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CIBC announces fourth quarter and fiscal 2023 results

CIBC's 2023 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2023 Annual Report is available on SEDAR+ at www.sedarplus.ca. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Nov. 30, 2023 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2023.

"In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses," said Victor Dodig, CIBC President and Chief Executive Officer. "We enter the new fiscal year with a robust balance sheet and strong credit quality, foundational to our progress as we enable and simplify our bank, focus on driving growth in the mass affluent and private wealth segments, build on our strength in digital, and leverage our connected culture to grow our commercial and capital markets business. Our CIBC team remains steadfast in its commitment to our purpose, helping make ambitions real as we serve our clients through the economic cycle and build strong, sustainable communities."

Fourth quarter highlights

Q4/23

Q4/22

Q3/23

YoY
Variance  

QoQ
Variance  

Revenue

$5,844 million  

$5,388 million  

$5,850 million  

+8 %

0 %

Reported Net Income

$1,483 million

$1,185 million

$1,430 million

+25 %

+4 %

Adjusted Net Income (1)

$1,520 million

$1,308 million

$1,473 million

+16 %

+3 %

Adjusted pre-provision, pre-tax earnings (1)

$2,449 million

$2,072 million

$2,600 million

+18 %

-6 %

Reported Diluted Earnings Per Share (EPS) (2)

$1.53

$1.26

$1.47

+21 %

+4 %

Adjusted Diluted EPS  (1)(2)

$1.57

$1.39

$1.52

+13 %

+3 %

Reported Return on Common Shareholders' Equity (ROE) (3)   

11.8 %

10.1 %

11.6 %


Adjusted ROE (1)

12.1 %

11.2 %

11.9 %

Common Equity Tier 1 (CET1) Ratio (4)

12.4 %

11.7 %

12.2 %

CIBC's results for the fourth quarter of 2023 were affected by the following items of note aggregating to a negative impact of $0.04 per share:

  • $45 million ($37 million after-tax) amortization and impairment of acquisition-related intangible assets.

For the year ended October 31, 2023, CIBC reported net income of $5.0 billion and adjusted net income(1) of $6.5 billion, compared with reported net income of $6.2 billion and adjusted net income(1) of $6.6 billion for 2022, and adjusted pre-provision, pre-tax earnings(1) of $10.2 billion, compared with $9.4 billion for 2022.

(1)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 14 to 18; and adjusted pre-provision, pre-tax earnings on page 19.

(2)

On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.

(3)

For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section.

(4)

Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of February 1, 2023. For additional information, see the "Capital management" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.

The following table summarizes our performance in 2023 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.

Financial Measure

Medium-term target

2023 Reported Results

2023 Adjusted Results (2)

Diluted EPS growth (3)

7%–10% annually (1)(6)

3-year CAGR (4) = 7.9%

5-year CAGR (4) = (2.4)%

3-year CAGR (4) = 11.5%

5-year CAGR (4) = 1.9%

ROE (5)

At least 16% (1)(6)

3-year average = 13.5%

5-year average = 13.0%

3-year average = 14.9%

5-year average = 14.4%

Operating leverage (5)

Positive (1)(6)

3-year average = (0.6)%

5-year average = (1.5)%

3-year average = 0.0%

5-year average = (0.1)%

CET1 ratio

Strong buffer to regulatory requirement        

12.4 %

Dividend payout ratio (5)   

40%–50% (1)(6)

3-year average = 52.4%

5-year average = 55.6%

3-year average = 45.9%

5-year average = 48.9%

Total shareholder return

Outperform the S&P/TSX Composite
Banks Index over a rolling three- and five-
year period

                                                          3-year                5-year

CIBC:                                                 15.0%               12.7%   

S&P/TSX Composite Banks Index:    36.2%               29.8%

Core business performance

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.

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 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