Le Lézard
Classified in: Business, Covid-19 virus
Subject: ERN

CIBC announces fourth quarter and fiscal 2022 results


CIBC's 2022 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2022 Annual Report is available on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Dec.1, 2022 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2022.

"In 2022, we delivered solid financial performance and furthered the strong momentum across our bank through the execution of our client-focused strategy, thanks to the efforts of our CIBC team who live our purpose each day ? to help make your ambition a reality," said Victor Dodig, President and CEO, CIBC. "We enter the new fiscal year as a modern, relationship-oriented bank with a strong capital position and focus on growing in key client segments, elevating the client experience, and investing in future differentiators that build long-term competitive advantages. Our bank is well-diversified and resilient, and our proven ability to navigate in an uncertain operating environment will enable us to continue to deliver value to our stakeholders and contribute meaningfully to a more sustainable future," concluded Mr. Dodig.

Fourth quarter highlights


Q4/22

Q4/21

Q3/22

YoY
Variance

QoQ
Variance

Revenue

$5,388 million

$5,064 million

$5,571 million

+6 %

-3 %

Reported Net Income

$1,185 million

$1,440 million

$1,666 million

-18 %

-29 %

Adjusted Net Income (1)

$1,308 million

$1,573 million

$1,724 million

-17 %

-24 %

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

$2,072 million

$2,109 million

$2,465 million

-2 %

-16 %

Reported Diluted Earnings Per Share (EPS) (2)

$1.26

$1.54

$1.78

-18 %

-29 %

Adjusted Diluted EPS (1)(2)

$1.39

$1.68

$1.85

-17 %

-25 %

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

10.1 %

13.4 %

14.6 %


Adjusted ROE (1)

11.2 %

14.7 %

15.1 %

Common Equity Tier 1 (CET1) Ratio (4)

11.7 %

12.4 %

11.8 %

 

CIBC's results for the fourth quarter of 2022 were affected by the following items of note aggregating to a negative impact of $0.13 per share:

For the year ended October 31, 2022, CIBC reported net income of $6.2 billion and adjusted net income(1) of $6.6 billion, compared with reported net income of $6.4 billion and adjusted net income(1) of $6.7 billion for 2021, and adjusted pre-provision, pre-tax earnings(1) of $9.4 billion, compared with $8.8 billion for 2021.

(1)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

(2)

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

(3)

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

(4)

Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the "Capital management" section of our 2022 Annual Report available on SEDAR at www.sedar.com.

(5)

Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables.

 

The following table summarizes our performance in 2022 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.

Financial Measure

2022 Target

2022 Reported Results

2022 Adjusted Results (2)

Diluted EPS growth (3)

5%?10% annually (1)

$6.68, down 4% from 2021

3-year CAGR(4) = 6.1%

5-year CAGR = 3.5%

$7.05, down 2% from 2021

3-year CAGR = 5.8%

5-year CAGR = 4.9%

ROE (5)

At least 15% (1)

14.0%

3-year average = 13.4%

5-year average = 14.2%

14.7%

3-year average = 14.4%

5-year average = 15.2%

Operating leverage (5)

Positive (1)

(1.9)%, a decrease of 720 basis points from 2021

3-year average = (0.2)%

5-year average = 0.1%

(1.9)%, a decrease of 260
basis points from 2021

3-year average = (0.6)%

5-year average = 0.5%

CET1 ratio

Strong buffer to regulatory requirement

11.7 %

Dividend payout ratio (5)

40%?50% (1)

48.8%

3-year average = 53.8%

5-year average = 51.3%

46.3%

3-year average = 48.9%

5-year average = 47.4%

Total shareholder return

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

                                                           3-year               5-year

CIBC:                                                 28.5%               40.2%

S&P/TSX Composite Banks Index:   29.0%               40.6%

 

Core business performance
F2022 Financial Highlights

(C$ million)

F2022

F2021

YoY Variance

Canadian Personal and Business Banking




Reported Net Income

$2,249

$2,494

down 10%

Adjusted Net Income (2)

$2,396

$2,503

down 4%

Pre-provision, pre-tax earnings (2)

$3,934

$3,736

up 5%

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

$4,039

$3,748

up 8%





Canadian Commercial Banking and Wealth Management




Reported Net Income

$1,895

$1,665

up 14%

Adjusted Net Income (2)

$1,895

$1,665

up 14%

Pre-provision, pre-tax earnings (2)

$2,598

$2,227

up 17%

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

$2,598

$2,227

up 17%





U.S. Commercial Banking and Wealth Management




Reported Net Income

$760

$926

down 18%

Adjusted Net Income (2)

$810

$976

down 17%

Pre-provision, pre-tax earnings (2)

$1,129

$1,073

up 5%

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

$1,197

$1,141

up 5%





Capital Markets




Reported Net Income

$1,908

$1,857

up 3%

Adjusted Net Income (2)

$1,908

$1,857

up 3%

Pre-provision, pre-tax earnings (2)

$2,564

$2,403

up 7%

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

$2,564

$2,403

up 7%

 

(1)

Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section.

(2)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

(3)

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

(4)

The 3-year compound annual growth rate (CAGR) is calculated from 2019 to 2022 and the 5-year CAGR is calculated from 2017 to 2022.

(5)

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

 

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2022, CIBC maintained its capital strength and sound risk management practices:

CIBC announced an increase in its quarterly common share dividend from $0.83 per share to $0.85 per share for the quarter ending January 31, 2023.

(1)

Our capital ratios are calculated pursuant to the OSFI's CAR Guideline and the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and liquidity coverage ratio is calculated pursuant to OSFI's Liquidity Adequacy Requirements Guideline, all of which are based on the BCBS standards. For additional information, see the "Capital management" and "Liquidity risk" sections of our 2022 Annual Report available on SEDAR at www.sedar.com.

(2)

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

Credit quality

Provision for credit losses was $436 million for the fourth quarter, up $358 million or 459% from the same quarter last year. The current quarter included a provision for credit losses on performing loans of $217 million mainly due to an unfavourable change in our economic outlook, while the same quarter last year included a provision reversal of $34 million reflective of a favourable change in our economic outlook, partially offset by model parameter updates. Provision for credit losses on impaired loans was up $107 million, mainly attributable to Canadian Personal and Business Banking, and U.S. Commercial Banking and Wealth Management.

Making a difference in our Communities

At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter:

In the first year of its operation, CIBC Foundation disbursed $3.5 million of new, incremental and impactful funding to 68 charitable organizations in Canada.

Fourth quarter financial highlights


As at or for the





As at or for the







three months ended





twelve months ended




2022

2022


2021




2022

2021



Unaudited

Oct. 31

Jul. 31


Oct. 31




Oct. 31

Oct. 31



Financial results ($ millions)



Net interest income

$

3,185


$

3,236


$

2,980




$

12,641


$

11,459



Non-interest income


2,203



2,335



2,084





9,192



8,556



Total revenue


5,388



5,571



5,064





21,833



20,015



Provision for credit losses


436



243



78





1,057



158



Non-interest expenses


3,483



3,183



3,135





12,803



11,535



Income before income taxes


1,469



2,145



1,851





7,973



8,322



Income taxes


284



479



411





1,730



1,876



Net income

$

1,185


$

1,666


$

1,440




$

6,243


$

6,446



Net income attributable to non-controlling interests


7



6



4





23



17




Preferred shareholders and other equity instrument holders


37



46



47





171



158




Common shareholders


1,141



1,614



1,389





6,049



6,271



Net income attributable to equity shareholders

$

1,178


$

1,660


$

1,436




$

6,220


$

6,429



Financial measures



















Reported efficiency ratio (1)


64.6

%


57.1

%


61.9

%




58.6

%


57.6

%


Reported operating leverage (1)


(4.7)

%


1.1

%


1.7

%




(1.9)

%


5.3

%


Loan loss ratio (2)


0.16

%


0.12

%


0.10

%




0.14

%


0.16

%


Reported return on common shareholders' equity (1)(3)


10.1

%


14.6

%


13.4

%




14.0

%


16.1

%


Net interest margin (1)


1.33

%


1.43

%


1.41

%




1.40

%


1.42

%


Net interest margin on average interest-earning assets (1)(4)


1.51

%


1.61

%


1.58

%




1.58

%


1.59

%


Return on average assets (1)(4)


0.50

%


0.73

%


0.68

%




0.69

%


0.80

%


Return on average interest-earning assets (1)(4)


0.56

%


0.83

%


0.77

%




0.78

%


0.89

%


Reported effective tax rate


19.3

%


22.3

%


22.2

%




21.7

%


22.5

%


Common share information



















Per share ($) (5)

- basic earnings

$

1.26


$

1.79


$

1.54




$

6.70


$

6.98





- reported diluted earnings


1.26



1.78



1.54





6.68



6.96





- dividends


0.830



0.830



0.730





3.270



2.920





- book value (6)


49.95



48.97



45.83





49.95



45.83



Closing share price ($) (5)


61.87



64.78



75.09





61.87



75.09



Shares outstanding (thousands) (5)

- weighted-average basic


905,120



903,742



900,937





903,312



897,906





- weighted-average diluted


906,533



905,618



904,055





905,684



900,365





- end of period


906,040



904,691



901,656





906,040



901,656



Market capitalization ($ millions)

$

56,057


$

58,606


$

67,701




$

56,057


$

67,701



Value measures



















Total shareholder return


(3.17)

%


(7.57)

%


4.55

%




(13.56)

%


58.03

%


Dividend yield (based on closing share price)


5.3

%


5.1

%


3.9

%




5.3

%


3.9

%


Reported dividend payout ratio (1)


65.9

%


46.4

%


47.3

%




48.8

%


41.8

%


Market value to book value ratio


1.24



1.32



1.64





1.24



1.64



Selected financial measures ? adjusted (7)



















Adjusted efficiency ratio (8)


60.9

%


55.2

%


57.8

%




56.4

%


55.4

%


Adjusted operating leverage (8)


(5.8)

%


(0.3)

%


(2.8)

%




(1.9)

%


0.7

%


Adjusted return on common shareholders' equity (3)


11.2

%


15.1

%


14.7

%




14.7

%


16.7

%


Adjusted effective tax rate


20.1

%


22.4

%


22.5

%




21.9

%


22.7

%


Adjusted diluted earnings per share (5)

$

1.39


$

1.85


$

1.68




$

7.05


$

7.23



Adjusted dividend payout ratio


59.5

%


44.8

%


43.2

%




46.3

%


40.3

%


On- and off-balance sheet information ($ millions)



















Cash, deposits with banks and securities

$

239,740


$

222,183


$

218,398




$

239,740


$

218,398



Loans and acceptances, net of allowance for credit losses


528,657



516,595



462,879





528,657



462,879



Total assets


943,597



896,790



837,683





943,597



837,683



Deposits


697,572



678,457



621,158





697,572



621,158



Common shareholders' equity (1)


45,258



44,304



41,323





45,258



41,323



Average assets (4)


947,830



899,963



835,931





900,213



809,621



Average interest-earning assets (1)(4)


834,639



796,592



747,009





799,224



721,686



Average common shareholders' equity (1)(4)


44,770



43,875



40,984





43,354



38,881



Assets under administration (AUA) (1)(9)(10)

2,854,828


2,851,405


2,963,221




2,854,828


2,963,221



Assets under management (AUM) (1)(10)

291,513


298,122


316,834




291,513


316,834



Balance sheet quality and liquidity measures  (11)



















Risk-weighted assets (RWA) ($ millions)

$

315,634


$

303,743


$

272,814




$

315,634


$

272,814



CET1 ratio (12)


11.7

%


11.8

%


12.4

%




11.7

%


12.4

%


Tier 1 capital ratio (12)


13.3

%


13.2

%


14.1

%




13.3

%


14.1

%


Total capital ratio (12)


15.3

%


15.3

%


16.2

%




15.3

%


16.2

%


Leverage ratio


4.4

%


4.3

%


4.7

%




4.4

%


4.7

%


Liquidity coverage ratio (LCR) (13)


129

%


123

%


127

%




n/a



n/a



Net stable funding ratio (NSFR)


118

%


117

%


118

%




118

%


118

%


Other information




















Full-time equivalent employees


50,427



49,505



45,282





50,427



45,282



 

(1)

Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on
SEDAR at www.sedar.com.

(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 all periods presented.

(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, 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 $2,258.1 billion (July 31, 2022: $2,241.6 billion; October 31, 2021: $2,341.1 billion).

(10)

AUM amounts are included in the amounts reported under AUA.

(11)

RWA and our capital ratios are calculated pursuant to OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to
OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on BCBS standards. For additional information, see the "Capital management" and "Liquidity risk" sections of our 2022 Annual Report
available on SEDAR at www.sedar.com.

(12)

Ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020 in response to the onset of the COVID-19 pandemic.

(13)

Average for the three months ended for each respective period.

n/a

Not applicable.

 

Review of Canadian Personal and Business Banking fourth quarter results













2022



2022



2021


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue

$

2,262


$

2,321


$

2,128


Provision for (reversal of) credit losses











Impaired


158



136



87



Performing


147



64



77


Total provision for credit losses


305



200



164


Non-interest expenses


1,313



1,313



1,152


Income before income taxes


644



808



812


Income taxes


173



213



215


Net income

$

471


$

595


$

597


Net income attributable to:











Equity shareholders

$

471


$

595


$

597


Total revenue











Net interest income

$

1,720


$

1,767


$

1,542



Non-interest income (1)


542



554



586



$

2,262


$

2,321


$

2,128


Net interest margin on average interest-earning assets (2)(3)


2.19

%


2.29

%


2.17

%

Efficiency ratio


58.0

%


56.6

%


54.1

%

Operating leverage


(7.7)

%


(4.7)

%


(0.4)

%

Return on equity (4)


22.1

%


28.1

%


35.9

%

Average allocated common equity (4)

$

8,437


$

8,387


$

6,608


Full-time equivalent employees


13,840



13,576



12,629


 

Net income for the quarter was $471 million, down $126 million from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(4) were $968 million, down $20 million from the fourth quarter of 2021, due to higher expenses partially offset by higher revenue.

     Revenue of $2,262 million was up $134 million from the fourth quarter of 2021, primarily due to higher net interest income, mainly from volume growth in deposits and assets, including from the acquisition of the Canadian Costco credit card portfolio, partially offset by lower non-interest income. 

     Net interest margin on average interest-earning assets was up 2 basis points mainly due to higher deposit margins and the impact of the Costco credit card portfolio, partially offset by lower loan margins.

     Provision for credit losses of $305 million was up $141 million from the fourth quarter of 2021, due to a higher provision for credit losses on performing loans reflective of an unfavourable change in our economic outlook, and a higher provision for credit losses on impaired loans related to higher write-offs and increased provisions reflective of higher impaired balances.

     Non-interest expenses of $1,313 million were up $161 million from the fourth quarter of 2021 due to higher spending on strategic initiatives, including the Canadian Costco credit card portfolio, and higher employee-related compensation.

(1)

Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(2)

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

(3)

Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com.

(4)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of Canadian Commercial Banking and Wealth Management fourth quarter results













2022



2022



2021


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue











Commercial banking

$

601


$

604


$

489



Wealth management


715



734



751


Total revenue


1,316



1,338



1,240


Provision for (reversal of) credit losses











Impaired


14



9



6



Performing


7



1



(11)


Total provision for (reversal of) credit losses


21



10



(5)


Non-interest expenses


658



670



646


Income before income taxes


637



658



599


Income taxes


168



174



157


Net income

$

469


$

484


$

442


Net income attributable to:











Equity shareholders

$

469


$

484


$

442


Total revenue











Net interest income

$

452


$

442


$

352



Non-interest income (1)


864



896



888




$

1,316


$

1,338


$

1,240


Net interest margin on average interest-earning assets (2)(3)


3.38

%


3.40

%


3.28

%

Efficiency ratio


50.0

%


50.1

%


52.0

%

Operating leverage


4.1

%


2.4

%


1.1

%

Return on equity (4)


21.6

%


22.8

%


24.9

%

Average allocated common equity (4)

$

8,598


$

8,423


$

7,039


Full-time equivalent employees


5,711



5,668



5,241


 

Net income for the quarter was $469 million, up $27 million from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(4) were $658 million, up $64 million from the fourth quarter of 2021, due to higher revenue partially offset by higher expenses.

     Revenue of $1,316 million was up $76 million from the fourth quarter of 2021, driven mainly by higher net interest income from volume growth in loans, higher deposit spreads that benefited from the rising interest rate environment, and higher fees in commercial banking. Revenue in wealth management decreased due to market depreciation impacting AUA and AUM and lower commission revenue from decreased client activity, partially offset by the impact of volume growth and favourable rates in private banking. 

     Net interest margin on average interest-earning assets was up 10 basis points primarily due to higher deposit margins, partially offset by lower loan margins.

     The current quarter included a provision for credit losses of $21 million, largely due to an unfavourable change in our economic outlook and a few impaired provisions, compared with a provision reversal of $5 million in the fourth quarter of 2021, mainly due to a favourable change in our economic outlook.

     Non-interest expenses of $658 million were up $12 million from the fourth quarter of 2021, primarily due to higher spending on strategic initiatives and higher employee-related compensation.

(1)

Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(2)

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

(3)

Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com.

(4)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of U.S. Commercial Banking and Wealth Management fourth quarter results in Canadian dollars













2022



2022



2021


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue











Commercial banking

$

432


$

388


$

366



Wealth management (1)


221



216



196


Total revenue (2)


653



604



562


Provision for (reversal of) credit losses











Impaired


34



15



8



Performing


66



20



(59)


Total provision for (reversal of) credit losses


100



35



(51)


Non-interest expenses


356



334



296


Income before income taxes


197



235



317


Income taxes


36



42



61


Net income

$

161


$

193


$

256


Net income attributable to:











Equity shareholders

$

161


$

193


$

256


Total revenue (2)











Net interest income

$

466


$

415


$

368



Non-interest income


187



189



194




$

653


$

604


$

562


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


3.49

%


3.36

%


3.48

%

Efficiency ratio


54.5

%


55.3

%


52.5

%

Return on equity (5)


5.8

%


7.3

%


11.2

%

Average allocated common equity (5)

$

11,015


$

10,534


$

9,085


Full-time equivalent employees


2,472



2,395



2,170


 

Review of U.S. Commercial Banking and Wealth Management fourth quarter results in U.S. dollars













2022



2022



2021


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue











Commercial banking

$

320


$

304


$

293



Wealth management (1)


163



169



155


Total revenue (2)


483



473



448


Provision for (reversal of) credit losses











Impaired


25



12



7



Performing


51



16



(47)


Total provision for (reversal of) credit losses


76



28



(40)


Non-interest expenses


264



261



235


Income before income taxes


143



184



253


Income taxes


27



32



49


Net income

$

116


$

152


$

204


Net income attributable to:











Equity shareholders

$

116


$

152


$

204


Total revenue (2)











Net interest income


346



325



293



Non-interest income


137



148



155




483



473



448


Operating leverage


(4.1)

%


(9.3)

%


(1.9)

%

 

Net income for the quarter was $161 million (US$116 million), down $95 million (down US$88 million) from the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(5) were $314 million (US$232 million), up $32 million (up US$6 million) from the fourth quarter of 2021, due to higher net interest income, partially offset by higher expenses and lower fee income.

     Revenue of US$483 million was up US$35 million from the fourth quarter of 2021, primarily due to higher loan and deposit volumes and the impact of rising rates, partially offset by lower asset management fees.

     Net interest margin on average interest-earning assets was up 1 basis point primarily due to higher deposit margins, partially offset by lower loan margins and lower repayment fees due to the U.S. Paycheck Protection Program.

     The current quarter included a provision for credit losses of US$76 million, largely due to an unfavourable change in our economic outlook, model parameter updates, unfavourable portfolio migration, and higher provisions in impaired loans, attributable to the real estate and construction, and oil and gas sectors. The fourth quarter of 2021 included a provision reversal of credit losses of US$40 million, due to a favourable change in our economic outlook driven by the recovery from the COVID-19 pandemic, and favourable portfolio migration.

Non-interest expenses of US$264 million were up US$29 million from the fourth quarter of 2021, primarily due to higher employee-related compensation and higher expenses related to investments in the business and infrastructure.

(1)

Includes revenue related to the U.S. Paycheck Protection Program.

(2)

Included $2 million (US$1 million) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2022 (July 31, 2022: $1 million (US$1 million); October 31, 2021: $3 million (US$3 million)).

(3)

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

(4)

Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2022 Annual Report, available on SEDAR at www.sedar.com.

(5)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of Capital Markets fourth quarter results













2022



2022



2021


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue











Global markets

$

463


$

512


$

420



Corporate and investment banking


440



432



382



Direct financial services


279



255



210


Total revenue (1)


1,182



1,199



1,012


Provision for (reversal of) credit losses











Impaired


(5)



(15)



-



Performing


4



6



(34)


Total provision for (reversal of) credit losses


(1)



(9)



(34)


Non-interest expenses


656



593



528


Income before income taxes


527



615



518


Income taxes (1)


149



168



140


Net income

$

378


$

447


$

378


Net income attributable to:











Equity shareholders

$

378


$

447


$

378


Efficiency ratio


55.4

%


49.5

%


52.2

%

Operating leverage


(7.1)

%


(7.2)

%


(7.2)

%

Return on equity (2)


15.8

%


19.3

%


19.7

%

Average allocated common equity (2)

$

9,522


$

9,200


$

7,632


Full-time equivalent employees


2,384



2,410



2,225


 

Reported net income for the quarter was $378 million, compared with reported net income of $378 million for the fourth quarter of 2021. Adjusted pre-provision, pre-tax earnings(2) were up $42 million or 9% from the fourth quarter of 2021, due to higher revenue partially offset by higher expenses.

     Revenue of $1,182 million was up $170 million from the fourth quarter of 2021. In global markets, revenue increased due to higher foreign exchange and fixed income trading revenue, partially offset by lower equity derivatives trading revenue. In corporate and investment banking, higher corporate banking and advisory revenue was partially offset by lower debt and equity underwriting activity. Direct Financial Services revenue increased due to higher revenue from Simplii Financial.

     Provision reversal of credit losses was down $33 million from the fourth quarter of 2021, mainly due to a favourable change in our economic outlook in the same quarter last year.

     Non-interest expenses of $656 million were up $128 million from the fourth quarter of 2021, primarily due to higher employee-related compensation and investments made in strategic business initiatives.

 

Review of Corporate and Other fourth quarter results









2022

2022


2021


$ millions, for the three months ended

Oct. 31

Jul. 31


Oct. 31


Revenue










International banking

$

220

$

189


$

180



Other


(245)


(80)



(58)


Total revenue (1)


(25)


109



122


Provision for (reversal of) credit losses










Impaired


18


11



11



Performing


(7)


(4)



(7)


Total provision for credit losses


11


7



4


Non-interest expenses


500


273



513


Loss before income taxes


(536)


(171)



(395)


Income taxes (1)


(242)


(118)



(162)


Net loss

$

(294)

$

(53)


$

(233)


Net income (loss) attributable to:










Non-controlling interests

$

7

$

6


$

4



Equity shareholders


(301)


(59)



(237)


Full-time equivalent employees


26,020


25,456



23,017


 

Net loss for the quarter was $294 million, compared with a net loss of $233 million for the fourth quarter of 2021. Adjusted pre-provision, pre-tax losses(2) were up $155 million or 65% from the fourth quarter of 2021, due to lower revenue, partially offset by lower expenses.

     Revenue was down $147 million from the fourth quarter of 2021, due to lower treasury revenue, partially offset by higher revenue in CIBC FirstCaribbean driven by the impact of foreign exchange translation, higher product margins, volume growth and fees.
     Provision for credit losses was up $7 million from the fourth quarter of 2021, mainly due to a higher provision on impaired loans in CIBC FirstCaribbean.
     Non-interest expenses of $500 million were down $13 million from the fourth quarter of 2021. Adjusted non-interest expenses(2) of $369 million were up $8 million from the fourth quarter of 2021, primarily due to higher employee termination costs and higher expenses in CIBC FirstCaribbean, partially offset by lower unallocated corporate support costs.
     Income tax benefit was up $80 million from the fourth quarter of 2021 primarily due to a higher loss.

(1)

Revenue and income taxes of Capital Markets are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $51 million for the quarter ended October 31, 2022 (July 31, 2022: $48 million; October 31, 2021: $48 million).

(2)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Consolidated balance sheet











$ millions, as at October 31


2022



2021


ASSETS







Cash and non-interest-bearing deposits with banks

$

31,535


$

34,573


Interest-bearing deposits with banks


32,326



22,424


Securities



175,879



161,401


Cash collateral on securities borrowed


15,326



12,368


Securities purchased under resale agreements


69,213



67,572


Loans







Residential mortgages


269,706



251,526


Personal


45,429



41,897


Credit card


16,479



11,134


Business and government


188,542



150,213


Allowance for credit losses


(3,073)



(2,849)






517,083



451,921


Other







Derivative instruments


43,035



35,912


Customers' liability under acceptances


11,574



10,958


Property and equipment


3,377



3,286


Goodwill


5,348



4,954


Software and other intangible assets


2,592



2,029


Investments in equity-accounted associates and joint ventures


632



658


Deferred tax assets


480



402


Other assets


35,197



29,225






102,235



87,424





$

943,597


$

837,683


LIABILITIES AND EQUITY







Deposits







Personal

$

232,095


$

213,932


Business and government


397,188



344,388


Bank


22,523



20,246


Secured borrowings


45,766



42,592






697,572



621,158


Obligations related to securities sold short


15,284



22,790


Cash collateral on securities lent


4,853



2,463


Obligations related to securities sold under repurchase agreements


77,171



71,880


Other







Derivative instruments


52,340



32,101


Acceptances


11,586



10,961


Deferred tax liabilities


45



38


Other liabilities


28,072



24,923






92,043



68,023


Subordinated indebtedness


6,292



5,539


Equity







Preferred shares and other equity instruments


4,923



4,325


Common shares


14,726



14,351


Contributed surplus


115



110


Retained earnings


28,823



25,793


Accumulated other comprehensive income (AOCI)


1,594



1,069


Total shareholders' equity


50,181



45,648


Non-controlling interests


201



182


Total equity


50,382



45,830





$

943,597


$

837,683


 

Consolidated statement of income



For the three



For the twelve



months ended



months ended



2022


2022


2021




2022


2021



$ millions, except as noted

Oct. 31


Jul. 31


Oct. 31




Oct. 31


Oct. 31



Interest income (1)



















Loans

$

5,806


$

4,449


$

3,103




$

16,874


$

12,150



Securities


1,243



884



527





3,422



2,141



Securities borrowed or purchased under resale agreements


669



308



75





1,175



319



Deposits with banks


474



159



32





708



131





8,192



5,800



3,737





22,179



14,741



Interest expense



















Deposits


4,177



2,123



612





7,887



2,651



Securities sold short


121



103



61





380



236



Securities lent or sold under repurchase agreements


564



252



42





943



208



Subordinated indebtedness


84



55



29





203



122



Other


61



31



13





125



65





5,007



2,564



757





9,538



3,282



Net interest income


3,185



3,236



2,980





12,641



11,459



Non-interest income



















Underwriting and advisory fees


143



120



151





557



713



Deposit and payment fees


221



222



216





880



797



Credit fees


331



324



295





1,286



1,152



Card fees


102



98



125





437



460



Investment management and custodial fees


428



435



441





1,760



1,621



Mutual fund fees


418



430



469





1,776



1,772



Insurance fees, net of claims


80



94



87





351



358



Commissions on securities transactions


79



87



101





378



426



Gains (losses) from financial instruments measured/designated at




















fair value through profit or loss (FVTPL), net


309



318



82





1,172



607



Gains (losses) from debt securities measured at fair value through




















other comprehensive income (FVOCI) and amortized cost, net


(6)



6



22





35



90



Foreign exchange other than trading


25



76



50





242



276



Income from equity-accounted associates and joint ventures


9



11



11





47



55



Other


64



114



34





271



229





2,203



2,335



2,084





9,192



8,556



Total revenue


5,388



5,571



5,064





21,833



20,015



Provision for credit losses


436



243



78





1,057



158



Non-interest expenses



















Employee compensation and benefits


1,897



1,767



1,669





7,157



6,450



Occupancy costs


253



192



327





853



916



Computer, software and office equipment


598



606



552





2,297



2,030



Communications


89



90



76





352



318



Advertising and business development


101



90



87





334



237



Professional fees


82



76



95





313



277



Business and capital taxes


33



30



28





123



111



Other


430



332



301





1,374



1,196





3,483



3,183



3,135





12,803



11,535



Income before income taxes


1,469



2,145



1,851





7,973



8,322



Income taxes


284



479



411





1,730



1,876



Net income

$

1,185


$

1,666


$

1,440




$

6,243


$

6,446



Net income attributable to non-controlling interests

$

7


$

6


$

4




$

23


$

17




Preferred shareholders and other equity instrument holders

$

37


$

46


$

47




$

171


$

158




Common shareholders


1,141



1,614



1,389





6,049



6,271



Net income attributable to equity shareholders

$

1,178


$

1,660


$

1,436




$

6,220


$

6,429



Earnings per share (in dollars) (2)




















Basic

$

1.26


$

1.79


$

1.54




$

6.70


$

6.98




Diluted


1.26



1.78



1.54





6.68



6.96



Dividends per common share (in dollars) (2)


0.83



0.83



0.73





3.27



2.92



(1)

Interest income included $7.6 billion for the quarter ended October 31, 2022 (July 31, 2022: $5.2 billion; October 31, 2021: $3.4 billion) calculated based on the effective interest rate method.

(2)

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

 

Consolidated statement of comprehensive income




















For the three



For the twelve





months ended



months ended





2022


2022


2021




2022


2021


$ millions

Oct. 31

Jul. 31

Oct. 31



Oct. 31

Oct. 31


Net income

$

1,185

$

1,666

$

1,440



$

6,243

$

6,446


Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent















reclassification to net income















Net foreign currency translation adjustments















Net gains (losses) on investments in foreign operations


2,691


(136)


(301)




4,043


(2,610)



Net gains (losses) on hedges of investments in foreign operations


(1,510)


81


172




(2,290)


1,495






1,181


(55)


(129)




1,753


(1,115)



Net change in debt securities measured at FVOCI















Net gains (losses) on securities measured at FVOCI


(107)


(104)


(33)




(784)


(50)



Net (gains) losses reclassified to net income


5


(5)


(15)




(25)


(66)






(102)


(109)


(48)




(809)


(116)



Net change in cash flow hedges















Net gains (losses) on derivatives designated as cash flow hedges


(488)


(121)


(187)




(1,351)


178



Net (gains) losses reclassified to net income


50


248


32




552


(315)




(438)


127


(155)




(799)


(137)


OCI, net of income tax, that is not subject to subsequent reclassification to net income















Net gains (losses) on post-employment defined benefit plans


(198)


(32)


254




198


917



Net gains (losses) due to fair value change of fair value option (FVO) liabilities
















attributable to changes in credit risk


40


75


17




262


12



Net gains (losses) on equity securities designated at FVOCI


(5)


(84)


30




(35)


100






(163)


(41)


301




425


1,029


















Total OCI (1)


478


(78)


(31)




570


(339)


Comprehensive income

$

1,663

$

1,588

$

1,409



$

6,813

$

6,107


Comprehensive income attributable to non-controlling interests

$

7

$

6

$

4



$

23

$

17



Preferred shareholders and other equity instrument holders

$

37

$

46

$

47



$

171

$

158



Common shareholders


1,619


1,536


1,358




6,619


5,932


Comprehensive income attributable to equity shareholders

$

1,656

$

1,582

$

1,405



$

6,790

$

6,090


 

(1)

Includes $48 million of losses for the quarter ended October 31, 2022 (July 31, 2022: $43 million of losses; October 31, 2021: $9 million of losses), relating to our investments in equity-accounted
associates and joint ventures.

 












For the three
months ended



For the twelve
months ended



2022

2022

2021



2022

2021


$ millions

Oct. 31

Jul. 31

Oct. 31



Oct. 31

Oct. 31


Income tax (expense) benefit allocated to each component of OCI














Subject to subsequent reclassification to net income















Net foreign currency translation adjustments















Net gains (losses) on investments in foreign operations

$

(91)

$

5

$

11



$

(136)

$

45



Net gains (losses) on hedges of investments in foreign operations


82


(5)


(10)




131


(53)






(9)


-


1




(5)


(8)



Net change in debt securities measured at FVOCI















Net gains (losses) on securities measured at FVOCI


15


12


5




160


(11)



Net (gains) losses reclassified to net income


(2)


2


5




9


23






13


14


10




169


12



Net change in cash flow hedges















Net gains (losses) on derivatives designated as cash flow hedges


174


43


66




482


(64)



Net (gains) losses reclassified to net income


(18)


(88)


(11)




(197)


112





156


(45)


55




285


48


Not subject to subsequent reclassification to net income















Net gains (losses) on post-employment defined benefit plans


44


12


(74)




(97)


(311)



Net gains (losses) due to fair value change of FVO liabilities attributable
















to changes in credit risk


(14)


(27)


(6)




(93)


(4)



Net gains (losses) on equity securities designated at FVOCI


2


28


(10)




9


(34)






32


13


(90)




(181)


(349)





















$

192

$

(18)

$

(24)



$

268

$

(297)


 

Consolidated statement of changes in equity



For the three



For the twelve




months ended



months ended





2022


2022


2021




2022


2021


$ millions


Oct. 31


Jul. 31


Oct. 31




Oct. 31


Oct. 31


Preferred shares and other equity instruments














Balance at beginning of period

$

4,325

$

4,325

$

3,575



$

4,325

$

3,575


Issue of preferred shares and limited recourse capital notes


600


800


750




1,400


750


Redemption of preferred shares


-


(800)


-




(800)


-


Treasury shares


(2)


-


-




(2)


-


Balance at end of period

$

4,923

$

4,325

$

4,325



$

4,923

$

4,325


Common shares














Balance at beginning of period

$

14,643

$

14,545

$

14,252



$

14,351

$

13,908


Issue of common shares


81


95


99




401


458


Purchase of common shares for cancellation


-


-


-




(29)


-


Treasury shares


2


3


-




3


(15)


Balance at end of period

$

14,726

$

14,643

$

14,351



$

14,726

$

14,351


Contributed surplus














Balance at beginning of period

$

107

$

115

$

117



$

110

$

117


Compensation expense arising from equity-settled share-based awards


9


3


2




24


19


Exercise of stock options and settlement of other equity-settled share-based awards


(1)


(11)


(14)




(20)


(43)


Other


-


-


5




1


17


Balance at end of period

$

115

$

107

$

110



$

115

$

110


Retained earnings














Balance at beginning of period

$

28,439

$

27,567

$

25,055



$

25,793

$

22,119


Net income attributable to equity shareholders


1,178


1,660


1,436




6,220


6,429


Dividends and distributions















Preferred and other equity instruments


(37)


(46)


(47)




(171)


(158)



Common


(752)


(750)


(657)




(2,954)


(2,622)


Premium on purchase of common shares for cancellation


-


-


-




(105)


-


Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI


(1)


9


9




45


27


Other


(4)


(1)


(3)




(5)


(2)


Balance at end of period

$

28,823

$

28,439

$

25,793



$

28,823

$

25,793


AOCI, net of income tax














AOCI, net of income tax, that is subject to subsequent reclassification to net income















Net foreign currency translation adjustments















Balance at beginning of period

$

630

$

685

$

187



$

58

$

1,173



Net change in foreign currency translation adjustments


1,181


(55)


(129)




1,753


(1,115)



Balance at end of period

$

1,811

$

630

$

58



$

1,811

$

58



Net gains (losses) on debt securities measured at FVOCI















Balance at beginning of period

$

(514)

$

(405)

$

241



$

193

$

309



Net change in securities measured at FVOCI


(102)


(109)


(48)




(809)


(116)



Balance at end of period

$

(616)

$

(514)

$

193



$

(616)

$

193



Net gains (losses) on cash flow hedges















Balance at beginning of period

$

(224)

$

(351)

$

292



$

137

$

274



Net change in cash flow hedges


(438)


127


(155)




(799)


(137)



Balance at end of period

$

(662)

$

(224)

$

137



$

(662)

$

137


AOCI, net of income tax, that is not subject to subsequent reclassification to net income















Net gains (losses) on post-employment defined benefit plans














Balance at beginning of period

$

1,030

$

1,062

$

380



$

634

$

(283)



Net change in post-employment defined benefit plans


(198)


(32)


254




198


917



Balance at end of period

$

832

$

1,030

$

634



$

832

$

634



Net gains (losses) due to fair value change of FVO liabilities attributable to changes

   in credit risk













Balance at beginning of period

$

194

$

119

$

(45)



$

(28)

$

(40)



Net change attributable to changes in credit risk


40


75


17




262


12



Balance at end of period

$

234

$

194

$

(28)



$

234

$

(28)



Net gains (losses) on equity securities designated at FVOCI















Balance at beginning of period

$

(1)

$

92

$

54



$

75

$

2



Net gains (losses) on equity securities designated at FVOCI


(5)


(84)


30




(35)


100



Realized gains (losses) on equity securities designated at FVOCI reclassified to retained

   earnings


1


(9)


(9)




(45)


(27)



Balance at end of period

$

(5)

$

(1)

$

75



$

(5)

$

75


Total AOCI, net of income tax

$

1,594

$

1,115

$

1,069



$

1,594

$

1,069


Non-controlling interests














Balance at beginning of period

$

195

$

193

$

177



$

182

$

181


Net income attributable to non-controlling interests


7


6


4




23


17


Dividends


(2)


(2)


(6)




(8)


(9)


Other


1


(2)


7




4


(7)


Balance at end of period

$

201

$

195

$

182



$

201

$

182


Equity at end of period

$

50,382

$

48,824

$

45,830



$

50,382

$

45,830


 

Consolidated statement of cash flows
























For the three




For the twelve







months ended




months ended








2022


2022


2021





2022


2021



$ millions


Oct. 31


Jul. 31


Oct. 31





Oct. 31


Oct. 31



Cash flows provided by (used in) operating activities
















Net income

$

1,185

$

1,666

$

1,440




$

6,243

$

6,446



Adjustments to reconcile net income to cash flows provided by (used in) operating activities:

















Provision for credit losses


436


243


78





1,057


158




Amortization and impairment (1)


278


260


287





1,047


1,017




Stock options and restricted shares expense


9


3


2





24


19




Deferred income taxes


(118)


(31)


(11)





(46)


(41)




Losses (gains) from debt securities measured at FVOCI and amortized cost


6


(6)


(22)





(35)


(90)




Net losses (gains) on disposal of land, buildings and equipment


3


(9)


-





(6)


-




Other non-cash items, net


(786)


(278)


470





(1,126)


927




Net changes in operating assets and liabilities


















Interest-bearing deposits with banks


(12,942)


7,868


(2,362)





(9,902)


(3,437)





Loans, net of repayments


(13,188)


(14,320)


(14,462)





(65,000)


(46,883)





Deposits, net of withdrawals


20,188


9,169


18,948





74,511


47,521





Obligations related to securities sold short


(4,895)


1,209


975





(7,506)


6,827





Accrued interest receivable


(532)


(188)


(170)





(959)


46





Accrued interest payable


839


222


114





1,228


(419)





Derivative assets


(6,740)


10,382


(1,546)





(7,073)


(3,172)





Derivative liabilities


12,991


(5,515)


2,797





20,622


1,582





Securities measured at FVTPL


3,718


(3,061)


(191)





4,949


(9,552)





Other assets and liabilities measured/designated at FVTPL


2,173


3,438


6,081





9,404


7,277





Current income taxes


171


69


37





(809)


543





Cash collateral on securities lent


1,554


205


(1,148)





2,390


639





Obligations related to securities sold under repurchase agreements


13,233


(3,131)


1,533





3,680


(2,248)





Cash collateral on securities borrowed


(49)


(654)


928





(2,958)


(3,821)





Securities purchased under resale agreements


(9,078)


4,154


(4,662)





(1,641)


(1,977)





Other, net


409


(3,747)


(812)





(5,379)


(4,694)








8,865


7,948


8,304





22,715


(3,332)



Cash flows provided by (used in) financing activities
















Issue of subordinated indebtedness


-


-


-





1,000


1,000



Redemption/repurchase/maturity of subordinated indebtedness


(2)


-


-





(2)


(1,008)



Issue of preferred shares and limited recourse capital notes, net of issuance cost


597


798


748





1,395


748



Redemption of preferred shares


-


(800)


-





(800)


-



Issue of common shares for cash


40


44


51





228


284



Purchase of common shares for cancellation


-


-


-





(134)


-



Net sale (purchase) of treasury shares


-


3


-





1


(15)



Dividends and distributions paid


(750)


(755)


(670)





(2,972)


(2,649)



Repayment of lease liabilities


(86)


(81)


(82)





(326)


(305)








(201)


(791)


47





(1,610)


(1,945)



Cash flows provided by (used in) investing activities
















Purchase of securities measured/designated at FVOCI and amortized cost


(16,689)


(13,782)


(15,249)





(70,954)


(49,896)



Proceeds from sale of securities measured/designated at FVOCI and amortized cost


6,298


4,679


5,748





23,183


23,917



Proceeds from maturity of debt securities measured at FVOCI and amortized cost


7,555


7,410


5,780





27,574


23,312



Acquisition of Canadian Costco credit card portfolio


(7)


-


-





(3,085)


-



Net sale (purchase) of property, equipment, software and other intangible assets


(392)


(272)


(270)





(1,109)


(839)








(3,235)


(1,965)


(3,991)





(24,391)


(3,506)



Effect of exchange rate changes on cash and non-interest-bearing deposits with banks


156


(10)


(21)





248


(175)



Net increase (decrease) in cash and non-interest-bearing deposits with banks

















during the period


5,585


5,182


4,339





(3,038)


(8,958)



Cash and non-interest-bearing deposits with banks at beginning of period


25,950


20,768


30,234





34,573


43,531



Cash and non-interest-bearing deposits with banks at end of period (2)

$

31,535

$

25,950

$

34,573




$

31,535

$

34,573



Cash interest paid

$

4,168

$

2,342

$

643




$

8,310

$

3,701



Cash interest received


7,368


5,349


3,363





20,120


13,890



Cash dividends received


292


263


204





1,100


897



Cash income taxes paid


231


441


385





2,585


1,374






















(1)

Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill.

(2)

Includes restricted cash of $493 million (July 31, 2022: $482 million; October 31, 2021: $446 million) and interest-bearing demand deposits with Bank of Canada.

 

Non-GAAP measures

We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.

Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.

Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our 2022 Annual Report available on SEDAR at www.sedar.com.

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
















U.S.





Canadian

U.S.








Commercial




Canadian

Commercial

Commercial








Banking




Personal

Banking

Banking







and Wealth




and Business

and Wealth

and Wealth

Capital

Corporate

CIBC


Management


$ millions, for the three months ended October 31, 2022

Banking

Management

Management

Markets

and Other

Total


(US$ millions)


Operating results ? reported

















Total revenue

$

2,262

$

1,316

$

653

$

1,182

$

(25)

$

5,388


$

483


Provision for (reversal of) credit losses


305


21


100


(1)


11


436



76


Non-interest expenses


1,313


658


356


656


500


3,483



264


Income (loss) before income taxes


644


637


197


527


(536)


1,469



143


Income taxes


173


168


36


149


(242)


284



27


Net income (loss)


471


469


161


378


(294)


1,185



116



Net income attributable to non-controlling interests


-


-


-


-


7


7



-



Net income (loss) attributable to equity shareholders


471


469


161


378


(301)


1,178



116


Diluted EPS ($) (1)











$

1.26





Impact of items of note (2)

















Revenue


















Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)

$

(6)

$

-

$

-

$

-

$

-

$

(6)


$

-


Impact of items of note on revenue


(6)


-


-


-


-


(6)



-


Non-interest expenses


















Amortization of acquisition-related intangible assets


(7)


-


(17)


-


(3)


(27)



(13)



Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)


(18)


-


-


-


-


(18)



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


(37)


(37)



-



Increase in legal provisions


-


-


-


-


(91)


(91)



-


Impact of items of note on non-interest expenses


(25)


-


(17)


-


(131)


(173)



(13)


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


19


-


17


-


131


167



13


Income taxes


















Amortization of acquisition-related intangible assets


1


-


5


-


-


6



4



Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)


4


-


-


-


-


4



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


10


10



-



Increase in legal provisions


-


-


-


-


24


24



-


Impact of items of note on income taxes


5


-


5


-


34


44



4


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

$

14

$

-

$

12

$

-

$

97

$

123


$

9


Impact of items of note on diluted EPS ($) (1)











$

0.13





Operating results ? adjusted (4)

















Total revenue ? adjusted (5)

$

2,256

$

1,316

$

653

$

1,182

$

(25)

$

5,382


$

483


Provision for (reversal of) credit losses ? adjusted


305


21


100


(1)


11


436



76


Non-interest expenses ? adjusted


1,288


658


339


656


369


3,310



251


Income (loss) before income taxes ? adjusted


663


637


214


527


(405)


1,636



156


Income taxes ? adjusted


178


168


41


149


(208)


328



31


Net income (loss) ? adjusted


485


469


173


378


(197)


1,308



125



Net income attributable to non-controlling interests ? adjusted


-


-


-


-


7


7



-



Net income (loss) attributable to equity shareholders ? adjusted


485


469


173


378


(204)


1,301



125


Adjusted diluted EPS ($) (1)











$

1.39























(1)

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

(2)

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

(3)

Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling
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.

(4)

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

(5)

CIBC total results excludes a tax equivalent basis (TEB) adjustment of $51 million (July 31, 2022: $48 million; October 31, 2021: $48 million). Our adjusted efficiency ratio and adjusted operating
leverage are calculated on a TEB.

 

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
















U.S.





Canadian

U.S.








Commercial




Canadian

Commercial

Commercial








Banking




Personal

Banking

Banking







and Wealth




and Business

and Wealth

and Wealth

Capital

Corporate

CIBC


Management


$ millions, for the three months ended July 31, 2022

Banking

Management

Management

Markets

and Other

Total


(US$ millions)


Operating results ? reported

















Total revenue

$

2,321

$

1,338

$

604

$

1,199

$

109

$

5,571


$

473


Provision for (reversal of) credit losses


200


10


35


(9)


7


243



28


Non-interest expenses


1,313


670


334


593


273


3,183



261


Income (loss) before income taxes


808


658


235


615


(171)


2,145



184


Income taxes


213


174


42


168


(118)


479



32


Net income (loss)


595


484


193


447


(53)


1,666



152



Net income attributable to non-controlling interests


-


-


-


-


6


6



-



Net income (loss) attributable to equity shareholders


595


484


193


447


(59)


1,660



152


Diluted EPS ($) (1)











$

1.78





Impact of items of note (2)

















Revenue


















Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)

$

(6)

$

-

$

-

$

-

$

-

$

(6)


$

-


Impact of items of note on revenue


(6)


-


-


-


-


(6)



-


Non-interest expenses


















Amortization of acquisition-related intangible assets


(7)


-


(17)


-


(3)


(27)



(13)



Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)


(56)


-


-


-


-


(56)



-


Impact of items of note on non-interest expenses


(63)


-


(17)


-


(3)


(83)



(13)


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


57


-


17


-


3


77



13


Income taxes


















Amortization of acquisition-related intangible assets


3


-


4


-


-


7



3



Acquisition and integration-related costs as well as purchase

   accounting adjustments (3)


12


-


-


-


-


12



-


Impact of items of note on income taxes


15


-


4


-


-


19



3


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

$

42

$

-

$

13

$

-

$

3

$

58


$

10


Impact of items of note on diluted EPS ($) (1)











$

0.07





Operating results ? adjusted (4)

















Total revenue ? adjusted (5)

$

2,315

$

1,338

$

604

$

1,199

$

109

$

5,565


$

473


Provision for (reversal of) credit losses ? adjusted


200


10


35


(9)


7


243



28


Non-interest expenses ? adjusted


1,250


670


317


593


270


3,100



248


Income (loss) before income taxes ? adjusted


865


658


252


615


(168)


2,222



197


Income taxes ? adjusted


228


174


46


168


(118)


498



35


Net income (loss) ? adjusted


637


484


206


447


(50)


1,724



162



Net income attributable to non-controlling interests ? adjusted


-


-


-


-


6


6



-



Net income (loss) attributable to equity shareholders ? adjusted


637


484


206


447


(56)


1,718



162


Adjusted diluted EPS ($) (1)











$

1.85























See previous page for footnote references.

 

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
















U.S.





Canadian

U.S.








Commercial




Canadian

Commercial

Commercial








Banking




Personal

Banking

Banking







and Wealth




and Business

and Wealth

and Wealth

Capital

Corporate

CIBC


Management


$ millions, for the three months ended October 31, 2021

Banking

Management

Management

Markets

and Other

Total


(US$ millions)


Operating results ? reported

















Total revenue

$

2,128

$

1,240

$

562

$

1,012

$

122

$

5,064


$

448


Provision for (reversal of) credit losses


164


(5)


(51)


(34)


4


78



(40)


Non-interest expenses


1,152


646


296


528


513


3,135



235


Income (loss) before income taxes


812


599


317


518


(395)


1,851



253


Income taxes


215


157


61


140


(162)


411



49


Net income (loss)


597


442


256


378


(233)


1,440



204



Net income attributable to non-controlling interests


-


-


-


-


4


4



-



Net income (loss) attributable to equity shareholders


597


442


256


378


(237)


1,436



204


Diluted EPS ($) (1)











$

1.54





Impact of items of note (2)

















Non-interest expenses


















Amortization of acquisition-related intangible assets

$

-

$

-

$

(16)

$

-

$

(3)

$

(19)


$

(13)



Acquisition and integration-related costs (3)


(12)


-


-


-


-


(12)



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


(109)


(109)



-



Increase in legal provisions


-


-


-


-


(40)


(40)



-


Impact of items of note on non-interest expenses


(12)


-


(16)


-


(152)


(180)



(13)


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


12


-


16


-


152


180



13


Income taxes


















Amortization of acquisition-related intangible assets


-


-


4


-


-


4



3



Acquisition and integration-related costs (3)


3


-


-


-


-


3



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


29


29



-



Increase in legal provisions


-


-


-


-


11


11



-


Impact of items of note on income taxes


3


-


4


-


40


47



3


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

$

9

$

-

$

12

$

-

$

112

$

133


$

10


Impact of items of note on diluted EPS ($) (1)











$

0.14





Operating results ? adjusted (4)

















Total revenue ? adjusted (5)

$

2,128

$

1,240

$

562

$

1,012

$

122

$

5,064


$

448


Provision for (reversal of) credit losses ? adjusted


164


(5)


(51)


(34)


4


78



(40)


Non-interest expenses ? adjusted


1,140


646


280


528


361


2,955



222


Income (loss) before income taxes ? adjusted


824


599


333


518


(243)


2,031



266


Income taxes ? adjusted


218


157


65


140


(122)


458



52


Net income (loss) ? adjusted


606


442


268


378


(121)


1,573



214



Net income attributable to non-controlling interests ? adjusted


-


-


-


-


4


4



-



Net income (loss) attributable to equity shareholders ? adjusted


606


442


268


378


(125)


1,569



214


Adjusted diluted EPS ($) (1)











$

1.68























See previous pages for footnote references.

 

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
















U.S.





Canadian

U.S.








Commercial




Canadian

Commercial

Commercial








Banking




Personal

Banking

Banking







and Wealth




and Business

and Wealth

and Wealth

Capital

Corporate

CIBC


Management


$ millions, for the twelve months ended October 31, 2022

Banking

Management

Management

Markets

and Other

Total


(US$ millions)


Operating results ? reported

















Total revenue

$

8,909

$

5,254

$

2,457

$

5,001

$

212

$

21,833


$

1,902


Provision for (reversal of) credit losses


876


23


218


(62)


2


1,057



169


Non-interest expenses


4,975


2,656


1,328


2,437


1,407


12,803



1,028


Income (loss) before income taxes


3,058


2,575


911


2,626


(1,197)


7,973



705


Income taxes


809


680


151


718


(628)


1,730



117


Net income (loss)


2,249


1,895


760


1,908


(569)


6,243



588



Net income attributable to non-controlling interests


-


-


-


-


23


23



-



Net income (loss) attributable to equity shareholders


2,249


1,895


760


1,908


(592)


6,220



588


Diluted EPS ($) (1)











$

6.68





Impact of items of note (2)

















Revenue


















Acquisition and integration-related costs as well as purchase

   accounting adjustments and provision for credit losses for

      performing loans (3)

$

(16)

$

-

$

-

$

-

$

-

$

(16)


$

-


Impact of items of note on revenue


(16)


-


-


-


-


(16)



-


Provision for (reversal of) credit losses


















Acquisition and integration-related costs as well as purchase

   accounting adjustments and provision for credit losses for

      performing loans (3)


(94)


-


-


-


-


(94)



-


Impact of items of note on provision for (reversal of) credit losses


(94)


-


-


-


-


(94)



-


Non-interest expenses


















Amortization of acquisition-related intangible assets


(18)

$

-


(68)


-


(12)


(98)



(53)



Acquisition and integration-related costs as well as purchase

   accounting adjustments and provision for credit losses for

      performing loans (3)


(103)


-


-


-


-


(103)



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


(37)


(37)



-



Increase in legal provisions


-


-


-


-


(136)


(136)



-


Impact of items of note on non-interest expenses


(121)


-


(68)


-


(185)


(374)



(53)


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


199


-


68


-


185


452



53


Income taxes


















Amortization of acquisition-related intangible assets


4


-


18


-


1


23



14



Acquisition and integration-related costs as well as purchase

   accounting adjustments and provision for credit losses for

      performing loans (3)


48


-


-


-


-


48



-



Charge related to the consolidation of our real estate portfolio


-


-


-


-


10


10



-



Increase in legal provisions


-


-


-


-


36


36



-


Impact of items of note on income taxes


52


-


18


-


47


117



14


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

$

147

$

-

$

50

$

-

$

138

$

335


$

39


Impact of items of note on diluted EPS ($) (1)











$

0.37





Operating results ? adjusted (4)

















Total revenue ? adjusted (5)

$

8,893

$

5,254

$

2,457

$

5,001

$

212

$

21,817


$

1,902


Provision for (reversal of) credit losses ? adjusted


782


23


218


(62)


2


963



169


Non-interest expenses ? adjusted


4,854


2,656


1,260


2,437


1,222


12,429



975


Income (loss) before income taxes ? adjusted


3,257


2,575


979


2,626


(1,012)


8,425



758


Income taxes ? adjusted


861


680


169


718


(581)


1,847



131


Net income (loss) ? adjusted


2,396


1,895


810


1,908


(431)


6,578



627



Net income attributable to non-controlling interests ? adjusted


-


-


-


-


23


23



-



Net income (loss) attributable to equity shareholders ? adjusted


2,396


1,895


810


1,908


(454)


6,555



627


Adjusted diluted EPS ($) (1)











$

7.05























See previous pages for footnote references.

 

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.
















U.S.





Canadian

U.S.








Commercial




Canadian

Commercial

Commercial








Banking




Personal

Banking

Banking







and Wealth




and Business

and Wealth

and Wealth

Capital

Corporate

CIBC


Management


$ millions, for the twelve months ended October 31, 2021

Banking

Management

Management

Markets

and Other

Total


(US$ millions)


Operating results ? reported

















Total revenue

$

8,150

$

4,670

$

2,194

$

4,520

$

481

$

20,015


$

1,748


Provision for (reversal of) credit losses


350


(39)


(75)


(100)


22


158



(61)


Non-interest expenses


4,414


2,443


1,121


2,117


1,440


11,535



893


Income (loss) before income taxes


3,386


2,266


1,148


2,503


(981)


8,322



916


Income taxes


892


601


222


646


(485)


1,876



177


Net income (loss)


2,494


1,665


926


1,857


(496)


6,446



739



Net income attributable to non-controlling interests


-


-


-


-


17


17



-



Net income (loss) attributable to equity shareholders


2,494


1,665


926


1,857


(513)


6,429



739


Diluted EPS ($) (1)











$

6.96





Impact of items of note (2)

















Non-interest expenses


















Amortization of acquisition-related intangible assets

$

-

$

-

$

(68)

$

-

$

(11)

$

(79)


$

(54)



Acquisition and integration-related costs (3)


(12)


-


-


-


-


(12)



-


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