CM Canadian Imperial Bank of Commerce

Q3/24 

Q3/23 ⁽¹⁾ 

Q2/24 

YoY 

Variance 

QoQ 
Variance 

Revenue

$6,604 million 

$5,852 million 

$6,164 million 

+13 %

+7 %

Reported Net Income

$1,795 million 

$1,432 million 

$1,749 million 

+25 %

+3 %

Adjusted Net Income ⁽²⁾

$1,895 million 

$1,475 million 

$1,718 million 

+28 %

+10 %

Adjusted pre-provision, pre-tax earnings ⁽²⁾

$2,939 million 

$2,602 million 

$2,690 million 

+13 %

+9 %

Reported Diluted Earnings Per Share (EPS)

$1.82

$1.47

$1.79

+24 %

+2 %

Adjusted Diluted EPS ⁽²⁾

$1.93

$1.52

$1.75

+27 %

+10 %

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

13.2 %

11.6 %

13.7 %

Adjusted ROE ⁽²⁾

14.0 %

12.0 %

13.4 %

Net interest margin on average interest-earnings assets ⁽³⁾⁽⁴⁾

1.50 %

1.49 %

1.46 %

Net interest margin on average interest-earnings assets
(excluding trading) ⁽³⁾⁽⁴⁾

1.84 %

1.67 %

1.72 %

Common Equity Tier 1 (CET1) Ratio ⁽⁵⁾

13.3 %

12.2 %

13.1 %

(1)

Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. For additional information, see Note 1 to the interim consolidated financial statements of our Report to Shareholders for the third quarter of 2024 available on SEDAR+ at www.sedarplus.com.

(2)

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 3 to 7; and adjusted pre-provision, pre-tax earnings on page 8.

(3)

Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our Report to Shareholders for the third quarter of 2024 available on SEDAR+ at www.sedarplus.com.

(4)

Average balances are calculated as a weighted average of daily closing balances.

(5)

Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline and the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, all of which are based on the Basel Committee on Banking Supervision (BCBS) standards. The Basel III reforms related to market risk and credit valuation adjustments were implemented as of November 1, 2023. For additional information, see the "Capital management" and "Liquidity risk" sections of our Report to Shareholders for the third quarter of 2024 available on SEDAR+ at www.sedarplus.com.

(6)

This item of note reports the impact to the consolidated income tax expense in the third quarter of 2024 from the enactment on June 20, 2024 of Bill C-59 that denies the dividends received deduction for dividends received by banks on and after January 1, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note. This item of note is equal and offsetting to the sum of the related items of note in the first and second quarters of 2024.

(1)

This measure is a non-GAAP measure. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section.

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, 2024

Banking

Management

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

$

2,598

$

1,449

$

726

$

1,348

$

483

$

6,604

$

530

Provision for credit losses

338

42

47

45

11

483

33

Non-interest expenses

1,388

762

416

770

346

3,682

304

Income before income taxes

872

645

263

533

126

2,439

193

Income taxes

244

177

48

145

30

644

35

Net income

628

468

215

388

96

1,795

158

Net income attributable to non-controlling interests

-

-

-

-

9

9

-

Net income attributable to equity shareholders

628

468

215

388

87

1,786

158

Diluted EPS ($)

$

1.82

Impact of items of note ⁽¹⁾

Revenue

Adjustments related to enactment of a Federal tax measure in June

   2024 that denies the dividends received deduction for banks ⁽²⁾

$

-

$

-

$

-

$

123

$

(123)

$

-

$

-

Impact of items of note on revenue

-

-

-

123

(123)

-

-

Non-interest expenses

Amortization of acquisition-related intangible assets

(7)

-

(8)

-

-

(15)

(6)

Charge related to the special assessment imposed by the FDIC

-

-

(2)

-

-

(2)

(2)

Impact of items of note on non-interest expenses

(7)

-

(10)

-

-

(17)

(8)

Total pre-tax impact of items of note on net income

7

-

10

123

(123)

17

8

Income taxes

Amortization of acquisition-related intangible assets

2

-

2

-

-

4

2

Adjustments related to enactment of a Federal tax measure in June

   2024 that denies the dividends received deduction for banks ⁽²⁾

-

-

-

35

(123)

(88)

-

Charge related to the special assessment imposed by the FDIC

-

-

1

-

-

1

1

Impact of items of note on income taxes

2

-

3

35

(123)

(83)

3

Total after-tax impact of items of note on net income

$

5

$

-

$

7

$

88

$

-

$

100

$

5

Impact of items of note on diluted EPS ($) ⁽³⁾

$

0.11

Operating results – adjusted ⁽⁴⁾

Total revenue – adjusted ⁽⁵⁾

$

2,598

$

1,449

$

726

$

1,471

$

360

$

6,604

$

530

Provision for credit losses – adjusted

338

42

47

45

11

483

33

Non-interest expenses – adjusted

1,381

762

406

770

346

3,665

296

Income before income taxes – adjusted

879

645

273

656

3

2,456

201

Income taxes – adjusted

246

177

51

180

(93)

561

38

Net income – adjusted

633

468

222

476

96

1,895

163

Net income attributable to non-controlling interests – adjusted

-

-

-

-

9

9

-

Net income attributable to equity shareholders – adjusted

633

468

222

476

87

1,886

163

Adjusted diluted EPS ($)

$

1.93

(1)

Items of note are removed from reported results to calculate adjusted results.

(2)

This item of note reports the impact to the consolidated income tax expense in the third quarter of 2024 from the enactment on June 20, 2024 of Bill C-59 that denies the dividends received deduction for dividends received by banks on and after January 1, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note.

(3)

Includes the impact of rounding differences between diluted EPS and adjusted diluted EPS.

(4)

Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures.

(5)

CIBC total results excludes a reversal of a TEB adjustment of $123 million for the quarter ended July 31, 2024 (April 30, 2024: excludes a TEB adjustment of $71 million; July 31, 2023: excludes a TEB adjustment of $66 million) and excludes a TEB adjustment of $16 million for the nine months ended July 31, 2024 (July 31, 2023: excludes a TEB adjustment of $192 million).

(6)

Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. For additional information, see Note 1 to the interim consolidated financial statements of our Report to Shareholders for the third quarter of 2024 available on SEDAR+ at www.sedarplus.com.

(7)

Relates to the net legal provisions recognized in the first and second quarters of 2023.

(8)

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.

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 April 30, 2024

Banking

Management

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

$

2,476

$

1,384

$

666

$

1,488

$

150

$

6,164

$

489

Provision for credit losses

270

37

186

16

5

514

136

Non-interest expenses

1,319

720

396

706

360

3,501

290

Income (loss) before income taxes

887

627

84

766

(215)

2,149

63

Income taxes

238

171

(9)

206

(206)

400

(6)

Net income (loss)

649

456

93

560

(9)

1,749

69

Net income attributable to non-controlling interests

-

-

-

-

10

10

-

Net income (loss) attributable to equity shareholders

649

456

93

560

(19)

1,739

69

Diluted EPS ($)

$

1.79

Impact of items of note ⁽¹⁾

Revenue

Recovery to income tax that will be eliminated with the substantive

   enactment of a Federal proposal to deny the dividends received

      deduction for banks ⁽²⁾

$

-

$

-

$

-

$

(71)

$

71

$

-

$

-

Impact of items of note on revenue

-

-

-

(71)

71

-

-

Non-interest expenses

Amortization of acquisition-related intangible assets

(6)

-

(8)

-

-

(14)

(6)

Charge related to the special assessment imposed by the FDIC

-

-

(13)

-

-

(13)

(10)

Impact of items of note on non-interest expenses

(6)

-

(21)

-

-

(27)

(16)

Total pre-tax impact of items of note on net income

6

-

21

(71)

71

27

16

Income taxes

Amortization of acquisition-related intangible assets

2

-

2

-

-

4

2

Recovery to income tax that will be eliminated with the substantive

   enactment of a Federal proposal to deny the dividends received

      deduction for banks ⁽²⁾

-

-

-

(20)

71

51

-

Charge related to the special assessment imposed by the FDIC

-

-

3

-

-

3

2

Impact of items of note on income taxes

2

-

5

(20)

71

58

4

Total after-tax impact of items of note on net income

$

4

$

-

$

16

$

(51)

$

-

$

(31)

$

12

Impact of items of note on diluted EPS ($) ⁽³⁾

$

(0.04)

Operating results – adjusted ⁽⁴⁾

Total revenue – adjusted ⁽⁵⁾

$

2,476

$

1,384

$

666

$

1,417

$

221

$

6,164

$

489

Provision for credit losses – adjusted

270

37

186

16

5

514

136

Non-interest expenses – adjusted

1,313

720

375

706

360

3,474

274

Income (loss) before income taxes – adjusted

893

627

105

695

(144)

2,176

79

Income taxes – adjusted

240

171

(4)

186

(135)

458

(2)

Net income (loss) – adjusted

653

456

109

509

(9)

1,718

81

Net income attributable to non-controlling interests – adjusted

-

-

-

-

10

10

-

Net income (loss) attributable to equity shareholders – adjusted

653

456

109

509

(19)

1,708

81

Adjusted diluted EPS ($)

$

1.75

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 July 31, 2023

Banking ⁽⁶⁾

Management

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

$

2,414

$

1,350

$

666

$

1,355

$

67

$

5,852

$

499

Provision for 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

688

636

66

676

(257)

1,809

50

Income taxes

189

169

(7)

182

(156)

377

(5)

Net income

499

467

73

494

(101)

1,432

55

Net income attributable to non-controlling interests

-

-

-

-

10

10

-

Net income (loss) attributable to equity shareholders

499

467

73

494

(111)

1,422

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 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 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 ($) ⁽³⁾

$

0.05

Operating results – adjusted ⁽⁴⁾

Total revenue – adjusted ⁽⁵⁾

$

2,448

$

1,350

$

666

$

1,355

$

67

$

5,886

$

499

Provision for 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

729

636

79

676

(254)

1,866

60

Income taxes – adjusted

200

169

(4)

182

(156)

391

(2)

Net income (loss) – adjusted

529

467

83

494

(98)

1,475

62

Net income attributable to non-controlling interests – adjusted

-

-

-

-

10

10

-

Net income (loss) attributable to equity shareholders – adjusted

529

467

83

494

(108)

1,465

62

Adjusted diluted EPS ($)

$

1.52

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 nine months ended July 31, 2024

Banking

Management

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

$

7,571

$

4,207

$

2,073

$

4,397

$

741

$

18,989

$

1,526

Provision for credit losses

937

99

477

69

-

1,582

351

Non-interest expenses

3,987

2,151

1,290

2,188

1,032

10,648

950

Income (loss) before income taxes

2,647

1,957

306

2,140

(291)

6,759

225

Income taxes

720

535

7

580

(355)

1,487

5

Net income

1,927

1,422

299

1,560

64

5,272

220

Net income attributable to non-controlling interests

-

-

-

-

31

31

-

Net income attributable to equity shareholders

1,927

1,422

299

1,560

33

5,241

220

Diluted EPS ($)

$

5.38

Impact of items of note ⁽¹⁾

Revenue

Adjustments related to enactment of a Federal tax measure in June

   2024 that denies the dividends received deduction for banks ⁽²⁾

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Impact of items of note on revenue

-

-

-

-

-

-

-

Non-interest expenses

Amortization of acquisition-related intangible assets

(20)

-

(24)

-

-

(44)

(18)

Charge related to the special assessment imposed by the FDIC

-

-

(106)

-

-

(106)

(79)

Impact of items of note on non-interest expenses

(20)

-

(130)

-

-

(150)

(97)

Total pre-tax impact of items of note on net income

20

-

130

-

-

150

97

Income taxes

Amortization of acquisition-related intangible assets

6

-

6

-

-

12

5

Adjustments related to enactment of a Federal tax measure in June

   2024 that denies the dividends received deduction for banks ⁽²⁾

-

-

-

-

-

-

-

Charge related to the special assessment imposed by the FDIC

-

-

27

-

-

27

20

Impact of items of note on income taxes

6

-

33

-

-

39

25

Total after-tax impact of items of note on net income

$

14

$

-

$

97

$

-

$

-

$

111

$

72

Impact of items of note on diluted EPS ($) ⁽³⁾

$

0.12

Operating results – adjusted ⁽⁴⁾

Total revenue – adjusted ⁽⁵⁾

$

7,571

$

4,207

$

2,073

$

4,397

$

741

$

18,989

$

1,526

Provision for credit losses – adjusted

937

99

477

69

-

1,582

351

Non-interest expenses – adjusted

3,967