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CIBC Announces Fourth Quarter and Fiscal 2016 Results

Donnerstag, 01.12.2016 12:00 von

Canada NewsWire

CIBC's 2016 audited annual consolidated financial statements and accompanying management's discussion & analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information report which includes fourth quarter financial information.

 

TORONTO, Dec. 1, 2016 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2016.

Fourth quarter highlights

  • Reported net income of $931 million, compared with $778 million for the fourth quarter a year ago, and $1,441 million for the prior quarter; adjusted net income(1) of $1,041 million, compared with $952 million for the fourth quarter a year ago, and $1,072 million for the prior quarter.
  • Reported diluted earnings per share (EPS) of $2.32, compared with $1.93 for the fourth quarter a year ago, and $3.61 for the prior quarter; adjusted diluted EPS(1) of $2.60, compared with $2.36 for the fourth quarter a year ago, and $2.67 for the prior quarter.
  • Reported return on common shareholders' equity (ROE) of 16.8% and adjusted ROE(1) of 18.8%.
  • Basel III Common Equity Tier 1 ratio on an all-in basis (CET1 ratio) of 11.3%, compared with 10.8% a year ago.
  • Announced a quarterly dividend increase of three cents to $1.24 per common share.

CIBC's results for the fourth quarter of 2016 were affected by the following items of note aggregating to a negative impact of $0.28 per share:

  • $134 million ($98 million after-tax, or $0.25 per share) in restructuring charges primarily relating to employee severance;
  • $9 million ($7 million after-tax, or $0.02 per share) loss from the structured credit run-off business; and
  • $7 million ($5 million after-tax, or $0.01 per share) amortization of intangible assets.

For the year ended October 31, 2016, CIBC reported net income of $4.3 billion and adjusted net income(1) of $4.1 billion, compared with reported net income of $3.6 billion and adjusted net income(1) of $3.8 billion for 2015.

Subsequent to year end, CIBC entered into an agreement to sell and lease back 89 retail properties located mainly in Ontario and British Columbia. The closing of the agreement is expected to occur during the first quarter of 2017 and result in an after-tax gain of $247 million that would add approximately 15 basis points to CIBC's CET1 ratio on an all-in basis.

The following table summarizes our strong performance in 2016 against our key financial measures and targets:

Financial Measure

Target

2016 Reported Results

2016 Adjusted Results (1)

Diluted EPS growth

5% to 10% on average, annually (2)

$10.70, up 21% from 2015

$10.22, up 8% from 2015

ROE

18% to 20% (2)

19.9%

19.0%

Efficiency ratio

55% by 2019

59.7%, an improvement of 420
basis points from 2015

58.0%, an improvement of 160
basis points from 2015

Basel III CET1 ratio

Strong buffer to regulatory minimum

11.3%

Dividend payout ratio

Approximately 50%

44.3%

46.4%

Total shareholder return

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

CIBC – 68.6%

Banks Index – 85.9%

(1)

For additional information, see the "Non-GAAP measures" section.

(2)

Going forward, our medium term EPS and ROE targets are at least 5% and at least 15%, respectively.

 

"In 2016, CIBC delivered record net income, industry-leading capital strength and the highest return on equity of the major North American banks," says Victor G. Dodig, CIBC President and Chief Executive Officer. "Our transformation to build a strong, innovative, relationship-oriented bank by executing on our three integrated bank-wide priorities of client focus, innovation and simplification gained momentum this year."

Core business performance
Retail and Business Banking reported net income of $2,689 million in 2016, compared with $2,530 million in 2015. Excluding items of note(1), adjusted net income was $2,664 million, up $162 million or 6% from $2,502 million in 2015.

In 2016, Retail and Business Banking continued to make progress against its objectives of enhancing the client experience and accelerating profitable revenue growth. Key highlights included:

  • Delivering products that fit the lives of our clients, including the CIBC SmartTM account and the CIBC SmartTM Prepaid Travel Visa Card, and transforming our physical banking centres to emphasize relationships and advice;
  • Continuing our leadership in innovation for our clients by launching Apple Pay, Digital Account Open, and the CIBC Hello HomeTM app, to meet the needs of our clients who prefer to bank through their mobile devices;
  • Partnering with fintechs to simplify our processes and enhance client experience, including our recent partnership with Borrowell that provides qualified clients with a faster and easier loan process; and
  • Formed a unique strategic alliance with National Australia Bank and Israel's Bank Leumi focused on delivering new and innovative ways to enhance client experience.

In November 2016, we were the first bank in Canada to bring Samsung Pay to our clients, providing them with another mobile payment option.

"We continued to build momentum in 2016 towards becoming the number one retail and business bank in Canada in client experience, and we delivered above-market growth in both lending and deposits," says David Williamson, SEVP and Group Head, Retail and Business Banking. "We will accelerate our transformation in the year ahead by maintaining our focus on deepening relationships with our clients, developing innovative products and services, and making it easier to bank when, where and how our clients want."

Wealth Management reported net income of $864 million in 2016, compared with $518 million in 2015. Excluding the gain on the sale of our investment in American Century Investments (ACI) in 2016 and other items of note(1), adjusted net income was $490 million in 2016, down $46 million or 9% from $536 million in 2015. Further adjusting for net income from ACI of $15 million and $101 million for 2016 and 2015, respectively, net income from our continuing businesses was up $40 million, or 9% from 2015.

Wealth Management made good progress in 2016 against its objectives of enhancing the client experience, driving asset growth, and simplifying and optimizing its business platform. Key highlights included:

  • Aligning our Canadian private wealth management and Wood Gundy businesses under one leadership structure to elevate our high net worth client experience and better meet client needs;
  • Launching several successful products including Renaissance Flexible Yield Fund, Renaissance Private Investment Program, and PPS Income Generation Portfolios to meet the changing needs of investors; and
  • Reporting progress in the most recent J.D. Power Canadian Investor Satisfaction Surveys for our Investor's Edge and Wood Gundy businesses, reflecting our commitment to client relationships.

"Our Wealth Management businesses delivered solid results this year thanks to a clear focus on our clients," says Steve Geist, SEVP and Group Head, Wealth Management. "In 2017, we will continue to enhance our investment advice and solutions, with an emphasis on delivering an integrated wealth management experience to meet the complex needs of high net worth Canadian families."

Capital Markets reported net income of $1,076 million in 2016, compared with $957 million in 2015. Excluding items of note(1), adjusted net income was $1,104 million, up $139 million or 14% from $965 million in 2015.

Capital Markets provides integrated global markets products and services, investment banking advisory and execution, corporate banking services and top-ranked research to corporate, government and institutional clients around the world. During 2016, Capital Markets was:

  • Financial advisor to Suncor Energy Inc. on its $7 billion acquisition of Canadian Oil Sands Limited and joint bookrunner on Suncor's $2.9 billion bought common share offering, one of the largest-ever equity bought deals in Canada;
  • Financial advisor, financing co-underwriter and lead agent on related foreign exchange to Lowe's Companies Inc. on its $3.2 billion acquisition of RONA Inc.;
  • Financial advisor, lead bookrunner on $525 million of subscription receipts, sole lead arranger, underwriter and bookrunner on $1.8 billion of credit facilities and sole foreign exchange provider supporting Stantec's acquisition of MWH Global Inc.;
  • Exclusive financial advisor, administrative agent and joint bookrunner on $925 million in credit facilities supporting Cheung Kong Infrastructure Holdings Limited's and Power Assets Holdings Limited's acquisition of a 65% interest in midstream assets from Husky Energy Inc.; and
  • Introduced CIBC Air Canada® AC ConversionTM Visa Prepaid Card, a first-of-its-kind in Canada, allowing travellers to purchase and store up to 10 currencies on a single card that can be used at retailers around the globe.

"In 2016, we launched specialized new advisory teams to add value for clients in the areas of technology and innovation, private capital and corporate finance solutions," says Harry Culham, SEVP and Group Head, Capital Markets. "We also expanded our product capabilities to help meet client needs at home and abroad, while delivering innovative financial solutions to clients across CIBC in areas such as foreign exchange and precious metals."

(1)

For additional information, see the "Non-GAAP measures" section.

 

Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2016, CIBC maintained its capital strength, competitive productivity and sound risk management practices:

  • CIBC's capital ratios were strong, with a Basel III CET1 ratio of 11.3% as noted above, and Tier 1 and Total capital ratios of 12.8% and 14.8% respectively, at October 31, 2016;
  • Market risk, as measured by average Value-at-Risk, was $5.8 million in 2016 compared with $4.0 million in 2015; and
  • We continued to have strong credit performance, with CIBC's loan loss ratio of 31 basis points compared with 27 basis points in 2015.

Making a difference in our Communities
CIBC is committed to investing in the social and economic development of communities across Canada. During the fourth quarter of 2016, CIBC:

  • Marked 20 years of partnership with the Canadian Breast Cancer Foundation (CBCF) and helped to raise an estimated $17 million for breast cancer research, education and support programs through the 2016 CBCF CIBC Run for the Cure, including the nearly $3 million contributed by Team CIBC;
  • Partnered with the Canadian Paralympic Committee (CPC) to host seven Welcome Home events at CIBC banking centres across the country as Premier Partner of the Canadian Paralympic Team, celebrating and honouring athletes returning home from the 2016 Paralympic Games; and
  • Announced a 5-year partnership with the Canadian Hockey League (CHL), solidifying CIBC as the Official Bank of the CHL, its three regional leagues, and 23 teams.

During the quarter, CIBC was:

  • Ranked among the Top 10 Safest Banks in North America by Global Finance magazine;
  • Recipient of four awards at ACT Canada's IVIE Awards, including Silver for Most Innovative Organization; and
  • Recognized by Mediacorp as one of Canada's Top 100 Employers for a fifth consecutive year.

CIBC was once again named a constituent of the following widely regarded indices:

  • Dow Jones Sustainability North American Index since its inception in 2005;
  • FTSE4Good Index since 2001; and
  • Jantzi Social Index since 2000.

 

Fourth quarter financial highlights


As at or for the



As at or for the



three months ended



twelve months ended



2016

2016


2015



2016

2015


Unaudited

Oct. 31

Jul. 31


Oct. 31



Oct. 31

Oct. 31


Financial results ($ millions)
















Net interest income

$

2,110


$

2,113


$

2,043



$

8,366


$

7,915


Non-interest income


1,571



2,023



1,440




6,669



5,941


Total revenue


3,681



4,136



3,483




15,035



13,856


Provision for credit losses


222



243



198




1,051



771


Non-interest expenses


2,347



2,218



2,383




8,971



8,861


Income before income taxes


1,112



1,675



902




5,013



4,224


Income taxes


181



234



124




718



634


Net income

$

931


$

1,441


$

778



$

4,295


$

3,590


Net income attributable to non-controlling interests


4



6



2




20



14



Preferred shareholders


10



9



9




38



45



Common shareholders


917



1,426



767




4,237



3,531


Net income attributable to equity shareholders

$

927


$

1,435


$

776



$

4,275


$

3,576


Financial measures

















Reported efficiency ratio


63.8

%


53.6

%


68.4

%



59.7

%


63.9

%

Adjusted efficiency ratio (1)


58.2

%


57.8

%


60.4

%



58.0

%


59.6

%

Loan loss ratio (2)


0.27

%


0.32

%


0.26

%



0.31

%


0.27

%

Reported return on common shareholders' equity


16.8

%


26.8

%


15.1

%



19.9

%


18.7

%

Adjusted return on common shareholders' equity (1)


18.8

%


19.8

%


18.5

%



19.0

%


19.9

%

Net interest margin


1.59

%


1.64

%


1.70

%



1.64

%


1.74

%

Net interest margin on average interest-earning assets


1.81

%


1.87

%


1.95

%



1.88

%


2.00

%

Return on average assets


0.70

%


1.12

%


0.65

%



0.84

%


0.79

%

Return on average interest-earning assets


0.80

%


1.28

%


0.74

%



0.96

%


0.91

%

Total shareholder return


2.54

%


(0.94)

%


8.61

%



5.19

%


1.96

%

Reported effective tax rate


16.2

%


14.0

%


13.7

%



14.3

%


15.0

%

Adjusted effective tax rate (1)


17.5

%


15.4

%


15.5

%



16.6

%


15.5

%

Common share information

















Per share ($)

- basic earnings

$

2.32


$

3.61


$

1.93



$

10.72


$

8.89




- reported diluted earnings


2.32



3.61



1.93




10.70



8.87




- adjusted diluted earnings (1)


2.60



2.67



2.36




10.22



9.45




- dividends


1.21



1.21



1.12




4.75



4.30




- book value


56.59



54.54



51.25




56.59



51.25


Share price ($)

- high


104.46



104.19



102.74




104.46



107.16




- low


97.51



96.84



86.00




83.33



86.00




- closing


100.50



99.19



100.28




100.50



100.28


Shares outstanding (thousands)

- weighted-average basic


395,181



394,753



397,253




395,389



397,213




- weighted-average diluted


395,750



395,328



397,838




395,919



397,832




- end of period


397,070



394,838



397,291




397,070



397,291


Market capitalization ($ millions)

$

39,906


$

39,164


$

39,840



$

39,906


$

39,840


Value measures

















Dividend yield (based on closing share price)


4.8

%


4.9

%


4.4

%



4.7

%


4.3

%

Reported dividend payout ratio


52.2

%


33.5

%


58.0

%



44.3

%


48.4

%

Adjusted dividend payout ratio (1)


46.6

%


45.2

%


47.4

%



46.4

%


45.4

%

Market value to book value ratio


1.78



1.82



1.96




1.78



1.96


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

















Cash, deposits with banks and securities

$

101,588


$

98,093


$

93,619



$

101,588


$

93,619


Loans and acceptances, net of allowance


319,781



312,273



290,981




319,781



290,981


Total assets


501,357



494,490



463,309




501,357



463,309


Deposits


395,647



389,573



366,657




395,647



366,657


Common shareholders' equity


22,472



21,533



20,360




22,472



20,360


Average assets


527,702



511,925



476,700




509,140



455,324


Average interest-earning assets


462,970



448,834



415,783




445,134



395,616


Average common shareholders' equity


21,763



21,198



20,122




21,275



18,857


Assets under administration (AUA) (3)(4)

2,041,887


1,993,740


1,846,142



2,041,887


1,846,142


Assets under management (AUM) (4)

183,715


179,903


170,465



183,715


170,465


Balance sheet quality (All-in basis) and liquidity measures

















Risk-weighted assets (RWA) ($ millions)


















Common Equity Tier 1 (CET1) capital RWA

$

168,996


$

168,077



156,107



$

168,996



156,107



Tier 1 capital RWA


169,322



168,407



156,401




169,322



156,401



Total capital RWA


169,601



168,690



156,652




169,601



156,652


Capital ratios


















CET1 ratio


11.3

%


10.9

%


10.8

%



11.3

%


10.8

%


Tier 1 capital ratio


12.8

%


12.4

%


12.5

%



12.8

%


12.5

%


Total capital ratio


14.8

%


14.4

%


15.0

%



14.8

%


15.0

%

Basel III leverage ratio


















Leverage ratio exposure ($ millions)


545,480



537,172



502,552




545,480



502,552



Leverage ratio


4.0

%


3.9

%


3.9

%



4.0

%


3.9

%

Liquidity coverage ratio (LCR)


124

%


120

%


119

%



n/a



n/a


Other information

















Full-time equivalent employees


43,213



43,741



44,201




43,213



44,201


(1)

For additional information, see the "Non-GAAP measures" section.

(2)

The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.

(3)

Includes the full amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $1,640.2 billion (July 31, 2016: $1,598.8 billion; October 31, 2015: $1,465.7 billion).

(4)

AUM amounts are included in the amounts reported under AUA.

n/a

Not applicable.

 

Review of Retail and Business Banking fourth quarter results















2016



2016



2015


$ millions, for the three months ended



Oct. 31



Jul. 31



Oct. 31

 (1)

Revenue












Personal banking


$

1,825


$

1,779


$

1,743



Business banking



443



435



414



Other



22



11



19


Total revenue



2,290



2,225



2,176


Provision for credit losses



206



197



163


Non-interest expenses



1,149



1,121



1,100


Income before income taxes



935



907



913


Income taxes



248



241



241


Net income


$

687


$

666


$

672


Net income attributable to:












Equity shareholders (a)


$

687


$

666


$

672


Efficiency ratio



50.1

%


50.3

%


50.6

%

Return on equity (2)



49.6

%


50.0

%


54.7

%

Charge for economic capital (2) (b)


$

(135)


$

(129)


$

(146)


Economic profit (2) (a+b)


$

552


$

537


$

526


Full-time equivalent employees



20,280



20,414



21,532


(1)

Certain information has been reclassified to conform to the presentation adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.

(2)

For additional information, see the "Non-GAAP measures" section.

 

Net income was $687 million, up $15 million from the fourth quarter of 2015. Adjusted net income (2) was $688 million, up $15 million from the fourth quarter of 2015.

Revenue of $2,290 million was up $114 million from the fourth quarter of 2015. Personal banking and business banking revenue increased primarily due to volume growth across most products and higher fees.

Provision for credit losses of $206 million was up $43 million from the fourth quarter of 2015, mainly due to higher losses in business lending, and higher write-offs and bankruptcies in our personal lending and card portfolios.

Non-interest expenses of $1,149 million were up $49 million from the fourth quarter of 2015, mainly due to higher spending on strategic initiatives.

Review of Wealth Management fourth quarter results

















2016



2016



2015


$ millions, for the three months ended




Oct. 31



Jul. 31



Oct. 31

 (1)

Revenue













Retail brokerage



$

332


$

317


$

317



Asset management




190



196



178



Private wealth management




98



94



91



Other




-



428



21


Total revenue




620



1,035



607


Non-interest expenses




444



438



447


Income before income taxes




176



597



160


Income taxes




50



91



38


Net income



$

126


$

506


$

122


Net income attributable to:













Equity shareholders (a)



$

126


$

506


$

122


Efficiency ratio




71.5

%


42.4

%


73.5

%

Return on equity  (2)




32.4

%


134.1

%


20.2

%

Charge for economic capital (2) (b)



$

(38)


$

(37)


$

(71)


Economic profit (2) (a+b)



$

88


$

469


$

51


Full-time equivalent employees




4,295



4,232



4,350


(1)

Certain information has been reclassified to conform to the presentation adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.

(2)

For additional information, see the "Non-GAAP measures" section.

 

Net income for the quarter was $126 million, up $4 million from the fourth quarter of 2015. Adjusted net income(2) was $127 million, down $1 million from the fourth quarter of 2015.

Revenue of $620 million was up $13 million from the fourth quarter of 2015, driven by strong asset growth across all businesses reflecting market appreciation and strong net sales. This was partially offset by lower revenue due to the sale of ACI, and lower commission revenue in full-service brokerage due to a decline in transactional volumes.

Non-interest expenses of $444 million were down $3 million from the fourth quarter of 2015, primarily due to lower employee-related costs including performance-based compensation.

Review of Capital Markets fourth quarter results

















2016



2016



2015


$ millions, for the three months ended




Oct. 31



Jul. 31



Oct. 31

 (1)

Revenue













Global markets



$

365


$

415


$

271



Corporate and investment banking




313



364



302



Other




(5)



30



(2)


Total revenue (2)




673



809



571


Provision for credit losses




-



47



22


Non-interest expenses




333



370



326


Income before income taxes




340



392



223


Income taxes (2)




64



88



42


Net income



$

276


$

304


$

181


Net income attributable to:













Equity shareholders (a)



$

276


$

304


$

181


Efficiency ratio




49.4

%


45.7

%


57.1

%

Return on equity (3)




31.1

%


33.4

%


25.5

%

Charge for economic capital (3) (b)



$

(86)


$

(88)


$

(84)


Economic profit (3) (a+b)



$

190


$

216


$

97


Full-time equivalent employees




1,324



1,369



1,342


(1)

Certain information has been reclassified to conform to the presentation adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.

(2)

Revenue and income taxes are reported on a taxable equivalent basis (TEB) basis. Accordingly, revenue
and income taxes include a TEB adjustment of $97 million for the quarter ended October 31, 2016
(July 31, 2016: $142 million; October 31, 2015: $91 million).

(3)

For additional information, see the "Non-GAAP measures" section.

 

Net income for the quarter was $276 million, compared with net income of $181 million for the fourth quarter of 2015. Adjusted net income(3) for the quarter was $283 million, compared with $183 million for the prior year quarter.

Revenue of $673 million was up $102 million from the fourth quarter of 2015. In global markets, higher commodities, interest rate and equity trading revenue, and higher global markets financing activity were partially offset by lower foreign exchange trading revenue. In corporate and investment banking, higher corporate banking and equity underwriting revenue was partially offset by lower debt underwriting and advisory revenue, and higher investment portfolio write-downs.

Provision for credit losses was nil, compared with $22 million in the fourth quarter of 2015, mainly due to lower losses in the oil and gas sector.

Non-interest expenses of $333 million were up $7 million from the fourth quarter of 2015, as higher spending on strategic initiatives was largely offset by lower performance-related compensation.

Review of Corporate and Other fourth quarter results












2016

2016

2015


$ millions, for the three months ended



Oct. 31

Jul. 31

Oct. 31

(1)

Revenue











International banking



$

176

$

176

$

180



Other




(78)


(109)


(51)


Total revenue (2)




98


67


129


Provision for (reversal of) credit losses




16


(1)


13


Non-interest expenses




421


289


510


Loss before income taxes




(339)


(221)


(394)


Income taxes (2)




(181)


(186)


(197)


Net loss



$

(158)

$

(35)

$

(197)


Net income (loss) attributable to:











Non-controlling interests



$

4

$

6

$

2



Equity shareholders




(162)


(41)


(199)


Full-time equivalent employees




17,314


17,726


16,977


(1)

Certain information has been reclassified to conform to the presentation adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.

(2)

TEB adjusted. See footnote 2 in the "Capital Markets" section for additional details.

(3)

For additional information, see the "Non-GAAP measures" section.

 

Net loss for the quarter was $158 million, compared with a net loss of $197 million in the same quarter last year, primarily due to lower non-interest expenses. Adjusted net loss (3) for the quarter was $57 million, compared with a net loss of $32 million for the prior year quarter.

Revenue of $98 million was down $31 million from the fourth quarter of 2015, primarily due to lower Treasury revenue.

Provision for credit losses was comparable with the fourth quarter of 2015.

Non-interest expenses of $421 million were down $89 million from the fourth quarter of 2015, as the prior year included higher restructuring charges primarily relating to employee severance, shown as items of note in both years. 

Income tax benefit was down $16 million from the fourth quarter of 2015, mainly due to the tax impact of the restructuring charges noted above.

Consolidated balance sheet








$ millions, as at October 31



2016


2015

ASSETS






Cash and non-interest-bearing deposits with banks


$

3,500

$

3,053

Interest-bearing deposits with banks



10,665


15,584

Securities






Trading



49,915


46,181

Available-for-sale (AFS)



37,253


28,534

Designated at fair value (FVO)



255


267




87,423


74,982

Cash collateral on securities borrowed



5,433


3,245

Securities purchased under resale agreements



28,377


30,089

Loans






Residential mortgages



187,298


169,258

Personal



38,041


36,517

Credit card



12,332


11,804

Business and government



71,437


65,276

Allowance for credit losses



(1,691)


(1,670)




307,417


281,185

Other






Derivative instruments



27,762


26,342

Customers' liability under acceptances



12,364


9,796

Land, buildings and equipment



1,898


1,897

Goodwill



1,539


1,526

Software and other intangible assets



1,410


1,197

Investments in equity-accounted associates and joint ventures



766


1,847

Deferred tax assets



771


507

Other assets



12,032


12,059




58,542


55,171



$

501,357

$

463,309

LIABILITIES AND EQUITY






Deposits






Personal


$

148,081

$

137,378

Business and government



190,240


178,850

Bank



17,842


10,785

Secured borrowings



39,484


39,644




395,647


366,657

Obligations related to securities sold short



10,338


9,806

Cash collateral on securities lent



2,518


1,429

Obligations related to securities sold under repurchase agreements



11,694


8,914

Other






Derivative instruments



28,807


29,057

Acceptances



12,395


9,796

Deferred tax liabilities



21


28

Other liabilities



12,898


12,195




54,121


51,076

Subordinated indebtedness



3,366


3,874

Equity






Preferred shares



1,000


1,000

Common shares



8,026


7,813

Contributed surplus



72


76

Retained earnings



13,584


11,433

Accumulated other comprehensive income (AOCI)



790


1,038

Total shareholders' equity



23,472


21,360

Non-controlling interests



201


193

Total equity



23,673


21,553



$

501,357

$

463,309

 

Consolidated statement of income



For the three


For the twelve


months ended


months ended


2016

2016

2015


2016

2015

$ millions, except as noted

Oct. 31

Jul. 31

Oct. 31


Oct. 31

Oct. 31

Interest income












Loans

$

2,531

$

2,492

$

2,385


$

9,833

$

9,573

Securities


457


446


385



1,774


1,524

Securities borrowed or purchased under resale agreements


90


86


60



329


310

Deposits with banks


37


44


23



156


76



3,115


3,068


2,853



12,092


11,483

Interest expense












Deposits


878


814


680



3,215


2,990

Securities sold short


45


57


52



199


230

Securities lent or sold under repurchase agreements


36


36


23



127


110

Subordinated indebtedness


35


37


39



137


181

Other


11


11


16



48


57



1,005


955


810



3,726


3,568

Net interest income


2,110


2,113


2,043



8,366


7,915

Non-interest income












Underwriting and advisory fees


103


142


100



446


427

Deposit and payment fees


207


206


208



832


830

Credit fees


166


169


140



638


533

Card fees


125


115


115



470


449

Investment management and custodial fees


233


223


208



882


814

Mutual fund fees


378


369


363



1,462


1,457

Insurance fees, net of claims


97


99


103



396


361

Commissions on securities transactions


83


87


88



342


385

Trading income (loss)


(32)


(28)


(114)



(88)


(139)

AFS securities gains, net


6


46


19



73


138

FVO gains (losses), net


10


(6)


19



17


(3)

Foreign exchange other than trading


53


201


46



367


92

Income from equity-accounted associates and joint ventures


24


23


37



96


177

Other


118


377


108



736


420



1,571


2,023


1,440



6,669


5,941

Total revenue


3,681


4,136


3,483



15,035


13,856

Provision for credit losses


222


243


198



1,051


771

Non-interest expenses












Employee compensation and benefits


1,292


1,274


1,379



4,982


5,099

Occupancy costs


209


196


209



804


782

Computer, software and office equipment


393


344


335



1,398


1,292

Communications


75


75


80



319


326

Advertising and business development


77


66


80



269


281

Professional fees


61


51


78



201


230

Business and capital taxes


18


14


16



68


68

Other


222


198


206



930


783



2,347


2,218


2,383



8,971


8,861

Income before income taxes


1,112


1,675


902



5,013


4,224

Income taxes


181


234


124



718


634

Net income

$

931

$

1,441

$

778


$

4,295

$

3,590

Net income attributable to non-controlling interests

$

4

$

6

$

2


$

20

$

14


Preferred shareholders

$

10

$

9

$

9


$

38

$

45


Common shareholders


917


1,426


767



4,237


3,531

Net income attributable to equity shareholders

$

927

$

1,435

$

776


$

4,275

$

3,576

Earnings per share (in dollars)













Basic

$

2.32

$

3.61

$

1.93


$

10.72

$

8.89


Diluted


2.32


3.61


1.93



10.70


8.87

Dividends per common share (in dollars)


1.21


1.21


1.12



4.75


4.30

 

Consolidated statement of comprehensive income




For the three



For the twelve



months ended



months ended



2016


2016


2015



2016


2015

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Net income

$

931

$

1,441

$

778


$

4,295

$

3,590

Other comprehensive income (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


606


327


2



487


1,445


Net (gains) losses on investments in foreign operations
reclassified to net income


-


(254)


-



(272)


(21)


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


(383)


(100)


(2)



(257)


(720)


Net (gains) losses on hedges of investments in foreign
operations reclassified
to net income


-


113


-



121


18




223


86


-



79


722


Net change in AFS securities













Net gains (losses) on AFS securities


14


73


(71)



125


(67)


Net (gains) losses on AFS securities reclassified to net income


(5)


(33)


(15)



(58)


(97)




9


40


(86)



67


(164)


Net change in cash flow hedges













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


8


1


35



13


(7)


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













reclassified to net income


(11)


7


(29)



(12)


3



(3)


8


6



1


(4)

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













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


55


(148)


240



(390)


374


Net fair value change of FVO liabilities attributable to changes
in credit risk


(3)


1


7



(5)


5

Total OCI


281


(13)


167



(248)


933

Comprehensive income

$

1,212

$

1,428

$

945


$

4,047

$

4,523

Comprehensive income attributable to non-controlling interests

$

4

$

6

$

2


$

20

$

14


Preferred shareholders

$

10

$

9

$

9


$

38

$

45


Common shareholders


1,198


1,413


934



3,989


4,464

Comprehensive income attributable to equity shareholders

$

1,208

$

1,422

$

943


$

4,027

$

4,509






























For the three



For the twelve




months ended



months ended




2016


2016


2015



2016


2015

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Income tax (expense) benefit












Subject to subsequent reclassification to net income













Net foreign currency translation adjustments













Net gains (losses) on investments in foreign operations

$

(19)

$

(34)

$

-


$

(17)

$

(118)


Net (gains) losses investments in foreign operations reclassified
to net income


-


37


-



37


3


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


69


60


1



128


91


Net (gains) losses on hedges of investments in foreign operations
reclassified to net income


-


(23)


-



(26)


(6)




50


40


1



122


(30)


Net change in AFS securities













Net gains (losses) on AFS securities


(6)


(16)


18



(24)


42


Net (gains) losses on AFS securities reclassified to net income


1


13


5



15


48




(5)


(3)


23



(9)


90


Net change in cash flow hedges













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


(3)


(1)


(13)



(5)


2


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













reclassified to net income


4


(2)


10



5


(2)




1


(3)


(3)



-


-

Not subject to subsequent reclassification to net income













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


(13)


54


(79)



149


(129)


Net fair value change of FVO liabilities attributable to changes
in credit risk


-


-


(2)



1


(1)



$

33

$

88

$

(60)


$

263

$

(70)

 

Consolidated statement of changes in equity




For the three


For the twelve



months ended


months ended




2016


2016


2015



2016


2015

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Preferred shares












Balance at beginning of period

$

1,000

$

1,000

$

1,000


$

1,000

$

1,031

Issue of preferred shares


-


-


-



-


600

Redemption of preferred shares


-


-


-



-


(631)

Balance at end of period

$

1,000

$

1,000

$

1,000


$

1,000

$

1,000

Common shares












Balance at beginning of period

$

7,806

$

7,792

$

7,800


$

7,813

$

7,782

Issue of common shares


212


23


8



273


30

Purchase of common shares for cancellation


-


-


(2)



(61)


(2)

Treasury shares


8


(9)


7



1


3

Balance at end of period

$

8,026

$

7,806

$

7,813


$

8,026

$

7,813

Contributed surplus












Balance at beginning of period

$

73

$

74

$

79


$

76

$

75

Stock option expense


2


1


1



5


5

Stock options exercised


(2)


(2)


(1)



(9)


(4)

Other


(1)


-


(3)



-


-

Balance at end of period

$

72

$

73

$

76


$

72

$

76

Retained earnings












Balance at beginning of period

$

13,145

$

12,197

$

11,119


$

11,433

$

9,626

Net income attributable to equity shareholders


927


1,435


776



4,275


3,576

Dividends













Preferred


(10)


(9)


(9)



(38)


(45)


Common


(478)


(478)


(445)



(1,879)


(1,708)

Premium on purchase of common shares for cancellation


-


-


(9)



(209)


(9)

Other


-


-


1



2


(7)

Balance at end of period

$

13,584

$

13,145

$

11,433


$

13,584

$

11,433

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

$

891

$

805

$

1,035


$

1,035

$

313


Net change in foreign currency translation adjustments


223


86


-



79


722


Balance at end of period

$

1,114

$

891

$

1,035


$

1,114

$

1,035


Net gains (losses) on AFS securities













Balance at beginning of period

$

152

$

112

$

180


$

94

$

258


Net change in AFS securities


9


40


(86)



67


(164)


Balance at end of period

$

161

$

152

$

94


$

161

$

94


Net gains (losses) on cash flow hedges













Balance at beginning of period

$

26

$

18

$

16


$

22

$

26


Net change in cash flow hedges


(3)


8


6



1


(4)


Balance at end of period

$

23

$

26

$

22


$

23

$

22

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

$

(563)

$

(415)

$

(358)


$

(118)

$

(492)


Net change in post-employment defined benefit plans


55


(148)


240



(390)


374


Balance at end of period

$

(508)

$

(563)

$

(118)


$

(508)

$

(118)


Net fair value change of FVO liabilities attributable to
changes in credit risk













Balance at beginning of period

$

3

$

2

$

(2)


$

5

$

-


Net change attributable to changes in credit risk


(3)


1


7



(5)


5


Balance at end of period

$

-

$

3

$

5


$

-

$

5

Total AOCI, net of income tax

$

790

$

509

$

1,038


$

790

$

1,038

Non-controlling interests












Balance at beginning of period

$

188

$

187

$

194


$

193

$

164

Net income (loss) attributable to non-controlling interests


4


6


2



20


14

Dividends


-


(4)


-



(19)


(5)

Other


9


(1)


(3)



7


20

Balance at end of period

$

201

$

188

$

193


$

201

$

193

Equity at end of period

$

23,673

$

22,721

$

21,553


$

23,673

$

21,553

 

Consolidated statement of cash flows




For the three



For the twelve



months ended



months ended



2016


2016


2015



2016


2015

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Cash flows provided by (used in) operating activities












Net income

$

931

$

1,441

$

778


$

4,295

$

3,590

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













Provision for credit losses


222


243


198



1,051


771


Amortization and impairment (1)


129


115


109



462


435


Stock option expense


2


1


1



5


5


Deferred income taxes


14


51


(11)



(20)


(61)


AFS securities gains, net


(6)


(46)


(19)



(73)


(138)


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


(11)


(2)


(4)



(72)


(2)


Other non-cash items, net


(93)


(459)


(27)



(692)


(257)


Net changes in operating assets and liabilities














Interest-bearing deposits with banks


(479)


(1,552)


1,293



4,919


(4,731)



Loans, net of repayments


(9,003)


(8,344)


(4,104)



(27,464)


(22,610)



Deposits, net of withdrawals


6,277


20,148


5,847



28,440


40,510



Obligations related to securities sold short


905


(192)


(1,591)



532


(3,193)



Accrued interest receivable


(49)


34


(95)



(98)


(112)



Accrued interest payable


194


(130)


263



(72)


(77)



Derivative assets


768


208


3,675



(1,425)


(5,655)



Derivative liabilities


(1,386)


(2,548)


(2,815)



(232)


7,204



Trading securities


(746)


(2,971)


1,368



(3,734)


880



FVO securities


7


(7)


3



12


(14)



Other FVO assets and liabilities


15


527


421



807


327



Current income taxes


(20)


19


30



8


140



Cash collateral on securities lent


(212)


416


(138)



1,089


526



Obligations related to securities sold under
repurchase agreements


1,056


(3,781)


812



2,780


(948)



Cash collateral on securities borrowed


(116)


(871)


114



(2,188)


144



Securities purchased under resale agreements


2,766


133


(2,098)



1,712


3,318



Other, net


1,409


(886)


(92)



169


(569)





2,574


1,547


3,918



10,211


19,483

Cash flows provided by (used in) financing activities












Issue of subordinated indebtedness


-


-


-



1,000


-

Redemption/repurchase/maturity of subordinated indebtedness


(14)


-


-



(1,514)


(1,130)

Issue of preferred shares


-


-


-



-


600

Redemption of preferred shares


-


-


-



-


(631)

Issue of common shares for cash


210


21


7



264


26

Purchase of common shares for cancellation


-


-


(11)



(270)


(11)

Net proceeds from treasury shares


8


(9)


7



1


3

Dividends paid


(488)


(487)


(454)



(1,917)


(1,753)

Share issuance costs


-


-


1



-


(7)





(284)


(475)


(450)



(2,436)


(2,903)

Cash flows provided by (used in) investing activities












Purchase of AFS securities


(6,380)


(7,883)


(15,709)



(31,625)


(41,145)

Proceeds from sale of AFS securities


1,755


2,370


1,450



10,750


9,264

Proceeds from maturity of AFS securities


2,925


3,204


10,738



12,299


15,451

Net cash provided by dispositions


-


1,363


-



1,363


185

Net purchase of land, buildings and equipment


(75)


(66)


(91)



(170)


(256)





(1,775)


(1,012)


(3,612)



(7,383)


(16,501)

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


43


61


(1)



55


280

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












during period


558


121


(145)



447


359

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


2,942


2,821


3,198



3,053


2,694

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

$

3,500

$

2,942

$

3,053


$

3,500

$

3,053

Cash interest paid

$

811

$

1,085

$

548


$

3,798

$

3,646

Cash income taxes paid


187


164


105



730


555

Cash interest and dividends received


3,066


3,102


2,758



11,994


11,371

(1)

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

(2)

Includes restricted balance of $422 million (July 31, 2016: $410 million; October 31, 2015: $406 million).

 

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 useful in analyzing financial performance.

The following table provides a quarterly reconciliation of non-GAAP to GAAP measures related to CIBC on a consolidated basis. For a more detailed discussion and for an annual reconciliation of non-GAAP to GAAP measures, see the "Non-GAAP measures" section of CIBC's 2016 Annual Report.



As at or for the



As at or for the





three months ended



twelve months ended








2016



2016



2015




2016



2015



$ millions




Oct. 31



Jul. 31



Oct. 31




Oct. 31



Oct. 31



Reported and adjusted diluted EPS




















Reported net income attributable to common shareholders

A


$

917


$

1,426


$

767



$

4,237


$

3,531



After-tax impact of items of note (1)




110



(369)



172




(191)



230



Adjusted net income attributable to common shareholders (2)

B


$

1,027


$

1,057


$

939



$

4,046


$

3,761



Diluted weighted-average common shares outstanding (thousands)

C



395,750



395,328



397,838




395,919



397,832



Reported diluted EPS ($)

A/C


$

2.32


$

3.61


$

1.93



$

10.70


$

8.87



Adjusted diluted EPS ($) (2)

B/C



2.60



2.67



2.36




10.22



9.45



Reported and adjusted return on common shareholders' equity




















Average common shareholders' equity

D


$

21,763


$

21,198


$

20,122



$

21,275


$

18,857



Reported return on common shareholders' equity

A/D

(3)


16.8

%


26.8

%


15.1

%



19.9

%


18.7

%


Adjusted return on common shareholders' equity (2)

B/D

(3)


18.8

%


19.8

%


18.5

%



19.0

%


19.9

%

 

 





Retail and











Business


Wealth

Capital

Corporate

CIBC


$ millions, for the three months ended

Banking

Management

Markets

and Other

Total


Oct. 31

Reported net income (loss)

$

687

$

126

$

276

$

(158)

$

931


2016

After-tax impact of items of note (1)


1


1


7


101


110




Adjusted net income (loss) (2)

$

688

$

127

$

283

$

(57)

$

1,041


Jul. 31

Reported net income (loss)

$

666

$

506

$

304

$

(35)

$

1,441


2016

After-tax impact of items of note (1)


1


(380)


9


1


(369)




Adjusted net income (loss) (2)

$

667

$

126

$

313

$

(34)

$

1,072


Oct. 31

Reported net income (loss)

$

672

$

122

$

181

$

(197)

$

778


2015(4)

After-tax impact of items of note (1)


1


6


2


165


174




Adjusted net income (loss) (2)

$

673

$

128

$

183

$

(32)

$

952

















$ millions, for the twelve months ended







Oct. 31

Reported net income (loss)

$

2,689

$

864

$

1,076

$

(334)

$

4,295


2016

After-tax impact of items of note (1)


(25)


(374)


28


180


(191)




Adjusted net income (loss) (2)

$

2,664

$

490

$

1,104

$

(154)

$

4,104


Oct. 31

Reported net income (loss)

$

2,530

$

518

$

957

$

(415)

$

3,590


2015(4)

After-tax impact of items of note (1)


(28)


18


8


234


232



Adjusted net income (loss) (2)

$

2,502

$

536

$

965

$

(181)

$

3,822


(1)

Reflects impact of items of note under the "Financial results" section of the MD&A.


(2)

Non-GAAP measure.


(3)

Annualized.


(4)

Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.

 

Items of note



For the three




For the twelve



months ended




months ended



2016


2016


2015




2016


2015

$ millions


Oct. 31


Jul. 31


Oct. 31




Oct. 31


Oct. 31

Gain, net of related transaction costs, on the sale of our minority investment in ACI

$

-

$

(428)

$

-



$

(428)

$

-

Gain, net of related transaction and severance costs, on the sale of a processing centre


-


-


-




(53)


-

Gain arising from accounting adjustments on credit card-related balance sheet amounts


-


-


-




-


(46)

Gain on sale of an investment in our merchant banking portfolio


-


-


-




-


(23)

Loss (income) from the structured credit run-off business


9


(28)


3




(3)


29

Amortization of intangible assets


7


7


11




30


42

Increase in legal provisions


-


-


-




77


-

Increase in collective allowance (1) recognized in Corporate and Other


-


-


-




109


-

Loan losses in our exited European leveraged finance portfolio


-


40


-




40


-

Restructuring charges primarily relating to employee severance


134


-


211




134


296

Pre-tax impact of items of note on net income


150


(409)


225




(94)


298


Income tax impact on above items of note


(40)


40


(51)




(52)


(66)


Income tax recovery due to the settlement of transfer pricing-related matters


-


-


-




(30)


-


Income tax recovery arising from a change in our expected utilization of tax loss carryforwards


-


-


-




(15)


-

After-tax impact of items of note on net income


110


(369)


174




(191)


232


After-tax impact of items of note on non-controlling interests


-


-


(2)




-


(2)

After-tax impact of items of note on net income attributable to common shareholders

$

110

$

(369)

$

172



$

(191)

$

230

(1)

Relates to the collective allowance, except for (i) residential mortgages greater than 90 days delinquent; (ii) personal loans and scored small business loans greater than 30 days delinquent; and (iii) net write-offs for the cards portfolio, which are all reported in the respective strategic business units.

 

Basis of presentation
The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements for the year ended October 31, 2016.

Conference Call/Webcast
The conference call will be held at 8:00 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-866-696-5910, passcode 9489619#) and French (514-861-2255, or toll-free 1-877-405-9213, passcode 3878208#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC executives will be available to answer questions.

A live audio webcast of the conference call will also be available in English and French at www.cibc.com/ca/investor-relations/quarterly-results.html.

Details of CIBC's 2016 fourth quarter and fiscal year results, as well as a presentation to investors, will be available in English and French at www.cibc.com, Investor Relations section, prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.

A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 1837101#) and French (514-861-2272 or 1-800-408-3053, passcode 7075207#) until 11:59 p.m. (ET) December 8, 2016. The audio webcast will be archived at www.cibc.com/ca/investor-relations/quarterly-results.html.

About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.

The information below forms a part of this press release.

Nothing in CIBC's corporate website (www.cibc.com) should be considered incorporated herein by reference.

The Board of Directors of CIBC reviewed this news release prior to it being issued.

A NOTE ABOUT FORWARD-LOOKING STATEMENTS:
From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the "Core business performance", "Strong fundamentals", and "Making a difference in our Communities" sections of this news release, and the Management's Discussion and Analysis in our 2016 Annual Report under the heading "Financial performance overview – Outlook for calendar year 2017" and other statements about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2017 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions set out in the "Financial performance overview – Outlook for calendar year 2017" section of our 2016 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: credit, market, liquidity, strategic, insurance, operational, reputation and legal, regulatory and environmental risk; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued and to be issued thereunder, the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking Supervision's global standards for capital and liquidity reform, and those relating to the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; the resolution of legal and regulatory proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our information technology systems and services; increasing cyber security risks which may include theft of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change; global capital market activity; changes in monetary and economic policy; currency value and interest rate fluctuations, including as a result of market and oil price volatility; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations, including increasing Canadian household debt levels and global credit risks; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected synergies and benefits of the acquisition of PrivateBancorp, Inc. will not be realized within the expected time frame or at all or the possibility that the acquisition does not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.

SOURCE CIBC - Investor Relations