Second quarter highlights
Q2/24 | Q2/23 (1) | Q1/24 | YoY Variance | QoQ | |
Revenue | +8 % | -1 % | |||
Reported Net Income | +4 % | +1 % | |||
Adjusted Net Income (2) | +6 % | -3 % | |||
Adjusted pre-provision, pre-tax earnings (2) | +9 % | -6 % | |||
Reported Diluted Earnings Per Share (EPS) | +2 % | +1 % | |||
Adjusted Diluted EPS (2) | +3 % | -3 % | |||
Reported Return on Common Shareholders' Equity (ROE) (3) | 13.7 % | 14.5 % | 13.5 % | ||
Adjusted ROE (2) | 13.4 % | 13.9 % | 13.8 % | ||
Net interest margin on average interest-earnings assets (3)(4) | 1.46 % | 1.54 % | 1.43 % | ||
Net interest margin on average interest-earnings assets | 1.72 % | 1.65 % | 1.72 % | ||
Common Equity Tier 1 (CET1) Ratio (5) | 13.1 % | 11.9 % | 13.0 % |
"In the second quarter, the steady execution of our client-focused strategy across our well-diversified North American platform continued to deliver solid results and create value for our stakeholders," said Victor G. Dodig, CIBC President and Chief Executive Officer. "Our team's ability to attract and deepen client relationships across our bank, including in high growth segments and markets is supporting our momentum. Combined with expense discipline, our robust capital position and disciplined risk management, as well as our ongoing strategic investments, we remain well positioned to navigate the current operating environment and position our bank for the future."
Results for the second quarter of 2024 were affected by the following items of note aggregating to a positive impact of
$13 million ($10 million after-tax) charge related to the special assessment imposed by theFederal Deposit Insurance Corporation (FDIC) onU.S. depository institutions, which impactedCIBC Bank USA (U.S. Commercial Banking and Wealth Management);$51 million recovery to income tax that will be eliminated by the substantive enactment of a Federal tax proposal to deny the dividends received deduction for banks(6) ($71 million tax equivalent basis (TEB) revenue and tax expense in Capital Markets andDirect Financial Services with offsets in Corporate and Other;$51 million tax recovery in Capital Markets andDirect Financial Services ); and$14 million ($10 million after-tax) amortization of acquisition-related intangible assets.
Our CET1 ratio(5) was 13.1% at
Core business performance
Canadian Personal and Business Banking reported net income of $649 million for the second quarter, up $11 million or 2% from the second quarter a year ago, primarily due to higher revenue driven by higher net interest margin, volume growth and the impact of an additional day in the current quarter, partially offset by a higher provision for credit losses and higher expenses. Adjusted pre-provision, pre-tax earnings(2) were
Canadian Commercial Banking and Wealth Management reported net income of $456 million for the second quarter, up $4 million or 1% from the second quarter a year ago, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher expenses. The increase in revenue was due to higher fee-based revenue from market appreciation and higher commission revenue from increased client activity in wealth management. Commercial banking revenue was lower compared to the prior year due to lower deposit margins, partially offset by the impact of an additional day in the current quarter. The lower non-interest income experienced in commercial banking was a result of the reduction in the issuance of Bankers' Acceptances ahead of the expected cessation of Canadian Dollar Offered Rate (CDOR) and was largely offset by higher net interest income from a corresponding increase in loans. Expenses increased primarily due to higher performance-based compensation. Adjusted pre-provision, pre-tax earnings(2) were
(1) | Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. For additional information, see Note 1 to the interim consolidated financial statements of our Report to Shareholders for the second quarter of 2024 available on SEDAR+ at www.sedarplus.com. |
(2) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 3 to 7; and adjusted pre-provision, pre-tax earnings on page 8. |
(3) | Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our Report to Shareholders for the second quarter of 2024 available on SEDAR+ at www.sedarplus.com. |
(4) | Average balances are calculated as a weighted average of daily closing balances. |
(5) | Our capital ratios are calculated pursuant to the Office of the Superintendent |
(6) | This item of note reports the impact on consolidated income tax expense that will be subject to an adjustment to our reported results in the third quarter of 2024 because the Federal tax proposal to deny the dividends received deduction for banks was substantively enacted on |
Capital Markets and
Credit quality
Provision for credit losses was
(1) | This measure is a non-GAAP measure. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section. |
Non-GAAP measures
We use a number of financial measures to assess the performance of our business lines as described below. Some measures are calculated in accordance with GAAP (International Financial Reporting Standards), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.
Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our Report to Shareholders for the second quarter of 2024 available on SEDAR+ at www.sedarplus.com.
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Capital | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,476 | $ | 1,384 | $ | 666 | $ | 1,488 | $ | 150 | $ | 6,164 | $ | 489 | |||
Provision for credit losses | 270 | 37 | 186 | 16 | 5 | 514 | 136 | ||||||||||
Non-interest expenses | 1,319 | 720 | 396 | 706 | 360 | 3,501 | 290 | ||||||||||
Income (loss) before income taxes | 887 | 627 | 84 | 766 | (215) | 2,149 | 63 | ||||||||||
Income taxes | 238 | 171 | (9) | 206 | (206) | 400 | (6) | ||||||||||
Net income (loss) | 649 | 456 | 93 | 560 | (9) | 1,749 | 69 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 649 | 456 | 93 | 560 | (19) | 1,739 | 69 | ||||||||||
Diluted EPS ($) | $ | 1.79 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Recovery to income tax that will be eliminated with the | $ | - | $ | - | $ | - | $ | (71) | $ | 71 | $ | - | $ | - | |||
Impact of items of note on revenue | - | - | - | (71) | 71 | - | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (6) | - | (8) | - | - | (14) | (6) | ||||||||||
Charge related to the special assessment imposed by the | - | - | (13) | - | - | (13) | (10) | ||||||||||
Impact of items of note on non-interest expenses | (6) | - | (21) | - | - | (27) | (16) | ||||||||||
Total pre-tax impact of items of note on net income | 6 | - | 21 | (71) | 71 | 27 | 16 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 2 | - | - | 4 | 2 | ||||||||||
Recovery to income tax that will be eliminated with the substantive | - | - | - | (20) | 71 | 51 | - | ||||||||||
Charge related to the special assessment imposed by the | - | - | 3 | - | - | 3 | 2 | ||||||||||
Impact of items of note on income taxes | 2 | - | 5 | (20) | 71 | 58 | 4 | ||||||||||
Total after-tax impact of items of note on net income | $ | 4 | $ | - | $ | 16 | $ | (51) | $ | - | $ | (31) | $ | 12 | |||
Impact of items of note on diluted EPS ($) (3) | $ | (0.04) | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 2,476 | $ | 1,384 | $ | 666 | $ | 1,417 | $ | 221 | $ | 6,164 | $ | 489 | |||
Provision for credit losses – adjusted | 270 | 37 | 186 | 16 | 5 | 514 | 136 | ||||||||||
Non-interest expenses – adjusted | 1,313 | 720 | 375 | 706 | 360 | 3,474 | 274 | ||||||||||
Income (loss) before income taxes – adjusted | 893 | 627 | 105 | 695 | (144) | 2,176 | 79 | ||||||||||
Income taxes – adjusted | 240 | 171 | (4) | 186 | (135) | 458 | (2) | ||||||||||
Net income (loss) – adjusted | 653 | 456 | 109 | 509 | (9) | 1,718 | 81 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 653 | 456 | 109 | 509 | (19) | 1,708 | 81 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.75 |
(1) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||
(2) | This item of note reports the impact on consolidated income tax expense that will be subject to an adjustment to our reported results in the third quarter of 2024 because the Federal tax proposal to deny the dividends received deduction for banks was substantively enacted on | ||||||||||||||||
(3) | Includes the impact of rounding differences between diluted EPS and adjusted diluted EPS. | ||||||||||||||||
(4) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||
(5) | CIBC total results excludes a TEB adjustment of | ||||||||||||||||
(6) | Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. For additional information, see Note 1 to the interim consolidated financial statements of our Report to Shareholders for the second quarter of 2024 available on SEDAR+ at www.sedarplus.com. | ||||||||||||||||
(7) | Relates to the net legal provisions recognized in the first and second quarters of 2023. | ||||||||||||||||
(8) | The income tax charge is comprised of |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | ||||||||||||||||||
Canadian | Capital | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | ||||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | ||||||||||||
$ millions, for the three months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | |||||||||||
Operating results – reported | ||||||||||||||||||
Total revenue | $ | 2,497 | $ | 1,374 | $ | 681 | $ | 1,561 | $ | 108 | $ | 6,221 | $ | 507 | ||||
Provision for (reversal of) credit losses | 329 | 20 | 244 | 8 | (16) | 585 | 182 | |||||||||||
Non-interest expenses | 1,280 | 669 | 478 | 712 | 326 | 3,465 | 356 | |||||||||||
Income (loss) before income taxes | 888 | 685 | (41) | 841 | (202) | 2,171 | (31) | |||||||||||
Income taxes | 238 | 187 | (32) | 229 | (179) | 443 | (24) | |||||||||||
Net income (loss) | 650 | 498 | (9) | 612 | (23) | 1,728 | (7) | |||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 12 | 12 | - | |||||||||||
Net income (loss) attributable to equity shareholders | 650 | 498 | (9) | 612 | (35) | 1,716 | (7) | |||||||||||
Diluted EPS ($) | $ | 1.77 | ||||||||||||||||
Impact of items of note (1) | ||||||||||||||||||
Revenue | ||||||||||||||||||
Recovery to income tax that will be eliminated with the substantive | $ | - | $ | - | $ | - | $ | (52) | $ | 52 | $ | - | $ | - | ||||
Impact of items of note on revenue | - | - | - | (52) | 52 | - | - | |||||||||||
Non-interest expenses | ||||||||||||||||||
Amortization of acquisition-related intangible assets | (7) | - | (8) | - | - | (15) | (6) | |||||||||||
Charge related to the special assessment imposed by the | - | - | (91) | - | - | (91) | (67) | |||||||||||
Impact of items of note on non-interest expenses | (7) | - | (99) | - | - | (106) | (73) | |||||||||||
Total pre-tax impact of items of note on net income | 7 | - | 99 | (52) | 52 | 106 | 73 | |||||||||||
Income taxes | ||||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 2 | - | - | 4 | 1 | |||||||||||
Recovery to income tax that will be eliminated with the substantive | - | - | - | (15) | 52 | 37 | - | |||||||||||
Charge related to the special assessment imposed by the | - | - | 23 | - | - | 23 | 17 | |||||||||||
Impact of items of note on income taxes | 2 | - | 25 | (15) | 52 | 64 | 18 | |||||||||||
Total after-tax impact of items of note on net income | $ | 5 | $ | - | $ | 74 | $ | (37) | $ | - | $ | 42 | $ | 55 | ||||
Impact of items of note on diluted EPS ($) (3) | $ | 0.04 | ||||||||||||||||
Operating results – adjusted (4) | ||||||||||||||||||
Total revenue – adjusted (5) | $ | 2,497 | $ | 1,374 | $ | 681 | $ | 1,509 | $ | 160 | $ | 6,221 | $ | 507 | ||||
Provision for (reversal of) credit losses – adjusted | 329 | 20 | 244 | 8 | (16) | 585 | 182 | |||||||||||
Non-interest expenses – adjusted | 1,273 | 669 | 379 | 712 | 326 | 3,359 | 283 | |||||||||||
Income (loss) before income taxes – adjusted | 895 | 685 | 58 | 789 | (150) | 2,277 | 42 | |||||||||||
Income taxes – adjusted | 240 | 187 | (7) | 214 | (127) | 507 | (6) | |||||||||||
Net income (loss) – adjusted | 655 | 498 | 65 | 575 | (23) | 1,770 | 48 | |||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 12 | 12 | - | |||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 655 | 498 | 65 | 575 | (35) | 1,758 | 48 | |||||||||||
Adjusted diluted EPS ($) | $ | 1.81 | ||||||||||||||||
See previous page for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | ||||||||||||||||||
Canadian | Capital | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | ||||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | ||||||||||||
$ millions, for the three months ended | Banking | (6) | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | ||||||||||||||||||
Total revenue | $ | 2,282 | $ | 1,336 | $ | 648 | $ | 1,362 | $ | 76 | $ | 5,704 | $ | 477 | ||||
Provision for credit losses | 123 | 46 | 248 | 19 | 2 | 438 | 183 | |||||||||||
Non-interest expenses | 1,274 | 673 | 354 | 664 | 175 | 3,140 | 261 | |||||||||||
Income (loss) before income taxes | 885 | 617 | 46 | 679 | (101) | 2,126 | 33 | |||||||||||
Income taxes | 247 | 165 | (9) | 182 | (148) | 437 | (7) | |||||||||||
Net income | 638 | 452 | 55 | 497 | 47 | 1,689 | 40 | |||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 11 | 11 | - | |||||||||||
Net income attributable to equity shareholders | 638 | 452 | 55 | 497 | 36 | 1,678 | 40 | |||||||||||
Diluted EPS ($) | $ | 1.76 | ||||||||||||||||
Impact of items of note (1) | ||||||||||||||||||
Non-interest expenses | ||||||||||||||||||
Amortization of acquisition-related intangible assets | $ | (6) | $ | - | $ | (18) | $ | - | $ | (3) | $ | (27) | $ | (13) | ||||
Decrease in legal provisions | - | - | - | - | 114 | 114 | - | |||||||||||
Impact of items of note on non-interest expenses | (6) | - | (18) | - | 111 | 87 | (13) | |||||||||||
Total pre-tax impact of items of note on net income | 6 | - | 18 | - | (111) | (87) | 13 | |||||||||||
Income taxes | ||||||||||||||||||
Amortization of acquisition-related intangible assets | - | - | 5 | - | 1 | 6 | 3 | |||||||||||
Decrease in legal provisions | - | - | - | - | (32) | (32) | - | |||||||||||
Impact of items of note on income taxes | - | - | 5 | - | (31) | (26) | 3 | |||||||||||
Total after-tax impact of items of note on net income | $ | 6 | $ | - | $ | 13 | $ | - | $ | (80) | $ | (61) | $ | 10 | ||||
Impact of items of note on diluted EPS ($) (3) | $ | (0.06) | ||||||||||||||||
Operating results – adjusted (4) | ||||||||||||||||||
Total revenue – adjusted (5) | $ | 2,282 | $ | 1,336 | $ | 648 | $ | 1,362 | $ | 76 | $ | 5,704 | $ | 477 | ||||
Provision for credit losses – adjusted | 123 | 46 | 248 | 19 | 2 | 438 | 183 | |||||||||||
Non-interest expenses – adjusted | 1,268 | 673 | 336 | 664 | 286 | 3,227 | 248 | |||||||||||
Income (loss) before income taxes – adjusted | 891 | 617 | 64 | 679 | (212) | 2,039 | 46 | |||||||||||
Income taxes – adjusted | 247 | 165 | (4) | 182 | (179) | 411 | (4) | |||||||||||
Net income (loss) – adjusted | 644 | 452 | 68 | 497 | (33) | 1,628 | 50 | |||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 11 | 11 | - | |||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 644 | 452 | 68 | 497 | (44) | 1,617 | 50 | |||||||||||
Adjusted diluted EPS ($) | $ | 1.70 | ||||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Capital | Commercial | |||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||
$ millions, for the six months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 4,973 | $ | 2,758 | $ | 1,347 | $ | 3,049 | $ | 258 | $ | 12,385 | $ | 996 | |||
Provision for (reversal of) credit losses | 599 | 57 | 430 | 24 | (11) | 1,099 | 318 | ||||||||||
Non-interest expenses | 2,599 | 1,389 | 874 | 1,418 | 686 | 6,966 | 646 | ||||||||||
Income (loss) before income taxes | 1,775 | 1,312 | 43 | 1,607 | (417) | 4,320 | 32 | ||||||||||
Income taxes | 476 | 358 | (41) | 435 | (385) | 843 | (30) | ||||||||||
Net income (loss) | 1,299 | 954 | 84 | 1,172 | (32) | 3,477 | 62 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 22 | 22 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 1,299 | 954 | 84 | 1,172 | (54) | 3,455 | 62 | ||||||||||
Diluted EPS ($) | $ | 3.55 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Recovery to income tax that will be eliminated with the substantive | $ | - | $ | - | $ | - | $ | (123) | $ | 123 | $ | - | $ | - | |||
Impact of items of note on revenue | - | - | - | (123) | 123 | - | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (13) | - | (16) | - | - | (29) | (12) | ||||||||||
Charge related to the special assessment imposed by the | - | - | (104) | - | - | (104) | (77) | ||||||||||
Impact of items of note on non-interest expenses | (13) | - | (120) | - | - | (133) | (89) | ||||||||||
Total pre-tax impact of items of note on net income | 13 | - | 120 | (123) | 123 | 133 | 89 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 4 | - | 4 | - | - | 8 | 3 | ||||||||||
Recovery to income tax that will be eliminated with the substantive | - | - | - | (35) | 123 | 88 | - | ||||||||||
Charge related to the special assessment imposed by the | - | - | 26 | - | - | 26 | 19 | ||||||||||
Impact of items of note on income taxes | 4 | - | 30 | (35) | 123 | 122 | 22 | ||||||||||
Total after-tax impact of items of note on net income | $ | 9 | $ | - | $ | 90 | $ | (88) | $ | - | $ | 11 | $ | 67 | |||
Impact of items of note on diluted EPS ($) (3) | $ | 0.02 | |||||||||||||||
Operating results – adjusted (4) | |||||||||||||||||
Total revenue – adjusted (5) | $ | 4,973 | $ | 2,758 | $ | 1,347 | $ | 2,926 | $ | 381 | $ | 12,385 | $ | 996 | |||
Provision for (reversal of) credit losses – adjusted | 599 | 57 | 430 | 24 | (11) | 1,099 | 318 | ||||||||||
Non-interest expenses – adjusted | 2,586 | 1,389 | 754 | 1,418 | 686 | 6,833 | 557 | ||||||||||
Income (loss) before income taxes – adjusted | 1,788 | 1,312 | 163 | 1,484 | (294) | 4,453 | 121 | ||||||||||
Income taxes – adjusted | 480 | 358 | (11) | 400 | (262) | 965 | (8) | ||||||||||
Net income (loss) – adjusted | 1,308 | 954 | 174 | 1,084 | (32) | 3,488 | 129 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 22 | 22 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,308 | 954 | 174 | 1,084 | (54) | 3,466 | 129 | ||||||||||
Adjusted diluted EPS ($) | $ | 3.57 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | ||||||||||||||||||
Canadian | Capital | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | ||||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | ||||||||||||
$ millions, for the six months ended | Banking | (6) | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | ||||||||||||||||||
Total revenue | $ | 4,544 | $ | 2,687 | $ | 1,354 | $ | 2,843 | $ | 205 | $ | 11,633 | $ | 1,003 | ||||
Provision for credit losses | 281 | 92 | 346 | 9 | 5 | 733 | 256 | |||||||||||
Non-interest expenses | 2,564 | 1,338 | 734 | 1,314 | 1,652 | 7,602 | 544 | |||||||||||
Income (loss) before income taxes | 1,699 | 1,257 | 274 | 1,520 | (1,452) | 3,298 | 203 | |||||||||||
Income taxes | 471 | 336 | 18 | 411 | (60) | 1,176 | 13 | |||||||||||
Net income (loss) | 1,228 | 921 | 256 | 1,109 | (1,392) | 2,122 | 190 | |||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 20 | 20 | - | |||||||||||
Net income (loss) attributable to equity shareholders | 1,228 | 921 | 256 | 1,109 | (1,412) | 2,102 | 190 | |||||||||||
Diluted EPS ($) | $ | 2.16 | ||||||||||||||||
Impact of items of note (1) | ||||||||||||||||||
Non-interest expenses | ||||||||||||||||||
Amortization of acquisition-related intangible assets | $ | (13) | $ | - | $ | (34) | $ | - | $ | (6) | $ | (53) | $ | (25) | ||||
Increase in legal provisions (7) | - | - | - | - | (1,055) | (1,055) | - | |||||||||||
Impact of items of note on non-interest expenses | (13) | - | (34) | - | (1,061) | (1,108) | (25) | |||||||||||
Total pre-tax impact of items of note on net income | 13 | - | 34 | - | 1,061 | 1,108 | 25 | |||||||||||
Income taxes | ||||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 9 | - | 1 | 12 | 6 | |||||||||||
Increase in legal provisions (7) | - | - | - | - | 293 | 293 | - | |||||||||||
Income tax charge related to the 2022 Canadian Federal budget (8) | - | - | - | - | (545) | (545) | - | |||||||||||
Impact of items of note on income taxes | 2 | - | 9 | - | (251) | (240) | 6 | |||||||||||
Total after-tax impact of items of note on net income | $ | 11 | $ | - | $ | 25 | $ | - | $ | 1,312 | $ | 1,348 | $ | 19 | ||||
Impact of items of note on diluted EPS ($) (3) | $ | 1.48 | ||||||||||||||||
Operating results – adjusted (4) | ||||||||||||||||||
Total revenue – adjusted (5) | $ | 4,544 | $ | 2,687 | $ | 1,354 | $ | 2,843 | $ | 205 | $ | 11,633 | $ | 1,003 | ||||
Provision for credit losses – adjusted | 281 | 92 | 346 | 9 | 5 | 733 | 256 | |||||||||||
Non-interest expenses – adjusted | 2,551 | 1,338 | 700 | 1,314 | 591 | 6,494 | 519 | |||||||||||
Income (loss) before income taxes – adjusted | 1,712 | 1,257 | 308 | 1,520 | (391) | 4,406 | 228 | |||||||||||
Income taxes – adjusted | 473 | 336 | 27 | 411 | (311) | 936 | 19 | |||||||||||
Net income (loss) – adjusted | 1,239 | 921 | 281 | 1,109 | (80) | 3,470 | 209 | |||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 20 | 20 | - | |||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,239 | 921 | 281 | 1,109 | (100) | 3,450 | 209 | |||||||||||
Adjusted diluted EPS ($) | $ | 3.64 | ||||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis. | |||||||||||||||||||
Canadian | Capital | Commercial | |||||||||||||||||
Canadian | Commercial | Commercial | Markets | Banking | |||||||||||||||
Personal | Banking | Banking | and Direct | and Wealth | |||||||||||||||
and Business | and Wealth | and Wealth | Financial | Corporate | CIBC | Management | |||||||||||||
$ millions, for the three months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||||
2024 | Net income (loss) | $ | 649 | $ | 456 | $ | 93 | $ | 560 | $ | (9) | $ | 1,749 | $ | 69 | ||||
Add: provision for credit losses | 270 | 37 | 186 | 16 | 5 | 514 | 136 | ||||||||||||
Add: income taxes | 238 | 171 | (9) | 206 | (206) | 400 | (6) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,157 | 664 | 270 | 782 | (210) | 2,663 | 199 | ||||||||||||
Pre-tax impact of items of note (2) | 6 | - | 21 | (71) | 71 | 27 | 16 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,163 | $ | 664 | $ | 291 | $ | 711 | $ | (139) | $ | 2,690 | $ | 215 | |||||
2024 | Net income (loss) | $ | 650 | $ | 498 | $ | (9) | $ | 612 | $ | (23) | $ | 1,728 | $ | (7) | ||||
Add: provision for (reversal of) credit losses | 329 | 20 | 244 | 8 | (16) | 585 | 182 | ||||||||||||
Add: income taxes | 238 | 187 | (32) | 229 | (179) | 443 | (24) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,217 | 705 | 203 | 849 | (218) | 2,756 | 151 | ||||||||||||
Pre-tax impact of items of note (2) | 7 | - | 99 | (52) | 52 | 106 | 73 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,224 | $ | 705 | $ | 302 | $ | 797 | $ | (166) | $ | 2,862 | $ | 224 | |||||
2023 | Net income | $ | 638 | $ | 452 | $ | 55 | $ | 497 | $ | 47 | $ | 1,689 | $ | 40 | ||||
Add: provision for credit losses | 123 | 46 | 248 | 19 | 2 | 438 | 183 | ||||||||||||
Add: income taxes | 247 | 165 | (9) | 182 | (148) | 437 | (7) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,008 | 663 | 294 | 698 | (99) | 2,564 | 216 | ||||||||||||
Pre-tax impact of items of note (2) | 6 | - | 18 | - | (111) | (87) | 13 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,014 | $ | 663 | $ | 312 | $ | 698 | $ | (210) | $ | 2,477 | $ | 229 | |||||
$ millions, for the six months ended | |||||||||||||||||||
2024 | Net income (loss) | $ | 1,299 | $ | 954 | $ | 84 | $ | 1,172 | $ | (32) | $ | 3,477 | $ | 62 | ||||
Add: provision for (reversal of) credit losses | 599 | 57 | 430 | 24 | (11) | 1,099 | 318 | ||||||||||||
Add: income taxes | 476 | 358 | (41) | 435 | (385) | 843 | (30) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 2,374 | 1,369 | 473 | 1,631 | (428) | 5,419 | 350 | ||||||||||||
Pre-tax impact of items of note (2) | 13 | - | 120 | (123) | 123 | 133 | 89 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 2,387 | $ | 1,369 | $ | 593 | $ | 1,508 | $ | (305) | $ | 5,552 | $ | 439 | |||||
2023 | Net income (loss) | $ | 1,228 | $ | 921 | $ | 256 | $ | 1,109 | $ | (1,392) | $ | 2,122 | $ | 190 | ||||
Add: provision for credit losses | 281 | 92 | 346 | 9 | 5 | 733 | 256 | ||||||||||||
Add: income taxes | 471 | 336 | 18 | 411 | (60) | 1,176 | 13 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,980 | 1,349 | 620 | 1,529 | (1,447) | 4,031 | 459 | ||||||||||||
Pre-tax impact of items of note (2) | 13 | - | 34 | - | 1,061 | 1,108 | 25 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,993 | $ | 1,349 | $ | 654 | $ | 1,529 | $ | (386) | $ | 5,139 | $ | 484 | |||||
(1) | Non-GAAP measure. | ||||||||||||||||||
(2) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||||
(3) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||||
(4) | Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. For additional information, see Note 1 to the interim consolidated financial statements |
Making a difference in our communities
At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter:
- CIBC and the
University of Waterloo announced that CIBC has committed$500,000 to improve access to education for Black undergraduate students. The CIBC Inclusion Award for Black Students is open to students entering their first year of a full-time degree program, with preference being given to students enrolled in a Science, Technology, Engineering or Mathematics (STEM) program. - CIBC invested
$300,000 to continue proudly sponsoring HackerGal as their Lead Partner for Inclusion and Community Engagement in support of their mission to inspire Canadian girls and gender-diverse learners to code, create and become the technology leaders of tomorrow by ensuring they have the education, community and confidence to succeed in STEM. CIBC Foundation and AlloProf announced theCIBC Foundation's donation of$100,000 to support the development and dissemination of professional services and digital academic support resources, making them available free of charge to allQuebec students and their parents.
The Board of Directors of CIBC reviewed this news release prior to it being issued. CIBC's controls and procedures support the ability of the President and Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) of CIBC to certify CIBC's second quarter financial report and controls and procedures. CIBC's CEO and CFO will voluntarily provide to the
All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted.
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
Conference Call/Webcast
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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 fiscal 2024 second quarter 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 8797228#) and French (514-861-2272 or 1-800-408-3053, passcode 6432963#) until
About CIBC
CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets and
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