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CIBC Announces Fourth Quarter and Fiscal 2020 Results

·26 min read

CIBC's 2020 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. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO , Dec. 3, 2020 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2020 .

CIBC Logo (CNW Group/CIBC)
CIBC Logo (CNW Group/CIBC)

"We delivered resilient financial performance in fiscal 2020 against the backdrop of a global pandemic and an evolving geopolitical environment. Throughout this period, our team was guided by our purpose as we responded, ensuring that we supported our clients, team members and communities through a uniquely challenging time," said Victor G. Dodig , CIBC President and Chief Executive Officer. "At the same time, we took steps to position our bank for the future, including making strategic investments in our people, processes and platforms, and taking steps to enhance our efficiency. As we enter fiscal 2021, our strong financial position will enable us to continue executing our client-focused strategy to deliver growth and generate value for all our stakeholders."

Fourth quarter highlights


Q4/20

Q4/19

Q3/20

YoY
Variance

QoQ
Variance

Reported Net Income

$1,016 million

$1,193 million

$1,172 million

-15%

-13%

Adjusted Net Income (1)

$1,280 million

$1,309 million

$1,243 million

-2%

+3%

Reported Diluted Earnings Per Share (EPS)

$2.20

$2.58

$2.55

-15%

-14%

Adjusted Diluted EPS (1)

$2.79

$2.84

$2.71

-2%

+3%

Reported Return on Common Shareholders' Equity (ROE)

10.7%

12.9%

12.1%


Adjusted ROE (1)

13.5%

14.2%

12.9%

Common Equity Tier 1 (CET1) Ratio

12.1%

11.6%

11.8%

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

CIBC's results for the fourth quarter of 2020 were affected by the following items of note aggregating to a negative impact of $0.59 per share:

  • $220 million ( $220 million after-tax) goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean;

  • $114 million ( $84 million after-tax) charge related to the consolidation of our real estate portfolio;

  • $79 million ( $58 million after-tax) gain as a result of plan amendments related to pension and other post-employment plans; and

  • $23 million ( $18 million after-tax) amortization of acquisition-related intangible assets.

For the year ended October 31, 2020 , CIBC reported net income of $3.8 billion and adjusted net income (1) of $4.4 billion , compared with reported net income of $5.1 billion and adjusted net income (1) of $5.4 billion for 2019.

The following table summarizes our performance in 2020 against our key financial measures and targets:

Financial Measure

Target

2020 Reported Results

2020 Adjusted Results (1)

Diluted EPS growth (2)

5% to 10% annually

$8.22, down 27% from 2019

$9.69, down 19% from 2019

ROE (2)

15% +

10.0%

11.7%

Efficiency ratio

52% run rate in 2022

60.6%, an increase of 230 basis

points from 2019

55.8%, a decline of 30 basis points

from 2019

CET1 ratio

Strong buffer to regulatory

minimum

12.1%

Dividend payout ratio (2)

40% to 50%

70.7%

60.0%

Total shareholder return

Outperform the S&P/TSX

Composite Banks Index over a

rolling five-year period

CIBC 27.7%

S&P/TSX Composite Banks Index 35.3%

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

(2)  Through the cycle.

Core business performance (1)
F2020 Financial Highlights

(C$ million)

F2020

F2019

YoY Variance

Canadian Personal and Business Banking




Reported Net Income

$1,962

$2,289

down 14%

Adjusted Net Income (2)

$1,968

$2,463

down 20%





Canadian Commercial Banking and Wealth Management




Reported Net Income

$1,202

$1,287

down 7%

Adjusted Net Income (2)

$1,203

$1,288

down 7%





U.S. Commercial Banking and Wealth Management




Reported Net Income

$380

$682

down 44%

Adjusted Net Income (2)

$441

$722

down 39%





Capital Markets




Reported Net Income

$1,131

$954

up 19%

Adjusted Net Income (2)

$1,131

$954

up 19%

(1)

Certain prior period information has been revised due to enhancements made to our transfer pricing methodology. See the "External reporting changes" section of our 2020 Annual Report to Shareholders for additional details.

(2)

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

Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2020, CIBC maintained its capital strength and sound risk management practices:

  • Capital ratios were strong, with a Basel III CET1 ratio of 12.1% as noted above, and Tier 1 and Total capital ratios of 13.6% and 16.1%, respectively, at October 31, 2020 ;

  • Market risk, as measured by average Value-at-Risk, was $8.5 million in 2020 compared with $5.7 million in 2019;

  • We continued to have solid credit performance, with a loan loss ratio of 26 basis points compared with 29 basis points in 2019;

  • Average Liquidity Coverage Ratio was 145% for the three months ended October 31, 2020 ; and

  • Leverage Ratio was 4.7% at October 31, 2020 .

Credit quality
Provision for credit losses was $291 million for the fourth quarter, down $111 million or 28% from the same quarter last year. Provision for credit losses on performing loans was up $41 million , primarily due to an unfavourable impact of model parameter updates in Canadian Personal and Business Banking and negative credit migration in U.S. Commercial Banking and Wealth Management. Provision for credit losses on impaired loans was down $152 million , due to lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Making a difference in our Communities
Part of being a genuinely caring bank means supporting the organizations and charities that keep our communities strong. In aggregate, we invested $75 million in community organizations across Canada and the U.S. during 2020.
In the fourth quarter:

  • Team CIBC rallied around a reimagined Canadian Cancer Society CIBC Run for the Cure, raising $2 million to help change the future of breast cancer, bringing our total funds raised in support of this cause to a total of $56 million over the past 24 years.

  • We announced several key donations to community organizations, including a commitment of $750,000 to Ronald McDonald House Canada over the next three years as part of its National Mission Partnership and $500,000 over three years to support educational and employment opportunities for persons with disabilities at Holland Bloorview.

  • Towards an inclusive future, we committed an additional $275,000 for youth-focused organizations in Canada and the U.S. that support the Black community; sponsored the second annual Startup & Slay digital series, hosted by How She Hustles, a network for diverse women entrepreneurs and leaders; and supported Actua, an organization that engages young Indigenous peoples for the future of work through transformational STEM programming as we recognized Orange Shirt Day honouring the First Nations, Inuit and Métis children who were forcibly removed from their communities and sent to Residential Schools.

Fourth quarter financial highlights






















As at or for the




As at or for the







three months ended




twelve months ended



2020


2020


2019



2020


2019


Unaudited

Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31


Financial results ($ millions)

















Net interest income

$

2,792


$

2,729


$

2,801



$

11,044


$

10,551


Non-interest income


1,808



1,979



1,971




7,697



8,060


Total revenue


4,600



4,708



4,772




18,741



18,611


Provision for credit losses


291



525



402




2,489



1,286


Non-interest expenses


2,891



2,702



2,838




11,362



10,856


Income before income taxes


1,418



1,481



1,532




4,890



6,469


Income taxes


402



309



339




1,098



1,348


Net income

$

1,016


$

1,172


$

1,193



$

3,792


$

5,121


Net income attributable to non-controlling interests


1



2



8




2



25


Preferred shareholders and other equity instrument holders


30



31



32




122



111


Common shareholders


985



1,139



1,153




3,668



4,985


Net income attributable to equity shareholders

$

1,015


$

1,170


$

1,185



$

3,790


$

5,096


Financial measures

















Reported efficiency ratio


62.9

%


57.4

%


59.5

%



60.6

%


58.3

%

Loan loss ratio (1)


0.17

%


0.29

%


0.33

%



0.26

%


0.29

%

Reported return on common shareholders' equity (2)


10.7

%


12.1

%


12.9

%



10.0

%


14.5

%

Net interest margin


1.43

%


1.43

%


1.69

%



1.50

%


1.65

%

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


1.60

%


1.61

%


1.90

%



1.69

%


1.84

%

Return on average assets (4)


0.52

%


0.62

%


0.72

%



0.52

%


0.80

%

Return on average interest-earning assets (3)(4)


0.58

%


0.69

%


0.81

%



0.58

%


0.89

%

Reported effective tax rate


28.3

%


20.9

%


22.1

%



22.5

%


20.8

%

Common share information

















Per share ($)

- basic earnings

$

2.21


$

2.56


$

2.59



$

8.23


$

11.22



- reported diluted earnings


2.20



2.55



2.58




8.22



11.19



- dividends


1.46



1.46



1.44




5.82



5.60



- book value


84.05



83.17



79.87




84.05



79.87


Closing share price ($)


99.38



92.73



112.31




99.38



112.31


Shares outstanding (thousands)

- weighted-average basic


446,321



445,416



445,357




445,435



444,324



- weighted-average diluted


446,877



445,894



446,392




446,021



445,457



- end of period


447,085



446,009



445,342




447,085



445,342


Market capitalization ($ millions)

$

44,431


$

41,358


$

50,016



$

44,431


$

50,016


Value measures

















Total shareholder return


8.74

%


14.24

%


9.60

%



(5.90)

%


4.19

%

Dividend yield (based on closing share price)


5.8

%


6.3

%


5.1

%



5.9

%


5.0

%

Reported dividend payout ratio


66.2

%


57.1

%


55.6

%



70.7

%


49.9

%

Market value to book value ratio


1.18



1.11



1.41




1.18



1.41


Selected financial measures - adjusted  (5)

















Adjusted efficiency ratio (6)


56.4

%


54.8

%


56.0

%



55.8

%


55.5

%

Adjusted return on common shareholders' equity (2)


13.5

%


12.9

%


14.2

%



11.7

%


15.4

%

Adjusted effective tax rate


24.5

%


21.2

%


20.2

%



21.8

%


20.6

%

Adjusted diluted earnings per share

$

2.79


$

2.71


$

2.84



$

9.69


$

11.92


Adjusted dividend payout ratio


52.2

%


53.7

%


50.5

%



60.0

%


46.9

%

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

















Cash, deposits with banks and securities

$

211,564


$

212,766


$

138,669



$

211,564


$

138,669


Loans and acceptances, net of allowance


416,388



414,457



398,108




416,388



398,108


Total assets


769,551



768,545



651,604




769,551



651,604


Deposits


570,740



566,135



485,712




570,740



485,712


Common shareholders' equity


37,579



37,095



35,569




37,579



35,569


Average assets


778,933



757,589



655,971




735,492



639,716


Average interest-earning assets (3)


692,465



673,527



585,816




654,142



572,677


Average common shareholders' equity


36,762



37,360



35,553




36,792



34,467


Assets under administration (AUA) (7)(8)


2,368,904



2,413,768



2,425,651




2,368,904



2,425,651


Assets under management (AUM) (8)


265,936



265,639



252,007




265,936



252,007


Balance sheet quality and liquidity measures

















Risk-weighted assets (RWA) ($ millions)

$

254,871


$

256,683


$

239,863



$

254,871


$

239,863


CET1 ratio (9)


12.1

%


11.8

%


11.6

%



12.1

%


11.6

%

Tier 1 capital ratio (9)


13.6

%


13.0

%


12.9

%



13.6

%


12.9

%

Total capital ratio (9)


16.1

%


15.4

%


15.0

%



16.1

%


15.0

%

Leverage ratio


4.7

%


4.6

%


4.3

%



4.7

%


4.3

%

Liquidity coverage ratio (LCR)


145

%


150

%


125

%



n/a



n/a


Other information

















Full-time equivalent employees


43,853



43,952



45,157




43,853



45,157


(1)

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

(2)

Annualized.

(3)

Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with Bank of Canada, securities, cash collateral on securities borrowed, securities purchased under resale agreements, loans net of allowances, and certain sublease-related assets.

(4)

Net income expressed as a percentage of average assets or average interest-earning assets.

(5)

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.

(6)

Calculated on a tax equivalent basis (TEB).

(7)

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 $1,861.5 billion (July 31, 2020: $1,903.7 billion; October 31, 2019: $1,923.2 billion).

(8)

AUM amounts are included in the amounts reported under AUA.

(9)

Effective beginning in the second quarter of 2020, ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020.

n/a

Not applicable.

 

Review of Canadian Personal and Business Banking fourth quarter results













2020

Oct. 31



2020

Jul. 31



2019

Oct. 31 (1)


$ millions, for the three months ended







Revenue

$

2,139


$

2,056


$

2,225


Provision for credit losses











Impaired


89



151



218



Performing


41



69



37


Total provision for credit losses


130



220



255


Non-interest expenses


1,149



1,146



1,156


Income before income taxes


860



690



814


Income taxes


226



182



213


Net income

$

634


$

508


$

601


Net income attributable to:











Equity shareholders

$

634


$

508


$

601


Efficiency ratio


53.8

%


55.7

%


52.0

%

Return on equity  (2)


37.5

%


29.7

%


36.8

%

Average allocated common equity  (2)

$

6,728


$

6,790


$

6,472


Full-time equivalent employees


12,879



12,739



13,431


(1)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

(2)

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

Net income for the quarter was $634 million , up $33 million from the fourth quarter of 2019. Adjusted net income (2) for the quarter was $635 million , up $32 million from the fourth quarter of 2019.

Revenue of $2,139 million was down $86 million from the fourth quarter of 2019, primarily due to narrower margins and lower fees largely driven by reduced client transaction activity as a result of the pandemic, partially offset by volume growth. 

Provision for credit losses of $130 million was down $125 million from the fourth quarter of 2019, due to a lower provision for credit losses on impaired loans as a result of lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Non-interest expenses of $1,149 million were down $7 million from the fourth quarter of 2019.

Review of Canadian Commercial Banking and Wealth Management fourth quarter results













2020

Oct. 31



2020

Jul. 31



2019

Oct. 31 (1)


$ millions, for the three months ended







Revenue











Commercial banking

$

409


$

417


$

414



Wealth management


619



596



612


Total revenue


1,028



1,013



1,026


Provision for (reversal of) credit losses











Impaired


21



45



71



Performing


4



12



9


Total provision for credit losses


25



57



80


Non-interest expenses


540



519



530


Income before income taxes


463



437



416


Income taxes


123



117



111


Net income

$

340


$

320


$

305


Net income attributable to:











Equity shareholders

$

340


$

320


$

305


Efficiency ratio


52.5

%


51.2

%


51.7

%

Return on equity (2)


20.7

%


19.4

%


19.7

%

Average allocated common equity (2)

$

6,551


$

6,591


$

6,126


Full-time equivalent employees


4,984



4,981



5,048


(1)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

(2)

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

Net income for the quarter was $340 million , up $35 million from the fourth quarter of 2019. Adjusted net income (2) for the quarter was $341 million , up $35 million from the fourth quarter of 2019.

Revenue of $1,028 million was up $2 million from the fourth quarter of 2019, driven mainly by volume growth and market appreciation in wealth management. Revenue declined in commercial banking due to changes in the interest rate environment and muted client lending activity, which more than offset volume growth in deposits.

Provision for credit losses of $25 million was down $55 million from the fourth quarter of 2019, due to lower provision for credit losses on impaired loans in the retail and wholesale sectors.

Non-interest expenses of $540 million were up $10 million from the fourth quarter of 2019, primarily due to higher employee-related compensation, partially offset by lower travel and business development activity.

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













2020



2020



2019


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31 (1)


Revenue











Commercial banking (2)

$

358


$

364


$

343



Wealth management


157



150



159


Total revenue (3)(4)


515



514



502


Provision for (reversal of) credit losses











Impaired


55



42



13



Performing


27



118



4


Total provision for credit losses


82



160



17


Non-interest expenses


270



271



286


Income before income taxes


163



83



199


Income taxes (3)


32



21



20


Net income

$

131


$

62


$

179


Net income attributable to:











Equity shareholders

$

131


$

62


$

179


Efficiency ratio


52.4

%


52.7

%


57.0

%

Return on equity (5)


5.7

%


2.6

%


8.0

%

Average allocated common equity (5)

$

9,191


$

9,559


$

8,842


Full-time equivalent employees


2,101



2,105



2,113


(1)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

(2)

Certain information has been reclassified to conform to the presentation adopted in the first quarter of 2020. Commercial banking now includes the Other line of business, which includes the treasury activities relating to CIBC Bank USA, as these activities primarily support the commercial banking line of business.

(3)

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of nil for the quarter ended October 31, 2020 (July 31, 2020: nil; October 31, 2019: nil). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(4)

Included $5 million of accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, shown as an item of note, for the quarter ended October 31, 2020 (July 31, 2020: $5 million; October 31, 2019: $8 million).

(5)

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

Net income for the quarter was $131 million , down $48 million from the fourth quarter of 2019. Adjusted net income (5) for the quarter was $144 million , down $46 million from the fourth quarter of 2019.

Revenue of $515 million was up $13 million from the fourth quarter of 2019, primarily due to higher loan and deposit volumes and strong growth in asset management fees, partially offset by margin compression due to decline in interest rates and lower transactional loan-related fees.

Provision for credit losses of $82 million was up $65 million from the fourth quarter of 2019. The current quarter included a higher provision for credit losses on performing loans due to unfavourable credit migration. Provision for credit losses on impaired loans was up mainly due to impairments as a result of certain borrower-specific performance issues.

Non-interest expenses of $270 million were down $16 million from the fourth quarter of 2019, primarily due to lower business development and employee-related compensation.

Review of Capital Markets fourth quarter results













2020

Oct. 31



2020

Jul. 31



2019

Oct. 31 (1)


$ millions, for the three months ended







Revenue











Global markets

$

470


$

637


$

432



Corporate and investment banking


322



363



308


Total revenue (2)


792



1,000



740


Provision for (reversal of) credit losses











Impaired


19



56



24



Performing


(11)



5



21


Total provision for credit losses


8



61



45


Non-interest expenses


384



413



386


Income before income taxes


400



526



309


Income taxes (2)


133



134



79


Net income

$

267


$

392


$

230


Net income attributable to:











Equity shareholders

$

267


$

392


$

230


Efficiency ratio


48.5

%


41.3

%


52.0

%

Return on equity (3)


15.8

%


22.7

%


14.4

%

Average allocated common equity (3)

$

6,707


$

6,895


$

6,335


Full-time equivalent employees


1,470



1,476



1,449




(1)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

(2)

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $37 million for the quarter ended October 31, 2020 (July 31, 2020: $51 million; October 31, 2019: $48 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(3)

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

Reported and adjusted (3) net income for the quarter was $267 million , compared with reported and adjusted (3) net income of $230 million for the fourth quarter of 2019.

Revenue of $792 million was up $52 million from the fourth quarter of 2019. In global markets, revenue increased driven by interest rate and commodities trading and global markets financing activities, partially offset by lower foreign exchange trading revenue. In corporate and investment banking, revenue increased driven by higher corporate banking and debt underwriting activity, partially offset by lower advisory and equity underwriting revenue.

Provision for credit losses of $8 million was down $37 million from the fourth quarter of 2019, mainly due to a decline in provision for credit losses on performing loans from accounts migrating to impaired, while the fourth quarter of 2019 reflected the impact of a worsening of our economic outlook. 

Non-interest expenses of $384 million were down $2 million from the fourth quarter of 2019, primarily due to lower performance-related compensation, partially offset by higher spending on strategic initiatives.

Review of Corporate and Other fourth quarter results









2020

2020


2019


$ millions, for the three months ended

Oct. 31

Jul. 31


Oct. 31 (1)


Revenue










International banking

$

178

$

180


$

201



Other


(52)


(55)



78


Total revenue (2)


126


125



279


Provision for (reversal of) credit losses










Impaired


(6)


6



4



Performing


52


21



1


Total provision for credit losses


46


27



5


Non-interest expenses


548


353



480


Loss before income taxes


(468)


(255)



(206)


Income taxes (2)


(112)


(145)



(84)


Net loss

$

(356)

$

(110)


$

(122)


Net income (loss) attributable to:










Non-controlling interests

$

1

$

2


$

8



Equity shareholders


(357)


(112)



(130)


Full-time equivalent employees


22,419


22,651



23,116


(1)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

(2)

Revenue and income taxes of Capital Markets and U.S. Commercial Banking and Wealth Management 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 $37 million for the quarter ended October 31, 2020 (July 31, 2020: $51 million; October 31, 2019: $48 million).

(3)

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

Net loss for the quarter was $356 million , compared with a net loss of $122 million for the fourth quarter of 2019. Adjusted net loss (3) for the quarter was $107 million , compared with an adjusted net loss (3) of $20 million for the fourth quarter of 2019.

Revenue of $126 million was down $153 million from the fourth quarter of 2019.  International banking revenue was down primarily due to lower revenue in CIBC FirstCaribbean due to a decrease in margins and fee income, partially offset by higher loan volumes. Other revenue was down primarily due to lower Treasury revenue largely as a result of excess liquidity costs, interest income in the prior year related to the expected settlement of certain income tax matters, shown as an item of note, and the impact of changes relating to our adoption of IFRS 16 "Leases" in the current year that were largely offset in non-interest expenses.

Provision for credit losses was $46 million , up $41 million from the fourth quarter of 2019, due to a higher provision for credit losses on performing loans related to the COVID-19 pandemic in the Caribbean region, partially offset by a lower provision on impaired loans in CIBC FirstCaribbean.

Non-interest expenses of $548 million were up $68 million from the fourth quarter of 2019, primarily due to a charge related to the consolidation of our real estate portfolio and a higher goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, partially offset by a gain in the current quarter as a result of plan amendments related to pension and other post-employment plans, and lower legal provisions, all shown as items of note. The current quarter was also impacted by changes relating to our adoption of IFRS 16, as noted above.

Income tax benefit was up $28 million from the fourth quarter of 2019, primarily due to higher losses. The goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, shown as an item of note, is not deductible for tax purposes.

Consolidated balance sheet










$ millions, as at October 31


2020


2019

ASSETS





Cash and non-interest-bearing deposits with banks

$

43,531

$

3,840

Interest-bearing deposits with banks


18,987


13,519

Securities


149,046


121,310

Cash collateral on securities borrowed


8,547


3,664

Securities purchased under resale agreements


65,595


56,111

Loans





Residential mortgages


221,165


208,652

Personal


42,222


43,651

Credit card


11,389


12,755

Business and government


135,546


125,798

Allowance for credit losses


(3,540)


(1,915)



406,782


388,941

Other





Derivative instruments


32,730


23,895

Customers' liability under acceptances


9,606


9,167

Property and equipment


2,997


1,813

Goodwill


5,253


5,449

Software and other intangible assets


1,961


1,969

Investments in equity-accounted associates and joint ventures


658


586

Deferred tax assets


650


517

Other assets


23,208


20,823



77,063


64,219


$

769,551

$

651,604

LIABILITIES AND EQUITY





Deposits





Personal

$

202,152

$

178,091

Business and government


311,426


257,502

Bank


17,011


11,224

Secured borrowings


40,151


38,895



570,740


485,712

Obligations related to securities sold short


15,963


15,635

Cash collateral on securities lent


1,824


1,822

Obligations related to securities sold under repurchase agreements


71,653


51,801

Other





Derivative instruments


30,508


25,113

Acceptances


9,649


9,188

Deferred tax liabilities


33


38

Other liabilities


22,134


19,031



62,324


53,370

Subordinated indebtedness


5,712


4,684

Equity





Preferred shares and other equity instruments


3,575


2,825

Common shares


13,908


13,591

Contributed surplus


117


125

Retained earnings


22,119


20,972

Accumulated other comprehensive income (AOCI)


1,435


881

Total shareholders' equity


41,154


38,394

Non-controlling interests


181


186

Total equity


41,335


38,580


$

769,551

$

651,604

 

Consolidated statement of income









For the three


For the twelve


months ended


months ended


2020


2020


2019


2020


2019

$ millions, except as noted

Oct. 31


Jul. 31


Oct. 31


Oct. 31


Oct. 31

Interest income  (1)















Loans

$

3,099


$

3,120


$

4,091


$

13,863


$

16,048

Securities


572



568



707



2,568



2,779

Securities borrowed or purchased under resale agreements


87



113



375



842



1,474

Deposits with banks


42



37



104



249



396



3,800



3,838



5,277



17,522



20,697

Interest expense















Deposits


822



913



2,040



5,326



8,422

Securities sold short


59



57



64



254



291

Securities lent or sold under repurchase agreements


71



83



307



656



1,198

Subordinated indebtedness


36



33



56



159



198

Other


20



23



9



83



37



1,008



1,109



2,476



6,478



10,146

Net interest income


2,792



2,729



2,801



11,044



10,551

Non-interest income















Underwriting and advisory fees


103



123



105



468



475

Deposit and payment fees


186



176



228



781



908

Credit fees


265



261



248



1,020



958

Card fees


105



98



110



410



458

Investment management and custodial fees


357



336



341



1,382



1,305

Mutual fund fees


402



391



403



1,586



1,595

Insurance fees, net of claims


95



94



107



386



430

Commissions on securities transactions


83



88



77



362



313

Gains (losses) from financial instruments measured/designated at
















fair value through profit or loss (FVTPL), net


86



270



168



694



761

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
















other comprehensive income (FVOCI) and amortized cost, net


4



10



6



9



34

Foreign exchange other than trading


45



63



59



234



304

Income from equity-accounted associates and joint ventures


12



25



22



79



92

Other


65



44



97



286



427



1,808



1,979



1,971



7,697



8,060

Total revenue


4,600



4,708



4,772



18,741



18,611

Provision for credit losses


291



525



402



2,489



1,286

Non-interest expenses















Employee compensation and benefits


1,371



1,512



1,436



6,259



5,726

Occupancy costs


321



202



230



944



892

Computer, software and office equipment


516



474



493



1,939



1,874

Communications


72



79



71



308



303

Advertising and business development


71



51



95



271



359

Professional fees


53



51



67



203



226

Business and capital taxes


30



22



25



117



110

Other


457



311



421



1,321



1,366



2,891



2,702



2,838



11,362



10,856

Income before income taxes


1,418



1,481



1,532



4,890



6,469

Income taxes


402



309



339



1,098



1,348

Net income

$

1,016


$

1,172


$

1,193


$

3,792


$

5,121

Net income attributable to non-controlling interests

$

1


$

2


$

8


$

2


$

25


Preferred shareholders and other equity instrument holders

$

30


$

31


$

32


$

122


$

111


Common shareholders


985



1,139



1,153



3,668



4,985

Net income attributable to equity shareholders

$

1,015


$

1,170


$

1,185


$

3,790


$

5,096

Earnings per share (in dollars)
















Basic

$

2.21


$

2.56


$

2.59


$

8.23


$

11.22


Diluted


2.20



2.55



2.58



8.22



11.19

Dividends per common share (in dollars)


1.46



1.46



1.44



5.82



5.60

(1)

Interest income included $3.3 billion for the quarter ended October 31, 2020 (July 31, 2020: $3.5 billion; October 31, 2019: $4.8 billion) calculated based on the effective interest rate method.

 

Consolidated statement of comprehensive income


















For the three


For the twelve




months ended


months ended




2020


2020


2019



2020


2019

$ millions

Oct. 31

Jul. 31

Oct. 31


Oct. 31

Oct. 31

Net income

$

1,016

$

1,172

$

1,193


$

3,792

$

5,121

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


(187)


(1,388)


(79)



382


(21)


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


103


770


35



(202)


(10)





(84)


(618)


(44)



180


(31)


Net change in debt securities measured at FVOCI













Net gains (losses) on securities measured at FVOCI


5


158


53



254


244


Net (gains) losses reclassified to net income


(5)


(7)


(4)



(22)


(28)





-


151


49



232


216


Net change in cash flow hedges













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


32


78


91



142


137


Net (gains) losses reclassified to net income


(62)


(83)


(50)



19


(6)



(30)


(5)


41



161


131

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













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


147


(210)


11



80


(220)


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














attributable to changes in credit risk


(8)


(63)


13



(56)


28


Net gains (losses) on equity securities designated at FVOCI


25


27


1



50


(2)





164


(246)


25



74


(194)















Total OCI (1)


50


(718)


71



647


122

Comprehensive income

$

1,066

$

454

$

1,264


$

4,439

$

5,243

Comprehensive income attributable to non-controlling interests

$

1

$

2

$

8


$

2

$

25


Preferred shareholders and other equity instrument holders

$

30

$

31

$

32


$

122

$

111


Common shareholders


1,035


421


1,224



4,315


5,107

Comprehensive income attributable to equity shareholders

$

1,065

$

452

$

1,256


$

4,437

$

5,218















(1)

Includes $1 million of losses for the quarter ended October 31, 2020 (July 31, 2020: $21 million of gains; October 31, 2019: $2 million of gains), relating to our investments in equity-accounted associates and joint ventures.


















For the three


For the twelve




months ended


months ended





2020


2020


2019



2020


2019

$ 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

$

1

$

56

$

-


$

42

$

-


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


(3)


(65)


(8)



(46)


(16)





(2)


(9)


(8)



(4)


(16)


Net change in debt securities measured at FVOCI













Net gains (losses) on securities measured at FVOCI


(7)


(41)


(13)



(59)


(36)


Net (gains) losses reclassified to net income


1


2


2



7


10





(6)


(39)


(11)



(52)


(26)


Net change in cash flow hedges













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


(12)


(28)


(32)



(51)


(49)


Net (gains) losses reclassified to net income


22


30


17



(7)


2




10


2


(15)



(58)


(47)

Not subject to subsequent reclassification to net income













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


(42)


75


1



(19)


77


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














to changes in credit risk


4


22


(4)



20


(10)


Net gains (losses) on equity securities designated at FVOCI


(9)


(8)


(1)



(17)


-





(47)


89


(4)



(16)


67


















$

(45)

$

43

$

(38)


$

(130)

$

(22)


Consolidated statement of changes in equity



For the three


For the twelve



months ended


months ended




2020


2020


2019



2020


2019

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Preferred shares and other equity instruments












Balance at beginning of period

$

2,825

$

2,825

$

2,825


$

2,825

$

2,250

Issue of preferred shares and limited recourse capital notes


750


-


-



750


575

Balance at end of period

$

3,575

$

2,825

$

2,825


$

3,575

$

2,825

Common shares












Balance at beginning of period

$

13,800

$

13,722

$

13,525


$

13,591

$

13,243

Issue of common shares


89


81


97



371


377

Purchase of common shares for cancellation


-


-


(30)



(68)


(30)

Treasury shares


19


(3)


(1)



14


1

Balance at end of period

$

13,908

$

13,800

$

13,591


$

13,908

$

13,591

Contributed surplus












Balance at beginning of period

$

122

$

119

$

128


$

125

$

136

Compensation expense arising from equity-settled share-based awards


3


4


2



14


16

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


(8)


(1)


(4)



(20)


(27)

Other


-


-


(1)



(2)


-

Balance at end of period

$

117

$

122

$

125


$

117

$

125

Retained earnings












Balance at beginning of period before accounting policy changes


n/a


n/a


n/a


$

20,972

$

18,537

Impact of adopting IFRS 15 at November 1, 2018


n/a


n/a


n/a



n/a


6

Impact of adopting IFRS 16 at November 1, 2019


n/a


n/a


n/a



148


n/a

Balance at beginning of period after accounting policy changes

$

21,726

$

21,238

$

20,535



21,120


18,543

Net income attributable to equity shareholders


1,015


1,170


1,185



3,790


5,096

Dividends and distributions













Preferred and other equity instruments


(30)


(31)


(32)



(122)


(111)


Common


(652)


(650)


(641)



(2,592)


(2,488)

Premium on purchase of common shares for cancellation


-


-


(79)



(166)


(79)

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


62


-


5



93


18

Other


(2)


(1)


(1)



(4)


(7)

Balance at end of period

$

22,119

$

21,726

$

20,972


$

22,119

$

20,972

AOCI, net of income tax












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













Net foreign currency translation adjustments













Balance at beginning of period

$

1,257

$

1,875

$

1,037


$

993

$

1,024


Net change in foreign currency translation adjustments


(84)


(618)


(44)



180


(31)


Balance at end of period

$

1,173

$

1,257

$

993


$

1,173

$

993


Net gains (losses) on debt securities measured at FVOCI













Balance at beginning of period

$

309

$

158

$

28


$

77

$

(139)


Net change in securities measured at FVOCI


-


151


49



232


216


Balance at end of period

$

309

$

309

$

77


$

309

$

77


Net gains (losses) on cash flow hedges













Balance at beginning of period

$

304

$

309

$

72


$

113

$

(18)


Net change in cash flow hedges


(30)


(5)


41



161


131


Balance at end of period

$

274

$

304

$

113


$

274

$

113

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

$

(430)

$

(220)

$

(374)


$

(363)

$

(143)


Net change in post-employment defined benefit plans


147


(210)


11



80


(220)


Balance at end of period

$

(283)

$

(430)

$

(363)


$

(283)

$

(363)


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

in credit risk











Balance at beginning of period

$

(32)

$

31

$

3


$

16

$

(12)


Net change attributable to changes in credit risk


(8)


(63)


13



(56)


28


Balance at end of period

$

(40)

$

(32)

$

16


$

(40)

$

16


Net gains (losses) on equity securities designated at FVOCI













Balance at beginning of period

$

39

$

12

$

49


$

45

$

65


Net gains (losses) on equity securities designated at FVOCI


25


27


1



50


(2)


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

earnings


(62)


-


(5)



(93)


(18)


Balance at end of period

$

2

$

39

$

45


$

2

$

45

Total AOCI, net of income tax

$

1,435

$

1,447

$

881


$

1,435

$

881

Non-controlling interests












Balance at beginning of period

$

179

$

184

$

182


$

186

$

173

Net income attributable to non-controlling interests


1


2


8



2


25

Dividends


(2)


(2)


(2)



(15)


(11)

Other


3


(5)


(2)



8


(1)

Balance at end of period

$

181

$

179

$

186


$

181

$

186

Equity at end of period

$

41,335

$

40,099

$

38,580


$

41,335

$

38,580

n/a

Not applicable.

Consolidated statement of cash flows










For the three


For the twelve




months ended


months ended





2020


2020


2019



2020


2019

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Cash flows provided by (used in) operating activities












Net income

$

1,016

$

1,172

$

1,193


$

3,792

$

5,121

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













Provision for credit losses


291


525


402



2,489


1,286


Amortization and impairment (1)


536


249


312



1,311


838


Stock options and restricted shares expense


3


4


2



14


16


Deferred income taxes


(16)


(52)


18



(228)


108


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


(4)


(10)


(6)



(9)


(34)


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


-


-


-



4


(7)


Other non-cash items, net


14


(89)


(39)



(767)


(229)


Net changes in operating assets and liabilities














Interest-bearing deposits with banks


64


(1,348)


(761)



(5,468)


(208)



Loans, net of repayments


(2,256)


6,334


(3,550)



(18,891)


(17,653)



Deposits, net of withdrawals


3,775


22,072


3,187



82,120


19,838



Obligations related to securities sold short


(263)


1,287


2,092



328


1,853



Accrued interest receivable


(179)


223


(93)



97


(122)



Accrued interest payable


109


(238)


120



(238)


138



Derivative assets


10,715


(3,107)


667



(8,832)


(2,484)



Derivative liabilities


(12,386)


1,643


(884)



5,184


4,037



Securities measured at FVTPL


(1,868)


(3,278)


2,704



(8,296)


(1,826)



Other assets and liabilities measured/designated at FVTPL


975


759


(417)



1,563


1,222



Current income taxes


(221)


292


13



1,287


(309)



Cash collateral on securities lent


260


(8)


(95)



2


(909)



Obligations related to securities sold under repurchase agreements


6,678


(14,802)


1,704



19,852


20,961



Cash collateral on securities borrowed


(1,335)


(1,480)


1,235



(4,883)


1,824



Securities purchased under resale agreements


(10,747)


10,574


(3,597)



(9,394)


(10,785)



Other, net


1,845


(2,147)


1,765



(742)


(4,041)





(2,994)


18,575


5,972



60,295


18,635

Cash flows provided by (used in) financing activities












Issue of subordinated indebtedness


-


1,000


-



1,000


1,500

Redemption/repurchase/maturity of subordinated indebtedness


(33)


-


(1,000)



(33)


(1,001)

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


747


-


-



747


568

Issue of common shares for cash


4


41


43



163


157

Purchase of common shares for cancellation


-


-


(109)



(234)


(109)

Net sale (purchase) of treasury shares


19


(3)


(1)



14


1

Dividends and distributions paid


(650)


(642)


(623)



(2,571)


(2,406)

Repayment of lease liabilities


(78)


(77)


-



(307)


-





9


319


(1,690)



(1,221)


(1,290)

Cash flows provided by (used in) investing activities












Purchase of securities measured/designated at FVOCI and amortized cost


(10,056)


(16,201)


(12,619)



(54,075)


(42,304)

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


2,346


4,159


2,640



11,883


13,764

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


4,968


4,952


5,730



23,093


10,948

Cash used in acquisitions, net of cash acquired


-


-


(25)



-


(25)

Net sale (purchase) of property and equipment


(100)


(98)


(106)



(309)


(272)





(2,842)


(7,188)


(4,380)



(19,408)


(17,889)

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


(13)


(103)


(3)



25


4

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













during the period


(5,840)


11,603


(101)



39,691


(540)

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


49,371


37,768


3,941



3,840


4,380

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

$

43,531

$

49,371

$

3,840


$

43,531

$

3,840

Cash interest paid

$

899

$

1,347

$

2,356


$

6,716

$

10,008

Cash interest received


3,401


3,850


4,978



16,774


19,840

Cash dividends received


220


211


206



845


735

Cash income taxes paid


639


69


308



39


1,549


(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 $463 million (July 31, 2020: $468 million; October 31, 2019: $479 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 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 results remove items of note from reported results and are used to calculate our adjusted measures. Adjusted measures represent non-GAAP measures.

For a more detailed discussion on our non-GAAP measures, see the "Non-GAAP measures" section of CIBC's 2020 Annual Report. To reflect the changes that we made in the first quarter of 2020 (see the "External reporting changes" section of CIBC's 2020 Annual Report for additional details regarding these changes).

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results.







For the three



For the twelve







months ended



months ended




2020



2020



2019



2020



2019

$ millions


Oct. 31



Jul. 31



Oct. 31



Oct. 31



Oct. 31

Operating results – reported















Total revenue

$

4,600


$

4,708


$

4,772


$

18,741


$

18,611

Provision for credit losses


291



525



402



2,489



1,286

Non-interest expenses


2,891



2,702



2,838



11,362



10,856

Income before income taxes


1,418



1,481



1,532



4,890



6,469

Income taxes


402



309



339



1,098



1,348

Net income


1,016



1,172



1,193



3,792



5,121


Net income attributable to non-controlling interests


1



2



8



2



25


Net income attributable to equity shareholders


1,015



1,170



1,185



3,790



5,096

Diluted EPS ($)

$

2.20


$

2.55


$

2.58


$

8.22


$

11.19

Impact of items of note (1)(2)















Revenue
















Settlement of certain income tax matters (3)

$

-


$

-


$

(67)


$

-


$

(67)


Purchase accounting adjustments (4)


-



-



(7)



-



(34)

Impact of items of note on revenue


-



-



(74)



-



(101)

Expenses
















Amortization of acquisition-related intangible assets (5)


(23)



(26)



(28)



(105)



(109)


Transaction and integration-related costs as well as purchase accounting adjustments (6)


-



-



9



-



11


Charge related to the consolidation of our real estate portfolio


(114)



-



-



(114)



-


Gain as a result of plan amendments related to pension and other post-employment plans


79



-



-



79



-


Restructuring charge (7)


-



-



-



(339)



-


Goodwill impairment (8)


(220)



-



(135)



(248)



(135)


Increase in legal provisions (3)


-



(70)



(28)



(70)



(28)


Charge for payment made to Air Canada (9)


-



-



-



-



(227)

Impact of items of note on expenses


(278)



(96)



(182)



(797)



(488)

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


278



96



108



797



387


Settlement of certain income tax matters (3)


-



-



(18)



-



(18)


Transaction and integration-related costs as well as purchase accounting adjustments (4)(6)


-



-



(5)



-



(12)


Amortization of acquisition-related intangible assets (5)


5



6



8



25



27


Charge related to the consolidation of our real estate portfolio


30



-



-



30



-


Gain as a result of plan amendments related to pension and other post-employment plans


(21)



-



-



(21)



-


Restructuring charge (7)


-



-



-



89



-


Increase in legal provisions (3)


-



19



7



19



7


Charge for payment made to Air Canada (9)


-



-



-



-



60

Impact of items of note on income taxes


14



25



(8)



142



64

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


264



71



116



655



323

Impact of items of note on diluted EPS ($)

$

0.59


$

0.16


$

0.26


$

1.47


$

0.73

Operating results – adjusted (10)















Total revenue (11)

$

4,600


$

4,708


$

4,698


$

18,741


$

18,510

Provision for credit losses


291



525



402



2,489



1,286

Non-interest expenses


2,613



2,606



2,656



10,565



10,368

Income before income taxes


1,696



1,577



1,640



5,687



6,856

Income taxes


416



334



331



1,240



1,412

Net income


1,280



1,243



1,309



4,447



5,444


Net income attributable to non-controlling interests


1



2



8



2



25


Net income attributable to equity shareholders


1,279



1,241



1,301



4,445



5,419

Adjusted diluted EPS ($)

$

2.79


$

2.71


$

2.84


$

9.69


$

11.92








(1)

Certain information has been reclassified to conform to the presentation adopted in the current quarter.

(2)

Reflects the impact of items of note on our adjusted results as compared with our reported results.

(3)

Recognized in Corporate and Other.

(4)

Includes the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, recognized in U.S. Commercial Banking and Wealth Management.

(5)

Amortization of acquisition-related intangible assets is recognized in the SBU of the acquired business or Corporate and Other. A summary is provided in the table below.


















Canadian Personal and Business Banking (pre-tax)

$

(2)


$

(2)


$

(3)


$

(8)


$

(9)


Canadian Personal and Business Banking (after-tax)


(1)



(2)



(2)



(6)



(7)


Canadian Commercial Banking and Wealth Management (pre-tax)


(1)



-



(1)



(1)



(1)


Canadian Commercial Banking and Wealth Management (after-tax)


(1)



-



(1)



(1)



(1)


U.S. Commercial Banking and Wealth Management (pre-tax)


(17)



(21)



(22)



(83)



(88)


U.S. Commercial Banking and Wealth Management (after-tax)


(13)



(15)



(16)



(61)



(65)


Corporate and Other (pre-tax)


(3)



(3)



(2)



(13)



(11)


Corporate and Other (after-tax)


(3)



(3)



(1)



(12)



(9)

















(6)

Transaction costs include legal and other advisory fees and interest adjustments relating to the obligation payable to dissenting shareholders. Integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the businesses of The PrivateBank (subsequently rebranded as CIBC Bank USA) and Geneva Advisors with CIBC, including enabling cross-sell opportunities and expansion of services in the U.S. market, the upgrade and conversion of systems and processes, project management, integration-related travel, severance, consulting fees and marketing costs related to rebranding activities. Purchase accounting adjustments, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, include changes in the fair value of contingent consideration relating to the Geneva Advisors and Wellington Financial acquisitions. These items are recognized in Corporate and Other.

(7)

Restructuring charge associated with ongoing efforts to transform our cost structure and simplify our bank. This charge consists primarily of employee severance and related costs and was recognized in Corporate and Other.

(8)

Goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean recognized in Corporate and Other.

(9)

Charge for a payment made to Air Canada, including related sales tax and transaction costs, to secure our participation in its new loyalty program recognized in Canadian Personal and Business Banking.

(10)

Adjusted to exclude the impact of items of note.

(11)

Excludes TEB adjustments of $37 million (July 31, 2020: $51 million; October 31, 2019: $48 million). Our adjusted efficiency ratio is calculated on a TEB.























Canadian

U.S.












Canadian

Commercial

Commercial












Personal

Banking and

Banking and











and Business

Wealth

Wealth


Capital

Corporate

CIBC

$ millions, for the three months ended

Banking

Management

Management


Markets

and Other

Total

2020

Reported net income (loss)

$

634

$

340

$

131


$

267

$

(356)

$

1,016

Oct. 31

After-tax impact of items of note (1)


1


1


13



-


249


264



Adjusted net income (loss) (2)

$

635

$

341

$

144


$

267

$

(107)

$

1,280

2020

Reported net income (loss)

$

508

$

320

$

62


$

392

$

(110)

$

1,172

Jul. 31

After-tax impact of items of note (1)


2


-


15



-


54


71



Adjusted net income (loss) (2)

$

510

$

320

$

77


$

392

$

(56)

$

1,243

2019

Reported net income (loss)

$

601

$

305

$

179


$

230

$

(122)

$

1,193

Oct. 31 (3)

After-tax impact of items of note (1)


2


1


11



-


102


116



Adjusted net income (loss) (2)

$

603

$

306

$

190


$

230

$

(20)

$

1,309


















$ millions, for the twelve months ended








2020

Reported net income (loss)

$

1,962

$

1,202

$

380


$

1,131

$

(883)

$

3,792

Oct. 31

After-tax impact of items of note (1)


6


1


61



-


587


655



Adjusted net income (loss) (2)

$

1,968

$

1,203

$

441


$

1,131

$

(296)

$

4,447

2019

Reported net income (loss)

$

2,289

$

1,287

$

682


$

954

$

(91)

$

5,121

Oct. 31 (3)

After-tax impact of items of note (1)


174


1


40



-


108


323



Adjusted net income (loss) (2)

$

2,463

$

1,288

$

722


$

954

$

17

$

5,444


(1)

Reflects impact of items of note under the "2020 Financial results review" section of the 2020 Annual Report.

(2)

Non-GAAP measure.

(3)

Certain prior period information has been revised. See the "External reporting changes" section of the 2020 Annual Report to Shareholders for additional details.

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 consolidated financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements as at and for the year ended October 31, 2020.

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 1-800-806-5484, passcode 1028175#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 7008374#). 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/en/about-cibc/investor-relations/quarterly-results.html.

Details of CIBC's 2020 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 2796615#) and French (514-861-2272 or 1-800-408-3053, passcode 7602633#) until 11:59 p.m. (ET) January 3, 2021. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

About CIBC
CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html.

The information below forms a part of this news 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 2020 Annual Report under the heading "Economic and market environment – Outlook for calendar year 2021" 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 2021 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 "Economic and market environment – Outlook for calendar year 2021" section of our 2020 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of the coronavirus (COVID-19) pandemic on the global economy, financial markets, and our business, results of operations, reputation and financial condition and the expectation that oil prices will remain well below year-ago levels, there is inherently more uncertainty associated with our assumptions as compared to prior periods. 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: the occurrence, continuance or intensification of public health emergencies, such as the COVID-19 pandemic, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, legal, conduct, regulatory and environmental and related social risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; 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 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 bank recapitalization legislation and 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, including changes relating to economic or trade matters; the possible effect on our business of international conflicts and terrorism; natural disasters, 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 or disclosure 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; 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 benefits of an acquisition, merger or divestiture will not be realized within the expected time frame 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

Cision
Cision

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