TIDMBH29
RNS Number : 5402E
Canadian Imperial Bank of Commerce
31 May 2012
CIBC Announces Second Quarter 2012 Results
Toronto, ON - May 31, 2012 - CIBC (TSX: CM) (NYSE: CM) reported
today net income of $811 million for the second quarter ended April
30, 2012, compared with net income of $767 million for the same
period last year. Reported diluted earnings per share (EPS) were
$1.90, compared with reported diluted EPS of $1.80 a year ago.
Adjusted diluted EPS were $2.00(1) , compared with adjusted diluted
EPS of $1.83(1) a year ago. Return on common shareholders' equity
for the second quarter was 22.1%.
Results for the second quarter of 2012 were affected by the
following items of note, netting to a negative impact of $0.10 per
share:
-- $28 million ($16 million after-tax or $0.04 per share) hedge
accounting loss on leveraged leases;
-- $12 million ($0.03 per share) premium paid on preferred share redemptions;
-- $10 million ($7 million after-tax or $0.02 per share) loss
from the structured credit run-off business; and
-- $7 million ($6 million after-tax or $0.01 per share) amortization of intangible assets.
Reported net income of $811 million for the second quarter
compared with reported net income of $835 million for the prior
quarter. Reported diluted EPS and adjusted diluted EPS of $1.90 and
$2.00(1) , respectively, for the second quarter compared with
reported diluted EPS and adjusted diluted EPS of $1.93 and $1.97(1)
, respectively, for the prior quarter.
CIBC's Tier 1 and Tangible Common Equity ratios at April 30,
2012 were 14.1% and 11.0%(1) , respectively, compared to 14.3% and
10.8%(1) , respectively, at January 31, 2012. CIBC currently
exceeds the minimum requirements as proposed by the Basel Committee
on Banking Supervision, while continuing to invest for future
growth.
"CIBC's solid results in the second quarter reflect our strong
focus on our clients as well as our underlying business
fundamentals," says Gerry McCaughey, President and Chief Executive
Officer. "CIBC was ranked as the strongest bank in North America
and the third strongest bank in the world by Bloomberg Markets
Magazine, the second year we have been recognized among the world's
strongest banks."
Core business performance
Retail and Business Bankingreported net income of $556 million
for the second quarter, up from $496 million for the same quarter
last year.
Revenue of $2.0 billion was up 4% from the second quarter of
2011, primarily due to strong volume growth and higher treasury
allocations, partly offset by narrower spreads in personal
banking.
Provision for credit losses of $271 million was up slightly from
$267 million in the same quarter last year due to higher losses in
the personal lending portfolio, partially offset by lower
write-offs net of recoveries in the cards portfolio.
During the second quarter of 2012, our retail business continued
to make progress against our strategy to strengthen our focus as a
client-centric organization, by building deeper relationships with
our clients, improving our sales and service capabilities and
acquiring and retaining clients who seek deeper and more rewarding
relationships:
-- We launched the CIBC Total Banking Rebate to attract new
clients and deepen our relationships with existing clients by
rewarding them with discounts on their monthly account fees when
they hold certain CIBC products;
-- We continue to invest in our strong distribution platform,
adding 11 new or renovated branches in the first half of fiscal
2012;
-- To provide our clients with increased opportunities to do
their banking, we are expanding hours of operation in our branches
with many more open later on weekdays and more of our branches open
on Saturdays and Sundays;
-- Demonstrating our continued commitment to Business Banking
clients, we implemented inter-branch banking capabilities for Small
Business clients and launchedthe new cash management solution, CIBC
Cash Management Online, to enhance the client experience; and
-- We continued our leadership in the mobile banking space with
the launch of a mobile banking App designed for the iPad that makes
it easier for clients to manage their finances by offering rich
interactive graphics and visuals.
"Continuing our leadership in mobile financial services
innovations, we announced post quarter-end, in partnership with
Rogers Communications, our plans to become the first bank in Canada
to offer mobile payments functionality for our clients later this
year," says David Williamson, Senior Executive Vice-President and
Group Head, Retail and Business Banking. "This new functionality
will allow our clients to use their existing CIBC credit card
through their smartphone and pay at the checkout."
Wealth Managementreported net income of $79 million for the
second quarter, up from $73 million or 8% for the same quarter last
year.
Revenue of $418 million was comparable to the second quarter of
2011. Lower commissions from equity trading and new issuance
activity were offset by income from our investment in American
Century Investments included in the current quarter.
During the second quarter of 2012, our wealth management
business continued to make progress in support of our strategic
priority of building our wealth management platform:
-- We set a new quarterly record this quarter with net sales of
long-term retail mutual funds of $1.5 billion; and
-- We were presented with the 'Deal of the Year' award at the
19th Annual Mutual Fund Industry Awards for our acquisition of an
equity stake in American Century Investments. This award recognizes
a merger and acquisition deal that most changed the landscape of
the mutual fund industry in 2011.
Wholesale Bankingreported net income of $131 million for the
second quarter, which was comparable to the prior quarter. Lower
capital markets and corporate and investment banking revenue were
largely offset by a lower effective tax rate, lower non-interest
expenses, and a lower provision for credit losses.
Revenue of $402 million was down from $438 million in the prior
quarter, primarily due to lower revenue from equity derivatives and
commodities trading, debt issuance activity, foreign exchange
trading, and lower merchant banking gains, partially offset by
higher treasury allocations. The hedge accounting loss on leveraged
leases noted above was mostly offset by higher revenue from our
structured credit run-off business.
Wholesale Banking had several notable achievements during the
second quarter that supported its objective to be the premier
client-focused wholesale bank centred in Canada:
-- CIBC acted as co-lead arranger, joint bookrunner and
syndication agent for the pro rata portion of Telesat Canada's $2.5
billion credit facilities;
-- CIBC acted as joint bookrunner on Wells Fargo Canada
Corporation's $1.5 billion bond offering;
-- CIBC acted as exclusive financial advisor to Pan American
Silver Corp. on its $1.5 billion acquisition of Minefinders
Corp.;
-- CIBC acted as co-lead manager and joint bookrunner on a $604
million common share financing for Crescent Point Energy Corp.;
-- CIBC acted as sole agent on a $300 million, 5-year floating
rate note offering for the Province of Manitoba; and
-- CIBC acted as joint lead agent and joint bookrunner for $225
million of senior secured bonds for Lower Mattagami Energy Limited
Partnership.
CIBC delivered strong performance during the second quarter.
"The investments we are making in our retail and business banking,
wealth management and wholesale banking businesses are furthering
our strength and positioning us well for the future," says Mr.
McCaughey.
CIBC in our communities
CIBC is committed to supporting causes that matter to our
clients, our employees and our communities. During the quarter:
-- As part of our lead sponsorship of the 2015 Pan/Parapan Am
Games, we unveiled the CIBC Pan and Parapan Games Athletes' Village
and introduced the CIBC Youthvision Scholarship Athlete Award - a
$1 million investment in young people and amateur sport in Canada
over 10 years.
-- CIBC celebrated Daffodil Month in April with several
donations to cancer treatment and research at hospitals across the
country and the launch of cancer-related fundraising campaigns for
the BC Children's Hospital, CIBC Charles-Bruneau, Weekend to End
Women's Cancers and Minor Hockey Fights Cancer.
-- CIBC marked its 15(th) anniversary as National partner of
Canada's 50 Best Managed Companies, the country's leading business
awards program recognizing excellence in domestically-owned and
-managed private companies with revenues over $10 million.
-- The CIBC Children's Foundation announced $500,000 in funding
for an innovative clinical research study in robotic therapy for
children with cerebral palsy at Holland Bloorview Kids
Rehabilitation Hospital.
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________________________________________________
([1]) For additional information, see the "Non-GAAP measures" section.
Investor and analyst inquiries should be directed to Geoff
Weiss, Vice-President, Investor Relations, at 416-980-5093. Media
inquiries should be directed to Mary Lou Frazer, Senior Director,
Investor & Financial Communications, at 416-980-4111.
________________________________________________
The information on the following pages forms a part of this
press release.
(The board of directors of CIBC reviewed this press release
prior to it being issued. CIBC's controls and procedures support
the ability of the President and Chief Executive Officer and the
Chief Financial Officer of CIBC to certify CIBC's second quarter
financial report and controls and procedures. CIBC's CEO and CFO
will voluntarily provide to the Securities and Exchange Commission
a certification relating to CIBC's second quarter financial
information, including the attached unaudited interim consolidated
financial statements, and will provide the same certification to
the Canadian Securities Administrators.)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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