CIBC's 2023 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2023 Annual Report is available on SEDAR+ at www.sedarplus.ca. All amounts are expressed in Canadian dollars, unless otherwise indicated. |
TORONTO, Nov. 30, 2023 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2023.
"In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses," said Victor Dodig, CIBC President and Chief Executive Officer. "We enter the new fiscal year with a robust balance sheet and strong credit quality, foundational to our progress as we enable and simplify our bank, focus on driving growth in the mass affluent and private wealth segments, build on our strength in digital, and leverage our connected culture to grow our commercial and capital markets business. Our CIBC team remains steadfast in its commitment to our purpose, helping make ambitions real as we serve our clients through the economic cycle and build strong, sustainable communities."
Q4/23 | Q4/22 | Q3/23 | YoY | QoQ | |
Revenue | $5,844 million | $5,388 million | $5,850 million | +8 % | 0 % |
Reported Net Income | $1,483 million | $1,185 million | $1,430 million | +25 % | +4 % |
Adjusted Net Income (1) | $1,520 million | $1,308 million | $1,473 million | +16 % | +3 % |
Adjusted pre-provision, pre-tax earnings (1) | $2,449 million | $2,072 million | $2,600 million | +18 % | -6 % |
Reported Diluted Earnings Per Share (EPS) (2) | $1.53 | $1.26 | $1.47 | +21 % | +4 % |
Adjusted Diluted EPS (1)(2) | $1.57 | $1.39 | $1.52 | +13 % | +3 % |
Reported Return on Common Shareholders' Equity (ROE) (3) | 11.8 % | 10.1 % | 11.6 % | ||
Adjusted ROE (1) | 12.1 % | 11.2 % | 11.9 % | ||
Common Equity Tier 1 (CET1) Ratio (4) | 12.4 % | 11.7 % | 12.2 % |
CIBC's results for the fourth quarter of 2023 were affected by the following items of note aggregating to a negative impact of $0.04 per share:
- $45 million ($37 million after-tax) amortization and impairment of acquisition-related intangible assets.
For the year ended October 31, 2023, CIBC reported net income of $5.0 billion and adjusted net income(1) of $6.5 billion, compared with reported net income of $6.2 billion and adjusted net income(1) of $6.6 billion for 2022, and adjusted pre-provision, pre-tax earnings(1) of $10.2 billion, compared with $9.4 billion for 2022.
(1) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 14 to 18; and adjusted pre-provision, pre-tax earnings on page 19. |
(2) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022. |
(3) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(4) | Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of February 1, 2023. For additional information, see the "Capital management" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca. |
The following table summarizes our performance in 2023 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.
Financial Measure | Medium-term target | 2023 Reported Results | 2023 Adjusted Results (2) |
Diluted EPS growth (3) | 7%–10% annually (1)(6) | 3-year CAGR (4) = 7.9% 5-year CAGR (4) = (2.4)% | 3-year CAGR (4) = 11.5% 5-year CAGR (4) = 1.9% |
ROE (5) | At least 16% (1)(6) | 3-year average = 13.5% 5-year average = 13.0% | 3-year average = 14.9% 5-year average = 14.4% |
Operating leverage (5) | Positive (1)(6) | 3-year average = (0.6)% 5-year average = (1.5)% | 3-year average = 0.0% 5-year average = (0.1)% |
CET1 ratio | Strong buffer to regulatory requirement | 12.4 % | |
Dividend payout ratio (5) | 40%–50% (1)(6) | 3-year average = 52.4% 5-year average = 55.6% | 3-year average = 45.9% 5-year average = 48.9% |
Total shareholder return | Outperform the S&P/TSX Composite | 3-year 5-year CIBC: 15.0% 12.7% S&P/TSX Composite Banks Index: 36.2% 29.8% |
F2023 Financial Highlights
(C$ million) | F2023 | F2022 | YoY Variance |
Canadian Personal and Business Banking | |||
Reported Net Income | $2,358 | $2,249 | up 5% |
Adjusted Net Income (2) | $2,403 | $2,396 | 0 % |
Pre-provision, pre-tax earnings (2) | $4,233 | $3,934 | up 8% |
Adjusted pre-provision, pre-tax earnings (2) | $4,293 | $4,039 | up 6% |
Canadian Commercial Banking and Wealth Management | |||
Reported Net Income | $1,878 | $1,895 | down 1% |
Adjusted Net Income (2) | $1,878 | $1,895 | down 1% |
Pre-provision, pre-tax earnings (2) | $2,712 | $2,598 | up 4% |
Adjusted pre-provision, pre-tax earnings (2) | $2,712 | $2,598 | up 4% |
U.S. Commercial Banking and Wealth Management | |||
Reported Net Income | $379 | $760 | down 50% |
Adjusted Net Income (2) | $420 | $810 | down 48% |
Pre-provision, pre-tax earnings (2) | $1,226 | $1,129 | up 9% |
Adjusted pre-provision, pre-tax earnings (2) | $1,282 | $1,197 | up 7% |
Capital Markets and Direct Financial Services | |||
Reported Net Income | $1,986 | $1,908 | up 4% |
Adjusted Net Income (2) | $1,986 | $1,908 | up 4% |
Pre-provision, pre-tax earnings (2) | $2,767 | $2,564 | up 8% |
Adjusted pre-provision, pre-tax earnings (2) | $2,767 | $2,564 | up 8% |
(1) | Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section. |
(2) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
(3) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022. |
(4) | The 3-year compound annual growth rate (CAGR) is calculated from 2020 to 2023 and the 5-year CAGR is calculated from 2018 to 2023. |
(5) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(6) | Medium-term targets are defined as through the cycle. For additional information, see the "Overview" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca. |
Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2023, CIBC maintained its capital strength and sound risk management practices:
- Capital ratios were strong, with a CET1 ratio(1) of 12.4% as noted above, and Tier 1(1) and Total capital ratios(1) of 13.9% and 16.0%, respectively, at October 31, 2023;
- Market risk, as measured by average Value-at-Risk, was $9.2 million in 2023 compared with $8.7 million in 2022;
- We continued to have solid credit performance, with a loan loss ratio(2) of 30 basis points compared with 14 basis points in 2022;
- Liquidity Coverage Ratio(1) was 135% for the three months ended October 31, 2023; and
- Leverage Ratio(1)(3) was 4.2% at October 31, 2023.
CIBC announced an increase in its quarterly common share dividend from $0.87 per share to $0.90 per share for the quarter ending January 31, 2024.
(1) | Our capital ratios are calculated pursuant to the OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and the liquidity coverage ratio is calculated pursuant to OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on the BCBS standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of February 1, 2023. For additional information, see the "Capital management" and "Liquidity risk" sections of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca. |
(2) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(3) | The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic was no longer applicable beginning in the second quarter of 2023. |
Credit quality
Provision for credit losses was $541 million for the fourth quarter, up $105 million or 24% from the same quarter last year. Provision for credit losses on performing loans was down $154 million, largely due to a more unfavourable change in our economic outlook in the same quarter last year. Provision for credit losses on impaired loans was up $259 million, mainly attributable to Canadian Personal and Business Banking, and U.S. Commercial Banking and Wealth Management.
Making a difference in our Communities
At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter:
- More than 50,000 participants, including over 11,000 Team CIBC participants from across the country came together on October 1, 2023 for the Canadian Cancer Society CIBC Run for the Cure. In total, more than $14.5 million was raised, including over $2.4 million by Team CIBC, to assist in advancing breast cancer research, education and support programs.
- CIBC donated $250,000 to the United Jewish Appeal and the Canadian Red Cross Middle East Humanitarian Crisis Appeal, aimed at supporting immediate and ongoing humanitarian relief efforts, shelter and safety for Israeli and Palestinian civilians affected by the conflict. A further $250,000 was donated by CIBC and its employees through an employee matching program to charities providing aid in the region.
- CIBC donated $100,000 through the CIBC Foundation Northwest Territories Emergency Relief Fund and the CIBC Foundation British Columbia Emergency Relief Fund to provide immediate and long-term assistance to those affected by the wildfires and evacuation efforts across the Northwest Territories and British Columbia. In addition, $50,000 was donated to provide critical aid to the people of Morocco following a devastating earthquake.
- To help newcomers learn about their new country and navigate settling in, CIBC announced a partnership with the Institute of Canadian Citizenship (ICC), a national charity that supports newcomers on their journey towards full and active citizenship including through the ICC's digital app, Canoo. With this partnership, Canoo members will have access to CIBC's financial tools, advice and resources to help them settle in Canada.
Fourth quarter financial highlights | ||||||||||||||||||||
As at or for the | As at or for the | |||||||||||||||||||
three months ended | twelve months ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Unaudited | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||||||||
Financial results ($ millions) | ||||||||||||||||||||
Net interest income | $ | 3,197 | $ | 3,236 | $ | 3,185 | $ | 12,825 | $ | 12,641 | ||||||||||
Non-interest income | 2,647 | 2,614 | 2,203 | 10,498 | 9,192 | |||||||||||||||
Total revenue | 5,844 | 5,850 | 5,388 | 23,323 | 21,833 | |||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | |||||||||||||||
Non-interest expenses | 3,440 | 3,307 | 3,483 | 14,349 | 12,803 | |||||||||||||||
Income before income taxes | 1,863 | 1,807 | 1,469 | 6,964 | 7,973 | |||||||||||||||
Income taxes | 380 | 377 | 284 | 1,931 | 1,730 | |||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | ||||||||||
Net income attributable to non-controlling interests | 8 | 10 | 7 | 38 | 23 | |||||||||||||||
Preferred shareholders and other equity instrument holders | 62 | 66 | 37 | 267 | 171 | |||||||||||||||
Common shareholders | 1,413 | 1,354 | 1,141 | 4,728 | 6,049 | |||||||||||||||
Net income attributable to equity shareholders | $ | 1,475 | $ | 1,420 | $ | 1,178 | $ | 4,995 | $ | 6,220 | ||||||||||
Financial measures | ||||||||||||||||||||
Reported efficiency ratio (1) | 58.9 | % | 56.5 | % | 64.6 | % | 61.5 | % | 58.6 | % | ||||||||||
Reported operating leverage (1) | 9.7 | % | 1.1 | % | (4.7) | % | (5.2) | % | (1.9) | % | ||||||||||
Loan loss ratio (2) | 0.35 | % | 0.35 | % | 0.16 | % | 0.30 | % | 0.14 | % | ||||||||||
Reported return on common shareholders' equity (1)(3) | 11.8 | % | 11.6 | % | 10.1 | % | 10.3 | % | 14.0 | % | ||||||||||
Net interest margin (1) | 1.32 | % | 1.36 | % | 1.33 | % | 1.35 | % | 1.40 | % | ||||||||||
Net interest margin on average interest-earning assets (1)(4) | 1.44 | % | 1.49 | % | 1.51 | % | 1.49 | % | 1.58 | % | ||||||||||
Return on average assets (1)(4) | 0.61 | % | 0.60 | % | 0.50 | % | 0.53 | % | 0.69 | % | ||||||||||
Return on average interest-earning assets (1)(4) | 0.67 | % | 0.66 | % | 0.56 | % | 0.58 | % | 0.78 | % | ||||||||||
Reported effective tax rate | 20.4 | % | 20.9 | % | 19.3 | % | 27.7 | % | 21.7 | % | ||||||||||
Common share information | ||||||||||||||||||||
Per share ($) (5) | - basic earnings | $ | 1.53 | $ | 1.47 | $ | 1.26 | $ | 5.16 | $ | 6.70 | |||||||||
- reported diluted earnings | 1.53 | 1.47 | 1.26 | 5.16 | 6.68 | |||||||||||||||
- dividends | 0.870 | 0.870 | 0.830 | 3.440 | 3.270 | |||||||||||||||
- book value (6) | 51.61 | 50.05 | 49.95 | 51.61 | 49.95 | |||||||||||||||
Closing share price ($) (5) | 48.91 | 58.08 | 61.87 | 48.91 | 61.87 | |||||||||||||||
Shares outstanding (thousands) (5) | - weighted-average basic | 924,798 | 918,551 | 905,120 | 915,631 | 903,312 | ||||||||||||||
- weighted-average diluted | 924,960 | 919,063 | 906,533 | 916,223 | 905,684 | |||||||||||||||
- end of period | 931,099 | 924,034 | 906,040 | 931,099 | 906,040 | |||||||||||||||
Market capitalization ($ millions) | $ | 45,540 | $ | 53,668 | $ | 56,057 | $ | 45,540 | $ | 56,057 | ||||||||||
Value measures | ||||||||||||||||||||
Total shareholder return | (14.38) | % | 3.85 | % | (3.17) | % | (15.85) | % | (13.56) | % | ||||||||||
Dividend yield (based on closing share price) | 7.1 | % | 5.9 | % | 5.3 | % | 7.0 | % | 5.3 | % | ||||||||||
Reported dividend payout ratio (1) | 56.9 | % | 59.0 | % | 65.9 | % | 66.6 | % | 48.8 | % | ||||||||||
Market value to book value ratio | 0.95 | 1.16 | 1.24 | 0.95 | 1.24 | |||||||||||||||
Selected financial measures – adjusted (7) | ||||||||||||||||||||
Adjusted efficiency ratio (8) | 57.5 | % | 55.2 | % | 60.9 | % | 55.8 | % | 56.4 | % | ||||||||||
Adjusted operating leverage (8) | 6.2 | % | 0.1 | % | (5.8) | % | 1.2 | % | (1.9) | % | ||||||||||
Adjusted return on common shareholders' equity (3) | 12.1 | % | 11.9 | % | 11.2 | % | 13.3 | % | 14.7 | % | ||||||||||
Adjusted effective tax rate | 20.3 | % | 21.0 | % | 20.1 | % | 21.0 | % | 21.9 | % | ||||||||||
Adjusted diluted earnings per share (5) | $ | 1.57 | $ | 1.52 | $ | 1.39 | $ | 6.72 | $ | 7.05 | ||||||||||
Adjusted dividend payout ratio | 55.4 | % | 57.2 | % | 59.5 | % | 51.2 | % | 46.3 | % | ||||||||||
On- and off-balance sheet information ($ millions) | ||||||||||||||||||||
Cash, deposits with banks and securities | $ | 267,066 | $ | 247,525 | $ | 239,740 | $ | 267,066 | $ | 239,740 | ||||||||||
Loans and acceptances, net of allowance for credit losses | 540,153 | 538,216 | 528,657 | 540,153 | 528,657 | |||||||||||||||
Total assets | 975,719 | 943,001 | 943,597 | 975,719 | 943,597 | |||||||||||||||
Deposits | 723,376 | 704,505 | 697,572 | 723,376 | 697,572 | |||||||||||||||
Common shareholders' equity (1) | 48,056 | 46,250 | 45,258 | 48,056 | 45,258 | |||||||||||||||
Average assets (4) | 962,405 | 943,640 | 947,830 | 948,121 | 900,213 | |||||||||||||||
Average interest-earning assets (1)(4) | 882,196 | 862,064 | 834,639 | 861,136 | 799,224 | |||||||||||||||
Average common shareholders' equity (1)(4) | 47,435 | 46,392 | 44,770 | 46,130 | 43,354 | |||||||||||||||
Assets under administration (AUA) (1)(9)(10) | 2,853,007 | 3,003,629 | 2,854,828 | 2,853,007 | 2,854,828 | |||||||||||||||
Assets under management (AUM) (1)(10) | 300,218 | 313,635 | 291,513 | 300,218 | 291,513 | |||||||||||||||
Balance sheet quality and liquidity measures (11) | ||||||||||||||||||||
Risk-weighted assets (RWA) ($ millions) | $ | 326,120 | $ | 317,773 | $ | 315,634 | $ | 326,120 | $ | 315,634 | ||||||||||
CET1 ratio (12) | 12.4 | % | 12.2 | % | 11.7 | % | 12.4 | % | 11.7 | % | ||||||||||
Tier 1 capital ratio (12) | 13.9 | % | 13.7 | % | 13.3 | % | 13.9 | % | 13.3 | % | ||||||||||
Total capital ratio (12) | 16.0 | % | 15.9 | % | 15.3 | % | 16.0 | % | 15.3 | % | ||||||||||
Leverage ratio (13) | 4.2 | % | 4.2 | % | 4.4 | % | 4.2 | % | 4.4 | % | ||||||||||
Liquidity coverage ratio (LCR) (14) | 135 | % | 131 | % | 129 | % | n/a | n/a | ||||||||||||
Net stable funding ratio (NSFR) | 118 | % | 117 | % | 118 | % | 118 | % | 118 | % | ||||||||||
Other information | ||||||||||||||||||||
Full-time equivalent employees | 48,074 | 48,718 | 50,427 | 48,074 | 50,427 |
(1) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. | |||||||||||||||||||
(2) | The ratio is calculated as the provision for (reversal of) credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses. | |||||||||||||||||||
(3) | Annualized. | |||||||||||||||||||
(4) | Average balances are calculated as a weighted average of daily closing balances. | |||||||||||||||||||
(5) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022. | |||||||||||||||||||
(6) | Common shareholders' equity divided by the number of common shares issued and outstanding at end of period. | |||||||||||||||||||
(7) | Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section. | |||||||||||||||||||
(8) | Calculated on a taxable equivalent basis (TEB). | |||||||||||||||||||
(9) | Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $2,241.9 billion (July 31, 2023: $2,368.8 billion; October 31, 2022: $2,258.1 billion). | |||||||||||||||||||
(10) | AUM amounts are included in the amounts reported under AUA. | |||||||||||||||||||
(11) | RWA and our capital ratios are calculated pursuant to OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to OSFI's LAR Guideline, all of which are based on BCBS standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of February 1, 2023. For additional information, see the "Capital management" and "Liquidity risk" sections of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca. | |||||||||||||||||||
(12) | The 2022 ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020, in response to the onset of the COVID-19 pandemic. Effective November 1, 2022, the ECL transitional arrangement was no longer applicable. | |||||||||||||||||||
(13) | The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic was no longer applicable beginning in the second quarter of 2023. | |||||||||||||||||||
(14) | Average for the three months ended for each respective period. | |||||||||||||||||||
n/a | Not applicable. |
Review of Canadian Personal and Business Banking fourth quarter results | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | $ | 2,455 | $ | 2,412 | $ | 2,262 | ||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 259 | 244 | 158 | |||||||
Performing | 23 | 179 | 147 | |||||||
Total provision for credit losses | 282 | 423 | 305 | |||||||
Non-interest expenses | 1,307 | 1,303 | 1,313 | |||||||
Income before income taxes | 866 | 686 | 644 | |||||||
Income taxes | 231 | 189 | 173 | |||||||
Net income | $ | 635 | $ | 497 | $ | 471 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 635 | $ | 497 | $ | 471 | ||||
Total revenue | ||||||||||
Net interest income | $ | 1,908 | $ | 1,898 | $ | 1,720 | ||||
Non-interest income (1) | 547 | 514 | 542 | |||||||
$ | 2,455 | $ | 2,412 | $ | 2,262 | |||||
Net interest margin on average interest-earning assets (2)(3) | 2.38 | % | 2.38 | % | 2.19 | % | ||||
Efficiency ratio | 53.2 | % | 54.0 | % | 58.0 | % | ||||
Operating leverage | 9.0 | % | 4.7 | % | (7.7) | % | ||||
Return on equity (4) | 25.7 | % | 20.2 | % | 22.1 | % | ||||
Average allocated common equity (4) | $ | 9,781 | $ | 9,778 | $ | 8,437 | ||||
Full-time equivalent employees | 13,208 | 13,231 | 13,840 |
Net income for the quarter was $635 million, up $164 million from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $1,154 million, up $186 million from the fourth quarter of 2022, due to higher revenue, partially offset by higher expenses.
Revenue of $2,455 million was up $193 million from the fourth quarter of 2022, primarily due to higher net interest income, mainly from higher deposit margins that benefited from the rising rate environment, and volume growth.
Net interest margin on average interest-earning assets was up 19 basis points mainly due to higher deposit margins, partially offset by lower loan margins.
Provision for credit losses of $282 million was down $23 million from the fourth quarter of 2022, due to a lower provision for credit losses on performing loans from a more unfavourable change in our economic outlook in the fourth quarter of 2022, partially offset by a higher provision for credit losses on impaired loans from higher write-offs and higher impaired balances.
Non-interest expenses of $1,307 million were comparable to the fourth quarter of 2022.
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Canadian Commercial Banking and Wealth Management fourth quarter results | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 634 | $ | 626 | $ | 601 | ||||
Wealth management | 732 | 724 | 715 | |||||||
Total revenue | 1,366 | 1,350 | 1,316 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 11 | 38 | 14 | |||||||
Performing | - | 2 | 7 | |||||||
Total provision for (reversal of) credit losses | 11 | 40 | 21 | |||||||
Non-interest expenses | 679 | 674 | 658 | |||||||
Income before income taxes | 676 | 636 | 637 | |||||||
Income taxes | 186 | 169 | 168 | |||||||
Net income | $ | 490 | $ | 467 | $ | 469 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 490 | $ | 467 | $ | 469 | ||||
Total revenue | ||||||||||
Net interest income | $ | 452 | $ | 443 | $ | 452 | ||||
Non-interest income (1) | 914 | 907 | 864 | |||||||
$ | 1,366 | $ | 1,350 | $ | 1,316 | |||||
Net interest margin on average interest-earning assets (2)(3) | 3.37 | % | 3.35 | % | 3.38 | % | ||||
Efficiency ratio | 49.7 | % | 49.9 | % | 50.0 | % | ||||
Operating leverage | 0.7 | % | 0.3 | % | 4.1 | % | ||||
Return on equity (4) | 23.1 | % | 22.0 | % | 21.6 | % | ||||
Average allocated common equity (4) | $ | 8,401 | $ | 8,411 | $ | 8,598 | ||||
Full-time equivalent employees | 5,433 | 5,442 | 5,711 |
Net income for the quarter was $490 million, up $21 million from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $687 million, up $29 million from the fourth quarter of 2022, due to higher revenue, partially offset by higher expenses.
Revenue of $1,366 million was up $50 million from the fourth quarter of 2022, driven mainly by higher deposit margins, volume growth and higher fees, partially offset by lower loan margins in commercial banking. Revenue in wealth management increased due to higher fee-based asset balances, partially offset by lower net interest income mainly from deposits.
Net interest margin on average interest-earning assets was down 1 basis point primarily due to higher deposit margins that were more than offset by lower loan margins.
Provision for credit losses of $11 million was down $10 million from the fourth quarter of 2022, due to lower provisions on both performing loans and impaired loans.
Non-interest expenses of $679 million were up $21 million from the fourth quarter of 2022, primarily due to higher performance-based compensation.
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in Canadian dollars | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 462 | $ | 452 | $ | 432 | ||||
Wealth management | 210 | 214 | 221 | |||||||
Total revenue (1) | 672 | 666 | 653 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 205 | 174 | 34 | |||||||
Performing | 44 | 81 | 66 | |||||||
Total provision for (reversal of) credit losses | 249 | 255 | 100 | |||||||
Non-interest expenses | 387 | 345 | 356 | |||||||
Income before income taxes | 36 | 66 | 197 | |||||||
Income taxes | (14) | (7) | 36 | |||||||
Net income | $ | 50 | $ | 73 | $ | 161 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 50 | $ | 73 | $ | 161 | ||||
Total revenue (1) | ||||||||||
Net interest income | $ | 476 | $ | 477 | $ | 466 | ||||
Non-interest income | 196 | 189 | 187 | |||||||
$ | 672 | $ | 666 | $ | 653 | |||||
Net interest margin on average interest-earning assets (2)(3) | 3.44 | % | 3.46 | % | 3.49 | % | ||||
Efficiency ratio | 57.6 | % | 51.9 | % | 54.5 | % | ||||
Return on equity (4) | 1.7 | % | 2.6 | % | 5.8 | % | ||||
Average allocated common equity (4) | $ | 11,267 | $ | 11,386 | $ | 11,015 | ||||
Full-time equivalent employees | 2,780 | 2,760 | 2,472 |
Review of U.S. Commercial Banking and Wealth Management fourth quarter results in U.S. dollars | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Commercial banking | $ | 338 | $ | 339 | $ | 320 | ||||
Wealth management | 154 | 160 | 163 | |||||||
Total revenue (1) | 492 | 499 | 483 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 151 | 130 | 25 | |||||||
Performing | 32 | 61 | 51 | |||||||
Total provision for (reversal of) credit losses | 183 | 191 | 76 | |||||||
Non-interest expenses | 284 | 258 | 264 | |||||||
Income before income taxes | 25 | 50 | 143 | |||||||
Income taxes | (10) | (5) | 27 | |||||||
Net income | $ | 35 | $ | 55 | $ | 116 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 35 | $ | 55 | $ | 116 | ||||
Total revenue (1) | ||||||||||
Net interest income | 348 | 358 | 346 | |||||||
Non-interest income | 144 | 141 | 137 | |||||||
492 | 499 | 483 | ||||||||
Operating leverage | (5.7) | % | 6.7 | % | (4.1) | % |
Net income for the quarter was $50 million (US$35 million), down $111 million (down US$81 million) from the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(4) were $294 million (US$214 million), down $20 million (down US$18 million) from the fourth quarter of 2022, due to higher net interest income, partially offset by higher expenses and lower fee income.
Revenue of US$492 million was up US$9 million from the fourth quarter of 2022, primarily due to higher asset management fees, deposit margins, and loan volumes, partially offset by lower loan margins and deposit volumes.
Net interest margin on average interest-earning assets was down 5 basis points primarily due to lower deposit volumes, partially offset by higher deposit margins.
Provision for credit losses of US$183 million was up US$107 million from the fourth quarter of 2022, primarily due to higher provisions on impaired loans, attributable to the real estate and construction sector. Partially offsetting this increase, provision for credit losses on performing loans was down as the fourth quarter of 2022 included an increased provision resulting from model parameter updates.
Non-interest expenses of US$284 million were up US$20 million from the fourth quarter of 2022, primarily due to higher employee-related compensation.
(1) | Included nil (US$ nil) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2023 (July 31, 2023: $1 million (US$1 million); October 31, 2022: $2 million (US$1 million)). |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Capital Markets and Direct Financial Services fourth quarter results | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | |||||||
Revenue | ||||||||||
Global markets | $ | 555 | $ | 604 | $ | 463 | ||||
Corporate and investment banking | 423 | 430 | 440 | |||||||
Direct financial services | 312 | 321 | 279 | |||||||
Total revenue (1) | 1,290 | 1,355 | 1,182 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 6 | 5 | (5) | |||||||
Performing | (2) | 1 | 4 | |||||||
Total provision for (reversal of) credit losses | 4 | 6 | (1) | |||||||
Non-interest expenses | 734 | 673 | 656 | |||||||
Income before income taxes | 552 | 676 | 527 | |||||||
Income taxes (1) | 169 | 182 | 149 | |||||||
Net income | $ | 383 | $ | 494 | $ | 378 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 383 | $ | 494 | $ | 378 | ||||
Efficiency ratio | 56.9 | % | 49.7 | % | 55.4 | % | ||||
Operating leverage | (2.8) | % | (0.3) | % | (7.1) | % | ||||
Return on equity (2) | 18.8 | % | 24.1 | % | 15.8 | % | ||||
Average allocated common equity (2) | $ | 8,122 | $ | 8,143 | $ | 9,522 | ||||
Full-time equivalent employees | 2,411 | 2,500 | 2,384 |
Reported net income for the quarter was $383 million, compared with reported net income of $378 million for the fourth quarter of 2022. Adjusted pre-provision, pre-tax earnings(2) were up $30 million or 6% from the fourth quarter of 2022, due to higher revenue partially offset by higher expenses.
Revenue of $1,290 million was up $108 million from the fourth quarter of 2022. In global markets, revenue increased due to higher equity derivatives trading and financing revenue. In corporate and investment banking, weaker underwriting and advisory activity and lower investment portfolio gains were partially offset by higher corporate banking revenue. Direct Financial Services revenue increased due to higher deposit margins in Simplii Financial.
The current quarter included a provision for credit losses of $4 million, up $5 million from the fourth quarter of 2022, mainly attributable to a provision for credit losses on impaired loans. The fourth quarter of 2022 included a provision reversal of credit losses of $1 million.
Non-interest expenses of $734 million were up $78 million from the fourth quarter of 2022, primarily due to higher employee-related costs, including from higher employee termination costs and performance-based compensation.
Review of Corporate and Other fourth quarter results | |||||||||
2023 | 2023 | 2022 | |||||||
$ millions, for the three months ended | Oct. 31 | Jul. 31 | Oct. 31 | ||||||
Revenue | |||||||||
International banking | $ | 234 | $ | 245 | $ | 220 | |||
Other | (173) | (178) | (245) | ||||||
Total revenue (1) | 61 | 67 | (25) | ||||||
Provision for (reversal of) credit losses | |||||||||
Impaired | (3) | 17 | 18 | ||||||
Performing | (2) | (5) | (7) | ||||||
Total provision for (reversal of) credit losses | (5) | 12 | 11 | ||||||
Non-interest expenses | 333 | 312 | 500 | ||||||
Loss before income taxes | (267) | (257) | (536) | ||||||
Income taxes (1) | (192) | (156) | (242) | ||||||
Net loss | $ | (75) | $ | (101) | $ | (294) | |||
Net income (loss) attributable to: | |||||||||
Non-controlling interests | $ | 8 | $ | 10 | $ | 7 | |||
Equity shareholders | (83) | (111) | (301) | ||||||
Full-time equivalent employees (2) | 24,242 | 24,785 | 26,020 |
Net loss for the quarter was $75 million, compared with a net loss of $294 million for the fourth quarter of 2022. Adjusted pre-provision, pre-tax losses(3) were down $152 million or 39% from the fourth quarter of 2022, due to higher revenue and lower expenses.
Revenue was up $86 million from the fourth quarter of 2022, due to higher treasury revenue, and higher revenue in International banking driven by higher net interest margins and the impact of foreign exchange translation.
The current quarter included a provision reversal for credit losses of $5 million, down $16 million from the fourth quarter of 2022, attributable to a moderate reversal on both performing loans and impaired loans in International banking. The fourth quarter of 2022 included a provision for credit losses of $11 million, reflective of a provision on impaired loans, partially offset by a moderate provision reversal on performing loans in International banking.
Non-interest expenses of $333 million were down $167 million from the fourth quarter of 2022. Adjusted non-interest expenses(3) of $303 million were down $66 million from the fourth quarter of 2022, primarily due to lower corporate costs, including from a pension plan amendment gain.
Income tax benefit was down $50 million from the fourth quarter of 2022 primarily due to a lower loss.
(1) | Revenue and income taxes of Capital Markets and Direct Financial Services are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $62 million for the quarter ended October 31, 2023 (July 31, 2023: $66 million; October 31, 2022: $51 million). |
(2) | Includes full-time equivalent employees for which the expenses are allocated to the business lines within the SBUs. The majority of the full-time equivalent employees for functional and support costs of CIBC Bank USA are included in the U.S. Commercial Banking and Wealth Management SBU. |
(3) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Consolidated balance sheet | ||||||||
$ millions, as at October 31 | 2023 | 2022 | ||||||
ASSETS | ||||||||
Cash and non-interest-bearing deposits with banks | $ | 20,816 | $ | 31,535 | ||||
Interest-bearing deposits with banks | 34,902 | 32,326 | ||||||
Securities | 211,348 | 175,879 | ||||||
Cash collateral on securities borrowed | 14,651 | 15,326 | ||||||
Securities purchased under resale agreements | 80,184 | 69,213 | ||||||
Loans | ||||||||
Residential mortgages | 274,244 | 269,706 | ||||||
Personal | 45,587 | 45,429 | ||||||
Credit card | 18,538 | 16,479 | ||||||
Business and government | 194,870 | 188,542 | ||||||
Allowance for credit losses | (3,902) | (3,073) | ||||||
529,337 | 517,083 | |||||||
Other | ||||||||
Derivative instruments | 33,243 | 43,035 | ||||||
Customers' liability under acceptances | 10,816 | 11,574 | ||||||
Property and equipment | 3,251 | 3,377 | ||||||
Goodwill | 5,425 | 5,348 | ||||||
Software and other intangible assets | 2,742 | 2,592 | ||||||
Investments in equity-accounted associates and joint ventures | 669 | 632 | ||||||
Deferred tax assets | 629 | 480 | ||||||
Other assets | 27,706 | 35,197 | ||||||
84,481 | 102,235 | |||||||
$ | 975,719 | $ | 943,597 | |||||
LIABILITIES AND EQUITY | ||||||||
Deposits | ||||||||
Personal | $ | 239,035 | $ | 232,095 | ||||
Business and government | 412,561 | 397,188 | ||||||
Bank | 22,296 | 22,523 | ||||||
Secured borrowings | 49,484 | 45,766 | ||||||
723,376 | 697,572 | |||||||
Obligations related to securities sold short | 18,666 | 15,284 | ||||||
Cash collateral on securities lent | 8,081 | 4,853 | ||||||
Obligations related to securities sold under repurchase agreements | 87,118 | 77,171 | ||||||
Other | ||||||||
Derivative instruments | 41,290 | 52,340 | ||||||
Acceptances | 10,820 | 11,586 | ||||||
Deferred tax liabilities | 40 | 45 | ||||||
Other liabilities | 26,632 | 28,072 | ||||||
78,782 | 92,043 | |||||||
Subordinated indebtedness | 6,483 | 6,292 | ||||||
Equity | ||||||||
Preferred shares and other equity instruments | 4,925 | 4,923 | ||||||
Common shares | 16,082 | 14,726 | ||||||
Contributed surplus | 109 | 115 | ||||||
Retained earnings | 30,402 | 28,823 | ||||||
Accumulated other comprehensive income (AOCI) | 1,463 | 1,594 | ||||||
Total shareholders' equity | 52,981 | 50,181 | ||||||
Non-controlling interests | 232 | 201 | ||||||
Total equity | 53,213 | 50,382 | ||||||
$ | 975,719 | $ | 943,597 |
Consolidated statement of income | |||||||||||||||||||
For the three | For the twelve | ||||||||||||||||||
months ended | months ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
$ millions, except as noted | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||||||
Interest income (1) | |||||||||||||||||||
Loans | $ | 8,215 | $ | 7,830 | $ | 5,806 | $ | 30,235 | $ | 16,874 | |||||||||
Securities | 2,165 | 1,870 | 1,243 | 7,341 | 3,422 | ||||||||||||||
Securities borrowed or purchased under resale agreements | 1,357 | 1,186 | 669 | 4,566 | 1,175 | ||||||||||||||
Deposits with banks and other | 720 | 733 | 474 | 2,877 | 708 | ||||||||||||||
12,457 | 11,619 | 8,192 | 45,019 | 22,179 | |||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 7,569 | 6,966 | 4,177 | 26,633 | 7,887 | ||||||||||||||
Securities sold short | 109 | 105 | 121 | 408 | 380 | ||||||||||||||
Securities lent or sold under repurchase agreements | 1,299 | 1,107 | 564 | 4,283 | 943 | ||||||||||||||
Subordinated indebtedness | 120 | 117 | 84 | 458 | 203 | ||||||||||||||
Other | 163 | 88 | 61 | 412 | 125 | ||||||||||||||
9,260 | 8,383 | 5,007 | 32,194 | 9,538 | |||||||||||||||
Net interest income | 3,197 | 3,236 | 3,185 | 12,825 | 12,641 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Underwriting and advisory fees | 137 | 143 | 143 | 519 | 557 | ||||||||||||||
Deposit and payment fees | 229 | 261 | 221 | 924 | 880 | ||||||||||||||
Credit fees | 369 | 355 | 331 | 1,385 | 1,286 | ||||||||||||||
Card fees | 100 | 67 | 102 | 379 | 437 | ||||||||||||||
Investment management and custodial fees | 454 | 451 | 428 | 1,768 | 1,760 | ||||||||||||||
Mutual fund fees | 421 | 428 | 418 | 1,743 | 1,776 | ||||||||||||||
Insurance fees, net of claims | 82 | 84 | 80 | 338 | 351 | ||||||||||||||
Commissions on securities transactions | 81 | 82 | 79 | 338 | 378 | ||||||||||||||
Gains (losses) from financial instruments measured/designated at | |||||||||||||||||||
fair value through profit or loss (FVTPL), net | 611 | 562 | 309 | 2,346 | 1,172 | ||||||||||||||
Gains (losses) from debt securities measured at fair value through | |||||||||||||||||||
other comprehensive income (FVOCI) and amortized cost, net | 15 | 27 | (6) | 83 | 35 | ||||||||||||||
Foreign exchange other than trading | 74 | 82 | 25 | 360 | 242 | ||||||||||||||
Income from equity-accounted associates and joint ventures | (5) | 3 | 9 | 30 | 47 | ||||||||||||||
Other | 79 | 69 | 64 | 285 | 271 | ||||||||||||||
2,647 | 2,614 | 2,203 | 10,498 | 9,192 | |||||||||||||||
Total revenue | 5,844 | 5,850 | 5,388 | 23,323 | 21,833 | ||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | ||||||||||||||
Non-interest expenses | |||||||||||||||||||
Employee compensation and benefits | 1,890 | 1,888 | 1,897 | 7,550 | 7,157 | ||||||||||||||
Occupancy costs | 216 | 199 | 253 | 823 | 853 | ||||||||||||||
Computer, software and office equipment | 658 | 613 | 598 | 2,467 | 2,297 | ||||||||||||||
Communications | 91 | 88 | 89 | 364 | 352 | ||||||||||||||
Advertising and business development | 87 | 76 | 101 | 304 | 334 | ||||||||||||||
Professional fees | 77 | 51 | 82 | 245 | 313 | ||||||||||||||
Business and capital taxes | 26 | 28 | 33 | 124 | 123 | ||||||||||||||
Other | 395 | 364 | 430 | 2,472 | 1,374 | ||||||||||||||
3,440 | 3,307 | 3,483 | 14,349 | 12,803 | |||||||||||||||
Income before income taxes | 1,863 | 1,807 | 1,469 | 6,964 | 7,973 | ||||||||||||||
Income taxes | 380 | 377 | 284 | 1,931 | 1,730 | ||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | |||||||||
Net income attributable to non-controlling interests | $ | 8 | $ | 10 | $ | 7 | $ | 38 | $ | 23 | |||||||||
Preferred shareholders and other equity instrument holders | $ | 62 | $ | 66 | $ | 37 | $ | 267 | $ | 171 | |||||||||
Common shareholders | 1,413 | 1,354 | 1,141 | 4,728 | 6,049 | ||||||||||||||
Net income attributable to equity shareholders | $ | 1,475 | $ | 1,420 | $ | 1,178 | $ | 4,995 | $ | 6,220 | |||||||||
Earnings per share (in dollars) (2) | |||||||||||||||||||
Basic | $ | 1.53 | $ | 1.47 | $ | 1.26 | $ | 5.16 | $ | 6.70 | |||||||||
Diluted | 1.53 | 1.47 | 1.26 | 5.16 | 6.68 | ||||||||||||||
Dividends per common share (in dollars) (2) | 0.87 | 0.87 | 0.83 | 3.44 | 3.27 |
(1) | Interest income included $11.7 billion for the quarter ended October 31, 2023 (July 31, 2023: $11.0 billion; October 31, 2022: $7.6 billion) calculated based on the effective interest rate method. | ||||||||||||||||||
(2) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022. |
Consolidated statement of comprehensive income | |||||||||||||||
For the three | For the twelve | ||||||||||||||
months ended | months ended | ||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | |||||
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent | |||||||||||||||
reclassification to net income | |||||||||||||||
Net foreign currency translation adjustments | |||||||||||||||
Net gains (losses) on investments in foreign operations | 2,594 | (1,205) | 2,691 | 1,163 | 4,043 | ||||||||||
Net gains (losses) on hedges of investments in foreign operations | (1,600) | 676 | (1,510) | (812) | (2,290) | ||||||||||
994 | (529) | 1,181 | 351 | 1,753 | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | (72) | 83 | (107) | 274 | (784) | ||||||||||
Net (gains) losses reclassified to net income | (13) | (20) | 5 | (65) | (25) | ||||||||||
(85) | 63 | (102) | 209 | (809) | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | (217) | (686) | (488) | (222) | (1,351) | ||||||||||
Net (gains) losses reclassified to net income | 173 | 165 | 50 | (142) | 552 | ||||||||||
(44) | (521) | (438) | (364) | (799) | |||||||||||
OCI, net of income tax, that is not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | (95) | 18 | (198) | (240) | 198 | ||||||||||
Net gains (losses) due to fair value change of fair value option (FVO) liabilities | |||||||||||||||
attributable to changes in credit risk | 80 | (45) | 40 | (106) | 262 | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | - | 6 | (5) | 19 | (35) | ||||||||||
(15) | (21) | (163) | (327) | 425 | |||||||||||
Total OCI (1) | 850 | (1,008) | 478 | (131) | 570 | ||||||||||
Comprehensive income | $ | 2,333 | $ | 422 | $ | 1,663 | $ | 4,902 | $ | 6,813 | |||||
Comprehensive income attributable to non-controlling interests | $ | 8 | $ | 10 | $ | 7 | $ | 38 | $ | 23 | |||||
Preferred shareholders and other equity instrument holders | $ | 62 | $ | 66 | $ | 37 | $ | 267 | $ | 171 | |||||
Common shareholders | 2,263 | 346 | 1,619 | 4,597 | 6,619 | ||||||||||
Comprehensive income attributable to equity shareholders | $ | 2,325 | $ | 412 | $ | 1,656 | $ | 4,864 | $ | 6,790 |
(1) | Includes $11 million of gains for the quarter ended October 31, 2023 (July 31, 2023: $6 million of losses; October 31, 2022: $48 million of losses), relating to our investments in equity-accounted associates and joint ventures. | ||||||||||||||
For the three | For the twelve | ||||||||||||||
months ended | months ended | ||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||
Income tax (expense) benefit allocated to each component of OCI | |||||||||||||||
Subject to subsequent reclassification to net income | |||||||||||||||
Net foreign currency translation adjustments | |||||||||||||||
Net gains (losses) on investments in foreign operations | $ | (72) | $ | 39 | $ | (91) | $ | (26) | $ | (136) | |||||
Net gains (losses) on hedges of investments in foreign operations | 93 | (56) | 82 | 26 | 131 | ||||||||||
21 | (17) | (9) | - | (5) | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | 32 | (34) | 15 | (65) | 160 | ||||||||||
Net (gains) losses reclassified to net income | 5 | 7 | (2) | 25 | 9 | ||||||||||
37 | (27) | 13 | (40) | 169 | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | 84 | 264 | 174 | 106 | 482 | ||||||||||
Net (gains) losses reclassified to net income | (67) | (63) | (18) | 46 | (197) | ||||||||||
17 | 201 | 156 | 152 | 285 | |||||||||||
Not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | 36 | (7) | 44 | 75 | (97) | ||||||||||
Net gains (losses) due to fair value change of FVO liabilities attributable | |||||||||||||||
to changes in credit risk | (30) | 17 | (14) | 38 | (93) | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | - | (2) | 2 | (6) | 9 | ||||||||||
6 | 8 | 32 | 107 | (181) | |||||||||||
$ | 81 | $ | 165 | $ | 192 | $ | 219 | $ | 268 |
Consolidated statement of changes in equity | ||||||||||||||
For the three | For the twelve | |||||||||||||
months ended | months ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||
Preferred shares and other equity instruments | ||||||||||||||
Balance at beginning of period | $ | 4,925 | $ | 4,925 | $ | 4,325 | $ | 4,923 | $ | 4,325 | ||||
Issue of preferred shares and limited recourse capital notes | - | - | 600 | - | 1,400 | |||||||||
Redemption of preferred shares | - | - | - | - | (800) | |||||||||
Treasury shares | - | - | (2) | 2 | (2) | |||||||||
Balance at end of period | $ | 4,925 | $ | 4,925 | $ | 4,923 | $ | 4,925 | $ | 4,923 | ||||
Common shares | ||||||||||||||
Balance at beginning of period | $ | 15,742 | $ | 15,389 | $ | 14,643 | $ | 14,726 | $ | 14,351 | ||||
Issue of common shares | 338 | 357 | 81 | 1,358 | 401 | |||||||||
Purchase of common shares for cancellation | - | - | - | - | (29) | |||||||||
Treasury shares | 2 | (4) | 2 | (2) | 3 | |||||||||
Balance at end of period | $ | 16,082 | $ | 15,742 | $ | 14,726 | $ | 16,082 | $ | 14,726 | ||||
Contributed surplus | ||||||||||||||
Balance at beginning of period | $ | 103 | $ | 118 | $ | 107 | $ | 115 | $ | 110 | ||||
Compensation expense arising from equity-settled share-based awards | 5 | 3 | 9 | 13 | 24 | |||||||||
Exercise of stock options and settlement of other equity-settled share-based awards | - | (17) | (1) | (20) | (20) | |||||||||
Other | 1 | (1) | - | 1 | 1 | |||||||||
Balance at end of period | $ | 109 | $ | 103 | $ | 115 | $ | 109 | $ | 115 | ||||
Retained earnings | ||||||||||||||
Balance at beginning of period | $ | 29,796 | $ | 29,240 | $ | 28,439 | $ | 28,823 | $ | 25,793 | ||||
Net income attributable to equity shareholders | 1,475 | 1,420 | 1,178 | 4,995 | 6,220 | |||||||||
Dividends and distributions | ||||||||||||||
Preferred and other equity instruments | (62) | (66) | (37) | (267) | (171) | |||||||||
Common | (804) | (799) | (752) | (3,149) | (2,954) | |||||||||
Premium on purchase of common shares for cancellation | - | - | - | - | (105) | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI | (4) | 2 | (1) | - | 45 | |||||||||
Other | 1 | (1) | (4) | - | (5) | |||||||||
Balance at end of period | $ | 30,402 | $ | 29,796 | $ | 28,823 | $ | 30,402 | $ | 28,823 | ||||
AOCI, net of income tax | ||||||||||||||
AOCI, net of income tax, that is subject to subsequent reclassification to net income | ||||||||||||||
Net foreign currency translation adjustments | ||||||||||||||
Balance at beginning of period | $ | 1,168 | $ | 1,697 | $ | 630 | $ | 1,811 | $ | 58 | ||||
Net change in foreign currency translation adjustments | 994 | (529) | 1,181 | 351 | 1,753 | |||||||||
Balance at end of period | $ | 2,162 | $ | 1,168 | $ | 1,811 | $ | 2,162 | $ | 1,811 | ||||
Net gains (losses) on debt securities measured at FVOCI | ||||||||||||||
Balance at beginning of period | $ | (322) | $ | (385) | $ | (514) | $ | (616) | $ | 193 | ||||
Net change in securities measured at FVOCI | (85) | 63 | (102) | 209 | (809) | |||||||||
Balance at end of period | $ | (407) | $ | (322) | $ | (616) | $ | (407) | $ | (616) | ||||
Net gains (losses) on cash flow hedges | ||||||||||||||
Balance at beginning of period | $ | (982) | $ | (461) | $ | (224) | $ | (662) | $ | 137 | ||||
Net change in cash flow hedges | (44) | (521) | (438) | (364) | (799) | |||||||||
Balance at end of period | $ | (1,026) | $ | (982) | $ | (662) | $ | (1,026) | $ | (662) | ||||
AOCI, net of income tax, that is not subject to subsequent reclassification to net income | ||||||||||||||
Net gains (losses) on post-employment defined benefit plans | ||||||||||||||
Balance at beginning of period | $ | 687 | $ | 669 | $ | 1,030 | $ | 832 | $ | 634 | ||||
Net change in post-employment defined benefit plans | (95) | 18 | (198) | (240) | 198 | |||||||||
Balance at end of period | $ | 592 | $ | 687 | $ | 832 | $ | 592 | $ | 832 | ||||
Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk | ||||||||||||||
Balance at beginning of period | $ | 48 | $ | 93 | $ | 194 | $ | 234 | $ | (28) | ||||
Net change attributable to changes in credit risk | 80 | (45) | 40 | (106) | 262 | |||||||||
Balance at end of period | $ | 128 | $ | 48 | $ | 234 | $ | 128 | $ | 234 | ||||
Net gains (losses) on equity securities designated at FVOCI | ||||||||||||||
Balance at beginning of period | $ | 10 | $ | 6 | $ | (1) | $ | (5) | $ | 75 | ||||
Net gains (losses) on equity securities designated at FVOCI | - | 6 | (5) | 19 | (35) | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified to retained earnings | 4 | (2) | 1 | - | (45) | |||||||||
Balance at end of period | $ | 14 | $ | 10 | $ | (5) | $ | 14 | $ | (5) | ||||
Total AOCI, net of income tax | $ | 1,463 | $ | 609 | $ | 1,594 | $ | 1,463 | $ | 1,594 | ||||
Non-controlling interests | ||||||||||||||
Balance at beginning of period | $ | 216 | $ | 215 | $ | 195 | $ | 201 | $ | 182 | ||||
Net income attributable to non-controlling interests | 8 | 10 | 7 | 38 | 23 | |||||||||
Dividends | (2) | (2) | (2) | (8) | (8) | |||||||||
Other | 10 | (7) | 1 | 1 | 4 | |||||||||
Balance at end of period | $ | 232 | $ | 216 | $ | 201 | $ | 232 | $ | 201 | ||||
Equity at end of period | $ | 53,213 | $ | 51,391 | $ | 50,382 | $ | 53,213 | $ | 50,382 |
Consolidated statement of cash flows | ||||||||||||||||||
For the three | For the twelve | |||||||||||||||||
months ended | months ended | |||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
$ millions | Oct. 31 | Jul. 31 | Oct. 31 | Oct. 31 | Oct. 31 | |||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | ||||||||
Adjustments to reconcile net income to cash flows provided by (used in) operating activities: | ||||||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | |||||||||||||
Amortization and impairment (1) | 310 | 274 | 278 | 1,143 | 1,047 | |||||||||||||
Stock options and restricted shares expense | 5 | 3 | 9 | 13 | 24 | |||||||||||||
Deferred income taxes | 39 | (62) | (118) | (87) | (46) | |||||||||||||
Losses (gains) from debt securities measured at FVOCI and amortized cost | (15) | (27) | 6 | (83) | (35) | |||||||||||||
Net losses (gains) on disposal of land, buildings and equipment | - | - | 3 | (3) | (6) | |||||||||||||
Other non-cash items, net | 179 | 1,582 | (786) | 1,822 | (1,126) | |||||||||||||
Net changes in operating assets and liabilities | ||||||||||||||||||
Interest-bearing deposits with banks | (8,035) | 4,483 | (12,942) | (2,576) | (9,902) | |||||||||||||
Loans, net of repayments | (2,643) | (1,040) | (13,188) | (14,301) | (65,000) | |||||||||||||
Deposits, net of withdrawals | 17,515 | (1,803) | 20,188 | 17,045 | 74,511 | |||||||||||||
Obligations related to securities sold short | 917 | 1,018 | (4,895) | 3,382 | (7,506) | |||||||||||||
Accrued interest receivable | (528) | 108 | (532) | (1,272) | (959) | |||||||||||||
Accrued interest payable | 474 | 406 | 839 | 2,521 | 1,228 | |||||||||||||
Derivative assets | (3,215) | (1,015) | (6,740) | 9,826 | (7,073) | |||||||||||||
Derivative liabilities | 2,972 | 2,298 | 12,991 | (10,382) | 20,622 | |||||||||||||
Securities measured at FVTPL | (291) | (13,015) | 3,718 | (15,427) | 4,949 | |||||||||||||
Other assets and liabilities measured/designated at FVTPL | 2,955 | 1,197 | 2,173 | 8,259 | 9,404 | |||||||||||||
Current income taxes | 111 | 46 | 171 | 361 | (809) | |||||||||||||
Cash collateral on securities lent | 2,989 | (585) | 1,554 | 3,228 | 2,390 | |||||||||||||
Obligations related to securities sold under repurchase agreements | 3,699 | 5,944 | 13,233 | 9,319 | 3,680 | |||||||||||||
Cash collateral on securities borrowed | (1,154) | (3,240) | (49) | 675 | (2,958) | |||||||||||||
Securities purchased under resale agreements | (6,296) | (4,098) | (9,078) | (10,971) | (1,641) | |||||||||||||
Other, net | 94 | (1,135) | 409 | 2,619 | (5,379) | |||||||||||||
12,106 | (6,495) | 8,865 | 12,154 | 22,715 | ||||||||||||||
Cash flows provided by (used in) financing activities | ||||||||||||||||||
Issue of subordinated indebtedness | - | - | - | 1,750 | 1,000 | |||||||||||||
Redemption/repurchase/maturity of subordinated indebtedness | - | - | (2) | (1,500) | (2) | |||||||||||||
Issue of preferred shares and limited recourse capital notes, net of issuance cost | - | - | 597 | - | 1,395 | |||||||||||||
Redemption of preferred shares | - | - | - | - | (800) | |||||||||||||
Issue of common shares for cash | 45 | 46 | 40 | 183 | 228 | |||||||||||||
Purchase of common shares for cancellation | - | - | - | - | (134) | |||||||||||||
Net sale (purchase) of treasury shares | 2 | (4) | - | - | 1 | |||||||||||||
Dividends and distributions paid | (573) | (571) | (750) | (2,261) | (2,972) | |||||||||||||
Repayment of lease liabilities | (82) | (84) | (86) | (331) | (326) | |||||||||||||
(608) | (613) | (201) | (2,159) | (1,610) | ||||||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||
Purchase of securities measured/designated at FVOCI and amortized cost | (17,193) | (19,689) | (16,689) | (79,487) | (70,954) | |||||||||||||
Proceeds from sale of securities measured/designated at FVOCI and amortized cost | 6,479 | 9,965 | 6,298 | 26,914 | 23,183 | |||||||||||||
Proceeds from maturity of debt securities measured at FVOCI and amortized cost | 6,653 | 8,758 | 7,555 | 32,824 | 27,574 | |||||||||||||
Acquisition of Canadian Costco credit card portfolio | - | - | (7) | - | (3,085) | |||||||||||||
Net sale (purchase) of property, equipment, software and other intangible assets | (290) | (238) | (392) | (1,014) | (1,109) | |||||||||||||
(4,351) | (1,204) | (3,235) | (20,763) | (24,391) | ||||||||||||||
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks | 124 | (84) | 156 | 49 | 248 | |||||||||||||
Net increase (decrease) in cash and non-interest-bearing deposits with banks | ||||||||||||||||||
during the period | 7,271 | (8,396) | 5,585 | (10,719) | (3,038) | |||||||||||||
Cash and non-interest-bearing deposits with banks at beginning of period | 13,545 | 21,941 | 25,950 | 31,535 | 34,573 | |||||||||||||
Cash and non-interest-bearing deposits with banks at end of period (2) | $ | 20,816 | $ | 13,545 | $ | 31,535 | $ | 20,816 | $ | 31,535 | ||||||||
Cash interest paid | $ | 8,786 | $ | 7,977 | $ | 4,168 | $ | 29,673 | $ | 8,310 | ||||||||
Cash interest received | 11,598 | 11,404 | 7,368 | 42,600 | 20,120 | |||||||||||||
Cash dividends received | 331 | 323 | 292 | 1,147 | 1,100 | |||||||||||||
Cash income taxes paid | 230 | 394 | 231 | 1,657 | 2,585 |
(1) | Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets. | |||||||||||||||||
(2) | Includes restricted cash of $491 million (July 31, 2023: $471 million; October 31, 2022: $493 million) and interest-bearing demand deposits with Bank of Canada. |
We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.
Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
U.S. | |||||||||||||||||
Canadian | U.S. | Capital | Commercial | ||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended October 31, 2023 | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,455 | $ | 1,366 | $ | 672 | $ | 1,290 | $ | 61 | $ | 5,844 | $ | 492 | |||
Provision for (reversal of) credit losses | 282 | 11 | 249 | 4 | (5) | 541 | 183 | ||||||||||
Non-interest expenses | 1,307 | 679 | 387 | 734 | 333 | 3,440 | 284 | ||||||||||
Income (loss) before income taxes | 866 | 676 | 36 | 552 | (267) | 1,863 | 25 | ||||||||||
Income taxes | 231 | 186 | (14) | 169 | (192) | 380 | (10) | ||||||||||
Net income (loss) | 635 | 490 | 50 | 383 | (75) | 1,483 | 35 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 8 | 8 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 635 | 490 | 50 | 383 | (83) | 1,475 | 35 | ||||||||||
Diluted EPS ($) | $ | 1.53 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | $ | (6) | $ | - | $ | (9) | $ | - | $ | (30) | $ | (45) | $ | (6) | |||
Impact of items of note on non-interest expenses | (6) | - | (9) | - | (30) | (45) | (6) | ||||||||||
Total pre-tax impact of items of note on net income | 6 | - | 9 | - | 30 | 45 | 6 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 2 | - | 3 | - | 3 | 8 | 2 | ||||||||||
Impact of items of note on income taxes | 2 | - | 3 | - | 3 | 8 | 2 | ||||||||||
Total after-tax impact of items of note on net income | $ | 4 | $ | - | $ | 6 | $ | - | $ | 27 | $ | 37 | $ | 4 | |||
Impact of items of note on diluted EPS ($) | $ | 0.04 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,455 | $ | 1,366 | $ | 672 | $ | 1,290 | $ | 61 | $ | 5,844 | $ | 492 | |||
Provision for (reversal of) credit losses – adjusted | 282 | 11 | 249 | 4 | (5) | 541 | 183 | ||||||||||
Non-interest expenses – adjusted | 1,301 | 679 | 378 | 734 | 303 | 3,395 | 278 | ||||||||||
Income (loss) before income taxes – adjusted | 872 | 676 | 45 | 552 | (237) | 1,908 | 31 | ||||||||||
Income taxes – adjusted | 233 | 186 | (11) | 169 | (189) | 388 | (8) | ||||||||||
Net income (loss) – adjusted | 639 | 490 | 56 | 383 | (48) | 1,520 | 39 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 8 | 8 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 639 | 490 | 56 | 383 | (56) | 1,512 | 39 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.57 |
(1) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||
(2) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||
(3) | CIBC total results excludes a tax equivalent basis (TEB) adjustment of $62 million (July 31, 2023: $66 million; October 31, 2022: $51 million). Our adjusted efficiency ratio and adjusted operating leverage are calculated on a TEB. | ||||||||||||||||
(4) | On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022. | ||||||||||||||||
(5) | Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables. Provision for credit losses for performing loans associated with the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022 included the stage 1 ECL allowance established immediately after the acquisition date and the impact of the migration of stage 1 accounts to stage 2 during the second quarter of 2022. | ||||||||||||||||
(6) | The income tax charge is comprised of $510 million for the present value of the estimated amount of the Canada Recovery Dividend (CRD) tax of $555 million, and a charge of $35 million related to the fiscal 2022 impact of the 1.5% increase in the tax rate applied to taxable income of certain bank and insurance entities in excess of $100 million for periods after April 2022. The discount of $45 million on the CRD tax accretes over the four-year payment period from initial recognition. | ||||||||||||||||
(7) | Relates to the net legal provisions recognized in the first and second quarters of 2023. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
U.S. | |||||||||||||||||
Canadian | U.S. | Capital | Commercial | ||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended July 31, 2023 | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,412 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,850 | $ | 499 | |||
Provision for (reversal of) credit losses | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses | 1,303 | 674 | 345 | 673 | 312 | 3,307 | 258 | ||||||||||
Income (loss) before income taxes | 686 | 636 | 66 | 676 | (257) | 1,807 | 50 | ||||||||||
Income taxes | 189 | 169 | (7) | 182 | (156) | 377 | (5) | ||||||||||
Net income (loss) | 497 | 467 | 73 | 494 | (101) | 1,430 | 55 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 497 | 467 | 73 | 494 | (111) | 1,420 | 55 | ||||||||||
Diluted EPS ($) | $ | 1.47 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Impact of items of note on non-interest expenses | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Total pre-tax impact of items of note on net income | 41 | - | 13 | - | 3 | 57 | 10 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 2 | - | 3 | - | - | 5 | 3 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Impact of items of note on income taxes | 11 | - | 3 | - | - | 14 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 30 | $ | - | $ | 10 | $ | - | $ | 3 | $ | 43 | $ | 7 | |||
Impact of items of note on diluted EPS ($) | $ | 0.05 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,446 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,884 | $ | 499 | |||
Provision for (reversal of) credit losses – adjusted | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses – adjusted | 1,296 | 674 | 332 | 673 | 309 | 3,284 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 727 | 636 | 79 | 676 | (254) | 1,864 | 60 | ||||||||||
Income taxes – adjusted | 200 | 169 | (4) | 182 | (156) | 391 | (2) | ||||||||||
Net income (loss) – adjusted | 527 | 467 | 83 | 494 | (98) | 1,473 | 62 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 527 | 467 | 83 | 494 | (108) | 1,463 | 62 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.52 | |||||||||||||||
See previous page for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
U.S. | |||||||||||||||||
Canadian | U.S. | Capital | Commercial | ||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended October 31, 2022 | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,262 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,388 | $ | 483 | |||
Provision for (reversal of) credit losses | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses | 1,313 | 658 | 356 | 656 | 500 | 3,483 | 264 | ||||||||||
Income (loss) before income taxes | 644 | 637 | 197 | 527 | (536) | 1,469 | 143 | ||||||||||
Income taxes | 173 | 168 | 36 | 149 | (242) | 284 | 27 | ||||||||||
Net income (loss) | 471 | 469 | 161 | 378 | (294) | 1,185 | 116 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 471 | 469 | 161 | 378 | (301) | 1,178 | 116 | ||||||||||
Diluted EPS ($) (4) | $ | 1.26 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | $ | (6) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | - | |||
Impact of items of note on revenue | (6) | - | - | - | - | (6) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (7) | - | (17) | - | (3) | (27) | (13) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | (18) | - | - | - | - | (18) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (37) | (37) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (91) | (91) | - | ||||||||||
Impact of items of note on non-interest expenses | (25) | - | (17) | - | (131) | (173) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 19 | - | 17 | - | 131 | 167 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 1 | - | 5 | - | - | 6 | 4 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | 4 | - | - | - | - | 4 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 10 | 10 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 24 | 24 | - | ||||||||||
Impact of items of note on income taxes | 5 | - | 5 | - | 34 | 44 | 4 | ||||||||||
Total after-tax impact of items of note on net income | $ | 14 | $ | - | $ | 12 | $ | - | $ | 97 | $ | 123 | $ | 9 | |||
Impact of items of note on diluted EPS ($) (4) | $ | 0.13 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,256 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,382 | $ | 483 | |||
Provision for (reversal of) credit losses – adjusted | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses – adjusted | 1,288 | 658 | 339 | 656 | 369 | 3,310 | 251 | ||||||||||
Income (loss) before income taxes – adjusted | 663 | 637 | 214 | 527 | (405) | 1,636 | 156 | ||||||||||
Income taxes – adjusted | 178 | 168 | 41 | 149 | (208) | 328 | 31 | ||||||||||
Net income (loss) – adjusted | 485 | 469 | 173 | 378 | (197) | 1,308 | 125 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 485 | 469 | 173 | 378 | (204) | 1,301 | 125 | ||||||||||
Adjusted diluted EPS ($) (4) | $ | 1.39 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
U.S. | |||||||||||||||||
Canadian | U.S. | Capital | Commercial | ||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the twelve months ended October 31, 2023 | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 9,407 | $ | 5,403 | $ | 2,692 | $ | 5,488 | $ | 333 | $ | 23,323 | $ | 1,994 | |||
Provision for (reversal of) credit losses | 986 | 143 | 850 | 19 | 12 | 2,010 | 630 | ||||||||||
Non-interest expenses | 5,174 | 2,691 | 1,466 | 2,721 | 2,297 | 14,349 | 1,086 | ||||||||||
Income (loss) before income taxes | 3,247 | 2,569 | 376 | 2,748 | (1,976) | 6,964 | 278 | ||||||||||
Income taxes | 889 | 691 | (3) | 762 | (408) | 1,931 | (2) | ||||||||||
Net income (loss) | 2,358 | 1,878 | 379 | 1,986 | (1,568) | 5,033 | 280 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 38 | 38 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 2,358 | 1,878 | 379 | 1,986 | (1,606) | 4,995 | 280 | ||||||||||
Diluted EPS ($) | $ | 5.16 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (26) | - | (56) | - | (39) | $ | (121) | (41) | |||||||||
Increase in legal provisions (7) | - | - | - | - | (1,055) | (1,055) | - | ||||||||||
Impact of items of note on non-interest expenses | (26) | - | (56) | - | (1,094) | (1,176) | (41) | ||||||||||
Total pre-tax impact of items of note on net income | 60 | - | 56 | - | 1,094 | 1,210 | 41 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 6 | - | 15 | - | 4 | 25 | 11 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Increase in legal provisions (7) | - | - | - | - | 293 | 293 | - | ||||||||||
Income tax charge related to the 2022 Canadian Federal budget (6) | - | - | - | - | (545) | (545) | - | ||||||||||
Impact of items of note on income taxes | 15 | - | 15 | - | (248) | (218) | 11 | ||||||||||
Total after-tax impact of items of note on net income | $ | 45 | $ | - | $ | 41 | $ | - | $ | 1,342 | $ | 1,428 | $ | 30 | |||
Impact of items of note on diluted EPS ($) | $ | 1.56 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 9,441 | $ | 5,403 | $ | 2,692 | $ | 5,488 | $ | 333 | $ | 23,357 | $ | 1,994 | |||
Provision for (reversal of) credit losses – adjusted | 986 | 143 | 850 | 19 | 12 | 2,010 | 630 | ||||||||||
Non-interest expenses – adjusted | 5,148 | 2,691 | 1,410 | 2,721 | 1,203 | 13,173 | 1,045 | ||||||||||
Income (loss) before income taxes – adjusted | 3,307 | 2,569 | 432 | 2,748 | (882) | 8,174 | 319 | ||||||||||
Income taxes – adjusted | 904 | 691 | 12 | 762 | (656) | 1,713 | 9 | ||||||||||
Net income (loss) – adjusted | 2,403 | 1,878 | 420 | 1,986 | (226) | 6,461 | 310 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 38 | 38 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 2,403 | 1,878 | 420 | 1,986 | (264) | 6,423 | 310 | ||||||||||
Adjusted diluted EPS ($) | $ | 6.72 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
U.S. | |||||||||||||||||
Canadian | U.S. | Capital | Commercial | ||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the twelve months ended October 31, 2022 | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 8,909 | $ | 5,254 | $ | 2,457 | $ | 5,001 | $ | 212 | $ | 21,833 | $ | 1,902 | |||
Provision for (reversal of) credit losses | 876 | 23 | 218 | (62) | 2 | 1,057 | 169 | ||||||||||
Non-interest expenses | 4,975 | 2,656 | 1,328 | 2,437 | 1,407 | 12,803 | 1,028 | ||||||||||
Income (loss) before income taxes | 3,058 | 2,575 | 911 | 2,626 | (1,197) | 7,973 | 705 | ||||||||||
Income taxes | 809 | 680 | 151 | 718 | (628) | 1,730 | 117 | ||||||||||
Net income (loss) | 2,249 | 1,895 | 760 | 1,908 | (569) | 6,243 | 588 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 23 | 23 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 2,249 | 1,895 | 760 | 1,908 | (592) | 6,220 | 588 | ||||||||||
Diluted EPS ($) (4) | $ | 6.68 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | $ | (16) | $ | - | $ | - | $ | - | $ | - | $ | (16) | $ | - | |||
Impact of items of note on revenue | (16) | - | - | - | - | (16) | - | ||||||||||
Provision for (reversal of) credit losses | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | (94) | - | - | - | - | (94) | - | ||||||||||
Impact of items of note on provision for (reversal of) credit losses | (94) | - | - | - | - | (94) | - | ||||||||||
Non-interest expenses |