CIBC's 2022 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2022 Annual Report is available on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars, unless otherwise indicated. |
TORONTO, Dec.1, 2022 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2022.
"In 2022, we delivered solid financial performance and furthered the strong momentum across our bank through the execution of our client-focused strategy, thanks to the efforts of our CIBC team who live our purpose each day – to help make your ambition a reality," said Victor Dodig, President and CEO, CIBC. "We enter the new fiscal year as a modern, relationship-oriented bank with a strong capital position and focus on growing in key client segments, elevating the client experience, and investing in future differentiators that build long-term competitive advantages. Our bank is well-diversified and resilient, and our proven ability to navigate in an uncertain operating environment will enable us to continue to deliver value to our stakeholders and contribute meaningfully to a more sustainable future," concluded Mr. Dodig.
Fourth quarter highlights
Q4/22 | Q4/21 | Q3/22 | YoY | QoQ | |
Revenue | $5,388 million | $5,064 million | $5,571 million | +6 % | -3 % |
Reported Net Income | $1,185 million | $1,440 million | $1,666 million | -18 % | -29 % |
Adjusted Net Income (1) | $1,308 million | $1,573 million | $1,724 million | -17 % | -24 % |
Adjusted pre-provision, pre-tax earnings (1) | $2,072 million | $2,109 million | $2,465 million | -2 % | -16 % |
Reported Diluted Earnings Per Share (EPS) (2) | $1.26 | $1.54 | $1.78 | -18 % | -29 % |
Adjusted Diluted EPS (1)(2) | $1.39 | $1.68 | $1.85 | -17 % | -25 % |
Reported Return on Common Shareholders' Equity (ROE) (3) | 10.1 % | 13.4 % | 14.6 % | ||
Adjusted ROE (1) | 11.2 % | 14.7 % | 15.1 % | ||
Common Equity Tier 1 (CET1) Ratio (4) | 11.7 % | 12.4 % | 11.8 % |
CIBC's results for the fourth quarter of 2022 were affected by the following items of note aggregating to a negative impact of $0.13 per share:
- $91 million ($67 million after-tax) increase in legal provisions;
- $37 million ($27 million after-tax) charge related to the consolidation of our real estate portfolio;
- $27 million ($21 million after-tax) amortization of acquisition-related intangible assets; and
- $12 million ($8 million after-tax) in acquisition and integration-related costs as well as purchase accounting adjustments(5) associated with the acquisition of the Canadian Costco credit card portfolio.
For the year ended October 31, 2022, CIBC reported net income of $6.2 billion and adjusted net income(1) of $6.6 billion, compared with reported net income of $6.4 billion and adjusted net income(1) of $6.7 billion for 2021, and adjusted pre-provision, pre-tax earnings(1) of $9.4 billion, compared with $8.8 billion for 2021.
(1) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
(2) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to all periods presented. |
(3) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(4) | Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the "Capital management" section of our 2022 Annual Report available on SEDAR at www.sedar.com. |
(5) | Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables. |
The following table summarizes our performance in 2022 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.
Financial Measure | 2022 Target | 2022 Reported Results | 2022 Adjusted Results (2) |
Diluted EPS growth (3) | 5%–10% annually (1) | $6.68, down 4% from 2021 3-year CAGR(4) = 6.1% 5-year CAGR = 3.5% | $7.05, down 2% from 2021 3-year CAGR = 5.8% 5-year CAGR = 4.9% |
ROE (5) | At least 15% (1) | 14.0% 3-year average = 13.4% 5-year average = 14.2% | 14.7% 3-year average = 14.4% 5-year average = 15.2% |
Operating leverage (5) | Positive (1) | (1.9)%, a decrease of 720 basis points from 2021 3-year average = (0.2)% 5-year average = 0.1% | (1.9)%, a decrease of 260 3-year average = (0.6)% 5-year average = 0.5% |
CET1 ratio | Strong buffer to regulatory requirement | 11.7 % | |
Dividend payout ratio (5) | 40%–50% (1) | 48.8% 3-year average = 53.8% 5-year average = 51.3% | 46.3% 3-year average = 48.9% 5-year average = 47.4% |
Total shareholder return | Outperform the S&P/TSX Composite | 3-year 5-year CIBC: 28.5% 40.2% S&P/TSX Composite Banks Index: 29.0% 40.6% |
Core business performance
F2022 Financial Highlights
(C$ million) | F2022 | F2021 | YoY Variance |
Canadian Personal and Business Banking | |||
Reported Net Income | $2,249 | $2,494 | down 10% |
Adjusted Net Income (2) | $2,396 | $2,503 | down 4% |
Pre-provision, pre-tax earnings (2) | $3,934 | $3,736 | up 5% |
Adjusted pre-provision, pre-tax earnings (2) | $4,039 | $3,748 | up 8% |
Canadian Commercial Banking and Wealth Management | |||
Reported Net Income | $1,895 | $1,665 | up 14% |
Adjusted Net Income (2) | $1,895 | $1,665 | up 14% |
Pre-provision, pre-tax earnings (2) | $2,598 | $2,227 | up 17% |
Adjusted pre-provision, pre-tax earnings (2) | $2,598 | $2,227 | up 17% |
U.S. Commercial Banking and Wealth Management | |||
Reported Net Income | $760 | $926 | down 18% |
Adjusted Net Income (2) | $810 | $976 | down 17% |
Pre-provision, pre-tax earnings (2) | $1,129 | $1,073 | up 5% |
Adjusted pre-provision, pre-tax earnings (2) | $1,197 | $1,141 | up 5% |
Capital Markets | |||
Reported Net Income | $1,908 | $1,857 | up 3% |
Adjusted Net Income (2) | $1,908 | $1,857 | up 3% |
Pre-provision, pre-tax earnings (2) | $2,564 | $2,403 | up 7% |
Adjusted pre-provision, pre-tax earnings (2) | $2,564 | $2,403 | up 7% |
(1) | Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section. |
(2) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
(3) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to all periods presented. |
(4) | The 3-year compound annual growth rate (CAGR) is calculated from 2019 to 2022 and the 5-year CAGR is calculated from 2017 to 2022. |
(5) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2022, CIBC maintained its capital strength and sound risk management practices:
- Capital ratios were strong, with a CET1 ratio(1) of 11.7% as noted above, and Tier 1(1) and Total capital ratios(1) of 13.3% and 15.3%, respectively, at October 31, 2022;
- Market risk, as measured by average Value-at-Risk, was $8.7 million in 2022 compared with $7.6 million in 2021;
- We continued to have solid credit performance, with a loan loss ratio(2) of 14 basis points compared with 16 basis points in 2021;
- Liquidity Coverage Ratio(1) was 129% for the three months ended October 31, 2022; and
- Leverage Ratio(1) was 4.4% at October 31, 2022.
CIBC announced an increase in its quarterly common share dividend from $0.83 per share to $0.85 per share for the quarter ending January 31, 2023.
(1) | Our capital ratios are calculated pursuant to the OSFI's CAR Guideline and the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and liquidity coverage ratio is calculated pursuant to OSFI's Liquidity Adequacy Requirements Guideline, all of which are based on the BCBS standards. For additional information, see the "Capital management" and "Liquidity risk" sections of our 2022 Annual Report available on SEDAR at www.sedar.com. |
(2) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
Credit quality
Provision for credit losses was $436 million for the fourth quarter, up $358 million or 459% from the same quarter last year. The current quarter included a provision for credit losses on performing loans of $217 million mainly due to an unfavourable change in our economic outlook, while the same quarter last year included a provision reversal of $34 million reflective of a favourable change in our economic outlook, partially offset by model parameter updates. Provision for credit losses on impaired loans was up $107 million, mainly attributable to Canadian Personal and Business Banking, and U.S. Commercial Banking and Wealth Management.
Making a difference in our Communities
At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter:
- We joined more than 45,000 Canadians, including nearly 10,000 team members, in support of the Canadian Cancer Society CIBC Run for the Cure. In total, more than $13 million was raised to help advance breast cancer research, education and support programs – including over $2 million by Team CIBC.
- In response to numerous domestic and international disasters, we provided timely donations to support communities with their recovery efforts. CIBC donated more than $450,000 to community organizations in response to Hurricane Ian, Hurricane Fiona, flooding in Pakistan, and the tragedy in James Smith Cree Nation.
- CIBC Foundation announced a new Social Impact Alliance launched together with Microsoft Canada, which will focus on closing the digital skills gap by providing new education and employment opportunities in the technology sector, and ensuring equal access for all communities across the country. To support this goal, CIBC Foundation and Microsoft will be working with NPower Canada and March of Dimes Canada to accelerate skills training and development, as well as to create access to careers in technology.
In the first year of its operation, CIBC Foundation disbursed $3.5 million of new, incremental and impactful funding to 68 charitable organizations in Canada.
Fourth quarter financial highlights | ||||||||||||||||||||
As at or for the | As at or for the | |||||||||||||||||||
three months ended | twelve months ended | |||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Unaudited | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||||||||
Financial results ($ millions) | ||||||||||||||||||||
Net interest income | $ | 3,185 | $ | 3,236 | $ | 2,980 | $ | 12,641 | $ | 11,459 | ||||||||||
Non-interest income | 2,203 | 2,335 | 2,084 | 9,192 | 8,556 | |||||||||||||||
Total revenue | 5,388 | 5,571 | 5,064 | 21,833 | 20,015 | |||||||||||||||
Provision for credit losses | 436 | 243 | 78 | 1,057 | 158 | |||||||||||||||
Non-interest expenses | 3,483 | 3,183 | 3,135 | 12,803 | 11,535 | |||||||||||||||
Income before income taxes | 1,469 | 2,145 | 1,851 | 7,973 | 8,322 | |||||||||||||||
Income taxes | 284 | 479 | 411 | 1,730 | 1,876 | |||||||||||||||
Net income | $ | 1,185 | $ | 1,666 | $ | 1,440 | $ | 6,243 | $ | 6,446 | ||||||||||
Net income attributable to non-controlling interests | 7 | 6 | 4 | 23 | 17 | |||||||||||||||
Preferred shareholders and other equity instrument holders | 37 | 46 | 47 | 171 | 158 | |||||||||||||||
Common shareholders | 1,141 | 1,614 | 1,389 | 6,049 | 6,271 | |||||||||||||||
Net income attributable to equity shareholders | $ | 1,178 | $ | 1,660 | $ | 1,436 | $ | 6,220 | $ | 6,429 | ||||||||||
Financial measures | ||||||||||||||||||||
Reported efficiency ratio (1) | 64.6 | % | 57.1 | % | 61.9 | % | 58.6 | % | 57.6 | % | ||||||||||
Reported operating leverage (1) | (4.7) | % | 1.1 | % | 1.7 | % | (1.9) | % | 5.3 | % | ||||||||||
Loan loss ratio (2) | 0.16 | % | 0.12 | % | 0.10 | % | 0.14 | % | 0.16 | % | ||||||||||
Reported return on common shareholders' equity (1)(3) | 10.1 | % | 14.6 | % | 13.4 | % | 14.0 | % | 16.1 | % | ||||||||||
Net interest margin (1) | 1.33 | % | 1.43 | % | 1.41 | % | 1.40 | % | 1.42 | % | ||||||||||
Net interest margin on average interest-earning assets (1)(4) | 1.51 | % | 1.61 | % | 1.58 | % | 1.58 | % | 1.59 | % | ||||||||||
Return on average assets (1)(4) | 0.50 | % | 0.73 | % | 0.68 | % | 0.69 | % | 0.80 | % | ||||||||||
Return on average interest-earning assets (1)(4) | 0.56 | % | 0.83 | % | 0.77 | % | 0.78 | % | 0.89 | % | ||||||||||
Reported effective tax rate | 19.3 | % | 22.3 | % | 22.2 | % | 21.7 | % | 22.5 | % | ||||||||||
Common share information | ||||||||||||||||||||
Per share ($) (5) | - basic earnings | $ | 1.26 | $ | 1.79 | $ | 1.54 | $ | 6.70 | $ | 6.98 | |||||||||
- reported diluted earnings | 1.26 | 1.78 | 1.54 | 6.68 | 6.96 | |||||||||||||||
- dividends | 0.830 | 0.830 | 0.730 | 3.270 | 2.920 | |||||||||||||||
- book value (6) | 49.95 | 48.97 | 45.83 | 49.95 | 45.83 | |||||||||||||||
Closing share price ($) (5) | 61.87 | 64.78 | 75.09 | 61.87 | 75.09 | |||||||||||||||
Shares outstanding (thousands) (5) | - weighted-average basic | 905,120 | 903,742 | 900,937 | 903,312 | 897,906 | ||||||||||||||
- weighted-average diluted | 906,533 | 905,618 | 904,055 | 905,684 | 900,365 | |||||||||||||||
- end of period | 906,040 | 904,691 | 901,656 | 906,040 | 901,656 | |||||||||||||||
Market capitalization ($ millions) | $ | 56,057 | $ | 58,606 | $ | 67,701 | $ | 56,057 | $ | 67,701 | ||||||||||
Value measures | ||||||||||||||||||||
Total shareholder return | (3.17) | % | (7.57) | % | 4.55 | % | (13.56) | % | 58.03 | % | ||||||||||
Dividend yield (based on closing share price) | 5.3 | % | 5.1 | % | 3.9 | % | 5.3 | % | 3.9 | % | ||||||||||
Reported dividend payout ratio (1) | 65.9 | % | 46.4 | % | 47.3 | % | 48.8 | % | 41.8 | % | ||||||||||
Market value to book value ratio | 1.24 | 1.32 | 1.64 | 1.24 | 1.64 | |||||||||||||||
Selected financial measures – adjusted (7) | ||||||||||||||||||||
Adjusted efficiency ratio (8) | 60.9 | % | 55.2 | % | 57.8 | % | 56.4 | % | 55.4 | % | ||||||||||
Adjusted operating leverage (8) | (5.8) | % | (0.3) | % | (2.8) | % | (1.9) | % | 0.7 | % | ||||||||||
Adjusted return on common shareholders' equity (3) | 11.2 | % | 15.1 | % | 14.7 | % | 14.7 | % | 16.7 | % | ||||||||||
Adjusted effective tax rate | 20.1 | % | 22.4 | % | 22.5 | % | 21.9 | % | 22.7 | % | ||||||||||
Adjusted diluted earnings per share (5) | $ | 1.39 | $ | 1.85 | $ | 1.68 | $ | 7.05 | $ | 7.23 | ||||||||||
Adjusted dividend payout ratio | 59.5 | % | 44.8 | % | 43.2 | % | 46.3 | % | 40.3 | % | ||||||||||
On- and off-balance sheet information ($ millions) | ||||||||||||||||||||
Cash, deposits with banks and securities | $ | 239,740 | $ | 222,183 | $ | 218,398 | $ | 239,740 | $ | 218,398 | ||||||||||
Loans and acceptances, net of allowance for credit losses | 528,657 | 516,595 | 462,879 | 528,657 | 462,879 | |||||||||||||||
Total assets | 943,597 | 896,790 | 837,683 | 943,597 | 837,683 | |||||||||||||||
Deposits | 697,572 | 678,457 | 621,158 | 697,572 | 621,158 | |||||||||||||||
Common shareholders' equity (1) | 45,258 | 44,304 | 41,323 | 45,258 | 41,323 | |||||||||||||||
Average assets (4) | 947,830 | 899,963 | 835,931 | 900,213 | 809,621 | |||||||||||||||
Average interest-earning assets (1)(4) | 834,639 | 796,592 | 747,009 | 799,224 | 721,686 | |||||||||||||||
Average common shareholders' equity (1)(4) | 44,770 | 43,875 | 40,984 | 43,354 | 38,881 | |||||||||||||||
Assets under administration (AUA) (1)(9)(10) | 2,854,828 | 2,851,405 | 2,963,221 | 2,854,828 | 2,963,221 | |||||||||||||||
Assets under management (AUM) (1)(10) | 291,513 | 298,122 | 316,834 | 291,513 | 316,834 | |||||||||||||||
Balance sheet quality and liquidity measures (11) | ||||||||||||||||||||
Risk-weighted assets (RWA) ($ millions) | $ | 315,634 | $ | 303,743 | $ | 272,814 | $ | 315,634 | $ | 272,814 | ||||||||||
CET1 ratio (12) | 11.7 | % | 11.8 | % | 12.4 | % | 11.7 | % | 12.4 | % | ||||||||||
Tier 1 capital ratio (12) | 13.3 | % | 13.2 | % | 14.1 | % | 13.3 | % | 14.1 | % | ||||||||||
Total capital ratio (12) | 15.3 | % | 15.3 | % | 16.2 | % | 15.3 | % | 16.2 | % | ||||||||||
Leverage ratio | 4.4 | % | 4.3 | % | 4.7 | % | 4.4 | % | 4.7 | % | ||||||||||
Liquidity coverage ratio (LCR) (13) | 129 | % | 123 | % | 127 | % | n/a | n/a | ||||||||||||
Net stable funding ratio (NSFR) | 118 | % | 117 | % | 118 | % | 118 | % | 118 | % | ||||||||||
Other information | ||||||||||||||||||||
Full-time equivalent employees | 50,427 | 49,505 | 45,282 | 50,427 | 45,282 |
(1) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on | |||||||||||||||||||
(2) | The ratio is calculated as the provision for (reversal of) credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses. | |||||||||||||||||||
(3) | Annualized. | |||||||||||||||||||
(4) | Average balances are calculated as a weighted average of daily closing balances. | |||||||||||||||||||
(5) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record | |||||||||||||||||||
(6) | Common shareholders' equity divided by the number of common shares issued and outstanding at end of period. | |||||||||||||||||||
(7) | Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is | |||||||||||||||||||
(8) | Calculated on a taxable equivalent basis (TEB). | |||||||||||||||||||
(9) | Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $2,258.1 billion (July 31, 2022: $2,241.6 billion; October 31, 2021: $2,341.1 billion). | |||||||||||||||||||
(10) | AUM amounts are included in the amounts reported under AUA. | |||||||||||||||||||
(11) | RWA and our capital ratios are calculated pursuant to OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to | |||||||||||||||||||
(12) | Ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020 in response to the onset of the COVID-19 pandemic. | |||||||||||||||||||
(13) | Average for the three months ended for each respective period. | |||||||||||||||||||
n/a | Not applicable. |
Review of Canadian Personal and Business Banking fourth quarter results | ||||||||||
2022 | 2022 | 2021 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | $ | 2,262 | $ | 2,321 | $ | 2,128 | ||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 158 | 136 | 87 | |||||||
Performing | 147 | 64 | 77 | |||||||
Total provision for credit losses | 305 | 200 | 164 | |||||||
Non-interest expenses | 1,313 | 1,313 | 1,152 | |||||||
Income before income taxes | 644 | 808 | 812 | |||||||
Income taxes | 173 | 213 | 215 | |||||||
Net income | $ | 471 | $ | 595 | $ | 597 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 471 | $ | 595 | $ | 597 | ||||
Total revenue | ||||||||||
Net interest income | $ | 1,720 | $ | 1,767 | $ | 1,542 | ||||
Non-interest income (1) | 542 | 554 | 586 | |||||||
$ | 2,262 | $ | 2,321 | $ | 2,128 | |||||
Net interest margin on average interest-earning assets (2)(3) | 2.19 | % | 2.29 | % | 2.17 | % | ||||
Efficiency ratio | 58.0 | % | 56.6 | % | 54.1 | % | ||||
Operating leverage | (7.7) | % | (4.7) | % | (0.4) | % | ||||
Return on equity (4) | 22.1 | % | 28.1 | % | 35.9 | % | ||||
Average allocated common equity (4) | $ | 8,437 | $ | 8,387 | $ | 6,608 | ||||
Full-time equivalent employees | 13,840 | 13,576 | 12,629 |
Net income for the quarter was $471 million, down $126 million from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(4) were $968 million, down $20 million from the fourth quarter of 2021, due to higher expenses partially offset by higher revenue.
Revenue of $2,262 million was up $134 million from the fourth quarter of 2021, primarily due to higher net interest income, mainly from volume growth in deposits and assets, including from the acquisition of the Canadian Costco credit card portfolio, partially offset by lower non-interest income.
Net interest margin on average interest-earning assets was up 2 basis points mainly due to higher deposit margins and the impact of the Costco credit card portfolio, partially offset by lower loan margins.
Provision for credit losses of $305 million was up $141 million from the fourth quarter of 2021, due to a higher provision for credit losses on performing loans reflective of an unfavourable change in our economic outlook, and a higher provision for credit losses on impaired loans related to higher write-offs and increased provisions reflective of higher impaired balances.
Non-interest expenses of $1,313 million were up $161 million from the fourth quarter of 2021 due to higher spending on strategic initiatives, including the Canadian Costco credit card portfolio, and higher employee-related compensation.
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Canadian Commercial Banking and Wealth Management fourth quarter results | ||||||||||
2022 | 2022 | 2021 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 601 | $ | 604 | $ | 489 | ||||
Wealth management | 715 | 734 | 751 | |||||||
Total revenue | 1,316 | 1,338 | 1,240 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 14 | 9 | 6 | |||||||
Performing | 7 | 1 | (11) | |||||||
Total provision for (reversal of) credit losses | 21 | 10 | (5) | |||||||
Non-interest expenses | 658 | 670 | 646 | |||||||
Income before income taxes | 637 | 658 | 599 | |||||||
Income taxes | 168 | 174 | 157 | |||||||
Net income | $ | 469 | $ | 484 | $ | 442 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 469 | $ | 484 | $ | 442 | ||||
Total revenue | ||||||||||
Net interest income | $ | 452 | $ | 442 | $ | 352 | ||||
Non-interest income (1) | 864 | 896 | 888 | |||||||
$ | 1,316 | $ | 1,338 | $ | 1,240 | |||||
Net interest margin on average interest-earning assets (2)(3) | 3.38 | % | 3.40 | % | 3.28 | % | ||||
Efficiency ratio | 50.0 | % | 50.1 | % | 52.0 | % | ||||
Operating leverage | 4.1 | % | 2.4 | % | 1.1 | % | ||||
Return on equity (4) | 21.6 | % | 22.8 | % | 24.9 | % | ||||
Average allocated common equity (4) | $ | 8,598 | $ | 8,423 | $ | 7,039 | ||||
Full-time equivalent employees | 5,711 | 5,668 | 5,241 |
Net income for the quarter was $469 million, up $27 million from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(4) were $658 million, up $64 million from the fourth quarter of 2021, due to higher revenue partially offset by higher expenses.
Revenue of $1,316 million was up $76 million from the fourth quarter of 2021, driven mainly by higher net interest income from volume growth in loans, higher deposit spreads that benefited from the rising interest rate environment, and higher fees in commercial banking. Revenue in wealth management decreased due to market depreciation impacting AUA and AUM and lower commission revenue from decreased client activity, partially offset by the impact of volume growth and favourable rates in private banking.
Net interest margin on average interest-earning assets was up 10 basis points primarily due to higher deposit margins, partially offset by lower loan margins.
The current quarter included a provision for credit losses of $21 million, largely due to an unfavourable change in our economic outlook and a few impaired provisions, compared with a provision reversal of $5 million in the fourth quarter of 2021, mainly due to a favourable change in our economic outlook.
Non-interest expenses of $658 million were up $12 million from the fourth quarter of 2021, primarily due to higher spending on strategic initiatives and higher employee-related compensation.
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in Canadian dollars | ||||||||||
2022 | 2022 | 2021 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 432 | $ | 388 | $ | 366 | ||||
Wealth management (1) | 221 | 216 | 196 | |||||||
Total revenue (2) | 653 | 604 | 562 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 34 | 15 | 8 | |||||||
Performing | 66 | 20 | (59) | |||||||
Total provision for (reversal of) credit losses | 100 | 35 | (51) | |||||||
Non-interest expenses | 356 | 334 | 296 | |||||||
Income before income taxes | 197 | 235 | 317 | |||||||
Income taxes | 36 | 42 | 61 | |||||||
Net income | $ | 161 | $ | 193 | $ | 256 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 161 | $ | 193 | $ | 256 | ||||
Total revenue (2) | ||||||||||
Net interest income | $ | 466 | $ | 415 | $ | 368 | ||||
Non-interest income | 187 | 189 | 194 | |||||||
$ | 653 | $ | 604 | $ | 562 | |||||
Net interest margin on average interest-earning assets (3)(4) | 3.49 | % | 3.36 | % | 3.48 | % | ||||
Efficiency ratio | 54.5 | % | 55.3 | % | 52.5 | % | ||||
Return on equity (5) | 5.8 | % | 7.3 | % | 11.2 | % | ||||
Average allocated common equity (5) | $ | 11,015 | $ | 10,534 | $ | 9,085 | ||||
Full-time equivalent employees | 2,472 | 2,395 | 2,170 |
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in U.S. dollars | ||||||||||
2022 | 2022 | 2021 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 320 | $ | 304 | $ | 293 | ||||
Wealth management (1) | 163 | 169 | 155 | |||||||
Total revenue (2) | 483 | 473 | 448 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 25 | 12 | 7 | |||||||
Performing | 51 | 16 | (47) | |||||||
Total provision for (reversal of) credit losses | 76 | 28 | (40) | |||||||
Non-interest expenses | 264 | 261 | 235 | |||||||
Income before income taxes | 143 | 184 | 253 | |||||||
Income taxes | 27 | 32 | 49 | |||||||
Net income | $ | 116 | $ | 152 | $ | 204 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 116 | $ | 152 | $ | 204 | ||||
Total revenue (2) | ||||||||||
Net interest income | 346 | 325 | 293 | |||||||
Non-interest income | 137 | 148 | 155 | |||||||
483 | 473 | 448 | ||||||||
Operating leverage | (4.1) | % | (9.3) | % | (1.9) | % |
Net income for the quarter was $161 million (US$116 million), down $95 million (down US$88 million) from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(5) were $314 million (US$232 million), up $32 million (up US$6 million) from the fourth quarter of 2021, due to higher net interest income, partially offset by higher expenses and lower fee income.
Revenue of US$483 million was up US$35 million from the fourth quarter of 2021, primarily due to higher loan and deposit volumes and the impact of rising rates, partially offset by lower asset management fees.
Net interest margin on average interest-earning assets was up 1 basis point primarily due to higher deposit margins, partially offset by lower loan margins and lower repayment fees due to the U.S. Paycheck Protection Program.
The current quarter included a provision for credit losses of US$76 million, largely due to an unfavourable change in our economic outlook, model parameter updates, unfavourable portfolio migration, and higher provisions in impaired loans, attributable to the real estate and construction, and oil and gas sectors. The fourth quarter of 2021 included a provision reversal of credit losses of US$40 million, due to a favourable change in our economic outlook driven by the recovery from the COVID-19 pandemic, and favourable portfolio migration.
Non-interest expenses of US$264 million were up US$29 million from the fourth quarter of 2021, primarily due to higher employee-related compensation and higher expenses related to investments in the business and infrastructure.
(1) | Includes revenue related to the U.S. Paycheck Protection Program. |
(2) | Included $2 million (US$1 million) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2022 (July 31, 2022: $1 million (US$1 million); October 31, 2021: $3 million (US$3 million)). |
(3) | Average balances are calculated as a weighted average of daily closing balances. |
(4) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com. |
(5) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Capital Markets fourth quarter results | ||||||||||
2022 | 2022 | 2021 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Global markets | $ | 463 | $ | 512 | $ | 420 | ||||
Corporate and investment banking | 440 | 432 | 382 | |||||||
Direct financial services | 279 | 255 | 210 | |||||||
Total revenue (1) | 1,182 | 1,199 | 1,012 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | (5) | (15) | - | |||||||
Performing | 4 | 6 | (34) | |||||||
Total provision for (reversal of) credit losses | (1) | (9) | (34) | |||||||
Non-interest expenses | 656 | 593 | 528 | |||||||
Income before income taxes | 527 | 615 | 518 | |||||||
Income taxes (1) | 149 | 168 | 140 | |||||||
Net income | $ | 378 | $ | 447 | $ | 378 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 378 | $ | 447 | $ | 378 | ||||
Efficiency ratio | 55.4 | % | 49.5 | % | 52.2 | % | ||||
Operating leverage | (7.1) | % | (7.2) | % | (7.2) | % | ||||
Return on equity (2) | 15.8 | % | 19.3 | % | 19.7 | % | ||||
Average allocated common equity (2) | $ | 9,522 | $ | 9,200 | $ | 7,632 | ||||
Full-time equivalent employees | 2,384 | 2,410 | 2,225 |
Reported net income for the quarter was $378 million, compared with reported net income of $378 million for the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(2) were up $42 million or 9% from the fourth quarter of 2021, due to higher revenue partially offset by higher expenses.
Revenue of $1,182 million was up $170 million from the fourth quarter of 2021. In global markets, revenue increased due to higher foreign exchange and fixed income trading revenue, partially offset by lower equity derivatives trading revenue. In corporate and investment banking, higher corporate banking and advisory revenue was partially offset by lower debt and equity underwriting activity. Direct Financial Services revenue increased due to higher revenue from Simplii Financial.
Provision reversal of credit losses was down $33 million from the fourth quarter of 2021, mainly due to a favourable change in our economic outlook in the same quarter last year.
Non-interest expenses of $656 million were up $128 million from the fourth quarter of 2021, primarily due to higher employee-related compensation and investments made in strategic business initiatives.
Review of Corporate and Other fourth quarter results | |||||||||
2022 | 2022 | 2021 | |||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | ||||||
Revenue | |||||||||
International banking | $ | 220 | $ | 189 | $ | 180 | |||
Other | (245) | (80) | (58) | ||||||
Total revenue (1) | (25) | 109 | 122 | ||||||
Provision for (reversal of) credit losses | |||||||||
Impaired | 18 | 11 | 11 | ||||||
Performing | (7) | (4) | (7) | ||||||
Total provision for credit losses | 11 | 7 | 4 | ||||||
Non-interest expenses | 500 | 273 | 513 | ||||||
Loss before income taxes | (536) | (171) | (395) | ||||||
Income taxes (1) | (242) | (118) | (162) | ||||||
Net loss | $ | (294) | $ | (53) | $ | (233) | |||
Net income (loss) attributable to: | |||||||||
Non-controlling interests | $ | 7 | $ | 6 | $ | 4 | |||
Equity shareholders | (301) | (59) | (237) | ||||||
Full-time equivalent employees | 26,020 | 25,456 | 23,017 |
Net loss for the quarter was $294 million, compared with a net loss of $233 million for the fourth quarter of 2021. Adjusted pre-provision, pre-tax losses(2) were up $155 million or 65% from the fourth quarter of 2021, due to lower revenue, partially offset by lower expenses.
Revenue was down $147 million from the fourth quarter of 2021, due to lower treasury revenue, partially offset by higher revenue in CIBC FirstCaribbean driven by the impact of foreign exchange translation, higher product margins, volume growth and fees.
Provision for credit losses was up $7 million from the fourth quarter of 2021, mainly due to a higher provision on impaired loans in CIBC FirstCaribbean.
Non-interest expenses of $500 million were down $13 million from the fourth quarter of 2021. Adjusted non-interest expenses(2) of $369 million were up $8 million from the fourth quarter of 2021, primarily due to higher employee termination costs and higher expenses in CIBC FirstCaribbean, partially offset by lower unallocated corporate support costs.
Income tax benefit was up $80 million from the fourth quarter of 2021 primarily due to a higher loss.
(1) | Revenue and income taxes of Capital Markets are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $51 million for the quarter ended October 31, 2022 (July 31, 2022: $48 million; October 31, 2021: $48 million). |
(2) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Consolidated balance sheet | ||||||||
$ millions, as at October 31 | 2022 | 2021 | ||||||
ASSETS | ||||||||
Cash and non-interest-bearing deposits with banks | $ | 31,535 | $ | 34,573 | ||||
Interest-bearing deposits with banks | 32,326 | 22,424 | ||||||
Securities | 175,879 | 161,401 | ||||||
Cash collateral on securities borrowed | 15,326 | 12,368 | ||||||
Securities purchased under resale agreements | 69,213 | 67,572 | ||||||
Loans | ||||||||
Residential mortgages | 269,706 | 251,526 | ||||||
Personal | 45,429 | 41,897 | ||||||
Credit card | 16,479 | 11,134 | ||||||
Business and government | 188,542 | 150,213 | ||||||
Allowance for credit losses | (3,073) | (2,849) | ||||||
517,083 | 451,921 | |||||||
Other | ||||||||
Derivative instruments | 43,035 | 35,912 | ||||||
Customers' liability under acceptances | 11,574 | 10,958 | ||||||
Property and equipment | 3,377 | 3,286 | ||||||
Goodwill | 5,348 | 4,954 | ||||||
Software and other intangible assets | 2,592 | 2,029 | ||||||
Investments in equity-accounted associates and joint ventures | 632 | 658 | ||||||
Deferred tax assets | 480 | 402 | ||||||
Other assets | 35,197 | 29,225 | ||||||
102,235 | 87,424 | |||||||
$ | 943,597 | $ | 837,683 | |||||
LIABILITIES AND EQUITY | ||||||||
Deposits | ||||||||
Personal | $ | 232,095 | $ | 213,932 | ||||
Business and government | 397,188 | 344,388 | ||||||
Bank | 22,523 | 20,246 | ||||||
Secured borrowings | 45,766 | 42,592 | ||||||
697,572 | 621,158 | |||||||
Obligations related to securities sold short | 15,284 | 22,790 | ||||||
Cash collateral on securities lent | 4,853 | 2,463 | ||||||
Obligations related to securities sold under repurchase agreements | 77,171 | 71,880 | ||||||
Other | ||||||||
Derivative instruments | 52,340 | 32,101 | ||||||
Acceptances | 11,586 | 10,961 | ||||||
Deferred tax liabilities | 45 | 38 | ||||||
Other liabilities | 28,072 | 24,923 | ||||||
92,043 | 68,023 | |||||||
Subordinated indebtedness | 6,292 | 5,539 | ||||||
Equity | ||||||||
Preferred shares and other equity instruments | 4,923 | 4,325 | ||||||
Common shares | 14,726 | 14,351 | ||||||
Contributed surplus | 115 | 110 | ||||||
Retained earnings | 28,823 | 25,793 | ||||||
Accumulated other comprehensive income (AOCI) | 1,594 | 1,069 | ||||||
Total shareholders' equity | 50,181 | 45,648 | ||||||
Non-controlling interests | 201 | 182 | ||||||
Total equity | 50,382 | 45,830 | ||||||
$ | 943,597 | $ | 837,683 |
Consolidated statement of income | |||||||||||||||||||
For the three | For the twelve | ||||||||||||||||||
months ended | months ended | ||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
$ millions, except as noted | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||||||
Interest income (1) | |||||||||||||||||||
Loans | $ | 5,806 | $ | 4,449 | $ | 3,103 | $ | 16,874 | $ | 12,150 | |||||||||
Securities | 1,243 | 884 | 527 | 3,422 | 2,141 | ||||||||||||||
Securities borrowed or purchased under resale agreements | 669 | 308 | 75 | 1,175 | 319 | ||||||||||||||
Deposits with banks | 474 | 159 | 32 | 708 | 131 | ||||||||||||||
8,192 | 5,800 | 3,737 | 22,179 | 14,741 | |||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 4,177 | 2,123 | 612 | 7,887 | 2,651 | ||||||||||||||
Securities sold short | 121 | 103 | 61 | 380 | 236 | ||||||||||||||
Securities lent or sold under repurchase agreements | 564 | 252 | 42 | 943 | 208 | ||||||||||||||
Subordinated indebtedness | 84 | 55 | 29 | 203 | 122 | ||||||||||||||
Other | 61 | 31 | 13 | 125 | 65 | ||||||||||||||
5,007 | 2,564 | 757 | 9,538 | 3,282 | |||||||||||||||
Net interest income | 3,185 | 3,236 | 2,980 | 12,641 | 11,459 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Underwriting and advisory fees | 143 | 120 | 151 | 557 | 713 | ||||||||||||||
Deposit and payment fees | 221 | 222 | 216 | 880 | 797 | ||||||||||||||
Credit fees | 331 | 324 | 295 | 1,286 | 1,152 | ||||||||||||||
Card fees | 102 | 98 | 125 | 437 | 460 | ||||||||||||||
Investment management and custodial fees | 428 | 435 | 441 | 1,760 | 1,621 | ||||||||||||||
Mutual fund fees | 418 | 430 | 469 | 1,776 | 1,772 | ||||||||||||||
Insurance fees, net of claims | 80 | 94 | 87 | 351 | 358 | ||||||||||||||
Commissions on securities transactions | 79 | 87 | 101 | 378 | 426 | ||||||||||||||
Gains (losses) from financial instruments measured/designated at | |||||||||||||||||||
fair value through profit or loss (FVTPL), net | 309 | 318 | 82 | 1,172 | 607 | ||||||||||||||
Gains (losses) from debt securities measured at fair value through | |||||||||||||||||||
other comprehensive income (FVOCI) and amortized cost, net | (6) | 6 | 22 | 35 | 90 | ||||||||||||||
Foreign exchange other than trading | 25 | 76 | 50 | 242 | 276 | ||||||||||||||
Income from equity-accounted associates and joint ventures | 9 | 11 | 11 | 47 | 55 | ||||||||||||||
Other | 64 | 114 | 34 | 271 | 229 | ||||||||||||||
2,203 | 2,335 | 2,084 | 9,192 | 8,556 | |||||||||||||||
Total revenue | 5,388 | 5,571 | 5,064 | 21,833 | 20,015 | ||||||||||||||
Provision for credit losses | 436 | 243 | 78 | 1,057 | 158 | ||||||||||||||
Non-interest expenses | |||||||||||||||||||
Employee compensation and benefits | 1,897 | 1,767 | 1,669 | 7,157 | 6,450 | ||||||||||||||
Occupancy costs | 253 | 192 | 327 | 853 | 916 | ||||||||||||||
Computer, software and office equipment | 598 | 606 | 552 | 2,297 | 2,030 | ||||||||||||||
Communications | 89 | 90 | 76 | 352 | 318 | ||||||||||||||
Advertising and business development | 101 | 90 | 87 | 334 | 237 | ||||||||||||||
Professional fees | 82 | 76 | 95 | 313 | 277 | ||||||||||||||
Business and capital taxes | 33 | 30 | 28 | 123 | 111 | ||||||||||||||
Other | 430 | 332 | 301 | 1,374 | 1,196 | ||||||||||||||
3,483 | 3,183 | 3,135 | 12,803 | 11,535 | |||||||||||||||
Income before income taxes | 1,469 | 2,145 | 1,851 | 7,973 | 8,322 | ||||||||||||||
Income taxes | 284 | 479 | 411 | 1,730 | 1,876 | ||||||||||||||
Net income | $ | 1,185 | $ | 1,666 | $ | 1,440 | $ | 6,243 | $ | 6,446 | |||||||||
Net income attributable to non-controlling interests | $ | 7 | $ | 6 | $ | 4 | $ | 23 | $ | 17 | |||||||||
Preferred shareholders and other equity instrument holders | $ | 37 | $ | 46 | $ | 47 | $ | 171 | $ | 158 | |||||||||
Common shareholders | 1,141 | 1,614 | 1,389 | 6,049 | 6,271 | ||||||||||||||
Net income attributable to equity shareholders | $ | 1,178 | $ | 1,660 | $ | 1,436 | $ | 6,220 | $ | 6,429 | |||||||||
Earnings per share (in dollars) (2) | |||||||||||||||||||
Basic | $ | 1.26 | $ | 1.79 | $ | 1.54 | $ | 6.70 | $ | 6.98 | |||||||||
Diluted | 1.26 | 1.78 | 1.54 | 6.68 | 6.96 | ||||||||||||||
Dividends per common share (in dollars) (2) | 0.83 | 0.83 | 0.73 | 3.27 | 2.92 |
(1) | Interest income included $7.6 billion for the quarter ended October 31, 2022 (July 31, 2022: $5.2 billion; October 31, 2021: $3.4 billion) calculated based on the effective interest rate method. | ||||||||||||||||||
(2) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, |
Consolidated statement of comprehensive income | |||||||||||||||
For the three | For the twelve | ||||||||||||||
months ended | months ended | ||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||
Net income | $ | 1,185 | $ | 1,666 | $ | 1,440 | $ | 6,243 | $ | 6,446 | |||||
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent | |||||||||||||||
reclassification to net income | |||||||||||||||
Net foreign currency translation adjustments | |||||||||||||||
Net gains (losses) on investments in foreign operations | 2,691 | (136) | (301) | 4,043 | (2,610) | ||||||||||
Net gains (losses) on hedges of investments in foreign operations | (1,510) | 81 | 172 | (2,290) | 1,495 | ||||||||||
1,181 | (55) | (129) | 1,753 | (1,115) | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | (107) | (104) | (33) | (784) | (50) | ||||||||||
Net (gains) losses reclassified to net income | 5 | (5) | (15) | (25) | (66) | ||||||||||
(102) | (109) | (48) | (809) | (116) | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | (488) | (121) | (187) | (1,351) | 178 | ||||||||||
Net (gains) losses reclassified to net income | 50 | 248 | 32 | 552 | (315) | ||||||||||
(438) | 127 | (155) | (799) | (137) | |||||||||||
OCI, net of income tax, that is not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | (198) | (32) | 254 | 198 | 917 | ||||||||||
Net gains (losses) due to fair value change of fair value option (FVO) liabilities | |||||||||||||||
attributable to changes in credit risk | 40 | 75 | 17 | 262 | 12 | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | (5) | (84) | 30 | (35) | 100 | ||||||||||
(163) | (41) | 301 | 425 | 1,029 | |||||||||||
Total OCI (1) | 478 | (78) | (31) | 570 | (339) | ||||||||||
Comprehensive income | $ | 1,663 | $ | 1,588 | $ | 1,409 | $ | 6,813 | $ | 6,107 | |||||
Comprehensive income attributable to non-controlling interests | $ | 7 | $ | 6 | $ | 4 | $ | 23 | $ | 17 | |||||
Preferred shareholders and other equity instrument holders | $ | 37 | $ | 46 | $ | 47 | $ | 171 | $ | 158 | |||||
Common shareholders | 1,619 | 1,536 | 1,358 | 6,619 | 5,932 | ||||||||||
Comprehensive income attributable to equity shareholders | $ | 1,656 | $ | 1,582 | $ | 1,405 | $ | 6,790 | $ | 6,090 |
(1) | Includes $48 million of losses for the quarter ended October 31, 2022 (July 31, 2022: $43 million of losses; October 31, 2021: $9 million of losses), relating to our investments in equity-accounted |
For the three | For the twelve | ||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||
Income tax (expense) benefit allocated to each component of OCI | |||||||||||||||
Subject to subsequent reclassification to net income | |||||||||||||||
Net foreign currency translation adjustments | |||||||||||||||
Net gains (losses) on investments in foreign operations | $ | (91) | $ | 5 | $ | 11 | $ | (136) | $ | 45 | |||||
Net gains (losses) on hedges of investments in foreign operations | 82 | (5) | (10) | 131 | (53) | ||||||||||
(9) | - | 1 | (5) | (8) | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | 15 | 12 | 5 | 160 | (11) | ||||||||||
Net (gains) losses reclassified to net income | (2) | 2 | 5 | 9 | 23 | ||||||||||
13 | 14 | 10 | 169 | 12 | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | 174 | 43 | 66 | 482 | (64) | ||||||||||
Net (gains) losses reclassified to net income | (18) | (88) | (11) | (197) | 112 | ||||||||||
156 | (45) | 55 | 285 | 48 | |||||||||||
Not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | 44 | 12 | (74) | (97) | (311) | ||||||||||
Net gains (losses) due to fair value change of FVO liabilities attributable | |||||||||||||||
to changes in credit risk | (14) | (27) | (6) | (93) | (4) | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | 2 | 28 | (10) | 9 | (34) | ||||||||||
32 | 13 | (90) | (181) | (349) | |||||||||||
$ | 192 | $ | (18) | $ | (24) | $ | 268 | $ | (297) |
Consolidated statement of changes in equity | ||||||||||||||
For the three | For the twelve | |||||||||||||
months ended | months ended | |||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||
Preferred shares and other equity instruments | ||||||||||||||
Balance at beginning of period | $ | 4,325 | $ | 4,325 | $ | 3,575 | $ | 4,325 | $ | 3,575 | ||||
Issue of preferred shares and limited recourse capital notes | 600 | 800 | 750 | 1,400 | 750 | |||||||||
Redemption of preferred shares | - | (800) | - | (800) | - | |||||||||
Treasury shares | (2) | - | - | (2) | - | |||||||||
Balance at end of period | $ | 4,923 | $ | 4,325 | $ | 4,325 | $ | 4,923 | $ | 4,325 | ||||
Common shares | ||||||||||||||
Balance at beginning of period | $ | 14,643 | $ | 14,545 | $ | 14,252 | $ | 14,351 | $ | 13,908 | ||||
Issue of common shares | 81 | 95 | 99 | 401 | 458 | |||||||||
Purchase of common shares for cancellation | - | - | - | (29) | - | |||||||||
Treasury shares | 2 | 3 | - | 3 | (15) | |||||||||
Balance at end of period | $ | 14,726 | $ | 14,643 | $ | 14,351 | $ | 14,726 | $ | 14,351 | ||||
Contributed surplus | ||||||||||||||
Balance at beginning of period | $ | 107 | $ | 115 | $ | 117 | $ | 110 | $ | 117 | ||||
Compensation expense arising from equity-settled share-based awards | 9 | 3 | 2 | 24 | 19 | |||||||||
Exercise of stock options and settlement of other equity-settled share-based awards | (1) | (11) | (14) | (20) | (43) | |||||||||
Other | - | - | 5 | 1 | 17 | |||||||||
Balance at end of period | $ | 115 | $ | 107 | $ | 110 | $ | 115 | $ | 110 | ||||
Retained earnings | ||||||||||||||
Balance at beginning of period | $ | 28,439 | $ | 27,567 | $ | 25,055 | $ | 25,793 | $ | 22,119 | ||||
Net income attributable to equity shareholders | 1,178 | 1,660 | 1,436 | 6,220 | 6,429 | |||||||||
Dividends and distributions | ||||||||||||||
Preferred and other equity instruments | (37) | (46) | (47) | (171) | (158) | |||||||||
Common | (752) | (750) | (657) | (2,954) | (2,622) | |||||||||
Premium on purchase of common shares for cancellation | - | - | - | (105) | - | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI | (1) | 9 | 9 | 45 | 27 | |||||||||
Other | (4) | (1) | (3) | (5) | (2) | |||||||||
Balance at end of period | $ | 28,823 | $ | 28,439 | $ | 25,793 | $ | 28,823 | $ | 25,793 | ||||
AOCI, net of income tax | ||||||||||||||
AOCI, net of income tax, that is subject to subsequent reclassification to net income | ||||||||||||||
Net foreign currency translation adjustments | ||||||||||||||
Balance at beginning of period | $ | 630 | $ | 685 | $ | 187 | $ | 58 | $ | 1,173 | ||||
Net change in foreign currency translation adjustments | 1,181 | (55) | (129) | 1,753 | (1,115) | |||||||||
Balance at end of period | $ | 1,811 | $ | 630 | $ | 58 | $ | 1,811 | $ | 58 | ||||
Net gains (losses) on debt securities measured at FVOCI | ||||||||||||||
Balance at beginning of period | $ | (514) | $ | (405) | $ | 241 | $ | 193 | $ | 309 | ||||
Net change in securities measured at FVOCI | (102) | (109) | (48) | (809) | (116) | |||||||||
Balance at end of period | $ | (616) | $ | (514) | $ | 193 | $ | (616) | $ | 193 | ||||
Net gains (losses) on cash flow hedges | ||||||||||||||
Balance at beginning of period | $ | (224) | $ | (351) | $ | 292 | $ | 137 | $ | 274 | ||||
Net change in cash flow hedges | (438) | 127 | (155) | (799) | (137) | |||||||||
Balance at end of period | $ | (662) | $ | (224) | $ | 137 | $ | (662) | $ | 137 | ||||
AOCI, net of income tax, that is not subject to subsequent reclassification to net income | ||||||||||||||
Net gains (losses) on post-employment defined benefit plans | ||||||||||||||
Balance at beginning of period | $ | 1,030 | $ | 1,062 | $ | 380 | $ | 634 | $ | (283) | ||||
Net change in post-employment defined benefit plans | (198) | (32) | 254 | 198 | 917 | |||||||||
Balance at end of period | $ | 832 | $ | 1,030 | $ | 634 | $ | 832 | $ | 634 | ||||
Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk | ||||||||||||||
Balance at beginning of period | $ | 194 | $ | 119 | $ | (45) | $ | (28) | $ | (40) | ||||
Net change attributable to changes in credit risk | 40 | 75 | 17 | 262 | 12 | |||||||||
Balance at end of period | $ | 234 | $ | 194 | $ | (28) | $ | 234 | $ | (28) | ||||
Net gains (losses) on equity securities designated at FVOCI | ||||||||||||||
Balance at beginning of period | $ | (1) | $ | 92 | $ | 54 | $ | 75 | $ | 2 | ||||
Net gains (losses) on equity securities designated at FVOCI | (5) | (84) | 30 | (35) | 100 | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified to retained earnings | 1 | (9) | (9) | (45) | (27) | |||||||||
Balance at end of period | $ | (5) | $ | (1) | $ | 75 | $ | (5) | $ | 75 | ||||
Total AOCI, net of income tax | $ | 1,594 | $ | 1,115 | $ | 1,069 | $ | 1,594 | $ | 1,069 | ||||
Non-controlling interests | ||||||||||||||
Balance at beginning of period | $ | 195 | $ | 193 | $ | 177 | $ | 182 | $ | 181 | ||||
Net income attributable to non-controlling interests | 7 | 6 | 4 | 23 | 17 | |||||||||
Dividends | (2) | (2) | (6) | (8) | (9) | |||||||||
Other | 1 | (2) | 7 | 4 | (7) | |||||||||
Balance at end of period | $ | 201 | $ | 195 | $ | 182 | $ | 201 | $ | 182 | ||||
Equity at end of period | $ | 50,382 | $ | 48,824 | $ | 45,830 | $ | 50,382 | $ | 45,830 |
Consolidated statement of cash flows | ||||||||||||||||||
For the three | For the twelve | |||||||||||||||||
months ended | months ended | |||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||||||
Net income | $ | 1,185 | $ | 1,666 | $ | 1,440 | $ | 6,243 | $ | 6,446 | ||||||||
Adjustments to reconcile net income to cash flows provided by (used in) operating activities: | ||||||||||||||||||
Provision for credit losses | 436 | 243 | 78 | 1,057 | 158 | |||||||||||||
Amortization and impairment (1) | 278 | 260 | 287 | 1,047 | 1,017 | |||||||||||||
Stock options and restricted shares expense | 9 | 3 | 2 | 24 | 19 | |||||||||||||
Deferred income taxes | (118) | (31) | (11) | (46) | (41) | |||||||||||||
Losses (gains) from debt securities measured at FVOCI and amortized cost | 6 | (6) | (22) | (35) | (90) | |||||||||||||
Net losses (gains) on disposal of land, buildings and equipment | 3 | (9) | - | (6) | - | |||||||||||||
Other non-cash items, net | (786) | (278) | 470 | (1,126) | 927 | |||||||||||||
Net changes in operating assets and liabilities | ||||||||||||||||||
Interest-bearing deposits with banks | (12,942) | 7,868 | (2,362) | (9,902) | (3,437) | |||||||||||||
Loans, net of repayments | (13,188) | (14,320) | (14,462) | (65,000) | (46,883) | |||||||||||||
Deposits, net of withdrawals | 20,188 | 9,169 | 18,948 | 74,511 | 47,521 | |||||||||||||
Obligations related to securities sold short | (4,895) | 1,209 | 975 | (7,506) | 6,827 | |||||||||||||
Accrued interest receivable | (532) | (188) | (170) | (959) | 46 | |||||||||||||
Accrued interest payable | 839 | 222 | 114 | 1,228 | (419) | |||||||||||||
Derivative assets | (6,740) | 10,382 | (1,546) | (7,073) | (3,172) | |||||||||||||
Derivative liabilities | 12,991 | (5,515) | 2,797 | 20,622 | 1,582 | |||||||||||||
Securities measured at FVTPL | 3,718 | (3,061) | (191) | 4,949 | (9,552) | |||||||||||||
Other assets and liabilities measured/designated at FVTPL | 2,173 | 3,438 | 6,081 | 9,404 | 7,277 | |||||||||||||
Current income taxes | 171 | 69 | 37 | (809) | 543 | |||||||||||||
Cash collateral on securities lent | 1,554 | 205 | (1,148) | 2,390 | 639 | |||||||||||||
Obligations related to securities sold under repurchase agreements | 13,233 | (3,131) | 1,533 | 3,680 | (2,248) | |||||||||||||
Cash collateral on securities borrowed | (49) | (654) | 928 | (2,958) | (3,821) | |||||||||||||
Securities purchased under resale agreements | (9,078) | 4,154 | (4,662) | (1,641) | (1,977) | |||||||||||||
Other, net | 409 | (3,747) | (812) | (5,379) | (4,694) | |||||||||||||
8,865 | 7,948 | 8,304 | 22,715 | (3,332) | ||||||||||||||
Cash flows provided by (used in) financing activities | ||||||||||||||||||
Issue of subordinated indebtedness | - | - | - | 1,000 | 1,000 | |||||||||||||
Redemption/repurchase/maturity of subordinated indebtedness | (2) | - | - | (2) | (1,008) | |||||||||||||
Issue of preferred shares and limited recourse capital notes, net of issuance cost | 597 | 798 | 748 | 1,395 | 748 | |||||||||||||
Redemption of preferred shares | - | (800) | - | (800) | - | |||||||||||||
Issue of common shares for cash | 40 | 44 | 51 | 228 | 284 | |||||||||||||
Purchase of common shares for cancellation | - | - | - | (134) | - | |||||||||||||
Net sale (purchase) of treasury shares | - | 3 | - | 1 | (15) | |||||||||||||
Dividends and distributions paid | (750) | (755) | (670) | (2,972) | (2,649) | |||||||||||||
Repayment of lease liabilities | (86) | (81) | (82) | (326) | (305) | |||||||||||||
(201) | (791) | 47 | (1,610) | (1,945) | ||||||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||
Purchase of securities measured/designated at FVOCI and amortized cost | (16,689) | (13,782) | (15,249) | (70,954) | (49,896) | |||||||||||||
Proceeds from sale of securities measured/designated at FVOCI and amortized cost | 6,298 | 4,679 | 5,748 | 23,183 | 23,917 | |||||||||||||
Proceeds from maturity of debt securities measured at FVOCI and amortized cost | 7,555 | 7,410 | 5,780 | 27,574 | 23,312 | |||||||||||||
Acquisition of Canadian Costco credit card portfolio | (7) | - | - | (3,085) | - | |||||||||||||
Net sale (purchase) of property, equipment, software and other intangible assets | (392) | (272) | (270) | (1,109) | (839) | |||||||||||||
(3,235) | (1,965) | (3,991) | (24,391) | (3,506) | ||||||||||||||
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks | 156 | (10) | (21) | 248 | (175) | |||||||||||||
Net increase (decrease) in cash and non-interest-bearing deposits with banks | ||||||||||||||||||
during the period | 5,585 | 5,182 | 4,339 | (3,038) | (8,958) | |||||||||||||
Cash and non-interest-bearing deposits with banks at beginning of period | 25,950 | 20,768 | 30,234 | 34,573 | 43,531 | |||||||||||||
Cash and non-interest-bearing deposits with banks at end of period (2) | $ | 31,535 | $ | 25,950 | $ | 34,573 | $ | 31,535 | $ | 34,573 | ||||||||
Cash interest paid | $ | 4,168 | $ | 2,342 | $ | 643 | $ | 8,310 | $ | 3,701 | ||||||||
Cash interest received | 7,368 | 5,349 | 3,363 | 20,120 | 13,890 | |||||||||||||
Cash dividends received | 292 | 263 | 204 | 1,100 | 897 | |||||||||||||
Cash income taxes paid | 231 | 441 | 385 | 2,585 | 1,374 | |||||||||||||
(1) | Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill. | |||||||||||||||||
(2) | Includes restricted cash of $493 million (July 31, 2022: $482 million; October 31, 2021: $446 million) and interest-bearing demand deposits with Bank of Canada. |
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 International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.
Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our 2022 Annual Report available on SEDAR at www.sedar.com.
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
U.S. | |||||||||||||||||
Canadian | U.S. | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended October 31, 2022 | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,262 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,388 | $ | 483 | |||
Provision for (reversal of) credit losses | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses | 1,313 | 658 | 356 | 656 | 500 | 3,483 | 264 | ||||||||||
Income (loss) before income taxes | 644 | 637 | 197 | 527 | (536) | 1,469 | 143 | ||||||||||
Income taxes | 173 | 168 | 36 | 149 | (242) | 284 | 27 | ||||||||||
Net income (loss) | 471 | 469 | 161 | 378 | (294) | 1,185 | 116 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 471 | 469 | 161 | 378 | (301) | 1,178 | 116 | ||||||||||
Diluted EPS ($) (1) | $ | 1.26 | |||||||||||||||
Impact of items of note (2) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | $ | (6) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | - | |||
Impact of items of note on revenue | (6) | - | - | - | - | (6) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (7) | - | (17) | - | (3) | (27) | (13) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | (18) | - | - | - | - | (18) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (37) | (37) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (91) | (91) | - | ||||||||||
Impact of items of note on non-interest expenses | (25) | - | (17) | - | (131) | (173) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 19 | - | 17 | - | 131 | 167 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 1 | - | 5 | - | - | 6 | 4 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | 4 | - | - | - | - | 4 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 10 | 10 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 24 | 24 | - | ||||||||||
Impact of items of note on income taxes | 5 | - | 5 | - | 34 | 44 | 4 | ||||||||||
Total after-tax impact of items of note on net income | $ | 14 | $ | - | $ | 12 | $ | - | $ | 97 | $ | 123 | $ | 9 | |||
Impact of items of note on diluted EPS ($) (1) | $ | 0.13 | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 2,256 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,382 | $ | 483 | |||
Provision for (reversal of) credit losses – adjusted | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses – adjusted | 1,288 | 658 | 339 | 656 | 369 | 3,310 | 251 | ||||||||||
Income (loss) before income taxes – adjusted | 663 | 637 | 214 | 527 | (405) | 1,636 | 156 | ||||||||||
Income taxes – adjusted | 178 | 168 | 41 | 149 | (208) | 328 | 31 | ||||||||||
Net income (loss) – adjusted | 485 | 469 | 173 | 378 | (197) | 1,308 | 125 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 485 | 469 | 173 | 378 | (204) | 1,301 | 125 | ||||||||||
Adjusted diluted EPS ($) (1) | $ | 1.39 | |||||||||||||||
(1) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, | ||||||||||||||||
(2) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||
(3) | Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling | ||||||||||||||||
(4) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||
(5) | CIBC total results excludes a tax equivalent basis (TEB) adjustment of $51 million (July 31, 2022: $48 million; October 31, 2021: $48 million). Our adjusted efficiency ratio and adjusted operating |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
U.S. | |||||||||||||||||
Canadian | U.S. | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended July 31, 2022 | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,321 | $ | 1,338 | $ | 604 | $ | 1,199 | $ | 109 | $ | 5,571 | $ | 473 | |||
Provision for (reversal of) credit losses | 200 | 10 | 35 | (9) | 7 | 243 | 28 | ||||||||||
Non-interest expenses | 1,313 | 670 | 334 | 593 | 273 | 3,183 | 261 | ||||||||||
Income (loss) before income taxes | 808 | 658 | 235 | 615 | (171) | 2,145 | 184 | ||||||||||
Income taxes | 213 | 174 | 42 | 168 | (118) | 479 | 32 | ||||||||||
Net income (loss) | 595 | 484 | 193 | 447 | (53) | 1,666 | 152 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 6 | 6 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 595 | 484 | 193 | 447 | (59) | 1,660 | 152 | ||||||||||
Diluted EPS ($) (1) | $ | 1.78 | |||||||||||||||
Impact of items of note (2) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | $ | (6) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | - | |||
Impact of items of note on revenue | (6) | - | - | - | - | (6) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (7) | - | (17) | - | (3) | (27) | (13) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | (56) | - | - | - | - | (56) | - | ||||||||||
Impact of items of note on non-interest expenses | (63) | - | (17) | - | (3) | (83) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 57 | - | 17 | - | 3 | 77 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 3 | - | 4 | - | - | 7 | 3 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (3) | 12 | - | - | - | - | 12 | - | ||||||||||
Impact of items of note on income taxes | 15 | - | 4 | - | - | 19 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 42 | $ | - | $ | 13 | $ | - | $ | 3 | $ | 58 | $ | 10 | |||
Impact of items of note on diluted EPS ($) (1) | $ | 0.07 | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 2,315 | $ | 1,338 | $ | 604 | $ | 1,199 | $ | 109 | $ | 5,565 | $ | 473 | |||
Provision for (reversal of) credit losses – adjusted | 200 | 10 | 35 | (9) | 7 | 243 | 28 | ||||||||||
Non-interest expenses – adjusted | 1,250 | 670 | 317 | 593 | 270 | 3,100 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 865 | 658 | 252 | 615 | (168) | 2,222 | 197 | ||||||||||
Income taxes – adjusted | 228 | 174 | 46 | 168 | (118) | 498 | 35 | ||||||||||
Net income (loss) – adjusted | 637 | 484 | 206 | 447 | (50) | 1,724 | 162 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 6 | 6 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 637 | 484 | 206 | 447 | (56) | 1,718 | 162 | ||||||||||
Adjusted diluted EPS ($) (1) | $ | 1.85 | |||||||||||||||
See previous page for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
U.S. | |||||||||||||||||
Canadian | U.S. | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended October 31, 2021 | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,128 | $ | 1,240 | $ | 562 | $ | 1,012 | $ | 122 | $ | 5,064 | $ | 448 | |||
Provision for (reversal of) credit losses | 164 | (5) | (51) | (34) | 4 | 78 | (40) | ||||||||||
Non-interest expenses | 1,152 | 646 | 296 | 528 | 513 | 3,135 | 235 | ||||||||||
Income (loss) before income taxes | 812 | 599 | 317 | 518 | (395) | 1,851 | 253 | ||||||||||
Income taxes | 215 | 157 | 61 | 140 | (162) | 411 | 49 | ||||||||||
Net income (loss) | 597 | 442 | 256 | 378 | (233) | 1,440 | 204 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 4 | 4 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 597 | 442 | 256 | 378 | (237) | 1,436 | 204 | ||||||||||
Diluted EPS ($) (1) | $ | 1.54 | |||||||||||||||
Impact of items of note (2) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | $ | - | $ | - | $ | (16) | $ | - | $ | (3) | $ | (19) | $ | (13) | |||
Acquisition and integration-related costs (3) | (12) | - | - | - | - | (12) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (109) | (109) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (40) | (40) | - | ||||||||||
Impact of items of note on non-interest expenses | (12) | - | (16) | - | (152) | (180) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 12 | - | 16 | - | 152 | 180 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | - | - | 4 | - | - | 4 | 3 | ||||||||||
Acquisition and integration-related costs (3) | 3 | - | - | - | - | 3 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 29 | 29 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 11 | 11 | - | ||||||||||
Impact of items of note on income taxes | 3 | - | 4 | - | 40 | 47 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 9 | $ | - | $ | 12 | $ | - | $ | 112 | $ | 133 | $ | 10 | |||
Impact of items of note on diluted EPS ($) (1) | $ | 0.14 | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 2,128 | $ | 1,240 | $ | 562 | $ | 1,012 | $ | 122 | $ | 5,064 | $ | 448 | |||
Provision for (reversal of) credit losses – adjusted | 164 | (5) | (51) | (34) | 4 | 78 | (40) | ||||||||||
Non-interest expenses – adjusted | 1,140 | 646 | 280 | 528 | 361 | 2,955 | 222 | ||||||||||
Income (loss) before income taxes – adjusted | 824 | 599 | 333 | 518 | (243) | 2,031 | 266 | ||||||||||
Income taxes – adjusted | 218 | 157 | 65 | 140 | (122) | 458 | 52 | ||||||||||
Net income (loss) – adjusted | 606 | 442 | 268 | 378 | (121) | 1,573 | 214 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 4 | 4 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 606 | 442 | 268 | 378 | (125) | 1,569 | 214 | ||||||||||
Adjusted diluted EPS ($) (1) | $ | 1.68 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
U.S. | |||||||||||||||||
Canadian | U.S. | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the twelve months ended October 31, 2022 | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 8,909 | $ | 5,254 | $ | 2,457 | $ | 5,001 | $ | 212 | $ | 21,833 | $ | 1,902 | |||
Provision for (reversal of) credit losses | 876 | 23 | 218 | (62) | 2 | 1,057 | 169 | ||||||||||
Non-interest expenses | 4,975 | 2,656 | 1,328 | 2,437 | 1,407 | 12,803 | 1,028 | ||||||||||
Income (loss) before income taxes | 3,058 | 2,575 | 911 | 2,626 | (1,197) | 7,973 | 705 | ||||||||||
Income taxes | 809 | 680 | 151 | 718 | (628) | 1,730 | 117 | ||||||||||
Net income (loss) | 2,249 | 1,895 | 760 | 1,908 | (569) | 6,243 | 588 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 23 | 23 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 2,249 | 1,895 | 760 | 1,908 | (592) | 6,220 | 588 | ||||||||||
Diluted EPS ($) (1) | $ | 6.68 | |||||||||||||||
Impact of items of note (2) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (3) | $ | (16) | $ | - | $ | - | $ | - | $ | - | $ | (16) | $ | - | |||
Impact of items of note on revenue | (16) | - | - | - | - | (16) | - | ||||||||||
Provision for (reversal of) credit losses | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (3) | (94) | - | - | - | - | (94) | - | ||||||||||
Impact of items of note on provision for (reversal of) credit losses | (94) | - | - | - | - | (94) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (18) | $ | - | (68) | - | (12) | (98) | (53) | |||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (3) | (103) | - | - | - | - | (103) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (37) | (37) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (136) | (136) | - | ||||||||||
Impact of items of note on non-interest expenses | (121) | - | (68) | - | (185) | (374) | (53) | ||||||||||
Total pre-tax impact of items of note on net income | 199 | - | 68 | - | 185 | 452 | 53 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 4 | - | 18 | - | 1 | 23 | 14 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (3) | 48 | - | - | - | - | 48 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 10 | 10 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 36 | 36 | - | ||||||||||
Impact of items of note on income taxes | 52 | - | 18 | - | 47 | 117 | 14 | ||||||||||
Total after-tax impact of items of note on net income | $ | 147 | $ | - | $ | 50 | $ | - | $ | 138 | $ | 335 | $ | 39 | |||
Impact of items of note on diluted EPS ($) (1) | $ | 0.37 | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 8,893 | $ | 5,254 | $ | 2,457 | $ | 5,001 | $ | 212 | $ | 21,817 | $ | 1,902 | |||
Provision for (reversal of) credit losses – adjusted | 782 | 23 | 218 | (62) | 2 | 963 | 169 | ||||||||||
Non-interest expenses – adjusted | 4,854 | 2,656 | 1,260 | 2,437 | 1,222 | 12,429 | 975 | ||||||||||
Income (loss) before income taxes – adjusted | 3,257 | 2,575 | 979 | 2,626 | (1,012) | 8,425 | 758 | ||||||||||
Income taxes – adjusted | 861 | 680 | 169 | 718 | (581) | 1,847 | 131 | ||||||||||
Net income (loss) – adjusted | 2,396 | 1,895 | 810 | 1,908 | (431) | 6,578 | 627 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 23 | 23 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 2,396 | 1,895 | 810 | 1,908 | (454) | 6,555 | 627 | ||||||||||
Adjusted diluted EPS ($) (1) | $ | 7.05 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
U.S. | |||||||||||||||||
Canadian | U.S. | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the twelve months ended October 31, 2021 | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 8,150 | $ | 4,670 | $ | 2,194 | $ | 4,520 | $ | 481 | $ | 20,015 | $ | 1,748 | |||
Provision for (reversal of) credit losses | 350 | (39) | (75) | (100) | 22 | 158 | (61) | ||||||||||
Non-interest expenses | 4,414 | 2,443 | 1,121 | 2,117 | 1,440 | 11,535 | 893 | ||||||||||
Income (loss) before income taxes | 3,386 | 2,266 | 1,148 | 2,503 | (981) | 8,322 | 916 |