Personal and small business banking revenue was up $66 million, led by
favourable spreads and volume growth.
    Imperial Service revenue was up $14 million, led by volume growth.
    Retail brokerage revenue was down $56 million, as a result of lower
trading and new issue activity, partially offset by favourable spreads and
higher fee-based revenue.
    Cards revenue was up $29 million, primarily due to volume growth and
higher fee income, partially offset by higher funding costs and the Visa IPO
adjustment.
    Mortgages and personal lending revenue was down $116 million, primarily
due to higher funding costs and the shift to secured lending which have lower
spreads, partially offset by volume growth.
    Asset management revenue was down $11 million, primarily due to lower fee
income as a result of a change in the asset mix.
    Other revenue was up $53 million, due to higher treasury revenue
allocations.

    Provision for credit losses

    Provision for credit losses was down $12 million or 6% from the same
quarter last year, largely due to lower losses in the personal and small
business portfolio, partially offset by higher losses due to continued volume
growth in the cards portfolio.
    Provision for credit losses was up $19 million or 12% from the prior
quarter, largely due to higher seasonal losses and volume growth in the cards
portfolio and lower recoveries and reversals in the agricultural loan
portfolio.
    Provision for credit losses for the six months ended April 30, 2008 was
down $5 million or 1% from the same period in 2007, primarily due to lower
losses in the personal and small business portfolio and higher recoveries and
reversals in the agricultural loan portfolio, partially offset by continued
volume growth in cards portfolio and higher recoveries and reversals in
commercial banking portfolio in the prior year.

    Non-interest expenses

    Non-interest expenses were down $38 million or 3% from the same quarter
last year, primarily due to lower performance-related compensation, corporate
support costs, and communication expenses.
    Non-interest expenses were up $27 million or 2% from the prior quarter,
resulting mainly from higher FirstCaribbean expenses, business and capital
taxes, and advertising expenses.
    Non-interest expenses for the six months ended April 30, 2008 were down
$38 million or 1% from the same period in 2007, primarily due to lower
performance-related compensation, corporate support costs, and business and
capital taxes, partially offset by the FirstCaribbean acquisition.

    Income taxes

    Income taxes were up $93 million from the same quarter last year and were
up $97 million or 35% for the six months ended April 30, 2008 from the same
period in 2007, primarily due to the tax recovery noted above.
    Income taxes were down $28 million or 14% from the prior quarter due to a
decrease in income.

    Regular workforce headcount

    The regular workforce headcount of 28,253 was up 480 from the same
quarter last year and up 269 from the prior quarter, primarily due to an
increase in customer-facing staff.

    CIBC WORLD MARKETS
    -------------------------------------------------------------------------

    CIBC World Markets is the wholesale and corporate banking arm of CIBC,
providing a range of integrated credit and capital markets, investment
banking, and merchant banking products and services to clients in key
financial markets in North America and around the world. We provide capital
solutions and advisory expertise across a wide range of industries, as well as
research for our corporate, government and institutional clients.Results(1)
    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Revenue (TEB)(2)
      Capital markets       $ (2,253) $ (3,169) $    351  $ (5,422) $    800
      Investment banking
       and credit products       102       283       247       385       451
      Merchant banking             5         9        85        14       162
      Other                       40       (19)      (23)       21       (29)
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(2)(a)              (2,106)   (2,896)      660    (5,002)    1,384
    TEB adjustment                60        61        54       121       116
    ----------------------------------------------------- -------------------
    Total revenue (b)         (2,166)   (2,957)      606    (5,123)    1,268
    Provision for
     (reversal of) credit
     losses                        2        17         -        19        (5)
    Non-interest
     expenses (c)                358       351       459       709       945
    ----------------------------------------------------- -------------------
    (Loss) income before
     taxes and non-
     controlling interests    (2,526)   (3,325)      147    (5,851)      328
    Income tax benefit          (891)   (1,166)      (16)   (2,057)       (5)
    Non-controlling
     interests                     2         -         3         2         3
    ----------------------------------------------------- -------------------
    Net (loss) income (d)   $ (1,637) $ (2,159) $    160  $ (3,796) $    330
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (c/b)       n/m       n/m     75.8%       n/m     74.5%
    Efficiency ratio
     (TEB)(2)(c/a)               n/m       n/m     69.6%       n/m     68.3%
    ROE(2)                  (293.9)%  (391.7)%     36.9%  (342.4)%     39.1%
    Charge for economic
     capital(2) (e)         $    (73) $    (72) $    (55) $   (145) $   (107)
    Economic (loss)
     profit(2) (d+e)        $ (1,710) $ (2,231) $    105  $ (3,941) $    223
    Regular workforce
     headcount                 1,145     1,287     1,846     1,145     1,846
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    n/m Not meaningful due to the net loss.Financial overview

    Net loss was $1,637 million, compared to net income of $160 million in
the same quarter last year. CIBC World Markets' results were significantly
affected by the $1.46 billion after-tax charge with respect to the
counterparty credit protection purchased from financial guarantors.
    Net loss was down $522 million from the prior quarter, primarily due to
lower credit valuation charges on our hedged exposure and lower losses on our
unhedged exposure to the USRMM.
    Net loss for the six months ended April 30, 2008 was up $4,126 million
from the same period in 2007, mainly due to the reasons noted above.

    Revenue

    Revenue was down $2,772 million from the same quarter last year. For a
more detailed discussion of some of the significant items, refer to the "Run-
off businesses" section of the MD&A.
    Capital markets revenue was down $2,604 million, primarily due to the
credit valuation charges on credit protection purchased from financial
guarantors, including ACA, mark-to-market losses related to our exposure to
the USRMM, and charges related to third-party sponsored ABCP. Revenue was also
lower due to the impact of the sale of our U.S. equities business in the prior
quarter.
    Investment banking and credit products revenue was down $145 million,
primarily due to lower investment banking revenue, including the impact of the
sale of our U.S. investment and corporate banking business, which accounted
for $41 million of the decrease, lower revenue from U.S. real estate finance,
and lower gains associated with corporate loan hedging programs.
    Merchant banking revenue was down $80 million, mainly due to lower gains
from third-party managed funds and direct investments.
    Other revenue was up $63 million, primarily due to higher net internal
funding credits.

    Revenue was up $791 million from the prior quarter.
    Capital markets revenue was up $916 million, primarily due to lower
credit valuation charges and lower losses on our unhedged exposure related to
the USRMM.
    Investment banking and credit products revenue was down $181 million,
primarily due to lower gains associated with corporate loan hedging programs
and lower investment banking revenue, including the impact of the sold U.S.
investment and corporate banking business.
    Other revenue was up $59 million, primarily due to the loss on sale of
some of our U.S. businesses recorded in the prior quarter.

    Revenue for the six months ended April 30, 2008 was down $6,391 million
from the same period in 2007.
    Capital markets revenue was down $6,222 million, primarily due to the
$5.1 billion charge on credit protection purchased from financial guarantors.
During the current period, we also had losses of $587 million related to the
USRMM.
    Investment banking and credit products revenue was down $66 million,
primarily due to lower gains from U.S. real estate finance and the impact of
the sale of our U.S. investment and corporate banking business, partially
offset by higher gains associated with corporate loan hedging programs.
    Merchant banking revenue was down $148 million, primarily due to lower
gains from direct investments and third-party managed funds.
    Other revenue was up $50 million mainly due to higher treasury revenue
allocations.

    Provision for (reversal of) credit losses

    Provision for credit losses was $2 million, compared with nil for the
same quarter last year.
    Provision for credit losses was $2 million, compared with $17 million in
the prior quarter, mainly due to lower losses in Canada.
    Provision for credit losses for the six months ended April 30, 2008 was
$19 million, compared to a reversal of $5 million in the same period in 2007,
mainly due to higher losses in Canada and lower recoveries from Europe,
partially offset by lower losses in the U.S.

    Non-interest expenses

    Non-interest expenses were down $101 million or 22% from the same quarter
last year, primarily due to the impact of the sale of some of our U.S.
businesses and lower performance-related compensation, partially offset by
higher litigation expenses.
    Non-interest expenses were up $7 million or 2% from the prior quarter,
primarily due to higher litigation expenses, partially offset by lower
performance-related compensation and the impact of the sale of some of our
U.S. businesses.
    Non-interest expenses for the six months ended April 30, 2008 were down
$236 million or 25% from the same period in 2007, primarily due to lower
performance-related compensation and the impact of the sale of some of our
U.S. businesses, partially offset by higher litigation and professional
expenses.

    Income taxes

    Income tax benefit was $891 million, compared to $16 million in the same
quarter last year, due to the higher credit valuation charges and higher
losses related to the USRMM.
    Income tax benefit was down $275 million from the prior quarter, mainly
due to the higher loss in the prior quarter, resulting from the charge on the
credit protection purchased from financial guarantors noted above.
    Income tax benefit for the six months ended April 30, 2008 was
$2,057 million, compared with $5 million for the same period in 2007, mainly
due to the reasons noted above.

    Regular workforce headcount

    The regular workforce headcount of 1,145 was down 701 from the same
quarter last year and down 142 from the prior quarter, primarily due to the
sale of some of our U.S. businesses and exiting some of our structured credit
businesses.

    CORPORATE AND OTHER
    -------------------------------------------------------------------------

    Corporate and Other comprises the five functional groups -
Administration, Technology and Operations; Corporate Development; Finance;
Legal and Regulatory Compliance; and Treasury and Risk Management (TRM) - that
support CIBC's business lines, as well as CIBC Mellon joint ventures, and
other income statement and balance sheet items, not directly attributable to
the business lines. The revenue and expenses of the functional groups are
generally allocated to the business lines.Results(1)
    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Total revenue           $     53  $     65  $    135  $    118  $    291
    Recovery of credit
     losses                        -         -       (20)        -       (20)
    Non-interest expenses         50        57        99       107       203
    ----------------------------------------------------- -------------------
    Income before taxes            3         8        56        11       108
    Income tax (benefit)
     expense                     (14)      (38)       26       (52)       48
    ----------------------------------------------------- -------------------
    Net income              $     17  $     46  $     30  $     63  $     60
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Regular workforce
     headcount                10,947    10,966    10,869    10,947    10,869
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.Financial overview

    Net income was down $13 million or 43% from the same quarter last year,
primarily due to the foreign exchange loss on the repatriation of retained
earnings from our U.S. operations and lower unallocated revenue from treasury,
partially offset by lower unallocated corporate support costs.
    Net income was down $29 million or 63% from the prior quarter, mainly due
to the foreign exchange loss on the repatriation noted above and lower income
tax benefit, partially offset by higher unallocated revenue from treasury and
lower unallocated corporate support costs.
    Net income for the six months ended April 30, 2008 was up $3 million or
5% from the same period in 2007 primarily due to lower unallocated corporate
support costs and higher income tax recoveries, partially offset by foreign
exchange loss on the repatriation noted above and lower unallocated revenue
from treasury.

    Revenue

    Revenue was down $82 million or 61% from the same quarter last year,
primarily due to the foreign exchange loss on the repatriation noted above and
lower unallocated revenue from treasury.
    Revenue was down $12 million or 18% from the prior quarter, mainly due to
the foreign exchange loss on the repatriation noted above, partially offset by
higher unallocated revenue from treasury and higher revenue from the hedging
of stock appreciation rights (SARs).
    Revenue for the six months ended April 30, 2008 was down $173 million or
59% from the same period in 2007, mainly due to foreign exchange loss on the
repatriation noted above, lower unallocated revenue from treasury, and lower
revenue from the hedging of SARs.

    Recovery of credit losses

    The same quarter last year included a $20 million reversal of the general
allowance. Commencing 2008, we have allocated the general allowance for credit
losses between the two strategic business lines, CIBC Retail Markets and CIBC
World Markets.

    Non-interest expenses

    Non-interest expenses were down $49 million or 49% from the same quarter
last year, primarily due to lower unallocated corporate support costs.
    Non-interest expenses were down $7 million or 12% from the prior quarter,
mainly due to lower unallocated corporate support costs, partially offset by
higher expenses related to SARs.
    Non-interest expenses for the six months ended April 30, 2008 were down
$96 million or 47% for the same period in 2007, primarily due to lower
unallocated corporate support costs and lower expenses related to SARs.

    Income tax

    Income tax benefit was $14 million, compared to a $26 million income tax
expense in the same quarter last year. This change is primarily due to the
income tax benefit on the repatriation noted above and income tax recoveries,
partially offset by the tax effecting of current quarter losses at rates in
future years that are expected to be less than the current year's statutory
rate.
    Income tax benefit was down $24 million or 63% from the prior quarter.
Prior quarter losses were largely tax effected at prior years' tax rates,
which were higher than the current year's statutory rate. Partially offsetting
this was the impact of the items noted above.
    Income tax benefit was $52 million for the six months ended April 30,
2008, compared to a $48 million income tax expense from the same period in
2007 due to reasons noted above.FINANCIAL CONDITION
    -------------------------------------------------------------------------
    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                      Apr. 30   Oct. 31
    -------------------------------------------------------------------------
    Assets

    Cash and deposits with banks                          $ 13,092  $ 13,747
    Securities                                              79,097    86,500
    Securities borrowed or purchased under resale
     agreements                                             33,170    34,020
    Loans                                                  165,824   162,654
    Derivative instruments                                  23,549    24,075
    Other assets                                            28,331    21,182
    -------------------------------------------------------------------------
    Total assets                                          $343,063  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity

    Deposits                                              $238,203  $231,672
    Derivative instruments                                  26,206    26,688
    Obligations related to securities lent or sold
     short or under repurchase agreements                   36,815    42,081
    Other liabilities                                       22,344    21,977
    Subordinated indebtedness                                5,359     5,526
    Preferred share liabilities                                600       600
    Non-controlling interests                                  159       145
    Shareholders' equity                                    13,377    13,489
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity            $343,063  $342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Assets

    Total assets as at April 30, 2008 were up $885 million or 0.3% from
October 31, 2007.
    Securities decreased due to lower AFS and trading securities, offset in
part by higher securities designated at fair value (FVO). AFS securities
decreased due to the sale of U.S. treasuries and Government of Canada bonds
and a reduction in CIBC-sponsored ABCP securities. Trading securities
decreased due to normal trading activities, offset partially by the purchase
of assets at par from third-party structured securitization vehicles. FVO
securities increased due to higher mortgage-backed securities inventory to
support our ongoing CIBC-originated residential mortgage securitization
program and to be available for collateral management purposes.
    The decrease in securities borrowed or purchased under resale agreements
was primarily due to normal client-driven business activity.
    Loans have increased due to volume growth in consumer loans and
residential mortgages (net of securitizations).
    Derivative instruments decreased largely due to valuation adjustments
related to the credit protection purchased from financial guarantors and lower
market valuation on foreign exchange and equity derivatives. These were mostly
offset by higher market valuation on credit and interest rate derivatives.
    Other assets increased mainly due to an increase in derivatives
collateral and income tax receivable.

    Liabilities

    Total liabilities as at April 30, 2008 were up $997 million or 0.3% from
October 31, 2007.
    The increase in deposits was mainly due to retail volume growth and
normal treasury activities.
    Derivative instruments decreased mainly due to lower market valuation on
foreign exchange and equity derivatives, largely offset by higher market
valuation on credit and interest rate derivatives.
    The decrease in obligations related to securities lent or sold short or
under repurchase agreements is largely as a result of normal client-driven and
treasury funding activities.
    Subordinated indebtedness decreased primarily due to redemptions,
partially offset by the change in the fair value of the hedged debentures.

    Shareholders' equity

    Shareholders' equity as at April 30, 2008 was down $112 million or 0.8%
from October 31, 2007, primarily due to lower retained earnings resulting from
the loss in the current year to date, partly offset by the issuance of
additional share capital.

    Capital resources

    We actively manage our capital to maintain a strong and efficient capital
base, to maximize risk-adjusted returns to shareholders, and to meet
regulatory requirements. For additional details, see pages 54 to 56 of the
2007 Annual Accountability Report.

    Regulatory capital

    Our minimum regulatory capital requirements are determined in accordance
with guidelines issued by the Office of the Superintendent of Financial
Institutions (OSFI). The OSFI guidelines evolve from the framework of risk-
based capital standards developed by the Bank for International Settlements
(BIS). Commencing November 1, 2007, our regulatory capital requirements are
based on the Basel II framework, as described in detail in the "Management of
risk" section.
    BIS standards require that banks maintain minimum Tier 1 and Total
capital ratios of 4% and 8%, respectively. OSFI has established that Canadian
deposit-taking financial institutions maintain Tier 1 and Total capital ratios
of at least 7% and 10%, respectively.
    Capital adequacy requirements are applied on a consolidated basis. The
consolidation basis applied to CIBC's financial statements is described in
Note 1 to the 2007 consolidated financial statements. All subsidiaries, except
certain investments and holdings which are not subject to risk assessment
under Basel II and are instead deducted from regulatory capital, are included
for regulatory capital calculation purposes. A deduction approach applies to
investments in insurance subsidiaries, substantial investments and
securitization-related activities. Our Canadian insurance subsidiary, CIBC
Life Insurance Company Limited, is subject to OSFI's Minimum Continuing
Capital Surplus Requirements for life insurance companies.
    The following table presents the components of our regulatory capital.
The information as at April 30, 2008 is based on Basel II requirements and
information for October 31, 2007 is based upon Basel I requirements, and hence
the information is not comparable.-------------------------------------------------------------------------
                                                          Basel II   Basel I
                                                             basis     basis
                                                              2008      2007
    $ millions, as at                                      Apr. 30   Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                        $ 12,009  $ 12,379
    Tier 2 capital                                           4,481     6,304
    Total regulatory capital                                16,490    17,758
    Risk-weighted assets                                   114,767   127,424
    Tier 1 capital ratio                                     10.5%      9.7%
    Total capital ratio                                      14.4%     13.9%
    Assets-to-capital multiple                               19.3x     19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Tier 1 ratio was up by 0.8% from the year-end, largely due to the issue
of common shares, and a reduction in risk-weighted assets that resulted from
the change to Basel II methodology commencing November 1, 2007. This was
offset in part by the reduction in retained earnings due to the loss in the
current period, and certain other deductions, which under Basel II are now
subtracted directly from Tier 1 capital.
    Total capital ratio was up by 0.5% from the year-end due to the reasons
noted above, partially offset by a reduction in the Tier 2 capital, as only a
portion of the general allowance is eligible for inclusion in Tier 2 capital
under the Basel II methodology. The redemption of subordinated indebtedness
also reduced the Tier 2 capital.

    Significant capital management activities

    The following table summarizes our significant capital management
activities:-------------------------------------------------------------------------
                                                           For the   For the
                                                             three       six
                                                            months    months
                                                             ended     ended
                                                           Apr. 30,  Apr. 30,
    $ millions                                                2008      2008
    -------------------------------------------------------------------------
    Issue of common shares(1)                             $      7  $  2,923
    Redemption of subordinated indebtedness                    (89)     (339)
    Dividends
      Preferred shares - classified as equity                  (30)      (60)
      Preferred shares - classified as liabilities              (8)      (16)
    Common shares                                             (332)     (623)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) After issuance costs, net of tax, of $1 million for the three
        months ended April 30, 2008 ($33 million for the six months ended
        April 30, 2008).For additional details, see Notes 7 and 8 to the interim consolidated
financial statements.


    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include securitizations, derivatives,
credit-related arrangements, and guarantees. Details of our off-balance sheet
arrangements are provided on pages 57 to 59 of the 2007 Annual Accountability
Report.

    The following table summarizes our exposures to entities involved in the
securitization of third-party assets (both CIBC sponsored/structured and
third-party structured):-------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Apr. 30
    -------------------------------------------------------------------------
                                                           Undrawn   Written
                                                         liquidity    credit
                                                               and    deriv-
                                              Investment    credit    atives
                                                     and    facil-    (noti-
                                                 loans(1)    ities   onal)(2)
    -------------------------------------------------------------------------
    CIBC sponsored multi-seller conduits        $    786 $11,444(3) $      -
    CIBC structured CDO vehicles                     824      80         865
    Third-party structured vehicles                7,694   1,678      16,941
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                           Undrawn   Written
                                                         liquidity    credit
                                                               and    deriv-
                                              Investment    credit    atives
                                                     and    facil-    (noti-
                                                 loans(1)    ities   onal)(2)
    -------------------------------------------------------------------------
    CIBC sponsored multi-seller conduits        $  3,029 $12,092(3) $      -
    CIBC structured CDO vehicles                     647     154       1,147
    Third-party structured vehicles                3,083   2,236      31,467
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Amounts are net of mark-to-market losses. Excludes securities issued
        by entities established by Canada Mortgage and Housing Corporation
        (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae and Sallie Mae.
        $6.3 billion (Oct. 31, 2007: $2.0 billion) of the exposure was hedged
        by credit derivatives with third parties.
    (2) Comprises credit derivatives written options and total return swaps
        under which we assume exposures. The fair value recorded on the
        consolidated balance sheet was $(5.6) billion (Oct. 31, 2007:
        $(3.8) billion). Notional amounts of $17.2 billion (Oct. 31, 2007:
        $31.7 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of the valuation
        adjustments was $1.9 million (Oct. 31, 2007: $3.4 billion).
        Accumulated fair value losses amount to $669 million (Oct. 31, 2007:
        $484 million) on unhedged written credit derivatives. Under certain
        credit derivative arrangements, we can be called upon to purchase the
        reference assets at par with the simultaneous termination of the
        credit derivatives; the notional amount of these trades totalled
        approximately $189 million (Oct. 31, 2007: $6.5 billion) and the fair
        value was approximately $7 million (Oct. 31, 2007: $(470) million).
    (3) Net of $786 million (Oct. 31, 2007: $3,029 million) of investment in
        CIBC sponsored multi-seller conduits.During the quarter, we purchased certain reference assets at a par amount
of $1.8 billion ($6.6 billion for the six months ended April 30, 2008) from
two third-party structured vehicles in consideration for the termination of
the related total return swaps (see footnote 2 above). The reference assets
purchased were categorized as trading securities on our consolidated balance
sheet. We may also be called upon to purchase additional reference assets at a
par amount of $189 million covered by the remaining total return swaps with
the third-party structured vehicles.
    For details on securitizations of our own assets and guarantees provided
by us, see Notes 6 and 13 to the interim consolidated financial statements.

    MANAGEMENT OF RISK
    -------------------------------------------------------------------------
    Our approach to management of risk is described on pages 60 to 73 of the
2007 Annual Accountability Report.
    In addition, in the MD&A, we have provided certain of the required
disclosures under the Canadian Institute of Chartered Accountants (CICA)
handbook section 3862, "Financial Instruments - Disclosures" related to the
nature and extent of risks arising from financial instruments, as permitted by
that standard. These disclosures are included in the sections "Risk overview",
"Credit risk", "Market risk", "Liquidity risk", "Operational risk",
"Reputation and legal risk", and "Regulatory risk". These disclosures have
been shaded and form an integral part of the interim consolidated financial
statements.

    Risk overview

    We manage risk and related balance sheet resources within tolerance
levels established by our management committees and approved by the Board of
Directors and its committees. Several groups within TRM, independent of the
originating businesses, contribute to our management of risk, including:-   Treasury - provides enterprise-wide funding and asset/liability,
        liquidity, cash and collateral management; manages the capital
        structure within the constraints of regulatory requirements; and
        manages capital in our subsidiaries, affiliates and legal entities;
    -   Credit and Investment Risk Management groups - provide independent,
        enterprise-wide oversight of the adjudication, management and
        monitoring of global credit risk; apply market-based techniques and
        models to the measurement, monitoring and control of risks in the
        credit portfolios and merchant banking investments;
    -   Market Risk Management (MRM) - provides independent, enterprise-wide
        oversight of the management and related measurement, monitoring and
        control of trading and non-trading market risk and trading credit
        risk;
    -   Operational Risk Management - provides independent identification,
        measurement, monitoring and control of operational risk enterprise-
        wide; and
    -   Balance Sheet Measurement, Monitoring and Control - oversees the
        balance sheet resource allocation process; and provides independent,
        enterprise-wide oversight of the measurement, monitoring and control
        of our balance sheet resources, economic capital, and model risk
        including independent validation of the risk-rating systems and
        parameters.Basel II Capital Accord

    On November 1, 2007, we adopted a new capital management framework,
commonly called Basel II, which is designed to enhance the risk sensitivity of
regulatory capital. Under the new Basel II Framework, regulatory capital for
the first time includes a charge for operational risk. In addition, the rules
permit wider discretion by bank regulators to increase or decrease capital
requirements in line with the circumstances of individual banks. The rules
require greater transparency of risk management information intrinsic to
underlying risks and capital adequacy.
    We adopted the Advanced Internal Ratings Based (AIRB) approach for credit
risk for all material portfolios. We received final approval with associated
conditions for the use of the AIRB approach to the calculation of credit risk
capital from OSFI on December 31, 2007. Immaterial portfolios (refer to
"Credit risk" section for details) are initially on the standardized approach,
and in the event that any one of the standardized portfolios becomes material,
management will implement plans to transition it to an AIRB approach as
required by OSFI.
    On August 1, 2007, we received Conditional Acceptance from OSFI to
implement the Advanced Measurement Approach (AMA) for operational risk
effective November 1, 2007. OSFI has set the target date for Formal Acceptance
as December 31, 2008 or earlier.
    Market risk for the trading books continues to be measured under the pre-
existing OSFI approval for use of the Internal Models Approach.

    Credit risk

    Credit risk primarily arises from our direct lending activities, and from
our trading, investment and hedging activities. Credit risk is defined as the
risk of financial loss due to a borrower or counterparty failing to meet its
obligations in accordance with contractual terms.

    Process and control

    The credit approval process is centrally controlled, with all significant
credit requests submitted to a credit risk management unit that is independent
of the originating businesses. Approval authorities are a function of the risk
and amount of credit requested. In certain cases, credit requests must be
referred to the Risk Management Committee (RMC) for approval.
    After initial approval, individual credit exposures continue to be
monitored, with a formal risk assessment including review of assigned ratings
documented at least annually. Higher risk-rated accounts are subject to closer
monitoring and are reviewed at least quarterly. Collections and specialized
loan workout groups handle the day-to-day management of the highest risk loans
to maximize recoveries.

    Credit risk limits

    Credit limits are established for business and government loans for the
purposes of portfolio diversification and managing concentration. These
include limits for individual borrowers, groups of related borrowers, industry
sectors, country and geographic regions, and products or portfolios. Direct
loan sales, credit derivative hedges or structured transactions are used to
reduce concentrations.

    Credit derivatives

    We use credit derivatives to reduce industry sector concentrations and
single-name exposures, or as part of portfolio diversification techniques.

    Guarantees

    We obtain third party guarantees and insurance to reduce the risk in our
lending portfolios. The most material of these guarantees relate to our
residential mortgage portfolio that is guaranteed by CMHC (a Government of
Canada owned corporation) or other investment-grade counterparties.

    Collateral

    Our credit risk management policies include requirements related to
collateral valuation and management. Valuations are updated periodically
depending on the nature of the collateral. The main types of collateral are
cash, securities, inventory and real estate. We have policies in place to
monitor the existence of undesirable concentration in the collateral
supporting our credit exposure.

    Exposure to credit risk

    The following table presents the exposure to credit risk which is
measured as exposure at default for on- and off-balance sheet financial
instruments. Details on the calculation of exposure at default are provided on
the next page.$ millions, as at           April 30, 2008              January 31, 2008
    -------------------------------------------------------------------------
                              Stand-                        Stand-
                      AIRB   ardized                AIRB   ardized
                  approach  approach     Total  approach  approach     Total
    -------------------------------------------------------------------------
    Business and
     government
     portfolios
      Corporate
        Drawn     $ 35,528  $  4,999  $ 40,527  $ 34,276  $  5,561  $ 39,837
        Undrawn
         commit-
         ments      17,891       373    18,264    18,764       332    19,096
        Repo-style
         trans-
         actions    25,114        18    25,132    26,201        46    26,247
        Other off-
         balance
         sheet       5,235       174     5,409     6,215       197     6,412
        OTC deri-
         vatives    11,533        60    11,593    12,119        67    12,186
    -------------------------------------------------------------------------
                    95,301     5,624   100,925    97,575     6,203   103,778
    -------------------------------------------------------------------------
      Sovereign
        Drawn       22,465     1,722    24,187    20,968       953    21,921
        Undrawn
         commit-
         ments       2,636         -     2,636     2,762         -     2,762
        Repo-style
         trans-
         actions     1,055         -     1,055     1,082         -     1,082
        Other off-
         balance
         sheet          29         -        29        32         2        34
        OTC deri-
         vatives     1,395         -     1,395     1,661         -     1,661
    -------------------------------------------------------------------------
                    27,580     1,722    29,302    26,505       955    27,460
    -------------------------------------------------------------------------
      Banks
        Drawn       10,206     1,631    11,837    14,428       854    15,282
        Undrawn
         commit-
         ments         787         -       787       816         -       816
        Repo-style
         trans-
         actions    48,647       175    48,822    57,051       354    57,405
        Other off-
         balance
         sheet      50,657         -    50,657    41,120        14    41,134
        OTC deri-
         vatives     5,407         3     5,410     6,509        14     6,523
    -------------------------------------------------------------------------
                   115,704     1,809   117,513   119,924     1,236   121,160
    -------------------------------------------------------------------------
    Total business
     and government
     portfolios    238,585     9,155   247,740   244,004     8,394   252,398
    -------------------------------------------------------------------------
    Retail
     portfolios
      Real estate
       secured
       personal
       lending
        Drawn      103,360     2,033   105,393   100,707     2,013   102,720
        Undrawn
         commit-
         ments      28,101         -    28,101    23,795         -    23,795
    -------------------------------------------------------------------------
                   131,461     2,033   133,494   124,502     2,013   126,515
    -------------------------------------------------------------------------
      Qualifying
       revolving
       retail
        Drawn       15,756         -    15,756    15,259         -    15,259
        Undrawn
         commit-
         ments      23,462         -    23,462    22,693         -    22,693
    -------------------------------------------------------------------------
                    39,218         -    39,218    37,952         -    37,952
    -------------------------------------------------------------------------
      Other retail
        Drawn        9,207       975    10,182     9,261       972    10,233
        Undrawn
         commit-
         ments       2,104        53     2,157     2,086        53     2,139
        Other off-
         balance
         sheet         108         -       108       108         -       108
    -------------------------------------------------------------------------
                    11,419     1,028    12,447    11,455     1,025    12,480
    -------------------------------------------------------------------------
    Total retail
     portfolios    182,098     3,061   185,159   173,909     3,038   176,947
    -------------------------------------------------------------------------
    Securitization
     exposures(1)   16,204       761    16,965    17,482       839    18,321
    -------------------------------------------------------------------------
    Gross credit
     exposure     $436,887  $ 12,977  $449,864  $435,395  $ 12,271  $447,666
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Under the internal ratings based (IRB) approach.The portfolios are categorized based upon how we manage the business and
the associated risks. Amounts provided are after valuation adjustments related
to financial guarantors, and before allowance for credit losses and risk
mitigation, including $70.3 billion (January 31, 2008: $79.0 billion) of
collateral held for our repurchase agreement activities. Non-trading equity
exposures are not included in the table above as they have been deemed
immaterial under the OSFI guidelines, and hence, are subject to 100% risk-
weighting.

    Exposures subject to AIRB approach

    Business and government portfolios (excluding scored small business) -
    risk rating method

    The portfolio comprises exposures to corporate, sovereign and bank
obligors. These obligors are individually assessed and assigned a rating that
reflects our estimate of the probability of default. A mapping between our
internal ratings and the ratings used by external ratings agencies is shown in
the table below. As part of our risk-rating methodology, the risk assessment
includes a review of external ratings of the obligor. The obligor rating
assessment takes into consideration our financial assessment of the obligor,
the industry, and the economic environment of the region in which the obligor
operates. In certain circumstances, where a guarantee from a third party
exists, both the obligor and the guarantor will be assessed.Standard             Moody's
                                    CIBC        & Poor's   Investor Services
    Grade                         rating      equivalent          equivalent
    -------------------------------------------------------------------------
    Investment grade             00 - 47     AAA to BBB-         Aaa to Baa3
    -------------------------------------------------------------------------
    Non-investment grade         51 - 67       BB+ to B-           Ba1 to B3
    -------------------------------------------------------------------------
    Watchlist                    70 - 80      CCC+ to CC          Caa1 to Ca
    -------------------------------------------------------------------------
    Default                           90               D                   C
    -------------------------------------------------------------------------We use quantitative modeling techniques to assist in the development of
internal risk-rating systems. The risk-rating systems have been developed
through analysis of internal and external credit risk data. They are used for
portfolio management, risk limit setting, product pricing, and in the
determination of economic capital.
    We assess risk exposure using the following three dimensions. Parameter
estimates for each of these dimensions are long-term averages with adjustments
for the impact of any potential change in the credit cycle.-   Probability of default (PD) - the probability that the obligor will
        default within the next 12 months.
    -   Exposure at default (EAD) - the estimate of the amount which will be
        drawn at the time of default.
    -   Loss given default (LGD) - the expected severity of loss as the
        result of the default, expressed as a percentage of the EAD.The effectiveness of the risk rating systems and the parameters
associated with the risk ratings are monitored within TRM and are subject to
an annual review. The models used in the estimation of the risk parameters are
also subject to independent validation by the TRM validation group, which is
independent of both the origination business and the model development
process.
    We have counterparty credit exposure that arises from our interest rate,
foreign exchange, equity, commodity and credit derivatives trading, hedging
and portfolio management activities, as explained in Note 14 to the 2007
consolidated financial statements. The PD of our counterparties is measured in
the same manner as our direct lending activity. We establish a valuation
adjustment for expected future credit losses from each of our derivative
counterparties. Traditionally, the valuation adjustment has been a function of
our estimates of the PD, the expected loss/exposure in the event of default,
and other factors such as risk mitigants. In the first quarter, we implemented
a new methodology for financial guarantors (excluding ACA) which takes into
account market observed credit default spreads for our counterparties. In the
current quarter, to reflect the deterioration in general credit conditions, we
added $50 million to our historical, formulaic calculation of the credit
valuation adjustment for non-financial guarantor derivatives counterparties.

    Credit quality of the risk-rated portfolios

    The following table provides the credit quality of the risk-rated
portfolios. Amounts provided are before allowance for credit losses, and after
credit risk mitigation, valuation adjustments related to financial guarantors,
and collateral on repurchase agreement activities. Insured residential
mortgage and student loan portfolios of $54.2 billion (January 31, 2008:
$53.1 billion) are reclassified to either sovereign or corporate exposures in
the table below.$ millions, as at
    -------------------------------------------------------------------------
                                      EAD                   2008        2008
                         -----------------------------   Apr. 30     Jan. 31
    Grade                Corporate Sovereign    Banks      Total       Total
    -------------------------------------------------------------------------
    Investment grade      $ 35,533  $ 80,021  $ 61,211  $176,765    $176,109
    Non-investment grade    25,845       267    12,682    38,794      34,613
    Watchlist                  484         -         -       484       1,257
    Default                    548         1         -       549         295
    -------------------------------------------------------------------------
                          $ 62,410  $ 80,289  $ 73,893  $216,592    $212,274
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Business and government portfolios (excluding scored small business) -
    slotting approach

    A simplified risk-rating process (slotting approach) is used for
uninsured Canadian commercial mortgages, which comprise non-residential
mortgages and multi-family residential mortgages. These exposures are
individually rated on our rating scale using a risk-rating methodology that
considers the property's key attributes, which include its loan to value and
debt service ratios, the quality of the property, and the financial strength
of the owner/sponsor. All exposures are secured by a lien over the property
and in some cases additionally by mortgage insurance. Insured multi-family
residential mortgages are treated as sovereign exposures in the table above.

    Exposure by risk-bands

    The following table provides the exposure by risk-weight bands.
Facilities in the "satisfactory" category have key attributes that meet our
criteria, while facilities in the "good" and "strong" categories exceed it
with progressively stronger risk metrics. Exposures in the "weak" category
generally were originated at a stronger risk level but have migrated below our
current criteria.2008      2008
    $ millions, as at                                      Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Strong                                                $  5,693  $  5,594
    Good                                                       131       130
    Satisfactory                                                40        40
    Weak                                                         6         7
    Default                                                      7         3
    -------------------------------------------------------------------------
                                                          $  5,877  $  5,774
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Retail portfolios

    Retail portfolios are characterized by a large number of relatively small
exposures. They comprise: real estate secured personal lending (comprising
residential mortgages, and personal loans and lines secured by residential
property); qualifying revolving retail exposures (credit cards and unsecured
lines of credit); and other retail exposures (loans secured by non-residential
assets, unsecured loans including student loans, and scored small business
loans). These are managed as pools of homogenous risk exposures using external
credit bureau scores and/or other behavioral assessment to group exposures
according to similar credit risk profiles. These pools are assessed through
statistical techniques, such as credit scoring and computer-based models.
Characteristics used to group individual exposures vary by asset category; as
a result, the number of pools, their size, and the statistical techniques
applied to their management differ accordingly.

    The following table maps the PD bands to various risk levels:Description                                                     PD bands
    -------------------------------------------------------------------------

    Exceptionally low                                          0.01% - 0.20%
    Very low                                                   0.21% - 0.50%
    Low                                                        0.51% - 2.00%
    Medium                                                    2.01% - 10.00%
    High                                                     10.01% - 99.99%
    Default                                                          100.00%
    -------------------------------------------------------------------------Credit quality of the retail portfolios

    The following table presents the credit quality of the retail portfolios.
Amounts provided are before allowance for credit losses and after credit risk
mitigation. Insured residential mortgage and student loan portfolios of
$54.2 billion (January 31, 2008: $53.1 billion) are reclassified to either
sovereign or corporate exposures. Retail portfolios include $3,913 million
(January 31, 2008: $3,947 million) of small business scored exposures.$ millions, as at
    -------------------------------------------------------------------------
                                      EAD
                         -------------------------------
                         Real estate
                             secured Qualifying               2008      2008
                            personal  revolving    Other   Apr. 30   Jan. 31
    PD                       lending     retail   retail     Total     Total
    -------------------------------------------------------------------------
    Exceptionally low       $ 31,547  $ 17,129  $  2,564  $ 51,240  $ 48,590
    Very low                  20,383     5,743     2,608    28,734    24,890
    Low                       25,324    10,390     4,374    40,088    39,552
    Medium                       129     4,122     1,393     5,644     5,663
    High                          75     1,695        97     1,867     1,840
    Default                       66       139       123       328       320
    -------------------------------------------------------------------------
                            $ 77,524  $ 39,218  $ 11,159  $127,901  $120,855
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Exposures subject to the standardized approach

    Exposures within FirstCaribbean, obligations of certain exposures of
individuals for non-business purposes, and certain exposures in the CIBC
Mellon joint ventures have been deemed immaterial, and are subject to the
standardized approach. A detailed breakdown of our standardized exposures
before allowance for credit losses by risk-weight is provided below. Eligible
financial collateral also impacts the risk weighting category for the
exposure.$ millions, as at
    -------------------------------------------------------------------------
                                   Risk-weight category
                  -------------------------------------------------
                        0%       20%       50%       75%      100%     Total
    -------------------------------------------------------------------------
    Apr. 30, 2008
    -------------
    Corporate     $      -  $    964  $     92  $      -  $  4,568  $  5,624
    Sovereign        1,426       204         3         -        89     1,722
    Banks                -     1,781         -         -        28     1,809
    Real estate
     secured
     personal
     lending             -         -         -     2,028         5     2,033
    Other retail         -         -         -        53       975     1,028
    -------------------------------------------------------------------------
                  $  1,426  $  2,949  $     95  $  2,081  $  5,665  $ 12,216
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2008 $    430  $  2,306  $    222  $  2,060  $  6,414  $ 11,432
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Securitization exposures

    The following table provides details on our securitization exposures by
credit ratings under the IRB and standardized approach.

    $ millions, as at
    -------------------------------------------------------------------------
                                             EAD            2008       2008
                                   --------------------  Apr. 30    Jan. 31
    Ratings                          IRB   Standardized    Total      Total
    -------------------------------------------------------------------------
    AAA to BBB-                   $ 15,860  $    761    $ 16,621    $ 18,029
    BB+ to BB-                           8         -           8           9
    Below BB-                           57         -          57          37
    Unrated                            279         -         279         246
    -------------------------------------------------------------------------
                                  $ 16,204  $    761    $ 16,965    $ 18,321
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Concentration of exposures

    Concentration of credit risk exists when a number of obligors are engaged
in similar activities, or operate in the same geographical areas or industry
sectors, and have similar economic characteristics so that their ability to
meet contractual obligations is similarly affected by changes in economic,
political or other conditions.

    Geographic distribution

    The following table provides a geographic distribution of our business
and government exposures under the AIRB approach. The classification of
geography is based upon the country of ultimate risk. Amounts are before
allowance for credit losses and risk mitigation, and after valuation
adjustments related to financial guarantors and $70.3 billion (January 31,
2008: $79.0 billion) of collateral held for our repurchase agreement
activities.$ millions, as at
    -------------------------------------------------------------------------
                              Canada      U.S.    Europe     Other     Total
    -------------------------------------------------------------------------
    Apr. 30, 2008
    -------------
    Drawn                   $ 52,239  $  9,464  $  5,059  $  1,437  $ 68,199
    Undrawn commitments       19,001     1,696       288       329    21,314
    Repo-style transactions    1,633     1,946       191       734     4,504
    Other off-balance sheet   34,329    11,551     9,081       960    55,921
    OTC derivatives            6,224     7,330     4,232       549    18,335
    -------------------------------------------------------------------------
                            $113,426  $ 31,987  $ 18,851  $  4,009  $168,273
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2008           $109,936  $ 30,483  $ 19,292  $  5,283  $164,994
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------For retail portfolios, substantially all of the exposures under the AIRB
approach are based in Canada.

    Business and government exposures by industry groups

    The following table provides an industry-wide breakdown of our business
and government exposures under the AIRB approach. Amounts are before allowance
for credit losses and risk mitigation, and after valuation adjustments related
to financial guarantors and $70.3 billion (January 31, 2008: $79.0 billion) of
collateral held for our repurchase agreement activities.$ millions, as at
    -------------------------------------------------------------------------
                                                   Repo-     Other
                                                   style      off-       OTC
                                        Undrawn   trans-   balance    deriv-
                               Drawn commitment  actions     sheet    atives
    -------------------------------------------------------------------------
    Commercial mortgages    $  5,684  $    193  $      -  $      -  $      -
    Financial
     institutions(1)          16,126     2,808     4,468    51,189    14,396
    Retail and wholesale       2,407     1,493         -       265        72
    Business and personal
     services                  3,301       945         3       167       143
    Manufacturing, capital
     goods                     1,217       907         -       270        60
    Manufacturing, consumer
     goods                     1,228       852         -        33        63
    Real estate and
     construction              5,636     1,629         -       726       112
    Agriculture                2,548     1,292         -        18        11
    Oil and gas                3,636     3,568         -       550     1,229
    Mining                     1,715       484         -       116        39
    Forest products              552       202         5        82        20
    Hardware and software        482       400         -       102        72
    Telecommunications and
     cable                       650       600         -       221       452
    Publishing, printing and
     broadcasting                475       434         -       200        88
    Transportation             1,355       583         -       862        48
    Utilities                    689     1,476         -       732       351
    Education, health and
     social services           1,317       834         4       149        46
    Governments               19,181     2,614        24       239     1,133
    -------------------------------------------------------------------------
                            $ 68,199  $ 21,314  $  4,504  $ 55,921  $ 18,335
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                2008      2008
    $ millions, as at        Apr. 30   Jan. 31
    -------------------------------------------
                               Total     Total
    -------------------------------------------
    Commercial mortgages    $  5,877  $  5,774
    Financial
     institutions(1)          88,987    87,321
    Retail and wholesale       4,237     4,319
    Business and personal
     services                  4,559     6,363
    Manufacturing, capital
     goods                     2,454     2,613
    Manufacturing, consumer
     goods                     2,176     1,978
    Real estate and
     construction              8,103     8,246
    Agriculture                3,869     3,925
    Oil and gas                8,983     7,826
    Mining                     2,354     2,348
    Forest products              861       927
    Hardware and software      1,056     1,174
    Telecommunications and
     cable                     1,923     1,327
    Publishing, printing and
     broadcasting              1,197     1,660
    Transportation             2,848     2,237
    Utilities                  3,248     3,137
    Education, health and
     social services           2,350     2,158
    Governments               23,191    21,661
    -------------------------------------------
                            $168,273  $164,994
    -------------------------------------------
    -------------------------------------------
    (1) OTC derivatives includes $5.2 billion (January 31, 2008:
        $5.3 billion) of EAD with financial guarantors hedging our derivative
        contracts. The fair value of these derivative contracts net of the
        valuation adjustments was $2.9 billion (January 31, 2008:
        $3.0 billion).

    Impaired loans and allowance and provision for credit losses

    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                      Apr. 30   Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                              $    523  $    493
    Business and government(1)                                 371       370
    -------------------------------------------------------------------------
    Total gross impaired loans                            $    894  $    863
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Allowance for credit losses

    Consumer                                              $    369  $    359
    Business and government(1)                                 210       194
    -------------------------------------------------------------------------
    Specific allowance                                         579       553
    General allowance                                          889       890
    -------------------------------------------------------------------------
    Total allowance for credit losses                     $  1,468  $  1,443
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.Gross impaired loans were up $31 million or 4% from October 31, 2007.
Consumer gross impaired loans were up $30 million or 6%, whereas business and
government gross impaired loans were up $1 million. Total gross impaired loans
decreased $6 million in Canada and $3 million in the U.S. offset by an
increase of $40 million in other countries. The overall increase in gross
impaired loans was largely attributed to residential mortgages and the
business services sector.
    Allowance for credit losses was up $25 million or 2% from October 31,
2007. Specific allowance was up $26 million or 5% from the year-end, primarily
due to increases in the retail sector, as well as credit cards. The general
allowance totaled $889 million, down $1 million from the year-end.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    Market risk

    Market risk arises from positions in securities and derivatives held in
our trading portfolios, and from our retail banking business, investment
portfolios and other non-trading activities. Market risk is defined as the
potential for financial loss from adverse changes in underlying market
factors, including interest and foreign exchange rates, credit spreads, and
equity and commodity prices.

    Process and control

    Market risk exposures are monitored daily against approved risk limits,
and control processes are in place to monitor that only authorized activities
are undertaken. We generate daily risk and limit-monitoring reports, based on
the previous day's positions. Summary market risk and limit compliance reports
are produced and reviewed weekly with the Senior Executive Team, and quarterly
with the RMC.
    We have risk tolerance levels, expressed in terms of both statistically
based Value-at-Risk (VaR) measures and potential worst-case stress losses. We
use a three-tiered approach to set market risk and stress limits on the
amounts of risk that we can assume in our trading and non-trading activities,
as follows:-   Tier 1 limits are our overall market risk and worst-case scenario
        limits.
    -   Tier 2 limits are designed to control the risk profile in each
        business.
    -   Tier 3 limits are at the desk level and designed to monitor risk
        concentration and the impact of book-specific stress events.Trading activities

    We use a number of risk measures such as VaR, and stress testing and
scenario analysis for measuring trading risk.

    Value-at-Risk

    Our VaR methodology is a statistical technique that measures the
potential worst-case overnight loss within a 99% confidence level. VaR uses
numerous risk factors as inputs and is computed through the use of historical
volatility of each risk factor and the associated historical correlations
among them, evaluated over a one-year period.
    The VaR for the three months ending April 30, 2008 disclosed in the table
and backtesting chart on the next page exclude our exposures in our run-off
businesses as described on pages 9 to 15 of the MD&A. Due to the volatile and
illiquid markets in recent months, the quantification of risk for these
positions is subject to a high degree of uncertainty. These positions are
being managed down independent of our trading businesses, and are not subject
to our internal VaR limits.

    Stress testing and scenario analysis

    Our stress testing measures the effect on portfolio values of extreme
market movements up to a period of one quarter. Scenarios are developed to
model extreme economic events, worst-case historical experiences or potential
future plausible events.
    Our core stress tests and scenario analyses are run daily, and further ad
hoc analysis is carried out as required. Scenarios are reviewed and amended as
necessary to ensure they remain relevant. Limits are placed on the maximum
acceptable loss to the aggregate portfolio under any worst-case scenario and
on the impact of stress testing at the detailed portfolio level and by asset
class.

    Backtesting

    The backtesting process measures that actual profit and loss outcomes are
consistent with the statistical assumptions of the VaR model. This process
also includes the calculation of a hypothetical or static profit and loss.
This represents the theoretical change in value of the prior day's closing
portfolio due to each day's price movements, on the assumption that the
contents of the portfolio remained unchanged.


    Value-at-risk by risk type (trading portfolios)
    -----------------------------------------------As at or for the three months ended
                       ------------------------------------------------------
                                                               Apr. 30, 2008
                       ------------------------------------------------------
    $ millions                               High      Low    As at  Average
    -------------------------------------------------------------------------
    Interest rate risk                     $ 13.0   $  4.9   $  7.5   $  7.6
    Credit spread risk                        6.2      3.6      3.6      5.0
    Equity risk                               7.3      3.8      5.0      5.3
    Foreign exchange
     risk                                     1.9      0.3      0.5      0.6
    Commodity risk                            1.2      0.5      0.6      0.8
    Debt specific risk                        9.9      6.1      7.8      8.0
    Diversification
     effect(1)                                n/m      n/m    (13.0)   (13.3)
                                                            -----------------
    Total risk                             $ 19.0   $ 11.1   $ 12.0   $ 14.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                                     For the
                       As at or for the three months ended  six months ended
                       ------------------------------------ -----------------
                                                            Apr. 30, Apr. 30,
                           Jan. 31, 2008     Apr. 30, 2007     2008     2007
                       ------------------------------------ -----------------
    $ millions            As at  Average    As at  Average  Average  Average
    ------------------------------------------------------- -----------------
    Interest rate risk   $ 10.9   $  7.4   $  7.5   $  7.0   $  7.5   $  7.0
    Credit spread risk      9.7     12.8      4.7      3.9      8.9      3.7
    Equity risk             6.4      5.0      5.8      5.9      5.2      6.1
    Foreign exchange
     risk                   0.7      0.7      0.4      0.5      0.7      0.4
    Commodity risk          0.8      0.8      1.0      1.4      0.8      1.5
    Debt specific risk      8.6     10.5      n/a      n/a      9.2      n/a
    Diversification
     effect(1)            (16.6)   (18.5)    (9.7)    (9.5)   (16.0)    (9.6)
                       ------------------------------------ -----------------
    Total risk           $ 20.5   $ 18.7   $  9.7   $  9.2   $ 16.3   $  9.1
    ------------------------------------------------------- -----------------
    ------------------------------------------------------- -----------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from the effect of portfolio
        diversification.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    n/a Not available as we started reporting this measure only in the fourth
        quarter of 2007.Total average risk was down 25% from the last quarter, primarily due to
the exclusion of the run-off businesses in VaR. Total average risk was up more
than 52% from the same quarter last year, primarily due to inclusion of debt
specific risk measure in VaR starting in the fourth quarter of 2007, as well
as the higher market volatilities used in the calculation of VaR. If the
positions in our run-off businesses had been included for the quarter the
average daily VaR would have been $22 million and the VaR at quarter-end would
have been $21 million.

    Trading revenue

    The trading revenue (TEB)(1) and VaR backtesting graph below compares the
current quarter and the three previous quarters' actual daily trading revenue
(TEB)(1) with the previous day's VaR measures.
    Trading revenue (TEB)(1) was positive for 53% of the days in the quarter.
Trading losses did not exceed VaR for any day during the quarter. Average
daily trading revenue (TEB)(1) was $0.6 million during the quarter.
    The trading revenue (TEB)(1) for the current quarter excludes $2 million
related to the consolidation of variable interest entities as well as trading
losses from the run-off businesses including $2,384 million related to
reductions in fair value of structured credit assets and counterparty
credit-related valuation adjustments and $10 million related to revenue from
other positions in the run-off books. Trading revenue (TEB)(1) also excludes
the $50 million valuation charges against credit exposures to our derivative
counterparties, which cannot be meaningfully allocated to specific days.

    Backtesting of trading revenue (TEB)(1) vs. VaR
    -----------------------------------------------

    (image appears here)----------------------
    (1) For additional information, see the "Non-GAAP measures" section on
        pages 45 to 46 of our 2007 Annual Accountability Report.Non-trading activities

    Market risks also arise from our retail banking business, equity
investments and other non-trading activities.

    Interest rate risk

    Non-trading interest rate risk consists primarily of risk inherent in
Asset-Liability Management activities and the activities of domestic and
foreign subsidiaries. Interest rate risk results from differences in the
maturities or repricing dates of assets and liabilities, both on- and
off-balance sheet, as well as from embedded optionality in retail products. A
variety of cash instruments and derivatives, principally interest rate swaps,
futures and options, are used to manage and control these risks.
    The following table shows the potential impact of an immediate 100 basis
points increase or decrease in interest rates over the next 12 months, as
adjusted for estimated prepayments.-------------------------------------------------------------------------
                                                2008                    2008
    $ millions, as at                        Apr. 30                 Jan. 31
    -------------------------------------------------------------------------
                                  C$     US$   Other      C$     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  51   $  (6)  $  (1)  $  23   $  (1)  $   -
    Change in present value
     of shareholders' equity     171      16      33     101      31      36

    100 basis points decrease
     in interest rates
    Net income                 $ (62)  $   6   $   1   $ (56)  $   1   $   -
    Change in present value
     of shareholders' equity    (264)    (16)    (35)   (143)    (31)    (37)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                                2007
    $ millions, as at                        Apr. 30
    -------------------------------------------------
                                  C$     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  23   $   4   $  (5)
    Change in present value
     of shareholders' equity     223      34      35

    100 basis points decrease
     in interest rates
    Net income                 $ (96)  $  (4)  $   5
    Change in present value
     of shareholders' equity    (257)    (34)    (35)
    -------------------------------------------------
    -------------------------------------------------Foreign exchange risk

    Non-trading foreign exchange risk, also referred to as structural foreign
exchange risk, arises primarily from our investments in foreign operations.
This risk, predominantly in U.S. dollars, is managed using derivative hedges,
and by funding the investments in foreign currencies.
    A 1% appreciation of the Canadian dollar would reduce our shareholders'
equity as at April 30, 2008 by approximately $30 million (October 31, 2007: by
approximately $28 million).
    Our non-functional currency denominated earnings are converted into the
functional currencies through spot or forward foreign exchange transactions to
reduce exchange rate fluctuations on our consolidated statement of operations.
Foreign functional currency earnings are translated at average monthly
exchange rates as they arise.
    We hedge certain anticipated foreign currency expenses using derivatives
which are accounted for as cash flow hedges. As at April 30, 2008, the net
change in fair value of these hedging derivatives included in accumulated
other comprehensive income amounted to an after-tax loss of $63 million
(October 31, 2007: after-tax loss of $73 million). This amount will be
released to income to offset the hedged currency fluctuations as the expenses
are incurred.

    Equity risk

    Non-trading equity risk arises primarily in our merchant banking
activities and comprises public and private equities, investments in limited
partnerships, and equity-accounted investments.

    The following table provides the carrying and fair values of our
non-trading equities, including merchant banking portfolios:Carrying      Fair
    $ millions, as at                                        value     value
    -------------------------------------------------------------------------
    Apr. 30, 2008  AFS securities                         $  1,354  $  1,923
                   Other assets(1)                             219       240
    -------------------------------------------------------------------------
                                                          $  1,573  $  2,163
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2007  AFS securities                         $  1,415  $  1,921
                   Other assets(1)                             254       299
    -------------------------------------------------------------------------
                                                          $  1,669  $  2,220
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes equity-accounted investments.Liquidity risk

    Liquidity risk arises from our general funding activities and in the
course of managing our assets and liabilities. It is the risk of having
insufficient cash resources to meet current financial obligations without
raising funds at unfavourable rates or selling assets on a forced basis.
    Our liquidity risk management strategies seek to maintain sufficient
liquid financial resources to continually fund our balance sheet under both
normal and stressed market environments.

    Process and control

    Actual and anticipated inflows and outflows of funds generated from on-
and off-balance sheet exposures are managed on a daily basis within specific
short-term asset/liability mismatch limits by geographic location.
    Potential cash flows under various stress scenarios are modeled using
balance sheet positions. On a consolidated basis, prescribed liquidity levels
under a selected benchmark stress scenario are maintained for a minimum time
horizon.

    Risk measurement

    Our liquidity measurement system provides daily liquidity risk exposure
reports for independent monitoring and review by MRM. Senior management and
the RMC oversee liquidity risk exposure reporting. Stress event impacts are
measured through scenario analyses, designed to measure potential impact of
abnormal market conditions on the liquidity risk profile. Treatment of cash
flows under varying conditions is reviewed periodically to determine whether
changes to customer behaviour assumptions are warranted.

    Term funding sources and strategies

    We source term funding in the wholesale markets from a variety of clients
and geographic locations, borrowing across a range of maturities using a mix
of funding instruments. Core personal deposits remain a primary source of
retail funding. As at April 30, 2008, Canadian dollar deposits from
individuals totalled $87.6 billion (October 31, 2007: $83.8 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding, asset securitization initiatives, capital
and subordinated debt issuance, and maintenance of segregated pools of high
quality liquid assets that can be sold or pledged as security to provide a
ready source of cash.

    The following table summarizes our liquid assets:-------------------------------------------------------------------------
                                                              2008      2007
    $ billions, as at                                      Apr. 30   Oct. 31
    -------------------------------------------------------------------------
    Cash                                                  $    1.0  $    1.0
    Deposits with banks                                       12.1      12.7
    Securities(1)                                             56.7      65.1
    Securities borrowed or purchased under resale
     agreements                                               33.2      34.0
    -------------------------------------------------------------------------
                                                          $  103.0  $  112.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes AFS and FVO securities with residual term to contractual
        maturity within one year, and trading securities.In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to-day clearing and settlement of payments and securities. Pledged assets
as at April 30, 2008 totalled $23.3 billion (October 31, 2007: $27.7 billion).
    While conditions have stabilized, the recent turmoil in global capital
markets continues to result in reduced liquidity and increased term funding
costs for financial institutions generally. One factor affecting the access of
financial institutions to unsecured funding markets is credit ratings. In
April, DBRS confirmed our ratings while revising our ratings trend to
"negative" from "under review with negative implications". No changes to our
ratings were made by the other major rating agencies during the second
quarter.

    Maturity of financial liabilities

    The following table provides the maturity profile of financial
liabilities based upon contractual repayment obligations. Certain contractual
maturity dates are subject to a defined set of management adjustments for
liquidity management, which have been incorporated under structural
assumptions. The table below excludes contractual cash flows related to
derivative liabilities.-------------------------------------------------------------------------
                                                                           No
                           Less than     1 - 3     3 - 5      Over  specified
    $ millions, as at         1 year     years     years   5 years   maturity
    -------------------------------------------------------------------------
    Liabilities
    Deposits                $119,327  $ 23,999  $  9,226  $  4,174  $ 81,477
    Acceptances                8,756         -         -         -         -
    Obligations related to
     securities sold short       485     1,042     1,170     3,891     3,697
    Obligations related to
     securities lent or
     sold under repurchase
     agreements               26,530         -         -         -         -
    Other liabilities            547     3,077         -         -    10,123
    Subordinated
     indebtedness                  -         -         -     5,359         -
    Preferred share
     liabilities                 600         -         -         -         -
    Structural assumptions   (71,848)    3,995         -    73,000    (5,147)
    -------------------------------------------------------------------------
                            $ 84,397  $ 32,113  $ 10,396  $ 86,424  $ 90,150
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------
                                2008      2008
                             Apr. 30   Jan. 31
    $ millions, as at          Total     Total
    -------------------------------------------
    Liabilities
    Deposits                $238,203  $239,976
    Acceptances                8,756     8,527
    Obligations related to
     securities sold short    10,285    10,077
    Obligations related to
     securities lent or
     sold under repurchase
     agreements               26,530    29,355
    Other liabilities         13,747    12,885
    Subordinated
     indebtedness              5,359     5,402
    Preferred share
     liabilities                 600       600
    Structural assumptions         -         -
    -------------------------------------------
                            $303,480  $306,822
    -------------------------------------------
    -------------------------------------------Maturity of credit and liquidity commitments

    The following table provides the contractual maturity of notional amounts
of credit, guarantee and liquidity commitments. Contractual amounts represent
the amounts at risk should contracts be fully drawn upon and clients default.
Since a significant portion of guarantees and commitments are expected to
expire without being drawn upon, the total of the contractual amounts is not
representative of future expected liquidity requirements.Contract amounts expiration per period
                                     ----------------------------------------
                                     Less than       1-3       3-5      Over
    $ millions, as at                   1 year     years     years   5 years
    -------------------------------------------------------------------------
    Unutilized credit commitments(1)  $ 28,384  $  1,956  $  8,104  $  1,211
    Backstop liquidity facilities       13,803         -         -         -
    Standby and performance letters
     of credit                           4,988       448       520       657
    Documentary and commercial
     letters of credit                     189         -         -         2
    -------------------------------------------------------------------------
                                      $ 47,364  $  2,404  $  8,624  $  1,870
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                          2008      2008
                                       Apr. 30   Jan. 31
    $ millions, as at                    Total     Total
    -----------------------------------------------------
    Unutilized credit commitments(1)  $ 39,655  $ 39,169
    Backstop liquidity facilities       13,803    14,810
    Standby and performance letters
     of credit                           6,613     6,423
    Documentary and commercial
     letters of credit                     191       256
    -----------------------------------------------------
                                      $ 60,262  $ 60,658
    -----------------------------------------------------
    -----------------------------------------------------
    (1) Excludes personal lines of credit and credit card lines, which are
        revocable at our discretion at any time.Contractual obligations

    Details on our contractual obligations are provided on page 71 of the
2007 Annual Accountability Report. There were no significant changes to
contractual obligations that were not in the ordinary course of our business.

    Operational risk

    Operational risk is the loss resulting from inadequate or failed internal
processes, systems, or from human error or external events.

    Process and control

    Each line of business has responsibility for the day-to-day management of
operational risk. Infrastructure and governance groups maintain risk and
control self-assessment processes. We maintain a corporate insurance program
to provide additional protection from loss and a global business continuity
management program to mitigate business continuity risks in the event of a
disaster.

    Risk measurement

    Effective November 1, 2007, under Basel II, we use the AMA to calculate
operational risk regulatory capital. Our operational risk measurement
methodology for economic capital purposes attributes operational risk capital
to expected and unexpected losses arising from the following loss event types:-   Legal liability (with respect to third parties, clients and
        employees);
    -   Client restitution;
    -   Regulatory compliance and taxation violations;
    -   Loss or damage to assets;
    -   Transaction processing errors; and
    -   Theft, fraud and unauthorized activities.Operational risk capital is calculated using a loss distribution approach
with the input parameters based on either actual internal loss experience
where a statistically significant amount of internal historical data is
available, or applying a loss scenario approach based on the available
internal/external loss data and management expertise.
    In addition to the capital attributed as described above, adjustments are
made for internal control issues and risks that are not included in the
original operational risk profile.
    Under AMA, we are allowed to recognize the risk mitigating impact of
insurance in the measures of operational risk used for regulatory minimum
capital requirements. Although our current insurance policy is tailored to
provide earnings protection from potential high-severity losses, we currently
do not take any capital relief as a result of our insurance program.

    Reputation and legal risk

    CIBC's reputation and financial soundness are of fundamental importance
to CIBC, its customers, shareholders and employees.
    Reputation risk is the potential for negative publicity regarding CIBC's
business conduct or practices which, whether true or not, could significantly
harm our reputation as a leading financial institution, or could materially
and adversely affect our business, operations or financial condition.
    Legal risk is the potential for civil litigation or criminal or
regulatory proceedings being commenced against CIBC that, once decided, could
materially and adversely affect our business, operations or financial
condition.
    The RMC provides oversight of the management of reputation and legal
risk. The identification, consideration and management of potential reputation
and legal risk is a key responsibility of CIBC and all of its employees.
    Our "Global Reputation and Legal Risks Policy" sets standards for
safeguarding our reputation and minimizing exposure to our reputation and
legal risk. The policy is supplemented by business specific procedures for
identifying and escalating transactions that could pose material reputation
risk and/or legal risk. The Reputation and Legal Risk Committee reviews all
transactions brought before it to assess whether CIBC is exposing itself to
any undue reputation and legal risk.

    Regulatory risk

    Regulatory risk is the risk of non-compliance with regulatory
requirements. Non-compliance with these requirements may lead to regulatory
sanctions and harm to our reputation.
    Our regulatory compliance philosophy is to manage regulatory risk
through, among other things, the integration of controls within the business
and infrastructure groups. The foundation of this approach is a legislative
compliance management (LCM) framework. The LCM framework maps regulatory
requirements to internal policies, procedures and controls that govern
regulatory compliance.
    Our compliance department is responsible for the development and
maintenance of a regulatory compliance program, including oversight of the LCM
framework. The department is independent of business management, has the
authority to communicate directly to the Audit Committee, and reports to that
committee on a quarterly basis.
    Primary responsibility for compliance with all applicable regulatory
requirements rests with senior management of the business and infrastructure
groups, and extends to all employees. The compliance department's activities
support those groups, with particular emphasis on those regulatory
requirements that govern the relationship between CIBC and its clients and
those requirements that help protect the integrity of the capital markets.
Specific activities that assist the business and infrastructure groups include
communication of regulatory requirements, advice, training, testing and
monitoring, and reporting and escalation of control deficiencies and
regulatory risks.

    ACCOUNTING AND CONTROL MATTERS
    -------------------------------------------------------------------------

    Critical accounting policies and estimates

    A summary of significant accounting policies is presented in Note 1 to
the 2007 consolidated financial statements.
    Certain accounting policies of CIBC are critical to understanding the
results of operations and financial condition of CIBC. These critical
accounting policies require management to make certain judgments and
estimates, some of which may relate to matters that are uncertain. For a
description of the judgments and estimates involved in the application of
critical accounting policies and assumptions made for pension and other
benefit plans, see pages 74 to 77 of the 2007 Annual Accountability Report.

    Valuation of financial instruments

    The table below presents the percentage of each category of financial
instruments which are fair valued using valuation technique based on
non-market observable inputs.-------------------------------------------------------------------------
                                                              2008      2007
    As at                                                  Apr. 30   Oct. 31
    -------------------------------------------------------------------------
    Assets
      Trading securities                                      12.8%      4.0%
      AFS securities                                           8.2       3.4
      FVO financial instruments                                1.4       1.8
      Derivative instruments                                  14.7      16.1
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to securities sold short             0.4%      0.6%
      Derivative instruments                                  22.8      16.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------Valuation techniques using non-market observable inputs are used for a
number of financial instruments including our USRMM and certain non-USRMM
positions. Indicative broker quotes in an inactive market, which we consider
to be non-market observable, are primarily used for the valuation of these
positions. Market observed credit spreads are a key factor in establishing
valuation adjustments against our counterparty credit exposures related to
financial guarantors.
    In the first quarter of 2008, we changed our methodology for estimating
valuation adjustments against our counterparty credit exposures related to
financial guarantors (excluding ACA) to take into account market observed
credit spreads. The modification resulted in an increase in charges of
approximately $590 million in the first quarter. During the current quarter,
we continued to apply the key aspects of the market driven methodology
implemented last quarter but with modifications in certain limited respects.
    In the current quarter, to reflect the deterioration in general credit
conditions, we added $50 million to our historical, formulaic calculation of
the credit valuation adjustment for non-financial guarantor derivative
counterparties.
    A 10% adverse change in mark-to-market of our unhedged USRMM and
non-USRMM positions would result in a loss of approximately $11 million and
$123 million respectively, before index hedges. A 10% adverse change in
mark-to-market of our hedged USRMM and non-USRMM positions would, primarily
through an increase in credit valuation adjustment for financial guarantors,
result in a loss of $159 million and $47 million respectively, before credit
hedges.
    The impact of a 10% widening in financial guarantor credit spreads would
result in an increase in the credit valuation adjustments of approximately
$206 million, before credit hedges.

    Risk factors related to fair value adjustments

    We believe that we have made appropriate fair value adjustments and have
taken appropriate write-downs to date. The establishment of fair value
adjustments and the determination of the amount of write-downs involve
estimates that are based on accounting processes and judgments by management.
We evaluate the adequacy of the fair value adjustments and the amount of
write-downs on an ongoing basis. The levels of fair value adjustments and the
amount of the write-downs could be changed as events warrant.

    Changes in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended CICA Emerging Issues
Committee Abstract (EIC) 46, "Leveraged Leases", which was based upon the
Financial Accounting Standards Board Staff Position FAS 13-2, "Accounting for
a Change or Projected Change in the Timing of Cash Flows Relating to Income
Taxes Generated by a Leveraged Lease Transaction".
    The EIC requires that a change in the estimated timing of the cash flows
relating to income taxes results in a recalculation of the timing of income
recognition from the leveraged lease. The adoption resulted in a $66 million
charge to opening retained earnings as at November 1, 2007. An amount
approximating this non-cash charge will be recognized into income over the
remaining lease terms using the effective interest rate method.

    Capital disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 1535,
"Capital Disclosures," which requires an entity to disclose its objectives,
policies and processes for managing capital as well as disclosure of summary
quantitative information about what an entity manages as capital.

    Financial instruments

    Effective November 1, 2007, we adopted the CICA handbook sections 3862
"Financial Instruments - Disclosures" and 3863 "Financial Instruments -
Presentation".
    These sections replace CICA handbook section 3861 "Financial Instruments
- Disclosure and Presentation", and enhance disclosure requirements on the
nature and extent of risks arising from financial instruments and how the
entity manages those risks.

    Controls and procedures

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at April 30,
2008, of CIBC's disclosure controls and procedures (as defined in the rules of
the SEC and the Canadian Securities Administrators) and has concluded that
such disclosure controls and procedures are effective.

    Changes in internal control over financial reporting

    There have been no changes in CIBC's internal control over financial
reporting during the quarter ended April 30, 2008 that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.CIBC INTERIM CONSOLIDATED FINANCIAL STATEMENTS
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    CONSOLIDATED BALANCE SHEET
                                                              2008      2007
    Unaudited, $ millions, as at                           Apr. 30   Oct. 31
    --------------------------------------------------------------- ---------
    ASSETS
    Cash and non-interest-bearing deposits with banks     $  1,142  $  1,457
    --------------------------------------------------------------- ---------
    Interest-bearing deposits with banks                    11,950    12,290
    --------------------------------------------------------------- ---------
    Securities
    Trading                                                 54,896    58,779
    Available-for-sale (AFS)                                 8,616    17,430
    Designated at fair value (FVO)                          15,585    10,291
    --------------------------------------------------------------- ---------
                                                            79,097    86,500
    --------------------------------------------------------------- ---------
    Securities borrowed or purchased
     under resale agreements                                33,170    34,020
    --------------------------------------------------------------- ---------
    Loans
    Residential mortgages                                   92,703    91,664
    Personal                                                30,297    29,213
    Credit card                                              9,809     9,121
    Business and government                                 34,399    34,099
    Allowance for credit losses (Note 5)                    (1,384)   (1,443)
    --------------------------------------------------------------- ---------
                                                           165,824   162,654
    --------------------------------------------------------------- ---------
    Other
    Derivative instruments                                  23,549    24,075
    Customers' liability under acceptances                   8,756     8,024
    Land, buildings and equipment                            1,922     1,978
    Goodwill                                                 1,916     1,847
    Other intangible assets                                    406       406
    Other assets (Note 10)                                  15,331     8,927
    --------------------------------------------------------------- ---------
                                                            51,880    45,257
    --------------------------------------------------------------- ---------
                                                          $343,063  $342,178
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                              $ 95,955  $ 91,772
    Business and government                                125,626   125,878
    Bank                                                    16,622    14,022
    --------------------------------------------------------------- ---------
                                                           238,203   231,672
    --------------------------------------------------------------- ---------
    Other
    Derivative instruments                                  26,206    26,688
    Acceptances                                              8,756     8,249
    Obligations related to securities sold short            10,285    13,137
    Obligations related to securities lent or
     sold under repurchase agreements                       26,530    28,944
    Other liabilities                                       13,588    13,728
    --------------------------------------------------------------- ---------
                                                            85,365    90,746
    --------------------------------------------------------------- ---------
    Subordinated indebtedness (Note 7)                       5,359     5,526
    --------------------------------------------------------------- ---------
    Preferred share liabilities                                600       600
    --------------------------------------------------------------- ---------
    Non-controlling interests                                  159       145
    --------------------------------------------------------------- ---------
    Shareholders' equity
    Preferred shares                                         2,331     2,331
    Common shares (Note 8)                                   6,056     3,133
    Treasury shares                                              8         4
    Contributed surplus                                         90        96
    Retained earnings                                        5,699     9,017
    Accumulated other comprehensive (loss) income (AOCI)      (807)   (1,092)
    --------------------------------------------------------------- ---------
                                                            13,377    13,489
    --------------------------------------------------------------- ---------
                                                          $343,063  $342,178
    --------------------------------------------------------------- ---------
    --------------------------------------------------------------- ---------
    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 27 to 38 are an integral part of these consolidated
    financial statements.



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF OPERATIONS
                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30    Apr.30   Apr. 30
    ----------------------------------------------------- -------------------
    Interest income
    Loans                   $  2,310  $  2,582  $  2,350  $  4,892  $  4,654
    Securities borrowed or
     purchased under
     resale agreements           419       529       499       948       971
    Securities                   697       664       719     1,361     1,481
    Deposits with banks          192       230       200       422       373
    ----------------------------------------------------- -------------------
                               3,618     4,005     3,768     7,623     7,479
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                   1,747     2,208     1,928     3,955     3,831
    Other liabilities            452       563       678     1,015     1,343
    Subordinated
     indebtedness                 62        72        75       134       151
    Preferred share
     liabilities                   8         8         8        16        16
    ----------------------------------------------------- -------------------
                               2,269     2,851     2,689     5,120     5,341
    ----------------------------------------------------- -------------------
    Net interest income        1,349     1,154     1,079     2,503     2,138
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and
     advisory fees                88       176       178       264       363
    Deposit and payment fees     191       195       193       386       386
    Credit fees                   56        60        82       116       151
    Card fees                     67        77        60       144       130
    Investment management
     and custodial fees          131       136       130       267       260
    Mutual fund fees             204       212       216       416       428
    Insurance fees,
     net of claims                63        58        62       121       120
    Commissions on
     securities transactions     133       170       226       303       455
    Trading revenue (Note 9)  (2,401)   (3,127)      296    (5,528)      671
    AFS securities gains
     (losses), net                12       (49)      119       (37)      251
    FVO revenue                  (18)      (29)       59       (47)      102
    Income from
     securitized assets          146       144       136       290       265
    Foreign exchange
     other than trading            3       132       101       135       185
    Other                        102       170       113       272       236
    ----------------------------------------------------- -------------------
                              (1,223)   (1,675)    1,971    (2,898)    4,003
    ----------------------------------------------------- -------------------
    Total revenue                126      (521)    3,050      (395)    6,141
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 5)             176       172       166       348       309
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation
     and benefits                933       994     1,126     1,927     2,286
    Occupancy costs              142       145       152       287       302
    Computer and office
     equipment                   265       262       279       527       542
    Communications                72        74        88       146       159
    Advertising and
     business development         58        53        66       111       116
    Professional fees             61        51        43       112        82
    Business and
     capital taxes                35        25        34        60        69
    Other                        222       157       188       379       363
    ----------------------------------------------------- -------------------
                               1,788     1,761     1,976     3,549     3,919
    ----------------------------------------------------- -------------------
    (Loss) income before
     income taxes and
     non-controlling
     interests                (1,838)   (2,454)      908    (4,292)    1,913
    Income tax
     (benefit) expense          (731)   (1,002)       91    (1,733)      322
    ----------------------------------------------------- -------------------
                              (1,107)   (1,452)      817    (2,559)    1,591
    Non-controlling
     interests                     4         4        10         8        14
    ----------------------------------------------------- -------------------
    Net (loss) income       $ (1,111) $ (1,456) $    807  $ (2,567)  $ 1,577
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (Loss) earnings per
     share (in dollars)
     (Note 12)  -Basic      $  (3.00) $  (4.39) $   2.29  $  (7.31)  $  4.42
                -Diluted    $  (3.00) $  (4.39) $   2.27  $  (7.31)  $  4.37
    Dividends per common
     share (in dollars)     $   0.87  $   0.87  $   0.77  $   1.74   $  1.47
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 27 to 38 are an integral part of these consolidated
    financial statements.



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning
     of period              $  2,331  $  2,331  $  2,431  $  2,331  $  2,381
    Issue of preferred
     shares                        -         -       300         -       750
    Redemption of
     preferred shares              -         -         -         -      (400)
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $  2,331  $  2,331  $  2,731  $  2,331  $  2,731
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at
     beginning of period    $  6,049  $  3,133  $  3,114  $  3,133  $  3,064
    Issue of common
     shares (Note 8)               8     2,948        21     2,956        71
    Issuance costs, net of
     related income taxes         (1)      (32)        -       (33)        -
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $  6,056  $  6,049  $  3,135  $  6,056  $  3,135
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Treasury shares
    Balance at beginning
     of period              $     12  $      4  $     (1) $      4  $    (19)
    Purchases                 (2,147)   (2,959)   (1,213)   (5,106)   (2,569)
    Sales                      2,143     2,967     1,210     5,110     2,584
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $      8  $     12  $     (4) $      8  $     (4)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $     86  $     96  $     74  $     96  $     70
    Stock option expense           2         3         1         5         3
    Stock options exercised        -        (1)       (1)       (1)       (5)
    Net premium (discount)
     on treasury shares
     and other                     2       (12)        2       (10)        8
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $     90  $     86  $     76  $     90  $     76
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period, as
     previously reported    $  7,174  $  9,017  $  7,693  $  9,017  $  7,268
    Adjustment for change
     in accounting
     policies                      -    (66)(1)        -       (66)   (50)(2)
    ----------------------------------------------------- -------------------
    Balance at beginning
     of period, as
     restated                  7,174     8,951     7,693     8,951     7,218
    Net (loss) income         (1,111)   (1,456)      807    (2,567)    1,577
    Dividends                                                    -
      Preferred                  (30)      (30)      (35)      (60)      (73)
      Common                    (332)     (291)     (259)     (623)     (494)
    Premium on redemption
     of preferred shares
     (classified as equity)        -         -         -         -       (16)
    Other                         (2)        -        (6)       (2)      (12)
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $  5,699  $  7,174  $  8,200  $  5,699  $  8,200
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    AOCI, net of tax
    Balance at beginning
     of period              $   (849) $ (1,092) $   (144) $ (1,092) $   (442)
    Adjustment for change
     in accounting
     policies(2)                   -         -         -         -       123
    Other comprehensive
     income (loss) (OCI)          42       243      (238)      285       (63)
    ----------------------------------------------------- -------------------
    Balance at end
     of period              $   (807) $   (849) $   (382) $   (807) $   (382)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
     and AOCI               $  4,892  $  6,325  $  7,818  $  4,892  $  7,818
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity
     at end of period       $ 13,377  $ 14,803  $ 13,756  $ 13,377  $ 13,756
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants (CICA) Emerging Issues Committee Abstract 46,
        "Leveraged Leases". See Note 1 for additional details.
    (2) Represents the transitional adjustment on adoption of the CICA
        handbook sections 1530, 3251, 3855, and 3865.

    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 27 to 38 are an integral part of these consolidated
    financial statements.



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME
                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net (loss) income       $ (1,111) $ (1,456) $    807  $ (2,567) $  1,577
    ----------------------------------------------------- -------------------
    OCI, net of tax
      Foreign currency
       translation
       adjustments
      Net gains (losses) on
       investment in self-
       sustaining foreign
       operations                  2       973    (1,089)      975      (284)
      Net gains (losses) on
       hedges of foreign
       currency translation
       adjustments                25      (746)      840      (721)      237
    ----------------------------------------------------- -------------------
                                  27       227      (249)      254       (47)
    ----------------------------------------------------- -------------------
      Net change in
       AFS securities
      Net unrealized gains
       (losses) on AFS
       securities                 83       (21)       74        62        31
      Transfer of net
       (gains) losses to
       net income                (65)      106         1        41       (27)
    ----------------------------------------------------- -------------------
                                  18        85        75       103         4
    ----------------------------------------------------- -------------------
      Net change in cash
       flow hedges
      Net (losses) gains
       on derivatives
       designated as cash
       flow hedges                (5)      (36)      (55)      (41)       18
      Net losses (gains) on
       derivatives
       designated as
       cash flow hedges
       transferred to
       net income                  2       (33)       (9)      (31)      (38)
    ----------------------------------------------------- -------------------
                                  (3)      (69)      (64)      (72)      (20)
    ----------------------------------------------------- -------------------
    Total OCI                     42       243      (238)      285       (63)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Comprehensive (loss)
     income                 $ (1,069) $ (1,213) $    569  $ (2,282) $  1,514
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------


    -------------------------------------------------------------------------
    INCOME TAX (EXPENSE) BENEFIT ALLOCATED TO EACH COMPONENT OF OCI

                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Foreign currency
     translation adjustments
      Changes on investment
       in self-sustaining
       foreign operations   $      -  $     (3) $     10  $     (3) $      -
      Changes on hedges of
       foreign currency
       translation
       adjustments               (41)      374      (425)      333      (112)
    Net change in AFS
     securities
      Net unrealized
       (gains) losses on
       AFS securities            (50)       15       (52)      (35)      (23)
      Transfer of net
       gains (losses) to
       net income                 41       (89)       (1)      (48)       15
    Net change in cash
     flow hedges
      Changes on
       derivatives
       designated as cash
       flow hedges                 1        20        29        21       (10)
      Changes on derivatives
       designated as cash
       flow hedges
       transferred to
       net income                 (2)       18         5        16        20
    ----------------------------------------------------- -------------------
                            $    (51) $    335  $   (434) $    284  $   (110)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 27 to 38 are an integral part of these consolidated
    financial statements.



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF CASH FLOWS
                                                                    For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2008      2008      2007      2008      2007
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30    Apr.30
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net (loss) income       $ (1,111) $ (1,456) $    807  $ (2,567) $  1,577
    Adjustments to
     reconcile net (loss)
     income to cash flows
     provided by (used in)
     operating activities:
      Provision for
       credit losses             176       172       166       348       309
      Amortization of
       buildings,
       furniture,
       equipment and
       leasehold
       improvements               51        52        59       103       112
      Amortization of
       other intangible
       assets                     10        10        12        20        17
      Stock-based
       compensation                2       (19)       (2)      (17)       16
      Future income taxes       (765)      (53)       51      (818)      114
      AFS securities
       (gains) losses, net       (12)       49      (119)       37      (251)
      (Gains) losses on
       disposal of land,
       buildings and
       equipment                  (1)        -         -        (1)        -
      Other non-cash
       items, net                (13)       66       (11)       53        39
      Changes in operating
       assets and
       liabilities
        Accrued interest
         receivable               32       104        74       136       (32)
        Accrued interest
         payable                 (93)      (24)       29      (117)     (445)
        Amounts receivable
         on derivative
         contracts               (79)      663       450       584        46
        Amounts payable on
         derivative contracts    (82)     (954)      629    (1,036)     (329)
        Net change in
         trading securities    3,469       414     4,709     3,883       471
        Net change in FVO
         securities           (1,321)   (3,973)      837    (5,294)      208
        Net change in
         other FVO
         financial
         instruments             (83)     (581)    1,194      (664)    1,381
        Current income taxes     (74)   (1,794)     (457)   (1,868)     (834)
        Other, net               218    (3,779)    1,325    (3,561)     (417)
    ----------------------------------------------------- -------------------
                                 324   (11,103)    9,753   (10,779)    1,982
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by financing
     activities
    Deposits, net of
     withdrawals              (1,643)    8,844    (3,619)    7,201     1,935
    Obligations related
     to securities sold
     short                       648    (3,076)      (14)   (2,428)      (83)
    Net obligations
     related to
     securities lent or
     sold under
     repurchase agreements    (2,825)      411     2,517    (2,414)    1,339
    Issue of subordinated
     indebtedness                  -         -        59         -        59
    Redemption of
     subordinated
     indebtedness                (89)     (250)        -      (339)        -
    Issue of preferred
     shares                        -         -       300         -       750
    Redemption of preferred
     shares                        -         -         -         -      (416)
    Issue of common shares,
     net                           7     2,916        21     2,923        71
    Net proceeds from
     treasury shares
     (purchased) sold             (4)        8        (3)        4        15
    Dividends                   (362)     (321)     (294)     (683)     (567)
    Other, net                   223      (445)     (154)     (222)      199
    ----------------------------------------------------- -------------------
                              (4,045)    8,087    (1,187)    4,042     3,302
    ----------------------------------------------------- -------------------
    Cash flows provided
     by (used in) investing
     activities
    Interest-bearing
     deposits with banks       4,570    (4,230)    1,020       340    (1,474)
    Loans, net of repayments  (4,694)   (2,047)   (5,976)   (6,741)   (4,681)
    Proceeds from
     securitizations             933     2,250     1,698     3,183     4,235
    Purchase of AFS
     securities               (3,286)   (1,924)   (2,618)   (5,210)   (4,405)
    Proceeds from sale of
     AFS securities            1,944     5,870     3,353     7,814     4,815
    Proceeds from maturity
     of AFS securities         1,288     4,941       986     6,229     3,382
    Net securities borrowed
     or purchased under
     resale agreements         2,455    (1,605)   (6,948)      850    (5,484)
    Net cash used in
     acquisition(1)                -         -      (262)        -    (1,040)
    Purchase of land,
     buildings and equipment     (23)      (43)        -       (66)     (233)
    Proceeds from disposal
     of land, buildings and
     equipment                     2         -         -         2         -
    ----------------------------------------------------- -------------------
                               3,189     3,212    (8,747)    6,401    (4,885)
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks           1        20       (50)       21        (9)
    ----------------------------------------------------- -------------------
    Net (decrease) increase
     in cash and
     non-interest-bearing
     deposits with banks
     during period              (531)      216      (231)     (315)      390
    Cash and
     non-interest-bearing
     deposits with banks at
     beginning of period       1,673     1,457     1,938     1,457     1,317
    ----------------------------------------------------- -------------------
    Cash and
     non-interest-bearing
     deposits with banks at
     end of period          $  1,142  $  1,673  $  1,707  $  1,142  $  1,707
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash interest paid      $  2,362  $  2,875  $  2,660  $  5,237  $  5,786
    Cash income taxes paid  $    107  $    846  $    496  $    953  $  1,041
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Related to the acquisition of FirstCaribbean International Bank.

    The accompanying notes and shaded sections in "MD&A - Management of
    risk" on pages 27 to 38 are an integral part of these consolidated
    financial statements.



    NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

    The unaudited interim consolidated financial statements of Canadian
    Imperial Bank of Commerce and its subsidiaries (CIBC) have been prepared
    in accordance with Canadian generally accepted accounting principles
    (GAAP). These financial statements follow the same accounting policies
    and their methods of application as CIBC's consolidated financial
    statements for the year ended October 31, 2007, except as noted below.
    CIBC's interim consolidated financial statements do not include all
    disclosures required by Canadian GAAP for annual financial statements
    and, accordingly, should be read in conjunction with the consolidated
    financial statements for the year ended October 31, 2007, as set out on
    pages 84 to 137 of the 2007 Annual Accountability Report.

    1.  Change in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended Canadian Institute of
    Chartered Accountants (CICA) Emerging Issues Committee Abstract (EIC) 46,
    "Leveraged Leases", which was based upon the Financial Accounting
    Standards Board Staff Position FAS 13-2, "Accounting for a Change or
    Projected Change in the Timing of Cash Flows Relating to Income Taxes
    Generated by a Leveraged Lease Transaction". The EIC requires that a
    change in the estimated timing of the cash flows relating to income taxes
    results in a recalculation of the timing of income recognition from the
    leveraged lease.

    The adoption of this guidance resulted in a $66 million charge to opening
    retained earnings as at November 1, 2007. An amount approximating this
    non-cash charge will be recognized into income over the remaining lease
    terms using the effective interest rate method.

    Capital disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 1535,
    "Capital Disclosures", which requires an entity to disclose its
    objectives, policies, and processes for managing capital. These were
    provided in Note 17 of the 2007 consolidated financial statements, and
    are unchanged from the prior year. In addition, the section requires
    disclosure of summary quantitative information about capital components.
    See Note 8 for additional details.

    Financial instruments

    Effective November 1, 2007, we adopted the CICA handbook sections 3862
    "Financial Instruments - Disclosures" and 3863 "Financial Instruments -
    Presentation".

    These sections replace CICA handbook section 3861 "Financial Instruments
    - Disclosure and Presentation", and enhance disclosure requirements on
    the nature and extent of risks arising from financial instruments and how
    the entity manages those risks. See Note 15 for additional details.

    2.  Fair value of financial instruments

    Our approach for fair valuation of financial instruments is presented in
    Note 2 to the 2007 consolidated financial statements.

    Valuation techniques using non-market observable inputs are used for a
    number of financial instruments including our U.S. residential mortgage
    market (USRMM) and certain non-USRMM positions. Indicative broker quotes
    in an inactive market, which we consider to be non-market observable, are
    primarily used for the valuation of these positions. Market observed
    credit spreads are a key factor in establishing valuation adjustments
    against our counterparty credit exposures related to financial
    guarantors.

    A 10% adverse change in mark-to-market of our unhedged USRMM and
    non-USRMM positions would result in a loss of approximately $11 million
    and $123 million respectively, before index hedges. A 10% adverse change
    in mark-to-market of our hedged USRMM and non-USRMM positions would,
    primarily through an increase in credit valuation adjustment for
    financial guarantors, result in a loss of approximately $159 million and
    $47 million respectively, before credit hedges.

    The impact of a 10% widening in financial guarantor credit spreads would
    result in an increase in the credit valuation adjustments of
    approximately $206 million, before credit hedges.

    The total recognized loss in the consolidated financial statements on the
    financial instruments outstanding as at the balance sheet date, whose
    fair value was estimated using valuation techniques using non-market
    observable inputs was $2.43 billion for the quarter ($5.51 billion for
    the six months ended April 30, 2008).

    3.  Sale of some of our U.S. businesses

    Effective January 1, 2008, we sold our U.S. based investment banking,
    leveraged finance, equities and related debt capital markets businesses
    and our Israeli investment banking and equities businesses (the
    "transferred businesses") to Oppenheimer Holdings Inc. (Oppenheimer). The
    sale of certain other U.S. capital markets related businesses located in
    the U.K. and Asia to Oppenheimer is anticipated to close in the third
    quarter of 2008. In consideration, Oppenheimer provided us warrants for
    one million shares exercisable at the end of five years, and will pay us
    a minimum deferred purchase price of US$25 million at the end of five
    years based on the earnings of the transferred businesses. We provided
    indemnities in respect of certain costs that Oppenheimer may incur in
    integrating the transferred businesses.

    We wrote-off the goodwill associated with the transferred businesses,
    recognized losses on certain leasehold improvements and computer
    equipment and software, and recorded liabilities with respect to certain
    contracts that are no longer required as part of our continuing
    operations. In addition, we accelerated the recognition of the cost of
    certain restricted share awards (RSAs) granted to employees that were
    transferred to Oppenheimer.

    CIBC RSAs held by employees transferred to Oppenheimer will continue to
    vest in accordance with their original terms. To support this
    compensation arrangement, Oppenheimer will reimburse CIBC for the cost of
    these RSAs to the extent they vest, at which time we will record the
    reimbursements in other non-interest income.

    As a result, we recorded a net pre-tax loss of $69 million in other
    non-interest income in the 6 months ended April 30, 2008 (of which
    $70 million was recorded in the first quarter). The pre-tax loss is net
    of RSA reimbursements that became receivable from Oppenheimer in the
    second quarter. We also recorded impairment and other charges of
    $13 million (of which $10 million was recorded in the first quarter) in
    other non-interest expenses related to our remaining U.S. operations.

    Pursuant to the sale agreement, CIBC invested in a US$100 million
    subordinated debenture issued by Oppenheimer and is providing certain
    credit facilities to Oppenheimer and its investment banking clients to
    facilitate Oppenheimer's business, with each loan subject to approval by
    CIBC's credit committee.

    Excluding the losses noted above, the transferred businesses contributed
    the following to our results for the two months ended December 31, 2007:

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, for the two months ended                             Dec. 31
    -------------------------------------------------------------------------
    Net interest income                                             $      1
    Non-interest income                                                   58
    -------------------------------------------------------------------------
    Total revenue                                                         59
    Non-interest expenses                                                 48
    -------------------------------------------------------------------------
    Income before taxes and non-controlling interests                     11
    Income taxes                                                           6
    -------------------------------------------------------------------------
    Net income                                                      $      5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    4.  Past due loans but not impaired

    Past due loans are loans where repayment of principal or payment of
    interest is contractually in arrears. The following table provides an
    ageing analysis of the past due loans. Consumer overdraft balances past
    due less than 30 days have been excluded from the table below as the
    information is currently indeterminable.

    --------------------------------------------------------------- ---------
                                                              2008      2008
                           Less than     31 to      Over   Apr. 30   Jan. 31
    $ millions, as at        30 days   90 days   90 days     Total     Total
    --------------------------------------------------------------- ---------
    Residential mortgages   $  1,208  $    534  $    153  $  1,895  $  2,080
    Personal                     477       118        43       638       715
    Credit card                  416       126        80       622       610
    Business and government      280        97        26       403       589
    --------------------------------------------------------------- ---------
                            $  2,381  $    875  $    302  $  3,558  $  3,994
    --------------------------------------------------------------- ---------
    -------------------------------------------------------------------------


    5.  Allowance for credit losses

                          ---------------------------------------------------
                                                  For the three months ended
                          ---------------------------------------------------
                                                 Apr. 30,  Jan. 31,  Apr. 30,
                                                    2008      2008      2007
                          ---------------------------------------------------
                            Specific   General     Total     Total     Total
    $ millions             allowance allowance allowance allowance allowance
    -------------------------------------------------------------------------
    Balance at beginning of
     period                 $    580  $    889  $  1,469  $  1,443  $  1,556
    Provision for (recovery
     of) credit losses           174         2       176       172       166
    Write-offs                  (202)        -      (202)     (187)     (220)
    Recoveries                    26         -        26        31        22
    Transfer from general to
     specific(1)                   2        (2)        -         -         -
    Other(2)                      (1)        -        (1)       10        (8)
    -------------------------------------------------------------------------
    Balance at end of
     period                 $    579  $    889  $  1,468  $  1,469  $  1,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                 $    579  $    805  $  1,384  $  1,379  $  1,515
      Undrawn credit
       facilities(3)        $      -  $     84  $     84        90         -
      Letters of credit(4)         -         -         -         -         1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------
                      For the six months ended
    -------------------------------------------
                             Apr. 30,  Apr. 30,
                                2008      2007
    -------------------------------------------
                               Total     Total
    $ millions             allowance allowance
    -------------------------------------------
    Balance at beginning of
     period                 $  1,443  $  1,444
    Provision for (recovery
     of) credit losses           348       309
    Write-offs                  (389)     (444)
    Recoveries                    57        75
    Transfer from general to
     specific(1)                   -         -
    Other(2)                       9       132
    -------------------------------------------
    Balance at end of
     period                 $  1,468   $ 1,516
    -------------------------------------------
    -------------------------------------------
    Comprised of:
      Loans                 $  1,384   $ 1,515
      Undrawn credit
       facilities(3)        $     84         -
      Letters of credit(4)         -         1
    -------------------------------------------
    -------------------------------------------
    (1) Related to student loan portfolio.
    (2) First quarter of 2007 includes $117 million in specific allowance and
        $23 million in general allowance related to the acquisition of
        FirstCaribbean International Bank.
    (3) Beginning in the first quarter of 2008, allowance on undrawn credit
        facilities is included in other liabilities. Prior to 2008, it was
        included in allowance for credit losses.
    (4) Included in other liabilities.


    6.  Securitizations and variable interest entities

    Securitizations (residential mortgages)

    -------------------------------------------------------------------------
                                                For the three months ended
                                       --------------------------------------
                                              2008         2008         2007
    $ millions                             Apr. 30      Jan. 31      Apr. 30
    -------------------------------------------------------------------------
    Securitized                           $  2,663     $  6,308     $  1,356
    Sold                                       937        2,272        1,707
    Net cash proceeds                          933        2,250        1,698
    Retained interests                          20           48           34
    Gain on sale, net of transaction
     costs                                       9           14           16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining life (in
     years)                                    4.0          3.7          4.2
    Prepayment/payment rate            11.0 - 35.0  11.0 - 36.0  11.0 - 39.0
    Discount rate                        2.9 - 3.6    3.8 - 4.6    4.1 - 4.4
    Expected credit losses               0.0 - 0.1    0.0 - 0.1    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------
                                        For the six months ended
                                       --------------------------
                                              2008         2007
    $ millions                             Apr. 30      Apr. 30
    ------------------------------------------------------------
    Securitized                           $  8,971     $  5,206
    Sold                                     3,209        4,256
    Net cash proceeds                        3,183        4,235
    Retained interests                          68           67
    Gain on sale, net of transaction
     costs                                      23           26
    ------------------------------------------------------------
    ------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining life (in
     years)                                    3.8          3.6
    Prepayment/payment rate            11.0 - 36.0  11.0 - 39.0
    Discount rate                        2.9 - 4.6    4.1 - 4.4
    Expected credit losses               0.0 - 0.1    0.0 - 0.1
    ------------------------------------------------------------
    ------------------------------------------------------------

    Variable interest entities (VIEs)

    As discussed in Note 6 to our 2007 consolidated financial statements, we
    have interests in certain VIEs that are not considered significant
    because our interests are hedged with other counterparties.

    Under certain total return swap credit derivative arrangements with these
    VIEs held in our trading book, we can be called upon to purchase the
    underlying reference assets at par with the simultaneous termination of
    the credit derivatives. Pursuant to these arrangements, during the second
    quarter, we purchased certain reference assets at a par amount of
    $1.8 billion from a third-party structured vehicle in consideration for
    the termination of the related total return swaps. This is in addition to
    the $4.8 billion of reference assets purchased during the first quarter
    from two third party structured vehicles also in consideration for the
    termination of the related total return swaps. The reference assets
    purchased were categorized as trading securities on our consolidated
    balance sheet and continue to be hedged. We may also be called upon to
    purchase additional reference assets at a par amount of $189 million
    covered by the remaining total return swaps with the third-party
    structured vehicles.

    We continue to support our sponsored conduits from time to time through
    the purchase of commercial paper issued by these conduits. As at
    April 30, 2008, our direct investment in commercial paper issued by our
    sponsored conduits was $786 million. We were not considered to be the
    primary beneficiary of any of these conduits. At April 30, 2008 our
    maximum exposure to loss relating to CIBC sponsored multi-seller conduits
    was $11.9 billion (October 31, 2007: $ 15.1 billion). The maximum
    exposure to loss relating to these conduits comprises the fair value for
    investments and notional amounts of liquidity and credit facilities.

    7.  Subordinated indebtedness

    On January 21, 2008, in accordance with their terms, we redeemed all
    $250 million of our 4.75% Debentures (subordinated indebtedness) due
    January 21, 2013, for their outstanding principal amount, plus unpaid
    interest accrued to the redemption date.

    On February 26, 2008, in accordance with their terms, we redeemed all
    $89 million of our 5.89% Debentures (subordinated indebtedness) due
    February 26, 2013, for their outstanding principal amount, plus unpaid
    interest accrued to the redemption date.

    8.  Share capital

    Regulatory capital and ratios

    Commencing November 1, 2007, our regulatory capital requirements are
    based on the Basel II framework. Refer to "Management of risk" section of
    the MD&A for additional details on Basel II.

    Bank for International Settlements standards require that banks maintain
    minimum Tier 1 and Total capital ratios of 4% and 8%, respectively. The
    Office of the Superintendent of Financial Institutions has established
    that Canadian deposit-taking financial institutions maintain Tier 1 and
    Total capital ratios of at least 7% and 10%, respectively. During the
    quarter, we have complied with these regulatory capital requirements.

    As at April 30, 2008, Tier 1 capital comprised common shares excluding
    short trading positions in our own shares, retained earnings, preferred
    shares, non-controlling interests, contributed surplus, and foreign
    currency translation adjustments. Goodwill and gains on sale upon
    securitization were deducted from Tier 1 capital. Tier 2 capital
    comprised subordinated debt and eligible general allowance. Commencing
    November 1, 2007, the investment in insurance subsidiaries and pre-2007
    substantial investments were deducted from Tier 2 capital. Both Tier 1
    and Tier 2 capital were subject to certain other deductions on a
    50/50 basis.

    Our capital ratios and assets-to-capital multiple are presented in the
    following table. The information as at April 30, 2008 is based on
    Basel II requirements and information for October 31, 2007 is based upon
    Basel I requirements, and hence the information is not comparable.

    -------------------------------------------------------------------------
                                                          Basel II   Basel I
                                                             basis     basis
    -------------------------------------------------------------------------
                                                              2008      2007
    $ millions, as at                                    April. 30   Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                        $ 12,009  $ 12,379
    Total regulatory capital                                16,490    17,758
    Risk-weighted assets                                   114,767   127,424
    Tier 1 capital ratio                                    10.5 %     9.7 %
    Total capital ratio                                     14.4 %    13.9 %
    Assets-to-capital multiple                               19.3x     19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Common shares

    During the first quarter, we issued 45.3 million common shares for net
    cash proceeds of $2.9 billion, after issuance costs, net of tax, of
    $32 million. We also issued 0.2 million common shares for $11 million,
    pursuant to stock option plans.

    During the second quarter, we issued 0.2 million common shares for
    $8 million (for the six months ended April 30, 2008: 0.4 million common
    shares for $19 million), pursuant to stock option plans. We also incurred
    additional issuance costs net of tax of $1 million related to common
    shares issued for cash.

    9.  Financial guarantors

    We have derivative contracts with financial guarantors to hedge our
    exposure on various reference assets, including collateralized debt
    obligations and other positions related to the USRMM. During the quarter,
    we recorded a charge of $643 million (for the three months ended
    January 31, 2008: $2.28 billion) on purchased credit derivatives from ACA
    Financial Guaranty Corp (ACA) to increase our valuation adjustments for
    ACA to $3.03 billion (January 31, 2008: $2.29 billion). As at April 30,
    2008, the fair value of purchased credit derivatives with ACA, net of
    valuation adjustment, amounted to $30 million (January 31, 2008:
    $70 million). Further charges could result depending on the performance
    of both the underlying assets and ACA.

    During the quarter, we also recorded a charge of $1.52 billion on
    purchased credit derivatives from financial guarantors other than ACA to
    increase our valuation adjustments for these financial guarantors to
    $2.17 billion (January 31, 2008: $650 million).

    The amount of the charge is based on the estimated fair value of the
    derivative contracts, which in turn is based on market value of the
    underlying reference assets.

    In the first quarter of 2008, we changed our methodology for estimating
    valuation adjustments against our counterparty credit exposures related
    to financial guarantors (excluding that for ACA) to take into account
    market observed credit spreads. The modification resulted in an increase
    in charges of approximately $590 million in the first quarter. During the
    quarter, we continued to apply the key aspects of the market driven
    methodology implemented last quarter for the calculation of the valuation
    adjustments for financial guarantors but with modifications in certain
    limited respects.

    We believe that we have made appropriate fair value adjustments to date.
    The establishment of fair value adjustments involves estimates that are
    based on accounting processes and judgments by management. We evaluate
    the adequacy of the fair value adjustments on an ongoing basis. Market
    and economic conditions relating to these counterparties may change in
    the future, which could result in significant future losses.

    10. Income taxes

    At the end of the quarter, our future income tax asset was $1.06 billion,
    net of a US$82 million ($83 million) valuation allowance. Accounting
    standards require a valuation allowance when it is more likely than not
    that all or a portion of a future income tax asset will not be realized
    prior to its expiration. Although realization is not assured, we believe
    that, based on all available evidence, it is more likely than not that
    all of the future income tax asset, net of the valuation allowance, will
    be realized. Included in the future income tax asset are $724 million
    related to Canadian non-capital loss carry forwards which expire in
    20 years, and $68 million related to Canadian capital loss carry forwards
    which have no expiry date.

    11.  Employee future benefit expenses

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2008      2008      2007      2008      2007
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Defined benefit plans

    Pension benefit plans   $     38  $     38  $     47  $     76  $     95
    Other benefit plans           13         8        11        21        19
    ----------------------------------------------------- -------------------
                            $     51  $     46  $     58  $     97  $    114
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Defined contribution
     plans

    CIBC's pension plans    $      4  $      4  $      5  $      8  $      9
    Government pension
     plans(1)                     23        21        22        44        44
    ----------------------------------------------------- -------------------
                            $     27  $     25  $     27  $     52  $     53
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.



    12. (Loss) earnings per share (EPS)

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
    $ millions, except per      2008      2008      2007      2008      2007
     share amounts           Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Basic EPS

    Net (loss) income       $ (1,111) $ (1,456) $    807  $ (2,567) $  1,577
    Preferred share
     dividends and premiums      (30)      (30)      (35)      (60)      (89)
    ----------------------------------------------------- -------------------
    Net (loss) income
     applicable to common
     shares                 $ (1,141) $ (1,486) $    772  $ (2,627) $  1,488
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             380,754   338,732   337,320   359,512   336,896
    ----------------------------------------------------- -------------------
    Basic EPS               $  (3.00) $  (4.39) $   2.29  $  (7.31) $   4.42
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Diluted EPS

    Net (loss) income
     applicable to common
     shares                 $ (1,141) $ (1,486) $    772  $ (2,627) $  1,488
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             380,754   338,732   337,320   359,512   336,896
    Add: stock options
     potentially
     exercisable(1)
     (thousands)               1,623     2,079     3,293     1,854     3,376
    ----------------------------------------------------- -------------------
    Weighted-average
     diluted common shares
     outstanding(2)
     (thousands)             382,377   340,811   340,613   361,366   340,272
    ----------------------------------------------------- -------------------
    Diluted EPS(3)          $  (3.00) $  (4.39) $   2.27  $  (7.31) $   4.37
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Excludes average options outstanding of 2,128,531 with a weighted-
        average exercise price of $79.50; average options outstanding of
        850,531 with a weighted-average exercise price of $87.69; and average
        options outstanding of 1,698 with a weighted-average exercise price
        of $102.07 for the three months ended April 30, 2008, January 31,
        2008, and April 30, 2007, respectively, as the options' exercise
        prices were greater than the average market price of CIBC's common
        shares.
    (2) Convertible preferred shares/preferred share liabilities have not
        been included in the calculation since we have the right to redeem
        them for cash prior to the conversion date.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted EPS will be anti-dilutive; therefore basic and
        diluted EPS will be the same.


    13. Guarantees

    -------------------------------------------------------------------------
                                                2008                    2007
    $ millions, as at                        Apr. 30                 Oct. 31
    -------------------------------------------------------------------------
                                 Maximum                 Maximum
                               potential               potential
                                  future    Carrying      future    Carrying
                               payment(1)     amount   payment(1)     amount
    -------------------------------------------------------------------------
    Securities lending with
     indemnification(2)        $  50,707   $       -   $  43,287   $       -
    Standby and performance
     letters of credit             6,613          14       6,353          13
    Credit derivatives written
     options                      32,148       5,833      67,283       3,971
    Other derivative written
     options(3)                         (4)    4,024            (4)    5,612
    Other indemnification
     agreements                         (4)        -            (4)        -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $59.3 billion (October 31, 2007: $53.7 billion).
    (2) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services Company, which is a
        50/50 joint venture between CIBC and The Bank of New York Mellon.
    (3) Includes $346 million (October 31, 2007: $631 million) related to
        total return swaps (TRS). For TRS with notional amount of
        approximately $189 million (October 31, 2007: $6.5 billion) and a
        fair value liability of approximately $7 million (October 31, 2007:
        fair value liability of $470 million), we can be called upon to
        purchase the reference assets at par with the simultaneous
        termination of the swap contracts.
    (4) See narrative on page 127 of the 2007 consolidated financial
        statements for further information.

    14. Segmented information

    CIBC has two strategic business lines: CIBC Retail Markets and CIBC World
    Markets. These business lines are supported by five functional groups -
    Administration, Technology and Operations; Corporate Development;
    Finance; Legal and Regulatory Compliance; and Treasury and Risk
    Management. The activities of these functional groups are included within
    Corporate and Other, with their revenue, expenses and balance sheet
    resources generally being allocated to the business lines.

    In the first quarter: (a) We moved commercial banking from CIBC World
    Markets to CIBC Retail Markets. Prior period information was restated;
    (b) We allocated the general allowance for credit losses between the
    strategic business lines (CIBC Retail Markets and CIBC World Markets).
    Prior to 2008, the general allowance (excluding FirstCaribbean
    International Bank) was included within Corporate and Other. Prior period
    information was not restated; and (c) We reclassified the allowance for
    credit losses related to the undrawn credit facilities to other
    liabilities. Prior to 2008, it was included in allowance for credit
    losses. Prior period information was not restated.

    -------------------------------------------------------------------------
                                    CIBC        CIBC
    $ millions, for the           Retail       World   Corporate        CIBC
     three months ended          Markets     Markets   and Other       Total
    -------------------------------------------------------------------------

    Apr. 30, 2008
      Net interest income      $   1,281   $      17   $      51   $   1,349
      Non-interest income            956      (2,183)          4      (1,223)
      Intersegment revenue(1)          2           -          (2)          -
    -------------------------------------------------------------------------
      Total revenue                2,239      (2,166)         53         126
      Provision for credit
       losses                        174           2           -         176
      Amortization(2)                 28           3          30          61
      Other non-interest
       expenses                    1,352         355          20       1,727
    -------------------------------------------------------------------------
      Income (loss) before
       income taxes and non-
       controlling interests         685      (2,526)          3      (1,838)
      Income tax expense
       (benefit)                     174        (891)        (14)       (731)
      Non-controlling interests        2           2           -           4
    -------------------------------------------------------------------------
      Net income (loss)        $     509   $  (1,637)  $      17   $  (1,111)
    -------------------------------------------------------------------------
      Average assets(3)        $ 242,219   $ 104,210   $   2,576   $ 349,005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jan. 31, 2008
      Net interest income
       (expense)               $   1,259   $    (164)  $      59   $   1,154
      Non-interest income          1,111      (2,793)          7      (1,675)
      Intersegment revenue(1)          1           -          (1)          -
    -------------------------------------------------------------------------
      Total revenue                2,371      (2,957)         65        (521)
      Provision for credit
       losses                        155          17           -         172
      Amortization(2)                 28           5          29          62
      Other non-interest
       expenses                    1,325         346          28       1,699
    -------------------------------------------------------------------------
      Income (loss) before
       income taxes and non-
       controlling interests         863      (3,325)          8      (2,454)
      Income tax expense
       (benefit)                     202      (1,166)        (38)     (1,002)
      Non-controlling interests        4           -           -           4
    -------------------------------------------------------------------------
      Net income (loss)        $     657   $  (2,159)  $      46   $  (1,456)
    -------------------------------------------------------------------------
      Average assets(3)        $ 235,279   $ 108,082   $   1,167   $ 344,528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Apr. 30, 2007
      Net interest income
       (expense)               $   1,181   $    (187)  $      85   $   1,079
      Non-interest income          1,126         793          52       1,971
      Intersegment revenue(1)          2           -          (2)          -
    -------------------------------------------------------------------------
      Total revenue                2,309         606         135       3,050
      Provision for (reversal
       of) credit losses             186           -         (20)        166
      Amortization(2)                 20           5          33          58
      Other non-interest
       expenses                    1,398         454          66       1,918
    -------------------------------------------------------------------------
      Income before income
       taxes and non-
       controlling interests         705         147          56         908
      Income tax expense
       (benefit)                      81         (16)         26          91
      Non-controlling interests        7           3           -          10
    -------------------------------------------------------------------------
      Net income               $     617   $     160   $      30   $     807
    -------------------------------------------------------------------------
      Average assets(3)        $ 224,387   $ 100,998   $     703   $ 326,088
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                    CIBC        CIBC
    $ millions, for the           Retail       World   Corporate        CIBC
     six months ended            Markets     Markets   and Other       Total
    -------------------------------------------------------------------------

    Apr. 30, 2008
      Net interest income
       (expense)               $   2,540   $    (147)  $     110   $   2,503
      Non-interest income          2,067      (4,976)         11      (2,898)
      Intersegment revenue(1)          3           -          (3)          -
    -------------------------------------------------------------------------
      Total revenue                4,610      (5,123)        118        (395)
      Provision for credit
       losses                        329          19           -         348
      Amortization(2)                 56           8          59         123
      Other non-interest
       expenses                    2,677         701          48       3,426
    -------------------------------------------------------------------------
      Income (loss) before
       income taxes and non-
       controlling interests       1,548      (5,851)         11      (4,292)
      Income tax expense
       (benefit)                     376      (2,057)        (52)     (1,733)
      Non-controlling interests        6           2           -           8
    -------------------------------------------------------------------------
      Net income (loss)        $   1,166   $  (3,796)  $      63   $  (2,567)
    -------------------------------------------------------------------------
      Average assets(3)        $ 238,711   $ 106,167   $   1,864   $ 346,742
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Apr. 30, 2007
      Net interest income
       (expense)               $   2,326   $    (355)  $     167   $   2,138
      Non-interest income          2,252       1,623         128       4,003
      Intersegment revenue(1)          4           -          (4)          -
    -------------------------------------------------------------------------
      Total revenue                4,582       1,268         291       6,141
      Provision for (reversal
       of) credit losses             334          (5)        (20)        309
      Amortization(2)                 51          10          68         129
      Other non-interest
       expenses                    2,720         935         135       3,790
    -------------------------------------------------------------------------
      Income before income
       taxes and non-
       controlling interests       1,477         328         108       1,913
      Income tax expense
       (benefit)                     279          (5)         48         322
      Non-controlling interests       11           3           -          14
    -------------------------------------------------------------------------
      Net income               $   1,187   $     330   $      60   $   1,577
    -------------------------------------------------------------------------
      Average assets(3)        $ 219,596   $ 100,804   $     623   $ 321,023
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Intersegment revenue represents internal sales commissions and
        revenue allocations under the Manufacturer/Customer Segment/
        Distributor Management Model.
    (2) Includes amortization of buildings, furniture, equipment, leasehold
        improvements and finite-lived other intangible assets.
    (3) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.

    15. Financial instruments - disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 3862,
    "Financial Instruments - Disclosures". We have included some of the
    disclosures required by the CICA handbook section 3862 in the shaded
    sections of the "MD&A - Management of risk", as permitted by the
    standard. The following table provides a cross referencing of those
    disclosures from the MD&A.

    -------------------------------------------------------------------------
    Description                                              Section
    -------------------------------------------------------------------------
    For each type of risk arising from financial             Risk overview
    instruments, an entity shall disclose: the exposure to   ----------------
    risk and how they arise; objectives, policies and        Credit risk
    processes used for managing the risks; methods used to   ----------------
    measure the risk; and description of collateral.         Market risk
                                                             ----------------
                                                             Liquidity risk
                                                             ----------------
                                                             Operational risk
                                                             ----------------
                                                             Reputation and
                                                             legal risk
                                                             ----------------
                                                             Regulatory risk
    -------------------------------------------------------------------------
    Credit risk - gross exposure to credit risk, credit      Credit risk
    quality, and concentration of exposures.
    -------------------------------------------------------------------------
    Market risk - trading portfolios - value-at-risk;        Market risk
    non-trading portfolios - interest rate risk, foreign
    exchange risk, and equity risk.
    -------------------------------------------------------------------------
    Liquidity risk - liquid assets, maturity of financial    Liquidity risk
    liabilities, and credit and liquidity commitments.
    -------------------------------------------------------------------------

    We have provided quantitative disclosures related to credit risk
    consistent with Basel II guidelines, which requires entities to disclose
    their exposures based on how they manage their business and risks. The
    following table sets out the categories of the drawn exposure to credit
    risk under Advanced Internal Ratings Based and standardized approaches
    displayed in both accounting categories and Basel II portfolios.


    $ millions, as at April 30, 2008
    -------------------------------------------------------------------------
    Accounting categories                    Basel II portfolios
    -------------------------  ----------------------------------------------
                                                                 Real estate
                                                                     secured
                                                                    personal
                               Corporate   Sovereign        Bank     lending
    -------------------------  ----------------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $     196   $       -
    Interest-bearing deposits
     with banks                       11         486       4,262           -
    Securities                                                 -
      Trading                        125          19           -           -
      AFS                          1,751       3,860          31           -
      FVO                              4      15,581           -           -
    Loans
      Residential mortgages          593       1,172           -      89,585
      Personal loans                 285           -          18      15,801
      Credit card loans                -           -           -           -
      Business and government
       loans                      29,004         679         295           -
    Customers' liability under
     acceptances                   7,816         411         529           -
    Other assets                     938       1,979       6,506           7
    -------------------------------------------------------------------------
    Total credit exposure      $  40,527   $  24,187   $  11,837   $ 105,393
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------------------
    Accounting categories              Basel II portfolios
    -------------------------  --------------------------------------
                               Qualifying
                                revolving      Other
                                   retail     retail  Securitization
    -------------------------  --------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $       -
    Interest-bearing deposits
     with banks                        -           -           -
    Securities                                                 -
      Trading                          -           -       2,026
      AFS                              -           -       1,641
      FVO                              -           -           -
    Loans                                          -
      Residential mortgages            -           -           -
      Personal loans               6,021       8,036           -
      Credit card loans            9,704         105           -
      Business and government
       loans                           -       2,041         134
    Customers' liability under
     acceptances                       -           -           -
    Other assets                      31           -          33
    -----------------------------------------------------------------
    Total credit exposure      $  15,756   $  10,182   $   3,834
    -----------------------------------------------------------------
    -----------------------------------------------------------------%SEDAR: 00002543EF



For further information:
For further information: Investor and analyst inquiries should be
directed to John Ferren, Vice-President, Investor Relations, at (416)
980-2088; Media inquiries should be directed to Rob McLeod, Senior Director,
Communications and Public Affairs, at (416) 980-3714, or to Mary Lou Frazer,
Senior Director, Investor & Financial Communications, at (416) 980-4111

Back
print email rss