CIBC's 2023 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2023 Annual Report is available on SEDAR+ at www.sedarplus.ca. All amounts are expressed in Canadian dollars, unless otherwise indicated. |
"In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses," said
Q4/23 | Q4/22 | Q3/23 | YoY | QoQ | |
Revenue | +8 % | 0 % | |||
Reported Net Income | +25 % | +4 % | |||
Adjusted Net Income (1) | +16 % | +3 % | |||
Adjusted pre-provision, pre-tax earnings (1) | +18 % | -6 % | |||
Reported Diluted Earnings Per Share (EPS) (2) | +21 % | +4 % | |||
Adjusted Diluted EPS (1)(2) | +13 % | +3 % | |||
Reported Return on Common Shareholders' Equity (ROE) (3) | 11.8 % | 10.1 % | 11.6 % | ||
Adjusted ROE (1) | 12.1 % | 11.2 % | 11.9 % | ||
Common Equity Tier 1 (CET1) Ratio (4) | 12.4 % | 11.7 % | 12.2 % |
CIBC's results for the fourth quarter of 2023 were affected by the following items of note aggregating to a negative impact of
$45 million ($37 million after-tax) amortization and impairment of acquisition-related intangible assets.
For the year ended
(1) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 14 to 18; and adjusted pre-provision, pre-tax earnings on page 19. |
(2) | On |
(3) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(4) | Our capital ratios are calculated pursuant to the Office of the Superintendent |
The following table summarizes our performance in 2023 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.
Financial Measure | Medium-term target | 2023 Reported Results | 2023 Adjusted Results (2) |
Diluted EPS growth (3) | 7%–10% annually (1)(6) | 3-year CAGR (4) = 7.9% 5-year CAGR (4) = (2.4)% | 3-year CAGR (4) = 11.5% 5-year CAGR (4) = 1.9% |
ROE (5) | At least 16% (1)(6) | 3-year average = 13.5% 5-year average = 13.0% | 3-year average = 14.9% 5-year average = 14.4% |
Operating leverage (5) | Positive (1)(6) | 3-year average = (0.6)% 5-year average = (1.5)% | 3-year average = 0.0% 5-year average = (0.1)% |
CET1 ratio | Strong buffer to regulatory requirement | 12.4 % | |
Dividend payout ratio (5) | 40%–50% (1)(6) | 3-year average = 52.4% 5-year average = 55.6% | 3-year average = 45.9% 5-year average = 48.9% |
Total shareholder return | Outperform the S&P/TSX Composite | 3-year 5-year CIBC: 15.0% 12.7% S&P/TSX Composite Banks Index: 36.2% 29.8% |
F2023 Financial Highlights
(C$ million) | F2023 | F2022 | YoY Variance |
Canadian Personal and Business Banking | |||
Reported Net Income | up 5% | ||
Adjusted Net Income (2) | 0 % | ||
Pre-provision, pre-tax earnings (2) | up 8% | ||
Adjusted pre-provision, pre-tax earnings (2) | up 6% | ||
Canadian Commercial Banking and Wealth Management | |||
Reported Net Income | down 1% | ||
Adjusted Net Income (2) | down 1% | ||
Pre-provision, pre-tax earnings (2) | up 4% | ||
Adjusted pre-provision, pre-tax earnings (2) | up 4% | ||
Reported Net Income | down 50% | ||
Adjusted Net Income (2) | down 48% | ||
Pre-provision, pre-tax earnings (2) | up 9% | ||
Adjusted pre-provision, pre-tax earnings (2) | up 7% | ||
Capital Markets and | |||
Reported Net Income | up 4% | ||
Adjusted Net Income (2) | up 4% | ||
Pre-provision, pre-tax earnings (2) | up 8% | ||
Adjusted pre-provision, pre-tax earnings (2) | up 8% |
(1) | Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section. |
(2) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
(3) | On |
(4) | The 3-year compound annual growth rate (CAGR) is calculated from 2020 to 2023 and the 5-year CAGR is calculated from 2018 to 2023. |
(5) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(6) | Medium-term targets are defined as through the cycle. For additional information, see the "Overview" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca. |
Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2023, CIBC maintained its capital strength and sound risk management practices:
- Capital ratios were strong, with a CET1 ratio(1) of 12.4% as noted above, and Tier 1(1) and Total capital ratios(1) of 13.9% and 16.0%, respectively, at
October 31, 2023 ; - Market risk, as measured by average Value-at-Risk, was
$9.2 million in 2023 compared with$8.7 million in 2022; - We continued to have solid credit performance, with a loan loss ratio(2) of 30 basis points compared with 14 basis points in 2022;
- Liquidity Coverage Ratio(1) was 135% for the three months ended
October 31, 2023 ; and - Leverage Ratio(1)(3) was 4.2% at
October 31, 2023 .
CIBC announced an increase in its quarterly common share dividend from
(1) | Our capital ratios are calculated pursuant to the OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and the liquidity coverage ratio is calculated pursuant to OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on the BCBS standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of |
(2) | For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section. |
(3) | The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic was no longer applicable beginning in the second quarter of 2023. |
Credit quality
Provision for credit losses was
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:
- More than 50,000 participants, including over 11,000 Team CIBC participants from across the country came together on October 1, 2023 for the Canadian Cancer Society CIBC Run for the Cure. In total, more than
$14.5 million was raised, including over$2.4 million by Team CIBC, to assist in advancing breast cancer research, education and support programs. - CIBC donated
$250,000 to the United Jewish Appeal and the Canadian Red Cross Middle East Humanitarian Crisis Appeal, aimed at supporting immediate and ongoing humanitarian relief efforts, shelter and safety for Israeli and Palestinian civilians affected by the conflict. A further$250,000 was donated by CIBC and its employees through an employee matching program to charities providing aid in the region. - CIBC donated
$100,000 through theCIBC Foundation Northwest Territories Emergency Relief Fund and theCIBC Foundation British Columbia Emergency Relief Fund to provide immediate and long-term assistance to those affected by the wildfires and evacuation efforts across theNorthwest Territories andBritish Columbia . In addition,$50,000 was donated to provide critical aid to the people ofMorocco following a devastating earthquake. - To help newcomers learn about their new country and navigate settling in, CIBC announced a partnership with the
Institute of Canadian Citizenship (ICC), a national charity that supports newcomers on their journey towards full and active citizenship including through the ICC's digital app, Canoo. With this partnership, Canoo members will have access to CIBC's financial tools, advice and resources to help them settle inCanada .
Fourth quarter financial highlights | ||||||||||||||||||||
As at or for the | As at or for the | |||||||||||||||||||
three months ended | twelve months ended | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Unaudited | ||||||||||||||||||||
Financial results ($ millions) | ||||||||||||||||||||
Net interest income | $ | 3,197 | $ | 3,236 | $ | 3,185 | $ | 12,825 | $ | 12,641 | ||||||||||
Non-interest income | 2,647 | 2,614 | 2,203 | 10,498 | 9,192 | |||||||||||||||
Total revenue | 5,844 | 5,850 | 5,388 | 23,323 | 21,833 | |||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | |||||||||||||||
Non-interest expenses | 3,440 | 3,307 | 3,483 | 14,349 | 12,803 | |||||||||||||||
Income before income taxes | 1,863 | 1,807 | 1,469 | 6,964 | 7,973 | |||||||||||||||
Income taxes | 380 | 377 | 284 | 1,931 | 1,730 | |||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | ||||||||||
Net income attributable to non-controlling interests | 8 | 10 | 7 | 38 | 23 | |||||||||||||||
Preferred shareholders and other equity instrument holders | 62 | 66 | 37 | 267 | 171 | |||||||||||||||
Common shareholders | 1,413 | 1,354 | 1,141 | 4,728 | 6,049 | |||||||||||||||
Net income attributable to equity shareholders | $ | 1,475 | $ | 1,420 | $ | 1,178 | $ | 4,995 | $ | 6,220 | ||||||||||
Financial measures | ||||||||||||||||||||
Reported efficiency ratio (1) | 58.9 | % | 56.5 | % | 64.6 | % | 61.5 | % | 58.6 | % | ||||||||||
Reported operating leverage (1) | 9.7 | % | 1.1 | % | (4.7) | % | (5.2) | % | (1.9) | % | ||||||||||
Loan loss ratio (2) | 0.35 | % | 0.35 | % | 0.16 | % | 0.30 | % | 0.14 | % | ||||||||||
Reported return on common shareholders' equity (1)(3) | 11.8 | % | 11.6 | % | 10.1 | % | 10.3 | % | 14.0 | % | ||||||||||
Net interest margin (1) | 1.32 | % | 1.36 | % | 1.33 | % | 1.35 | % | 1.40 | % | ||||||||||
Net interest margin on average interest-earning assets (1)(4) | 1.44 | % | 1.49 | % | 1.51 | % | 1.49 | % | 1.58 | % | ||||||||||
Return on average assets (1)(4) | 0.61 | % | 0.60 | % | 0.50 | % | 0.53 | % | 0.69 | % | ||||||||||
Return on average interest-earning assets (1)(4) | 0.67 | % | 0.66 | % | 0.56 | % | 0.58 | % | 0.78 | % | ||||||||||
Reported effective tax rate | 20.4 | % | 20.9 | % | 19.3 | % | 27.7 | % | 21.7 | % | ||||||||||
Common share information | ||||||||||||||||||||
Per share ($) (5) | - basic earnings | $ | 1.53 | $ | 1.47 | $ | 1.26 | $ | 5.16 | $ | 6.70 | |||||||||
- reported diluted earnings | 1.53 | 1.47 | 1.26 | 5.16 | 6.68 | |||||||||||||||
- dividends | 0.870 | 0.870 | 0.830 | 3.440 | 3.270 | |||||||||||||||
- book value (6) | 51.61 | 50.05 | 49.95 | 51.61 | 49.95 | |||||||||||||||
Closing share price ($) (5) | 48.91 | 58.08 | 61.87 | 48.91 | 61.87 | |||||||||||||||
Shares outstanding (thousands) (5) | - weighted-average basic | 924,798 | 918,551 | 905,120 | 915,631 | 903,312 | ||||||||||||||
- weighted-average diluted | 924,960 | 919,063 | 906,533 | 916,223 | 905,684 | |||||||||||||||
- end of period | 931,099 | 924,034 | 906,040 | 931,099 | 906,040 | |||||||||||||||
Market capitalization ($ millions) | $ | 45,540 | $ | 53,668 | $ | 56,057 | $ | 45,540 | $ | 56,057 | ||||||||||
Value measures | ||||||||||||||||||||
Total shareholder return | (14.38) | % | 3.85 | % | (3.17) | % | (15.85) | % | (13.56) | % | ||||||||||
Dividend yield (based on closing share price) | 7.1 | % | 5.9 | % | 5.3 | % | 7.0 | % | 5.3 | % | ||||||||||
Reported dividend payout ratio (1) | 56.9 | % | 59.0 | % | 65.9 | % | 66.6 | % | 48.8 | % | ||||||||||
Market value to book value ratio | 0.95 | 1.16 | 1.24 | 0.95 | 1.24 | |||||||||||||||
Selected financial measures – adjusted (7) | ||||||||||||||||||||
Adjusted efficiency ratio (8) | 57.5 | % | 55.2 | % | 60.9 | % | 55.8 | % | 56.4 | % | ||||||||||
Adjusted operating leverage (8) | 6.2 | % | 0.1 | % | (5.8) | % | 1.2 | % | (1.9) | % | ||||||||||
Adjusted return on common shareholders' equity (3) | 12.1 | % | 11.9 | % | 11.2 | % | 13.3 | % | 14.7 | % | ||||||||||
Adjusted effective tax rate | 20.3 | % | 21.0 | % | 20.1 | % | 21.0 | % | 21.9 | % | ||||||||||
Adjusted diluted earnings per share (5) | $ | 1.57 | $ | 1.52 | $ | 1.39 | $ | 6.72 | $ | 7.05 | ||||||||||
Adjusted dividend payout ratio | 55.4 | % | 57.2 | % | 59.5 | % | 51.2 | % | 46.3 | % | ||||||||||
On- and off-balance sheet information ($ millions) | ||||||||||||||||||||
Cash, deposits with banks and securities | $ | 267,066 | $ | 247,525 | $ | 239,740 | $ | 267,066 | $ | 239,740 | ||||||||||
Loans and acceptances, net of allowance for credit losses | 540,153 | 538,216 | 528,657 | 540,153 | 528,657 | |||||||||||||||
Total assets | 975,719 | 943,001 | 943,597 | 975,719 | 943,597 | |||||||||||||||
Deposits | 723,376 | 704,505 | 697,572 | 723,376 | 697,572 | |||||||||||||||
Common shareholders' equity (1) | 48,056 | 46,250 | 45,258 | 48,056 | 45,258 | |||||||||||||||
Average assets (4) | 962,405 | 943,640 | 947,830 | 948,121 | 900,213 | |||||||||||||||
Average interest-earning assets (1)(4) | 882,196 | 862,064 | 834,639 | 861,136 | 799,224 | |||||||||||||||
Average common shareholders' equity (1)(4) | 47,435 | 46,392 | 44,770 | 46,130 | 43,354 | |||||||||||||||
Assets under administration (AUA) (1)(9)(10) | 2,853,007 | 3,003,629 | 2,854,828 | 2,853,007 | 2,854,828 | |||||||||||||||
Assets under management (AUM) (1)(10) | 300,218 | 313,635 | 291,513 | 300,218 | 291,513 | |||||||||||||||
Balance sheet quality and liquidity measures (11) | ||||||||||||||||||||
Risk-weighted assets (RWA) ($ millions) | $ | 326,120 | $ | 317,773 | $ | 315,634 | $ | 326,120 | $ | 315,634 | ||||||||||
CET1 ratio (12) | 12.4 | % | 12.2 | % | 11.7 | % | 12.4 | % | 11.7 | % | ||||||||||
Tier 1 capital ratio (12) | 13.9 | % | 13.7 | % | 13.3 | % | 13.9 | % | 13.3 | % | ||||||||||
Total capital ratio (12) | 16.0 | % | 15.9 | % | 15.3 | % | 16.0 | % | 15.3 | % | ||||||||||
Leverage ratio (13) | 4.2 | % | 4.2 | % | 4.4 | % | 4.2 | % | 4.4 | % | ||||||||||
Liquidity coverage ratio (LCR) (14) | 135 | % | 131 | % | 129 | % | n/a | n/a | ||||||||||||
Net stable funding ratio (NSFR) | 118 | % | 117 | % | 118 | % | 118 | % | 118 | % | ||||||||||
Other information | ||||||||||||||||||||
Full-time equivalent employees | 48,074 | 48,718 | 50,427 | 48,074 | 50,427 |
(1) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. | |||||||||||||||||||
(2) | The ratio is calculated as the provision for (reversal of) credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses. | |||||||||||||||||||
(3) | Annualized. | |||||||||||||||||||
(4) | Average balances are calculated as a weighted average of daily closing balances. | |||||||||||||||||||
(5) | On | |||||||||||||||||||
(6) | Common shareholders' equity divided by the number of common shares issued and outstanding at end of period. | |||||||||||||||||||
(7) | Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section. | |||||||||||||||||||
(8) | Calculated on a taxable equivalent basis (TEB). | |||||||||||||||||||
(9) | Includes the full contract amount of AUA or custody under a 50/50 joint venture between | |||||||||||||||||||
(10) | AUM amounts are included in the amounts reported under AUA. | |||||||||||||||||||
(11) | RWA and our capital ratios are calculated pursuant to OSFI's CAR Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to OSFI's LAR Guideline, all of which are based on BCBS standards. Beginning in the second quarter of 2023, results reflect the impacts from the implementation of Basel III reforms that became effective as of | |||||||||||||||||||
(12) | The 2022 ratios reflect the expected credit loss transitional arrangement announced by OSFI on | |||||||||||||||||||
(13) | The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic was no longer applicable beginning in the second quarter of 2023. | |||||||||||||||||||
(14) | Average for the three months ended for each respective period. | |||||||||||||||||||
n/a | Not applicable. |
Review of Canadian Personal and Business Banking fourth quarter results | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | ||||||||||
Revenue | $ | 2,455 | $ | 2,412 | $ | 2,262 | ||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 259 | 244 | 158 | |||||||
Performing | 23 | 179 | 147 | |||||||
Total provision for credit losses | 282 | 423 | 305 | |||||||
Non-interest expenses | 1,307 | 1,303 | 1,313 | |||||||
Income before income taxes | 866 | 686 | 644 | |||||||
Income taxes | 231 | 189 | 173 | |||||||
Net income | $ | 635 | $ | 497 | $ | 471 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 635 | $ | 497 | $ | 471 | ||||
Total revenue | ||||||||||
Net interest income | $ | 1,908 | $ | 1,898 | $ | 1,720 | ||||
Non-interest income (1) | 547 | 514 | 542 | |||||||
$ | 2,455 | $ | 2,412 | $ | 2,262 | |||||
Net interest margin on average interest-earning assets (2)(3) | 2.38 | % | 2.38 | % | 2.19 | % | ||||
Efficiency ratio | 53.2 | % | 54.0 | % | 58.0 | % | ||||
Operating leverage | 9.0 | % | 4.7 | % | (7.7) | % | ||||
Return on equity (4) | 25.7 | % | 20.2 | % | 22.1 | % | ||||
Average allocated common equity (4) | $ | 9,781 | $ | 9,778 | $ | 8,437 | ||||
Full-time equivalent employees | 13,208 | 13,231 | 13,840 |
Net income for the quarter was
Revenue of
Net interest margin on average interest-earning assets was up 19 basis points mainly due to higher deposit margins, partially offset by lower loan margins.
Provision for credit losses of
Non-interest expenses of
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Canadian Commercial Banking and Wealth Management fourth quarter results | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | ||||||||||
Revenue | ||||||||||
Commercial banking | $ | 634 | $ | 626 | $ | 601 | ||||
Wealth management | 732 | 724 | 715 | |||||||
Total revenue | 1,366 | 1,350 | 1,316 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 11 | 38 | 14 | |||||||
Performing | - | 2 | 7 | |||||||
Total provision for (reversal of) credit losses | 11 | 40 | 21 | |||||||
Non-interest expenses | 679 | 674 | 658 | |||||||
Income before income taxes | 676 | 636 | 637 | |||||||
Income taxes | 186 | 169 | 168 | |||||||
Net income | $ | 490 | $ | 467 | $ | 469 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 490 | $ | 467 | $ | 469 | ||||
Total revenue | ||||||||||
Net interest income | $ | 452 | $ | 443 | $ | 452 | ||||
Non-interest income (1) | 914 | 907 | 864 | |||||||
$ | 1,366 | $ | 1,350 | $ | 1,316 | |||||
Net interest margin on average interest-earning assets (2)(3) | 3.37 | % | 3.35 | % | 3.38 | % | ||||
Efficiency ratio | 49.7 | % | 49.9 | % | 50.0 | % | ||||
Operating leverage | 0.7 | % | 0.3 | % | 4.1 | % | ||||
Return on equity (4) | 23.1 | % | 22.0 | % | 21.6 | % | ||||
Average allocated common equity (4) | $ | 8,401 | $ | 8,411 | $ | 8,598 | ||||
Full-time equivalent employees | 5,433 | 5,442 | 5,711 |
Net income for the quarter was
Revenue of
Net interest margin on average interest-earning assets was down 1 basis point primarily due to higher deposit margins that were more than offset by lower loan margins.
Provision for credit losses of
Non-interest expenses of
(1) | Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model. |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | ||||||||||
Revenue | ||||||||||
Commercial banking | $ | 462 | $ | 452 | $ | 432 | ||||
Wealth management | 210 | 214 | 221 | |||||||
Total revenue (1) | 672 | 666 | 653 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 205 | 174 | 34 | |||||||
Performing | 44 | 81 | 66 | |||||||
Total provision for (reversal of) credit losses | 249 | 255 | 100 | |||||||
Non-interest expenses | 387 | 345 | 356 | |||||||
Income before income taxes | 36 | 66 | 197 | |||||||
Income taxes | (14) | (7) | 36 | |||||||
Net income | $ | 50 | $ | 73 | $ | 161 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 50 | $ | 73 | $ | 161 | ||||
Total revenue (1) | ||||||||||
Net interest income | $ | 476 | $ | 477 | $ | 466 | ||||
Non-interest income | 196 | 189 | 187 | |||||||
$ | 672 | $ | 666 | $ | 653 | |||||
Net interest margin on average interest-earning assets (2)(3) | 3.44 | % | 3.46 | % | 3.49 | % | ||||
Efficiency ratio | 57.6 | % | 51.9 | % | 54.5 | % | ||||
Return on equity (4) | 1.7 | % | 2.6 | % | 5.8 | % | ||||
Average allocated common equity (4) | $ | 11,267 | $ | 11,386 | $ | 11,015 | ||||
Full-time equivalent employees | 2,780 | 2,760 | 2,472 |
Review of | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | ||||||||||
Revenue | ||||||||||
Commercial banking | $ | 338 | $ | 339 | $ | 320 | ||||
Wealth management | 154 | 160 | 163 | |||||||
Total revenue (1) | 492 | 499 | 483 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 151 | 130 | 25 | |||||||
Performing | 32 | 61 | 51 | |||||||
Total provision for (reversal of) credit losses | 183 | 191 | 76 | |||||||
Non-interest expenses | 284 | 258 | 264 | |||||||
Income before income taxes | 25 | 50 | 143 | |||||||
Income taxes | (10) | (5) | 27 | |||||||
Net income | $ | 35 | $ | 55 | $ | 116 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 35 | $ | 55 | $ | 116 | ||||
Total revenue (1) | ||||||||||
Net interest income | 348 | 358 | 346 | |||||||
Non-interest income | 144 | 141 | 137 | |||||||
492 | 499 | 483 | ||||||||
Operating leverage | (5.7) | % | 6.7 | % | (4.1) | % |
Net income for the quarter was
Revenue of
Net interest margin on average interest-earning assets was down 5 basis points primarily due to lower deposit volumes, partially offset by higher deposit margins.
Provision for credit losses of
Non-interest expenses of
(1) | Included nil (US$ nil) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended |
(2) | Average balances are calculated as a weighted average of daily closing balances. |
(3) | Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our 2023 Annual Report, available on SEDAR+ at www.sedarplus.ca. |
(4) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Review of Capital Markets and | ||||||||||
2023 | 2023 | 2022 | ||||||||
$ millions, for the three months ended | ||||||||||
Revenue | ||||||||||
Global markets | $ | 555 | $ | 604 | $ | 463 | ||||
Corporate and investment banking | 423 | 430 | 440 | |||||||
Direct financial services | 312 | 321 | 279 | |||||||
Total revenue (1) | 1,290 | 1,355 | 1,182 | |||||||
Provision for (reversal of) credit losses | ||||||||||
Impaired | 6 | 5 | (5) | |||||||
Performing | (2) | 1 | 4 | |||||||
Total provision for (reversal of) credit losses | 4 | 6 | (1) | |||||||
Non-interest expenses | 734 | 673 | 656 | |||||||
Income before income taxes | 552 | 676 | 527 | |||||||
Income taxes (1) | 169 | 182 | 149 | |||||||
Net income | $ | 383 | $ | 494 | $ | 378 | ||||
Net income attributable to: | ||||||||||
Equity shareholders | $ | 383 | $ | 494 | $ | 378 | ||||
Efficiency ratio | 56.9 | % | 49.7 | % | 55.4 | % | ||||
Operating leverage | (2.8) | % | (0.3) | % | (7.1) | % | ||||
Return on equity (2) | 18.8 | % | 24.1 | % | 15.8 | % | ||||
Average allocated common equity (2) | $ | 8,122 | $ | 8,143 | $ | 9,522 | ||||
Full-time equivalent employees | 2,411 | 2,500 | 2,384 |
Reported net income for the quarter was
Revenue of
The current quarter included a provision for credit losses of
Non-interest expenses of
Review of Corporate and Other fourth quarter results | |||||||||
2023 | 2023 | 2022 | |||||||
$ millions, for the three months ended | |||||||||
Revenue | |||||||||
International banking | $ | 234 | $ | 245 | $ | 220 | |||
Other | (173) | (178) | (245) | ||||||
Total revenue (1) | 61 | 67 | (25) | ||||||
Provision for (reversal of) credit losses | |||||||||
Impaired | (3) | 17 | 18 | ||||||
Performing | (2) | (5) | (7) | ||||||
Total provision for (reversal of) credit losses | (5) | 12 | 11 | ||||||
Non-interest expenses | 333 | 312 | 500 | ||||||
Loss before income taxes | (267) | (257) | (536) | ||||||
Income taxes (1) | (192) | (156) | (242) | ||||||
Net loss | $ | (75) | $ | (101) | $ | (294) | |||
Net income (loss) attributable to: | |||||||||
Non-controlling interests | $ | 8 | $ | 10 | $ | 7 | |||
Equity shareholders | (83) | (111) | (301) | ||||||
Full-time equivalent employees (2) | 24,242 | 24,785 | 26,020 |
Net loss for the quarter was
Revenue was up
The current quarter included a provision reversal for credit losses of
Non-interest expenses of
Income tax benefit was down
(1) | Revenue and income taxes of Capital Markets and |
(2) | Includes full-time equivalent employees for which the expenses are allocated to the business lines within the SBUs. The majority of the full-time equivalent employees for functional and support costs of |
(3) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section. |
Consolidated balance sheet | ||||||||
$ millions, as at | 2023 | 2022 | ||||||
ASSETS | ||||||||
Cash and non-interest-bearing deposits with banks | $ | 20,816 | $ | 31,535 | ||||
Interest-bearing deposits with banks | 34,902 | 32,326 | ||||||
Securities | 211,348 | 175,879 | ||||||
Cash collateral on securities borrowed | 14,651 | 15,326 | ||||||
Securities purchased under resale agreements | 80,184 | 69,213 | ||||||
Loans | ||||||||
Residential mortgages | 274,244 | 269,706 | ||||||
Personal | 45,587 | 45,429 | ||||||
Credit card | 18,538 | 16,479 | ||||||
Business and government | 194,870 | 188,542 | ||||||
Allowance for credit losses | (3,902) | (3,073) | ||||||
529,337 | 517,083 | |||||||
Other | ||||||||
Derivative instruments | 33,243 | 43,035 | ||||||
Customers' liability under acceptances | 10,816 | 11,574 | ||||||
Property and equipment | 3,251 | 3,377 | ||||||
5,425 | 5,348 | |||||||
Software and other intangible assets | 2,742 | 2,592 | ||||||
Investments in equity-accounted associates and joint ventures | 669 | 632 | ||||||
Deferred tax assets | 629 | 480 | ||||||
Other assets | 27,706 | 35,197 | ||||||
84,481 | 102,235 | |||||||
$ | 975,719 | $ | 943,597 | |||||
LIABILITIES AND EQUITY | ||||||||
Deposits | ||||||||
Personal | $ | 239,035 | $ | 232,095 | ||||
Business and government | 412,561 | 397,188 | ||||||
Bank | 22,296 | 22,523 | ||||||
Secured borrowings | 49,484 | 45,766 | ||||||
723,376 | 697,572 | |||||||
Obligations related to securities sold short | 18,666 | 15,284 | ||||||
Cash collateral on securities lent | 8,081 | 4,853 | ||||||
Obligations related to securities sold under repurchase agreements | 87,118 | 77,171 | ||||||
Other | ||||||||
Derivative instruments | 41,290 | 52,340 | ||||||
Acceptances | 10,820 | 11,586 | ||||||
Deferred tax liabilities | 40 | 45 | ||||||
Other liabilities | 26,632 | 28,072 | ||||||
78,782 | 92,043 | |||||||
Subordinated indebtedness | 6,483 | 6,292 | ||||||
Equity | ||||||||
Preferred shares and other equity instruments | 4,925 | 4,923 | ||||||
Common shares | 16,082 | 14,726 | ||||||
Contributed surplus | 109 | 115 | ||||||
Retained earnings | 30,402 | 28,823 | ||||||
Accumulated other comprehensive income (AOCI) | 1,463 | 1,594 | ||||||
Total shareholders' equity | 52,981 | 50,181 | ||||||
Non-controlling interests | 232 | 201 | ||||||
Total equity | 53,213 | 50,382 | ||||||
$ | 975,719 | $ | 943,597 |
Consolidated statement of income | |||||||||||||||||||
For the three | For the twelve | ||||||||||||||||||
months ended | months ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
$ millions, except as noted | |||||||||||||||||||
Interest income (1) | |||||||||||||||||||
Loans | $ | 8,215 | $ | 7,830 | $ | 5,806 | $ | 30,235 | $ | 16,874 | |||||||||
Securities | 2,165 | 1,870 | 1,243 | 7,341 | 3,422 | ||||||||||||||
Securities borrowed or purchased under resale agreements | 1,357 | 1,186 | 669 | 4,566 | 1,175 | ||||||||||||||
Deposits with banks and other | 720 | 733 | 474 | 2,877 | 708 | ||||||||||||||
12,457 | 11,619 | 8,192 | 45,019 | 22,179 | |||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 7,569 | 6,966 | 4,177 | 26,633 | 7,887 | ||||||||||||||
Securities sold short | 109 | 105 | 121 | 408 | 380 | ||||||||||||||
Securities lent or sold under repurchase agreements | 1,299 | 1,107 | 564 | 4,283 | 943 | ||||||||||||||
Subordinated indebtedness | 120 | 117 | 84 | 458 | 203 | ||||||||||||||
Other | 163 | 88 | 61 | 412 | 125 | ||||||||||||||
9,260 | 8,383 | 5,007 | 32,194 | 9,538 | |||||||||||||||
Net interest income | 3,197 | 3,236 | 3,185 | 12,825 | 12,641 | ||||||||||||||
Non-interest income | |||||||||||||||||||
Underwriting and advisory fees | 137 | 143 | 143 | 519 | 557 | ||||||||||||||
Deposit and payment fees | 229 | 261 | 221 | 924 | 880 | ||||||||||||||
Credit fees | 369 | 355 | 331 | 1,385 | 1,286 | ||||||||||||||
Card fees | 100 | 67 | 102 | 379 | 437 | ||||||||||||||
Investment management and custodial fees | 454 | 451 | 428 | 1,768 | 1,760 | ||||||||||||||
Mutual fund fees | 421 | 428 | 418 | 1,743 | 1,776 | ||||||||||||||
Insurance fees, net of claims | 82 | 84 | 80 | 338 | 351 | ||||||||||||||
Commissions on securities transactions | 81 | 82 | 79 | 338 | 378 | ||||||||||||||
Gains (losses) from financial instruments measured/designated at | |||||||||||||||||||
fair value through profit or loss (FVTPL), net | 611 | 562 | 309 | 2,346 | 1,172 | ||||||||||||||
Gains (losses) from debt securities measured at fair value through | |||||||||||||||||||
other comprehensive income (FVOCI) and amortized cost, net | 15 | 27 | (6) | 83 | 35 | ||||||||||||||
Foreign exchange other than trading | 74 | 82 | 25 | 360 | 242 | ||||||||||||||
Income from equity-accounted associates and joint ventures | (5) | 3 | 9 | 30 | 47 | ||||||||||||||
Other | 79 | 69 | 64 | 285 | 271 | ||||||||||||||
2,647 | 2,614 | 2,203 | 10,498 | 9,192 | |||||||||||||||
Total revenue | 5,844 | 5,850 | 5,388 | 23,323 | 21,833 | ||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | ||||||||||||||
Non-interest expenses | |||||||||||||||||||
Employee compensation and benefits | 1,890 | 1,888 | 1,897 | 7,550 | 7,157 | ||||||||||||||
Occupancy costs | 216 | 199 | 253 | 823 | 853 | ||||||||||||||
Computer, software and office equipment | 658 | 613 | 598 | 2,467 | 2,297 | ||||||||||||||
Communications | 91 | 88 | 89 | 364 | 352 | ||||||||||||||
Advertising and business development | 87 | 76 | 101 | 304 | 334 | ||||||||||||||
Professional fees | 77 | 51 | 82 | 245 | 313 | ||||||||||||||
Business and capital taxes | 26 | 28 | 33 | 124 | 123 | ||||||||||||||
Other | 395 | 364 | 430 | 2,472 | 1,374 | ||||||||||||||
3,440 | 3,307 | 3,483 | 14,349 | 12,803 | |||||||||||||||
Income before income taxes | 1,863 | 1,807 | 1,469 | 6,964 | 7,973 | ||||||||||||||
Income taxes | 380 | 377 | 284 | 1,931 | 1,730 | ||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | |||||||||
Net income attributable to non-controlling interests | $ | 8 | $ | 10 | $ | 7 | $ | 38 | $ | 23 | |||||||||
Preferred shareholders and other equity instrument holders | $ | 62 | $ | 66 | $ | 37 | $ | 267 | $ | 171 | |||||||||
Common shareholders | 1,413 | 1,354 | 1,141 | 4,728 | 6,049 | ||||||||||||||
Net income attributable to equity shareholders | $ | 1,475 | $ | 1,420 | $ | 1,178 | $ | 4,995 | $ | 6,220 | |||||||||
Earnings per share (in dollars) (2) | |||||||||||||||||||
Basic | $ | 1.53 | $ | 1.47 | $ | 1.26 | $ | 5.16 | $ | 6.70 | |||||||||
Diluted | 1.53 | 1.47 | 1.26 | 5.16 | 6.68 | ||||||||||||||
Dividends per common share (in dollars) (2) | 0.87 | 0.87 | 0.83 | 3.44 | 3.27 |
(1) | Interest income included | ||||||||||||||||||
(2) | On |
Consolidated statement of comprehensive income | |||||||||||||||
For the three | For the twelve | ||||||||||||||
months ended | months ended | ||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ millions | |||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | |||||
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent | |||||||||||||||
reclassification to net income | |||||||||||||||
Net foreign currency translation adjustments | |||||||||||||||
Net gains (losses) on investments in foreign operations | 2,594 | (1,205) | 2,691 | 1,163 | 4,043 | ||||||||||
Net gains (losses) on hedges of investments in foreign operations | (1,600) | 676 | (1,510) | (812) | (2,290) | ||||||||||
994 | (529) | 1,181 | 351 | 1,753 | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | (72) | 83 | (107) | 274 | (784) | ||||||||||
Net (gains) losses reclassified to net income | (13) | (20) | 5 | (65) | (25) | ||||||||||
(85) | 63 | (102) | 209 | (809) | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | (217) | (686) | (488) | (222) | (1,351) | ||||||||||
Net (gains) losses reclassified to net income | 173 | 165 | 50 | (142) | 552 | ||||||||||
(44) | (521) | (438) | (364) | (799) | |||||||||||
OCI, net of income tax, that is not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | (95) | 18 | (198) | (240) | 198 | ||||||||||
Net gains (losses) due to fair value change of fair value option (FVO) liabilities | |||||||||||||||
attributable to changes in credit risk | 80 | (45) | 40 | (106) | 262 | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | - | 6 | (5) | 19 | (35) | ||||||||||
(15) | (21) | (163) | (327) | 425 | |||||||||||
Total OCI (1) | 850 | (1,008) | 478 | (131) | 570 | ||||||||||
Comprehensive income | $ | 2,333 | $ | 422 | $ | 1,663 | $ | 4,902 | $ | 6,813 | |||||
Comprehensive income attributable to non-controlling interests | $ | 8 | $ | 10 | $ | 7 | $ | 38 | $ | 23 | |||||
Preferred shareholders and other equity instrument holders | $ | 62 | $ | 66 | $ | 37 | $ | 267 | $ | 171 | |||||
Common shareholders | 2,263 | 346 | 1,619 | 4,597 | 6,619 | ||||||||||
Comprehensive income attributable to equity shareholders | $ | 2,325 | $ | 412 | $ | 1,656 | $ | 4,864 | $ | 6,790 |
(1) | Includes | ||||||||||||||
For the three | For the twelve | ||||||||||||||
months ended | months ended | ||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
$ millions | |||||||||||||||
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 | $ | (72) | $ | 39 | $ | (91) | $ | (26) | $ | (136) | |||||
Net gains (losses) on hedges of investments in foreign operations | 93 | (56) | 82 | 26 | 131 | ||||||||||
21 | (17) | (9) | - | (5) | |||||||||||
Net change in debt securities measured at FVOCI | |||||||||||||||
Net gains (losses) on securities measured at FVOCI | 32 | (34) | 15 | (65) | 160 | ||||||||||
Net (gains) losses reclassified to net income | 5 | 7 | (2) | 25 | 9 | ||||||||||
37 | (27) | 13 | (40) | 169 | |||||||||||
Net change in cash flow hedges | |||||||||||||||
Net gains (losses) on derivatives designated as cash flow hedges | 84 | 264 | 174 | 106 | 482 | ||||||||||
Net (gains) losses reclassified to net income | (67) | (63) | (18) | 46 | (197) | ||||||||||
17 | 201 | 156 | 152 | 285 | |||||||||||
Not subject to subsequent reclassification to net income | |||||||||||||||
Net gains (losses) on post-employment defined benefit plans | 36 | (7) | 44 | 75 | (97) | ||||||||||
Net gains (losses) due to fair value change of FVO liabilities attributable | |||||||||||||||
to changes in credit risk | (30) | 17 | (14) | 38 | (93) | ||||||||||
Net gains (losses) on equity securities designated at FVOCI | - | (2) | 2 | (6) | 9 | ||||||||||
6 | 8 | 32 | 107 | (181) | |||||||||||
$ | 81 | $ | 165 | $ | 192 | $ | 219 | $ | 268 |
Consolidated statement of changes in equity | ||||||||||||||
For the three | For the twelve | |||||||||||||
months ended | months ended | |||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
$ millions | ||||||||||||||
Preferred shares and other equity instruments | ||||||||||||||
Balance at beginning of period | $ | 4,925 | $ | 4,925 | $ | 4,325 | $ | 4,923 | $ | 4,325 | ||||
Issue of preferred shares and limited recourse capital notes | - | - | 600 | - | 1,400 | |||||||||
Redemption of preferred shares | - | - | - | - | (800) | |||||||||
- | - | (2) | 2 | (2) | ||||||||||
Balance at end of period | $ | 4,925 | $ | 4,925 | $ | 4,923 | $ | 4,925 | $ | 4,923 | ||||
Common shares | ||||||||||||||
Balance at beginning of period | $ | 15,742 | $ | 15,389 | $ | 14,643 | $ | 14,726 | $ | 14,351 | ||||
Issue of common shares | 338 | 357 | 81 | 1,358 | 401 | |||||||||
Purchase of common shares for cancellation | - | - | - | - | (29) | |||||||||
2 | (4) | 2 | (2) | 3 | ||||||||||
Balance at end of period | $ | 16,082 | $ | 15,742 | $ | 14,726 | $ | 16,082 | $ | 14,726 | ||||
Contributed surplus | ||||||||||||||
Balance at beginning of period | $ | 103 | $ | 118 | $ | 107 | $ | 115 | $ | 110 | ||||
Compensation expense arising from equity-settled share-based awards | 5 | 3 | 9 | 13 | 24 | |||||||||
Exercise of stock options and settlement of other equity-settled share-based awards | - | (17) | (1) | (20) | (20) | |||||||||
Other | 1 | (1) | - | 1 | 1 | |||||||||
Balance at end of period | $ | 109 | $ | 103 | $ | 115 | $ | 109 | $ | 115 | ||||
Retained earnings | ||||||||||||||
Balance at beginning of period | $ | 29,796 | $ | 29,240 | $ | 28,439 | $ | 28,823 | $ | 25,793 | ||||
Net income attributable to equity shareholders | 1,475 | 1,420 | 1,178 | 4,995 | 6,220 | |||||||||
Dividends and distributions | ||||||||||||||
Preferred and other equity instruments | (62) | (66) | (37) | (267) | (171) | |||||||||
Common | (804) | (799) | (752) | (3,149) | (2,954) | |||||||||
Premium on purchase of common shares for cancellation | - | - | - | - | (105) | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI | (4) | 2 | (1) | - | 45 | |||||||||
Other | 1 | (1) | (4) | - | (5) | |||||||||
Balance at end of period | $ | 30,402 | $ | 29,796 | $ | 28,823 | $ | 30,402 | $ | 28,823 | ||||
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 | $ | 1,168 | $ | 1,697 | $ | 630 | $ | 1,811 | $ | 58 | ||||
Net change in foreign currency translation adjustments | 994 | (529) | 1,181 | 351 | 1,753 | |||||||||
Balance at end of period | $ | 2,162 | $ | 1,168 | $ | 1,811 | $ | 2,162 | $ | 1,811 | ||||
Net gains (losses) on debt securities measured at FVOCI | ||||||||||||||
Balance at beginning of period | $ | (322) | $ | (385) | $ | (514) | $ | (616) | $ | 193 | ||||
Net change in securities measured at FVOCI | (85) | 63 | (102) | 209 | (809) | |||||||||
Balance at end of period | $ | (407) | $ | (322) | $ | (616) | $ | (407) | $ | (616) | ||||
Net gains (losses) on cash flow hedges | ||||||||||||||
Balance at beginning of period | $ | (982) | $ | (461) | $ | (224) | $ | (662) | $ | 137 | ||||
Net change in cash flow hedges | (44) | (521) | (438) | (364) | (799) | |||||||||
Balance at end of period | $ | (1,026) | $ | (982) | $ | (662) | $ | (1,026) | $ | (662) | ||||
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 | $ | 687 | $ | 669 | $ | 1,030 | $ | 832 | $ | 634 | ||||
Net change in post-employment defined benefit plans | (95) | 18 | (198) | (240) | 198 | |||||||||
Balance at end of period | $ | 592 | $ | 687 | $ | 832 | $ | 592 | $ | 832 | ||||
Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk | ||||||||||||||
Balance at beginning of period | $ | 48 | $ | 93 | $ | 194 | $ | 234 | $ | (28) | ||||
Net change attributable to changes in credit risk | 80 | (45) | 40 | (106) | 262 | |||||||||
Balance at end of period | $ | 128 | $ | 48 | $ | 234 | $ | 128 | $ | 234 | ||||
Net gains (losses) on equity securities designated at FVOCI | ||||||||||||||
Balance at beginning of period | $ | 10 | $ | 6 | $ | (1) | $ | (5) | $ | 75 | ||||
Net gains (losses) on equity securities designated at FVOCI | - | 6 | (5) | 19 | (35) | |||||||||
Realized gains (losses) on equity securities designated at FVOCI reclassified to retained earnings | 4 | (2) | 1 | - | (45) | |||||||||
Balance at end of period | $ | 14 | $ | 10 | $ | (5) | $ | 14 | $ | (5) | ||||
Total AOCI, net of income tax | $ | 1,463 | $ | 609 | $ | 1,594 | $ | 1,463 | $ | 1,594 | ||||
Non-controlling interests | ||||||||||||||
Balance at beginning of period | $ | 216 | $ | 215 | $ | 195 | $ | 201 | $ | 182 | ||||
Net income attributable to non-controlling interests | 8 | 10 | 7 | 38 | 23 | |||||||||
Dividends | (2) | (2) | (2) | (8) | (8) | |||||||||
Other | 10 | (7) | 1 | 1 | 4 | |||||||||
Balance at end of period | $ | 232 | $ | 216 | $ | 201 | $ | 232 | $ | 201 | ||||
Equity at end of period | $ | 53,213 | $ | 51,391 | $ | 50,382 | $ | 53,213 | $ | 50,382 |
Consolidated statement of cash flows | ||||||||||||||||||
For the three | For the twelve | |||||||||||||||||
months ended | months ended | |||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
$ millions | ||||||||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||||||
Net income | $ | 1,483 | $ | 1,430 | $ | 1,185 | $ | 5,033 | $ | 6,243 | ||||||||
Adjustments to reconcile net income to cash flows provided by (used in) operating activities: | ||||||||||||||||||
Provision for credit losses | 541 | 736 | 436 | 2,010 | 1,057 | |||||||||||||
Amortization and impairment (1) | 310 | 274 | 278 | 1,143 | 1,047 | |||||||||||||
Stock options and restricted shares expense | 5 | 3 | 9 | 13 | 24 | |||||||||||||
Deferred income taxes | 39 | (62) | (118) | (87) | (46) | |||||||||||||
Losses (gains) from debt securities measured at FVOCI and amortized cost | (15) | (27) | 6 | (83) | (35) | |||||||||||||
Net losses (gains) on disposal of land, buildings and equipment | - | - | 3 | (3) | (6) | |||||||||||||
Other non-cash items, net | 179 | 1,582 | (786) | 1,822 | (1,126) | |||||||||||||
Net changes in operating assets and liabilities | ||||||||||||||||||
Interest-bearing deposits with banks | (8,035) | 4,483 | (12,942) | (2,576) | (9,902) | |||||||||||||
Loans, net of repayments | (2,643) | (1,040) | (13,188) | (14,301) | (65,000) | |||||||||||||
Deposits, net of withdrawals | 17,515 | (1,803) | 20,188 | 17,045 | 74,511 | |||||||||||||
Obligations related to securities sold short | 917 | 1,018 | (4,895) | 3,382 | (7,506) | |||||||||||||
Accrued interest receivable | (528) | 108 | (532) | (1,272) | (959) | |||||||||||||
Accrued interest payable | 474 | 406 | 839 | 2,521 | 1,228 | |||||||||||||
Derivative assets | (3,215) | (1,015) | (6,740) | 9,826 | (7,073) | |||||||||||||
Derivative liabilities | 2,972 | 2,298 | 12,991 | (10,382) | 20,622 | |||||||||||||
Securities measured at FVTPL | (291) | (13,015) | 3,718 | (15,427) | 4,949 | |||||||||||||
Other assets and liabilities measured/designated at FVTPL | 2,955 | 1,197 | 2,173 | 8,259 | 9,404 | |||||||||||||
Current income taxes | 111 | 46 | 171 | 361 | (809) | |||||||||||||
Cash collateral on securities lent | 2,989 | (585) | 1,554 | 3,228 | 2,390 | |||||||||||||
Obligations related to securities sold under repurchase agreements | 3,699 | 5,944 | 13,233 | 9,319 | 3,680 | |||||||||||||
Cash collateral on securities borrowed | (1,154) | (3,240) | (49) | 675 | (2,958) | |||||||||||||
Securities purchased under resale agreements | (6,296) | (4,098) | (9,078) | (10,971) | (1,641) | |||||||||||||
Other, net | 94 | (1,135) | 409 | 2,619 | (5,379) | |||||||||||||
12,106 | (6,495) | 8,865 | 12,154 | 22,715 | ||||||||||||||
Cash flows provided by (used in) financing activities | ||||||||||||||||||
Issue of subordinated indebtedness | - | - | - | 1,750 | 1,000 | |||||||||||||
Redemption/repurchase/maturity of subordinated indebtedness | - | - | (2) | (1,500) | (2) | |||||||||||||
Issue of preferred shares and limited recourse capital notes, net of issuance cost | - | - | 597 | - | 1,395 | |||||||||||||
Redemption of preferred shares | - | - | - | - | (800) | |||||||||||||
Issue of common shares for cash | 45 | 46 | 40 | 183 | 228 | |||||||||||||
Purchase of common shares for cancellation | - | - | - | - | (134) | |||||||||||||
Net sale (purchase) of treasury shares | 2 | (4) | - | - | 1 | |||||||||||||
Dividends and distributions paid | (573) | (571) | (750) | (2,261) | (2,972) | |||||||||||||
Repayment of lease liabilities | (82) | (84) | (86) | (331) | (326) | |||||||||||||
(608) | (613) | (201) | (2,159) | (1,610) | ||||||||||||||
Cash flows provided by (used in) investing activities | ||||||||||||||||||
Purchase of securities measured/designated at FVOCI and amortized cost | (17,193) | (19,689) | (16,689) | (79,487) | (70,954) | |||||||||||||
Proceeds from sale of securities measured/designated at FVOCI and amortized cost | 6,479 | 9,965 | 6,298 | 26,914 | 23,183 | |||||||||||||
Proceeds from maturity of debt securities measured at FVOCI and amortized cost | 6,653 | 8,758 | 7,555 | 32,824 | 27,574 | |||||||||||||
Acquisition of Canadian Costco credit card portfolio | - | - | (7) | - | (3,085) | |||||||||||||
Net sale (purchase) of property, equipment, software and other intangible assets | (290) | (238) | (392) | (1,014) | (1,109) | |||||||||||||
(4,351) | (1,204) | (3,235) | (20,763) | (24,391) | ||||||||||||||
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks | 124 | (84) | 156 | 49 | 248 | |||||||||||||
Net increase (decrease) in cash and non-interest-bearing deposits with banks | ||||||||||||||||||
during the period | 7,271 | (8,396) | 5,585 | (10,719) | (3,038) | |||||||||||||
Cash and non-interest-bearing deposits with banks at beginning of period | 13,545 | 21,941 | 25,950 | 31,535 | 34,573 | |||||||||||||
Cash and non-interest-bearing deposits with banks at end of period (2) | $ | 20,816 | $ | 13,545 | $ | 31,535 | $ | 20,816 | $ | 31,535 | ||||||||
Cash interest paid | $ | 8,786 | $ | 7,977 | $ | 4,168 | $ | 29,673 | $ | 8,310 | ||||||||
Cash interest received | 11,598 | 11,404 | 7,368 | 42,600 | 20,120 | |||||||||||||
Cash dividends received | 331 | 323 | 292 | 1,147 | 1,100 | |||||||||||||
Cash income taxes paid | 230 | 394 | 231 | 1,657 | 2,585 |
(1) | Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets. | |||||||||||||||||
(2) | Includes restricted cash of |
We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.
Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our 2023 Annual Report available on SEDAR+ at www.sedarplus.ca.
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 | $ | 2,455 | $ | 1,366 | $ | 672 | $ | 1,290 | $ | 61 | $ | 5,844 | $ | 492 | |||
Provision for (reversal of) credit losses | 282 | 11 | 249 | 4 | (5) | 541 | 183 | ||||||||||
Non-interest expenses | 1,307 | 679 | 387 | 734 | 333 | 3,440 | 284 | ||||||||||
Income (loss) before income taxes | 866 | 676 | 36 | 552 | (267) | 1,863 | 25 | ||||||||||
Income taxes | 231 | 186 | (14) | 169 | (192) | 380 | (10) | ||||||||||
Net income (loss) | 635 | 490 | 50 | 383 | (75) | 1,483 | 35 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 8 | 8 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 635 | 490 | 50 | 383 | (83) | 1,475 | 35 | ||||||||||
Diluted EPS ($) | $ | 1.53 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | $ | (6) | $ | - | $ | (9) | $ | - | $ | (30) | $ | (45) | $ | (6) | |||
Impact of items of note on non-interest expenses | (6) | - | (9) | - | (30) | (45) | (6) | ||||||||||
Total pre-tax impact of items of note on net income | 6 | - | 9 | - | 30 | 45 | 6 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 2 | - | 3 | - | 3 | 8 | 2 | ||||||||||
Impact of items of note on income taxes | 2 | - | 3 | - | 3 | 8 | 2 | ||||||||||
Total after-tax impact of items of note on net income | $ | 4 | $ | - | $ | 6 | $ | - | $ | 27 | $ | 37 | $ | 4 | |||
Impact of items of note on diluted EPS ($) | $ | 0.04 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,455 | $ | 1,366 | $ | 672 | $ | 1,290 | $ | 61 | $ | 5,844 | $ | 492 | |||
Provision for (reversal of) credit losses – adjusted | 282 | 11 | 249 | 4 | (5) | 541 | 183 | ||||||||||
Non-interest expenses – adjusted | 1,301 | 679 | 378 | 734 | 303 | 3,395 | 278 | ||||||||||
Income (loss) before income taxes – adjusted | 872 | 676 | 45 | 552 | (237) | 1,908 | 31 | ||||||||||
Income taxes – adjusted | 233 | 186 | (11) | 169 | (189) | 388 | (8) | ||||||||||
Net income (loss) – adjusted | 639 | 490 | 56 | 383 | (48) | 1,520 | 39 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 8 | 8 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 639 | 490 | 56 | 383 | (56) | 1,512 | 39 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.57 |
(1) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||
(2) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||
(3) | CIBC total results excludes a tax equivalent basis (TEB) adjustment of | ||||||||||||||||
(4) | On | ||||||||||||||||
(5) | Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables. Provision for credit losses for performing loans associated with the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022 included the stage 1 ECL allowance established immediately after the acquisition date and the impact of the migration of stage 1 accounts to stage 2 during the second quarter of 2022. | ||||||||||||||||
(6) | The income tax charge is comprised of | ||||||||||||||||
(7) | Relates to the net legal provisions recognized in the first and second quarters of 2023. |
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 | $ | 2,412 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,850 | $ | 499 | |||
Provision for (reversal of) credit losses | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses | 1,303 | 674 | 345 | 673 | 312 | 3,307 | 258 | ||||||||||
Income (loss) before income taxes | 686 | 636 | 66 | 676 | (257) | 1,807 | 50 | ||||||||||
Income taxes | 189 | 169 | (7) | 182 | (156) | 377 | (5) | ||||||||||
Net income (loss) | 497 | 467 | 73 | 494 | (101) | 1,430 | 55 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 497 | 467 | 73 | 494 | (111) | 1,420 | 55 | ||||||||||
Diluted EPS ($) | $ | 1.47 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Impact of items of note on non-interest expenses | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Total pre-tax impact of items of note on net income | 41 | - | 13 | - | 3 | 57 | 10 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 2 | - | 3 | - | - | 5 | 3 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Impact of items of note on income taxes | 11 | - | 3 | - | - | 14 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 30 | $ | - | $ | 10 | $ | - | $ | 3 | $ | 43 | $ | 7 | |||
Impact of items of note on diluted EPS ($) | $ | 0.05 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,446 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,884 | $ | 499 | |||
Provision for (reversal of) credit losses – adjusted | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses – adjusted | 1,296 | 674 | 332 | 673 | 309 | 3,284 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 727 | 636 | 79 | 676 | (254) | 1,864 | 60 | ||||||||||
Income taxes – adjusted | 200 | 169 | (4) | 182 | (156) | 391 | (2) | ||||||||||
Net income (loss) – adjusted | 527 | 467 | 83 | 494 | (98) | 1,473 | 62 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 527 | 467 | 83 | 494 | (108) | 1,463 | 62 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.52 | |||||||||||||||
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 | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,262 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,388 | $ | 483 | |||
Provision for (reversal of) credit losses | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses | 1,313 | 658 | 356 | 656 | 500 | 3,483 | 264 | ||||||||||
Income (loss) before income taxes | 644 | 637 | 197 | 527 | (536) | 1,469 | 143 | ||||||||||
Income taxes | 173 | 168 | 36 | 149 | (242) | 284 | 27 | ||||||||||
Net income (loss) | 471 | 469 | 161 | 378 | (294) | 1,185 | 116 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 471 | 469 | 161 | 378 | (301) | 1,178 | 116 | ||||||||||
Diluted EPS ($) (4) | $ | 1.26 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | $ | (6) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | - | |||
Impact of items of note on revenue | (6) | - | - | - | - | (6) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (7) | - | (17) | - | (3) | (27) | (13) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | (18) | - | - | - | - | (18) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (37) | (37) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (91) | (91) | - | ||||||||||
Impact of items of note on non-interest expenses | (25) | - | (17) | - | (131) | (173) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 19 | - | 17 | - | 131 | 167 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 1 | - | 5 | - | - | 6 | 4 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | 4 | - | - | - | - | 4 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 10 | 10 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 24 | 24 | - | ||||||||||
Impact of items of note on income taxes | 5 | - | 5 | - | 34 | 44 | 4 | ||||||||||
Total after-tax impact of items of note on net income | $ | 14 | $ | - | $ | 12 | $ | - | $ | 97 | $ | 123 | $ | 9 | |||
Impact of items of note on diluted EPS ($) (4) | $ | 0.13 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,256 | $ | 1,316 | $ | 653 | $ | 1,182 | $ | (25) | $ | 5,382 | $ | 483 | |||
Provision for (reversal of) credit losses – adjusted | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||
Non-interest expenses – adjusted | 1,288 | 658 | 339 | 656 | 369 | 3,310 | 251 | ||||||||||
Income (loss) before income taxes – adjusted | 663 | 637 | 214 | 527 | (405) | 1,636 | 156 | ||||||||||
Income taxes – adjusted | 178 | 168 | 41 | 149 | (208) | 328 | 31 | ||||||||||
Net income (loss) – adjusted | 485 | 469 | 173 | 378 | (197) | 1,308 | 125 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 7 | 7 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 485 | 469 | 173 | 378 | (204) | 1,301 | 125 | ||||||||||
Adjusted diluted EPS ($) (4) | $ | 1.39 | |||||||||||||||
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 twelve months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 9,407 | $ | 5,403 | $ | 2,692 | $ | 5,488 | $ | 333 | $ | 23,323 | $ | 1,994 | |||
Provision for (reversal of) credit losses | 986 | 143 | 850 | 19 | 12 | 2,010 | 630 | ||||||||||
Non-interest expenses | 5,174 | 2,691 | 1,466 | 2,721 | 2,297 | 14,349 | 1,086 | ||||||||||
Income (loss) before income taxes | 3,247 | 2,569 | 376 | 2,748 | (1,976) | 6,964 | 278 | ||||||||||
Income taxes | 889 | 691 | (3) | 762 | (408) | 1,931 | (2) | ||||||||||
Net income (loss) | 2,358 | 1,878 | 379 | 1,986 | (1,568) | 5,033 | 280 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 38 | 38 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 2,358 | 1,878 | 379 | 1,986 | (1,606) | 4,995 | 280 | ||||||||||
Diluted EPS ($) | $ | 5.16 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (26) | - | (56) | - | (39) | $ | (121) | (41) | |||||||||
Increase in legal provisions (7) | - | - | - | - | (1,055) | (1,055) | - | ||||||||||
Impact of items of note on non-interest expenses | (26) | - | (56) | - | (1,094) | (1,176) | (41) | ||||||||||
Total pre-tax impact of items of note on net income | 60 | - | 56 | - | 1,094 | 1,210 | 41 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 6 | - | 15 | - | 4 | 25 | 11 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Increase in legal provisions (7) | - | - | - | - | 293 | 293 | - | ||||||||||
Income tax charge related to the 2022 Canadian Federal budget (6) | - | - | - | - | (545) | (545) | - | ||||||||||
Impact of items of note on income taxes | 15 | - | 15 | - | (248) | (218) | 11 | ||||||||||
Total after-tax impact of items of note on net income | $ | 45 | $ | - | $ | 41 | $ | - | $ | 1,342 | $ | 1,428 | $ | 30 | |||
Impact of items of note on diluted EPS ($) | $ | 1.56 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 9,441 | $ | 5,403 | $ | 2,692 | $ | 5,488 | $ | 333 | $ | 23,357 | $ | 1,994 | |||
Provision for (reversal of) credit losses – adjusted | 986 | 143 | 850 | 19 | 12 | 2,010 | 630 | ||||||||||
Non-interest expenses – adjusted | 5,148 | 2,691 | 1,410 | 2,721 | 1,203 | 13,173 | 1,045 | ||||||||||
Income (loss) before income taxes – adjusted | 3,307 | 2,569 | 432 | 2,748 | (882) | 8,174 | 319 | ||||||||||
Income taxes – adjusted | 904 | 691 | 12 | 762 | (656) | 1,713 | 9 | ||||||||||
Net income (loss) – adjusted | 2,403 | 1,878 | 420 | 1,986 | (226) | 6,461 | 310 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 38 | 38 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 2,403 | 1,878 | 420 | 1,986 | (264) | 6,423 | 310 | ||||||||||
Adjusted diluted EPS ($) | $ | 6.72 | |||||||||||||||
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 twelve months ended | Banking | Management | Management | Services | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 8,909 | $ | 5,254 | $ | 2,457 | $ | 5,001 | $ | 212 | $ | 21,833 | $ | 1,902 | |||
Provision for (reversal of) credit losses | 876 | 23 | 218 | (62) | 2 | 1,057 | 169 | ||||||||||
Non-interest expenses | 4,975 | 2,656 | 1,328 | 2,437 | 1,407 | 12,803 | 1,028 | ||||||||||
Income (loss) before income taxes | 3,058 | 2,575 | 911 | 2,626 | (1,197) | 7,973 | 705 | ||||||||||
Income taxes | 809 | 680 | 151 | 718 | (628) | 1,730 | 117 | ||||||||||
Net income (loss) | 2,249 | 1,895 | 760 | 1,908 | (569) | 6,243 | 588 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 23 | 23 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 2,249 | 1,895 | 760 | 1,908 | (592) | 6,220 | 588 | ||||||||||
Diluted EPS ($) (4) | $ | 6.68 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | $ | (16) | $ | - | $ | - | $ | - | $ | - | $ | (16) | $ | - | |||
Impact of items of note on revenue | (16) | - | - | - | - | (16) | - | ||||||||||
Provision for (reversal of) credit losses | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | (94) | - | - | - | - | (94) | - | ||||||||||
Impact of items of note on provision for (reversal of) credit losses | (94) | - | - | - | - | (94) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | (18) | - | (68) | - | (12) | (98) | (53) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | (103) | - | - | - | - | (103) | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | (37) | (37) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (136) | (136) | - | ||||||||||
Impact of items of note on non-interest expenses | (121) | - | (68) | - | (185) | (374) | (53) | ||||||||||
Total pre-tax impact of items of note on net income | 199 | - | 68 | - | 185 | 452 | 53 | ||||||||||
Income taxes | |||||||||||||||||
Amortization and impairment of acquisition-related intangible assets | 4 | - | 18 | - | 1 | 23 | 14 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | 48 | - | - | - | - | 48 | - | ||||||||||
Charge related to the consolidation of our real estate portfolio | - | - | - | - | 10 | 10 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 36 | 36 | - | ||||||||||
Impact of items of note on income taxes | 52 | - | 18 | - | 47 | 117 | 14 | ||||||||||
Total after-tax impact of items of note on net income | $ | 147 | $ | - | $ | 50 | $ | - | $ | 138 | $ | 335 | $ | 39 | |||
Impact of items of note on diluted EPS ($) (4) | $ | 0.37 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 8,893 | $ | 5,254 | $ | 2,457 | $ | 5,001 | $ | 212 | $ | 21,817 | $ | 1,902 | |||
Provision for (reversal of) credit losses – adjusted | 782 | 23 | 218 | (62) | 2 | 963 | 169 | ||||||||||
Non-interest expenses – adjusted | 4,854 | 2,656 | 1,260 | 2,437 | 1,222 | 12,429 | 975 | ||||||||||
Income (loss) before income taxes – adjusted | 3,257 | 2,575 | 979 | 2,626 | (1,012) | 8,425 | 758 | ||||||||||
Income taxes – adjusted | 861 | 680 | 169 | 718 | (581) | 1,847 | 131 | ||||||||||
Net income (loss) – adjusted | 2,396 | 1,895 | 810 | 1,908 | (431) | 6,578 | 627 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 23 | 23 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 2,396 | 1,895 | 810 | 1,908 | (454) | 6,555 | 627 | ||||||||||
Adjusted diluted EPS ($) (4) | $ | 7.05 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis. | |||||||||||||||||||
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) | ||||||||||||
2023 | Net income (loss) | $ | 635 | $ | 490 | $ | 50 | $ | 383 | $ | (75) | $ | 1,483 | $ | 35 | ||||
Add: provision for (reversal of) credit losses | 282 | 11 | 249 | 4 | (5) | 541 | 183 | ||||||||||||
Add: income taxes | 231 | 186 | (14) | 169 | (192) | 380 | (10) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,148 | 687 | 285 | 556 | (272) | 2,404 | 208 | ||||||||||||
Pre-tax impact of items of note (2) | 6 | - | 9 | - | 30 | 45 | 6 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,154 | $ | 687 | $ | 294 | $ | 556 | $ | (242) | $ | 2,449 | $ | 214 | |||||
2023 | Net income (loss) | $ | 497 | $ | 467 | $ | 73 | $ | 494 | $ | (101) | $ | 1,430 | $ | 55 | ||||
Add: provision for (reversal of) credit losses | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||||
Add: income taxes | 189 | 169 | (7) | 182 | (156) | 377 | (5) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,109 | 676 | 321 | 682 | (245) | 2,543 | 241 | ||||||||||||
Pre-tax impact of items of note (2) | 41 | - | 13 | - | 3 | 57 | 10 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,150 | $ | 676 | $ | 334 | $ | 682 | $ | (242) | $ | 2,600 | $ | 251 | |||||
2022 | Net income (loss) | $ | 471 | $ | 469 | $ | 161 | $ | 378 | $ | (294) | $ | 1,185 | $ | 116 | ||||
Add: provision for (reversal of) credit losses | 305 | 21 | 100 | (1) | 11 | 436 | 76 | ||||||||||||
Add: income taxes | 173 | 168 | 36 | 149 | (242) | 284 | 27 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 949 | 658 | 297 | 526 | (525) | 1,905 | 219 | ||||||||||||
Pre-tax impact of items of note (2) | 19 | - | 17 | - | 131 | 167 | 13 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 968 | $ | 658 | $ | 314 | $ | 526 | $ | (394) | $ | 2,072 | $ | 232 | |||||
$ millions, for the twelve months ended | |||||||||||||||||||
2023 | Net income (loss) | $ | 2,358 | $ | 1,878 | $ | 379 | $ | 1,986 | $ | (1,568) | $ | 5,033 | $ | 280 | ||||
Oct. 31 | Add: provision for (reversal of) credit losses | 986 | 143 | 850 | 19 | 12 | 2,010 | 630 | |||||||||||
Add: income taxes | 889 | 691 | (3) | 762 | (408) | 1,931 | (2) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 4,233 | 2,712 | 1,226 | 2,767 | (1,964) | 8,974 | 908 | ||||||||||||
Pre-tax impact of items of note (2) | 60 | - | 56 | - | 1,094 | 1,210 | 41 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 4,293 | $ | 2,712 | $ | 1,282 | $ | 2,767 | $ | (870) | $ | 10,184 | $ | 949 | |||||
2022 | Net income (loss) | $ | 2,249 | $ | 1,895 | $ | 760 | $ | 1,908 | $ | (569) | $ | 6,243 | $ | 588 | ||||
Oct. 31 | Add: provision for (reversal of) credit losses | 876 | 23 | 218 | (62) | 2 | 1,057 | 169 | |||||||||||
Add: income taxes | 809 | 680 | 151 | 718 | (628) | 1,730 | 117 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 3,934 | 2,598 | 1,129 | 2,564 | (1,195) | 9,030 | 874 | ||||||||||||
Pre-tax impact of items of note (2)(4) | 105 | - | 68 | - | 185 | 358 | 53 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 4,039 | $ | 2,598 | $ | 1,197 | $ | 2,564 | $ | (1,010) | $ | 9,388 | $ | 927 |
(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) | Excludes the impact of the provision for credit losses for performing loans from the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022, as the amount is included in the add back of provision for (reversal of) credit losses. |
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, 2023.
The conference call will be held at 7:30 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-800-806-5484, passcode 6992806#) and French (514-392-1587, or toll-free 1-877-395-0279, passcode 6514906#). 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 2023 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 4645396#) and French (514-861-2272 or 1-800-408-3053, passcode 7957917#) until 11:59 p.m. (ET) December 14, 2023. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.
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 Direct Financial Services businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across
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
SOURCE CIBC
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