CIBC announces fourth quarter and fiscal 2024 results

CIBC’s 2024 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 2024 Annual Report is available on SEDAR+ at www.sedarplus.com . All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO , Dec. 5, 2024 /CNW/ – CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2024 .

“Our bank delivered record financial performance in 2024 through the consistent execution of our client-focused strategy across business lines and across borders, driving growth for our bank through client relationships and delivering value for all of our stakeholders,” said Victor Dodig , CIBC President and Chief Executive Officer. “Thanks to our CIBC team, in 2024 we continued our robust net client growth, improved our strong client experience scores, and continued to build a connected culture across our bank to serve our clients. These efforts delivered positive operating leverage, a robust capital position, and strong credit quality as we carry our momentum into fiscal 2025. We enter the new fiscal year focused on our strategic priorities of driving growth in the mass affluent and high-net-worth client segments, building on our strength in digital to serve consumers, leveraging our connected platform to grow our wealth management, commercial banking and capital markets businesses, and enabling, simplifying and protecting our bank. Our CIBC team remains committed to our purpose, helping make ambitions real as we serve our clients and build equitable, inclusive and sustainable communities.”

Key highlights across our bank in 2024 included:

Welcomed over 613,000 net new clients over the last 12 months within CIBC and Simplii Financial in our Canadian consumer franchise. Achieved strong net promoter score (NPS) results across Canadian Banking with continued momentum across key programs including Personal Banking, Digital and Contact Centres as well as top-tier results across our relationship intensive programs in Commercial Banking and Wealth Management in Canada and the U.S. Launched custom-built AI platform internally and a Generative AI pilot with frontline team members, announced plans to hire for more than 200 data and AI roles, developed a new Enterprise AI Framework and established an Enterprise AI Governance Office as we take a measured approach to scaling AI powered tools across our bank. Set an interim 2030 net-zero greenhouse gas emissions target for our automotive manufacturing portfolio, complementing our previously set targets for oil and gas, and power generation portfolios. Ranked #2 Registered Investment Advisor in Barron’s Top 100 RIA Firms list. Recognized by Global Finance for the second consecutive year as the Best Investment Bank in Canada and for our leadership in environmental and social sustainability financing, receiving seven sustainable finance awards. Fourth quarter highlights

Q4/24

Q4/23 (1)

Q3/24

YoY

Variance

QoQ

Variance

Revenue

$6,617 million

$5,847 million

$6,604 million

+13 %

0 %

Reported Net Income

$1,882 million

$1,485 million

$1,795 million

+27 %

+5 %

Adjusted Net Income (2)

$1,889 million

$1,522 million

$1,895 million

+24 %

0 %

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

$2,835 million

$2,452 million

$2,939 million

+16 %

-4 %

Reported Diluted Earnings Per Share (EPS)

$1.90

$1.53

$1.82

+24 %

+4 %

Adjusted Diluted EPS (2)

$1.91

$1.57

$1.93

+22 %

-1 %

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

13.3 %

11.8 %

13.2 %

Adjusted ROE (2)

13.4 %

12.2 %

14.0 %

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

1.50 %

1.44 %

1.50 %

Net interest margin on average interest-earnings assets (excluding trading) (3)(4)

1.86 %

1.66 %

1.84 %

Common Equity Tier 1 (CET1) Ratio (5)

13.3 %

12.4 %

13.3 %

(1)

Certain information for 2023 has been restated to reflect the adoption of IFRS 17. For additional information, see Note 1 to the consolidated financial statements of our 2024 Annual Report, 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 14 to 18; and adjusted pre-provision, pre-tax earnings on page 19.

(3)

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

(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 of Financial Institution’s (OSFI’s) Capital Adequacy Requirements (CAR) Guideline, which are based on the Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the “Capital management” section of our 2024 Annual Report available on SEDAR+ at www.sedarplus.com .

CIBC’s results for the fourth quarter of 2024 were affected by the following items of note aggregating to a negative impact of $0.01 per share:

$12 million ($9 million after-tax) amortization and impairment of acquisition-related intangible assets; and $3 million ($2 million after-tax) reversal related to the special assessment imposed by the Federal Deposit Insurance Corporation (FDIC) on U.S. depository institutions, which impacted CIBC Bank USA (U.S. Commercial Banking and Wealth Management). For the year ended October 31, 2024 , CIBC reported net income of $7.2 billion and adjusted net income(1) of $7.3 billion , compared with reported net income of $5.0 billion and adjusted net income(1) of $6.5 billion for 2023, and adjusted pre-provision, pre-tax earnings(1) of $11.3 billion , compared with $10.2 billion for 2023.

The following table summarizes our performance in 2024 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

2024 Reported Results

2024 Adjusted Results (1)

Diluted EPS growth

7%–10% annually (2)(3)

3-year CAGR (4) = 1.5%

5-year CAGR (4) = 5.4%

3-year CAGR (4) = 0.8%

5-year CAGR (4) = 4.4%

ROE (5)

At least 16% (2)(3)(6)

3-year average = 12.6%

5-year average = 12.8%

3-year average = 13.9%

5-year average = 14.0%

Operating leverage (5)

Positive (2)(3)

3-year average = 0.7%

5-year average = 0.7%

3-year average = 0.1%

5-year average = 0.1%

CET1 ratio

Strong buffer to regulatory requirement

13.3 %

Dividend payout ratio (5)

40%–50% (2)(3)

3-year average = 54.9%

5-year average = 55.4%

3-year average = 48.6%

5-year average = 49.2%

Total shareholder return

Outperform the S&P/TSX Composite

Banks Index over a rolling three- and five-

year period

3-year 5-year

CIBC: 36.4% 102.9%

S&P/TSX Composite Banks Index: 21.9% 63.8%

Core business performance

F2024 Financial Highlights

(C$ million)

F2024

F2023

YoY Variance

Canadian Personal and Business Banking (7)

Reported Net Income

$2,670

$2,364

up 13%

Adjusted Net Income (1)

$2,689

$2,409

up 12%

Pre-provision, pre-tax earnings (1)

$4,881

$4,242

up 15%

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

$4,907

$4,302

up 14%

Canadian Commercial Banking and Wealth Management

Reported Net Income

$1,938

$1,878

up 3%

Adjusted Net Income (1)

$1,938

$1,878

up 3%

Pre-provision, pre-tax earnings (1)

$2,789

$2,712

up 3%

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

$2,789

$2,712

up 3%

U.S. Commercial Banking and Wealth Management

Reported Net Income

$501

$379

up 32%

Adjusted Net Income (1)

$600

$420

up 43%

Pre-provision, pre-tax earnings (1)

$1,104

$1,226

down 10%

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

$1,237

$1,282

down 4%

Capital Markets and Direct Financial Services

Reported Net Income

$1,988

$1,986

0 %

Adjusted Net Income (1)

$1,988

$1,986

0 %

Pre-provision, pre-tax earnings (1)

$2,837

$2,767

up 3%

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

$2,837

$2,767

up 3%

(1)

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

(2)

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

(3)

Medium-term targets are defined as through the cycle. For additional information, see the “Overview” section of our 2024 Annual Report available on SEDAR+ at www.sedarplus.com .

(4)

The 3-year compound annual growth rate (CAGR) is calculated from 2021 to 2024 and the 5-year CAGR is calculated from 2019 to 2024.

(5)

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

(6)

Beginning in 2025, the adjusted ROE target is revised to 15%+ through the cycle.

(7)

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2024, CIBC maintained its capital strength and sound risk management practices:

Capital ratios were strong, with a CET1 ratio(1) of 13.3% as noted above, and Tier 1(1) and Total capital ratios(1) of 14.8% and 17.0%, respectively, at October 31, 2024 ; Market risk, as measured by average Value-at-Risk, was $11.0 million in 2024 compared with $9.2 million in 2023; We continued to have solid credit performance, with a loan loss ratio(2) of 32 basis points compared with 30 basis points in 2023; Liquidity Coverage Ratio(1) was 129% for the three months ended October 31, 2024 ; and Leverage Ratio(1) was 4.3% at October 31, 2024 . CIBC announced an increase in its quarterly common share dividend from $0.90 per share to $0.97 per share for the quarter ending January 31, 2025 .

Credit quality

Provision for credit losses was $419 million for the fourth quarter, down $122 million or 23% from the same quarter last year. Provision for credit losses on performing loans was down $61 million , due to a decrease resulting from model parameter updates and favourable credit migration mainly driven by paydowns, partially offset by an unfavourable change in our economic outlook. Provision for credit losses on impaired loans was down $61 million , primarily due to lower provisions in U.S. Commercial Banking and Wealth Management, partially offset by higher provisions across all other strategic business units (SBUs).

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:

The 33rd annual Canadian Cancer Society CIBC Run for the Cure took place bringing together 55,000 participants and volunteers across Canada , including more than 13,000 Team CIBC members. Over $15 million was raised, including more than $2.5 million by Team CIBC. The 13th annual CIBC Caribbean Walk for the Cure took place with 30,000 participants in locations throughout the Caribbean . CIBC has committed $500,000 to the QEII Foundation in Nova Scotia in support of the Cancer Care Patient App, which will transform health care for cancer patients in Nova Scotia . CIBC announced it is committing $350,000 over four years for the creation of two new student awards to help foster the success of equity-deserving students at Wilfrid Laurier University , encouraging the study of science, technology, engineering and math (STEM). (1)

Our capital ratios are calculated pursuant to 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 BCBS standards. For additional information, see the “Capital management” and “Liquidity risk” sections of our 2024 Annual Report available on SEDAR+ at www.sedarplus.com .

(2)

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

Fourth quarter financial highlights

As at or for the

three months ended

twelve months ended

2024

2023

2024

2023

Unaudited

Oct. 31

Jul. 31

Oct. 31

(1)

Oct. 31

(1)

Financial results ($ millions)

Net interest income

3,633

3,532

3,197

13,695

12,825

Non-interest income

2,984

3,072

2,650

11,911

10,507

Total revenue

6,617

6,604

5,847

25,606

23,332

Provision for credit losses

419

483

541

2,001

2,010

Non-interest expenses

3,791

3,682

3,440

14,439

14,349

Income before income taxes

2,407

2,439

1,866

9,166

6,973

Income taxes

525

644

381

2,012

1,934

Net income

1,882

1,795

1,485

7,154

5,039

Net income attributable to non-controlling interests

Preferred shareholders and other equity instrument holders

263

267

Common shareholders

1,802

1,723

1,415

6,852

4,734

Net income attributable to equity shareholders

1,874

1,786

1,477

7,115

5,001

Financial measures

Reported efficiency ratio (2)

57.3

55.8

58.8

56.4

61.5

Reported operating leverage (2)

3.0

1.5

9.8

9.1

(5.2)

Loan loss ratio (3)

0.30

0.29

0.35

0.32

0.30

Reported return on common shareholders’ equity (2)(4)

13.3

13.2

11.8

13.4

10.3

Net interest margin (2)

1.40

1.39

1.32

1.36

1.35

Net interest margin on average interest-earning assets (2)(5)

1.50

1.44

1.47

1.49

Return on average assets (2)(5)

0.72

0.71

0.61

0.71

0.53

Return on average interest-earning assets (2)(5)

0.78

0.76

0.67

0.77

0.58

Reported effective tax rate

21.8

26.4

20.4

21.9

27.7

Common share information

Per share ($)

– basic earnings

1.91

1.83

1.53

7.29

5.17

– reported diluted earnings

1.90

1.82

1.53

7.28

5.17

– dividends

0.90

0.87

3.60

3.44

– book value (6)

57.08

55.66

51.56

57.08

51.56

Closing share price ($)

87.11

71.40

48.91

87.11

48.91

Shares outstanding (thousands)

– weighted-average basic

944,283

943,467

924,798

939,352

915,631

– weighted-average diluted

948,609

945,784

924,960

941,712

916,223

– end of period

942,295

944,590

931,099

942,295

931,099

Market capitalization ($ millions)

82,083

67,444

45,540

82,083

45,540

Value measures

Total shareholder return

23.33

12.65

(14.38)

87.56

(15.85)

Dividend yield (based on closing share price)

4.1

5.0

7.1

4.1

7.0

Reported dividend payout ratio (2)

47.2

49.3

56.8

49.4

66.5

Market value to book value ratio

1.53

1.28

0.95

1.53

0.95

Selected financial measures – adjusted (7)

Adjusted efficiency ratio (8)

57.2

55.5

58.1

55.8

56.4

Adjusted operating leverage (8)

1.8

0.6

6.1

1.2

1.1

Adjusted return on common shareholders’ equity (4)

13.4

14.0

12.2

13.7

13.4

Adjusted effective tax rate

21.8

22.8

20.4

22.0

21.0

Adjusted diluted earnings per share ($)

1.91

1.93

1.57

7.40

6.73

Adjusted dividend payout ratio

47.0

46.6

55.4

48.5

51.1

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

Cash, deposits with banks and securities

302,409

301,771

267,066

302,409

267,066

Loans and acceptances, net of allowance for credit losses

558,292

550,149

540,153

558,292

540,153

Total assets

1,041,985

1,021,407

975,690

1,041,985

975,690

Deposits

764,857

743,446

723,376

764,857

723,376

Common shareholders’ equity (2)

53,789

52,580

48,006

53,789

48,006

Average assets (5)

1,035,847

1,012,012

962,405

1,005,133

948,121

Average interest-earning assets (2)(5)

961,151

938,914

882,196

929,604

861,136

Average common shareholders’ equity (2)(5)

53,763

51,916

47,435

51,025

46,130

Assets under administration (AUA) (2)(9)(10)

3,600,069

3,475,292

2,853,007

3,600,069

2,853,007

Assets under management (AUM) (2)(10)

383,264

371,950

300,218

383,264

300,218

Balance sheet quality and liquidity measures (11)

Risk-weighted assets (RWA) ($ millions)

333,502

329,202

326,120

333,502

326,120

CET1 ratio

13.3

12.4

13.3

12.4

Tier 1 capital ratio

14.8

13.9

14.8

13.9

Total capital ratio

17.0

17.1

16.0

17.0

16.0

Leverage ratio

4.3

4.2

4.3

4.2

Liquidity coverage ratio (LCR) (12)

129

126

135

n/a

Net stable funding ratio (NSFR)

115

116

118

115

118

Other information

Full-time equivalent employees

48,525

48,552

48,074

48,525

48,074

(1)

(2)

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 2024 Annual Report, available on SEDAR+ at www.sedarplus.com.

(3)

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.

(4)

Annualized.

(5)

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

(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)

Commencing the first quarter of 2024, we no longer gross up tax-exempt revenue to bring it to a taxable equivalent basis (TEB) for the application of this ratio to our consolidated results. Prior period amounts have been restated to conform with the change in presentation adopted in the first quarter of 2024.

(9)

Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $2,814.6 billion (July 31, 2024: $2,725.2 billion; October 31, 2023: $2,241.9 billion).

(10)

AUM amounts are included in the amounts reported under AUA.

(11)

RWA and our capital ratios are calculated pursuant to OSFI’s CAR Guideline, the leverage ratio is calculated pursuant to OSFI’s Leverage Requirements Guideline, and the LCR and NSFR are calculated pursuant to OSFI’s LAR Guideline, all of which are based on BCBS standards. For additional information, see the “Capital management” and “Liquidity risk” sections of our 2024 Annual Report available on SEDAR+ at www.sedarplus.com.

(12)

Average for the three months ended for each respective period.

n/a

Not applicable.

Review of Canadian Personal and Business Banking fourth quarter results

2024

2023

(1)

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

2,670

2,598

2,458

Provision for (reversal of) credit losses

Impaired

287

302

259

Performing

(21)

Total provision for credit losses

266

338

282

Non-interest expenses

1,373

1,388

1,307

Income before income taxes

1,031

872

869

Income taxes

288

244

232

Net income

743

628

637

Net income attributable to:

Equity shareholders

743

628

637

Total revenue

Net interest income

2,070

2,010

1,908

Non-interest income (2)

600

588

550

2,670

2,598

2,458

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

2.56

2.50

2.38

Efficiency ratio

51.4

53.4

53.2

Operating leverage

3.6

1.1

9.2

Return on equity (5)

25.1

21.2

25.8

Average allocated common equity (5)

11,793

11,803

9,781

Full-time equivalent employees

13,531

13,632

13,208

Net income for the quarter was $743 million , up $106 million from the fourth quarter of 2023. Adjusted pre-provision, pre-tax earnings(5) were $1,303 million , up $146 million from the fourth quarter of 2023, due to higher revenue, partially offset by higher expenses.

Revenue of $2,670 million was up $212 million from the fourth quarter of 2023, primarily due to higher net interest income, mainly from higher deposit margins and volume growth, and higher fees.

Net interest margin on average interest-earning assets was up 18 basis points mainly due to a favourable asset mix and higher deposit margins, partially offset by lower loan margins.

Provision for credit losses of $266 million was down $16 million from the fourth quarter of 2023, due to a lower provision for credit losses on performing loans, partially offset by a higher provision on impaired loans from higher write-offs.

Non-interest expenses of $1,373 million were up $66 million from the fourth quarter of 2023 mainly due to higher performance-based and employee-related compensation, and higher spending on strategic initiatives.

(1)

(2)

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

(3)

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

(4)

(5)

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

2024

2023

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

Commercial banking

637

618

634

Wealth management

886

831

732

Total revenue

1,523

1,449

1,366

Provision for credit losses

Impaired

Performing

–

Total provision for credit losses

Non-interest expenses

790

762

679

Income before income taxes

710

645

676

Income taxes

194

177

186

Net income

516

468

490

Net income attributable to:

Equity shareholders

516

468

490

Total revenue

Net interest income

626

539

452

Non-interest income (1)

897

910

914

1,523

1,449

1,366

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

2.63

2.73

3.37

Efficiency ratio

51.9

52.6

49.7

Operating leverage

(4.9)

(5.7)

0.7

Return on equity (4)

21.6

19.7

23.1

Average allocated common equity (4)

9,502

9,459

8,401

Full-time equivalent employees

5,537

5,551

5,433

Net income for the quarter was $516 million , up $26 million from the fourth quarter of 2023. Adjusted pre-provision, pre-tax earnings(4) were $733 million , up $46 million from the fourth quarter of 2023, due to higher revenue, partially offset by higher expenses.

Revenue of $1,523 million was up $157 million from the fourth quarter of 2023, driven mainly by higher fee-based revenue from higher AUA and AUM balances, higher commission revenue from increased client activity, and higher net interest income in wealth management. Revenue in commercial banking was slightly higher compared to the prior year due to volume growth and higher fees, partially offset by lower loan and deposit margins.

Net interest margin on average interest-earning assets was down 74 basis points primarily due to the conversion of bankers’ acceptances to CORRA loans resulting from the cessation of Canadian Dollar Offered Rate (CDOR).

Provision for credit losses of $23 million was up $12 million from the fourth quarter of 2023, due to higher provisions on both performing and impaired loans.

Non-interest expenses of $790 million were up $111 million from the fourth quarter of 2023, primarily due to higher performance-based compensation.

(1)

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

(2)

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

(3)

(4)

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

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

2024

2023

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

Commercial banking

512

515

462

Wealth management

220

211

210

Total revenue

732

726

672

Provision for (reversal of) credit losses

Impaired

205

Performing

(1)

Total provision for credit losses

249

Non-interest expenses (1)

411

416

387

Income before income taxes

238

263

Income taxes

(14)

Net income

202

215

Net income attributable to:

Equity shareholders

202

215

Total revenue

Net interest income

506

477

476

Non-interest income

226

249

196

732

726

672

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

3.63

3.42

3.44

Efficiency ratio

56.2

57.3

57.6

Return on equity (4)

7.4

7.8

1.7

Average allocated common equity (4)

10,894

10,951

11,267

Full-time equivalent employees

2,979

2,946

2,780

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

2024

2023

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

Commercial banking

376

338

Wealth management

161

154

Total revenue

537

530

492

Provision for (reversal of) credit losses

Impaired

151

Performing

–

Total provision for credit losses

183

Non-interest expenses (1)

301

304

284

Income before income taxes

175

193

Income taxes

(10)

Net income

148

158

Net income attributable to:

Equity shareholders

148

158

Total revenue

Net interest income

371

349

348

Non-interest income

166

181

144

537

530

492

Operating leverage

2.5

(11.1)

(5.7)

Net income for the quarter was $202 million (US$148 million ), up $152 million (up US$113 million ) from the fourth quarter of 2023. Adjusted pre-provision, pre-tax earnings(4) were $324 million (US$238 million ), up $30 million (up US$24 million ) from the fourth quarter of 2023, due to higher net interest income and fee income, partially offset by higher expenses.

Revenue of US$537 million was up US$45 million from the fourth quarter of 2023, primarily due to higher asset management fees from higher average AUM balances, loan margins and deposit volumes, partially offset by lower deposit margins.

Net interest margin on average interest-earning assets was up 19 basis points primarily due to higher loan margins, partially offset by lower deposit margins.

Provision for credit losses of US$61 million was down US$122 million from the fourth quarter of 2023, due to lower provisions on both performing and impaired loans.

Non-interest expenses of US$301 million were up US$17 million from the fourth quarter of 2023, primarily due to higher employee-related compensation and continued infrastructure initiatives.

(1)

Includes a $3 million (US$2 million) reversal (Q3/24: $2 million (US$2 million) charge) related to the special assessment imposed by the FDIC.

(2)

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

(3)

(4)

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

Review of Capital Markets and Direct Financial Services fourth quarter results

2024

2023

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

Global markets

632

578

555

Corporate and investment banking

439

434

423

Direct financial services

336

312

Total revenue (1)

1,407

1,348

1,290

Provision for (reversal of) credit losses

Impaired

Performing

(2)

Total provision for credit losses

Non-interest expenses

779

770

734

Income before income taxes

582

533

552

Income taxes (1)

154

145

169

Net income

428

388

383

Net income attributable to:

Equity shareholders

428

388

383

Efficiency ratio

55.4

57.2

56.9

Operating leverage

2.8

(15.1)

(2.8)

Return on equity (2)

17.4

15.7

18.8

Average allocated common equity (2)

9,762

9,820

8,122

Full-time equivalent employees

2,452

2,539

2,411

Net income for the quarter was $428 million , up $45 million from the fourth quarter of 2023. Adjusted pre-provision, pre-tax earnings(2) were up $72 million or 13% from the fourth quarter of 2023, due to higher revenue, partially offset by higher expenses.

Revenue of $1,407 million was up $117 million from the fourth quarter of 2023. In global markets, revenue increased due to higher financing revenue, partially offset by lower equity derivatives revenue. In corporate and investment banking, higher debt underwriting activity was partially offset by lower equity underwriting and advisory activity. Direct Financial Services revenue increased due to higher deposit margins in Investor’s Edge and growth in Alternate Solutions Group, partially offset by lower margins in Simplii Financial.

Provision for credit losses of $46 million was up $42 million from the fourth quarter of 2023, due to higher provisions on both performing and impaired loans. The increase for performing loans included $10 million related to Simplii Financial.

Non-interest expenses of $779 million were up $45 million from the fourth quarter of 2023, primarily due to higher performance-based compensation and higher spending on strategic initiatives.

Review of Corporate and Other fourth quarter results

2024

2023

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31

Revenue

International banking

239

254

234

Other

229

(173)

Total revenue (1)

285

483

Provision for (reversal of) credit losses

Impaired

(3)

Performing

–

(2)

Total provision for (reversal of) credit losses

(5)

Non-interest expenses

438

346

333

Income (loss) before income taxes

(154)

126

(267)

Income taxes (1)

(147)

(192)

Net income (loss)

(7)

(75)

Net income (loss) attributable to:

Non-controlling interests

Equity shareholders

(15)

(83)

Full-time equivalent employees (3)

24,026

23,884

24,242

Net loss for the quarter was $7 million , compared with a net loss of $75 million for the fourth quarter of 2023. Adjusted pre-provision, pre-tax losses(2) were down $89 million or 37% from the fourth quarter of 2023, due to higher revenue, partially offset by higher expenses.

Revenue was up $224 million from the fourth quarter of 2023, due to higher treasury revenue resulting from lower funding costs borne by treasury, a lower TEB adjustment, and higher revenue from strategic investments.

The current quarter included a provision for credit losses of $1 million , while the fourth quarter of 2023 included a provision reversal for credit losses of $5 million .

Non-interest expenses of $438 million were up $105 million from the fourth quarter of 2023. Adjusted non-interest expenses(2) of $438 million were up $135 million from the fourth quarter of 2023, primarily due to higher corporate costs, and the impact of a pension plan amendment gain in the prior year.

(1)

Prior to the third quarter of 2024, Capital Markets and Direct Financial Services revenue and income taxes were reported on a TEB with an equivalent offset in the revenue and income taxes of Corporate and Other. In the third quarter of 2024, the enactment of the Federal tax measure that denies the dividends received deduction for Canadian banks resulted in a TEB reversal for dividends received on or after January 1, 2024 that were included in the first and second quarters of 2024. Accordingly, the revenue and income taxes for the fourth quarter of 2024 do not include a TEB adjustment (July 31, 2024 includes a reversal of a TEB adjustment of: $123 million; October 31, 2023: includes a TEB adjustment of $62 million).

(2)

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

(3)

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 CIBC Bank USA are included in the U.S. Commercial Banking and Wealth Management SBU.

Consolidated balance sheet

$ millions, as at October 31

2024

2023

(1)

ASSETS

Cash and non-interest-bearing deposits with banks

8,565

20,816

Interest-bearing deposits with banks

39,499

34,902

Securities

254,345

211,348

Cash collateral on securities borrowed

17,028

14,651

Securities purchased under resale agreements

83,721

80,184

Loans

Residential mortgages

280,672

274,244

Personal

46,681

45,587

Credit card

20,551

18,538

Business and government

214,299

194,870

Allowance for credit losses

(3,917)

(3,902)

558,286

529,337

Other

Derivative instruments

36,435

33,243

Customers’ liability under acceptances

10,816

Property and equipment

3,359

3,251

Goodwill

5,443

5,425

Software and other intangible assets

2,830

2,742

Investments in equity-accounted associates and joint ventures

785

669

Deferred tax assets

821

647

Other assets

30,862

27,659

80,541

84,452

1,041,985

975,690

LIABILITIES AND EQUITY

Deposits

Personal

252,894

239,035

Business and government

435,499

412,561

Bank

20,009

22,296

Secured borrowings

56,455

49,484

764,857

723,376

Obligations related to securities sold short

21,642

18,666

Cash collateral on securities lent

7,997

8,081

Obligations related to securities sold under repurchase agreements

110,153

87,118

Other

Derivative instruments

40,654

41,290

Acceptances

10,820

Deferred tax liabilities

Other liabilities

30,155

26,653

70,864

78,803

Subordinated indebtedness

7,465

6,483

Equity

Preferred shares and other equity instruments

4,946

4,925

Common shares

17,011

16,082

Contributed surplus

159

109

Retained earnings

33,471

30,352

Accumulated other comprehensive income (AOCI)

3,148

1,463

Total shareholders’ equity

58,735

52,931

Non-controlling interests

272

232

Total equity

59,007

53,163

1,041,985

975,690

(1)

Consolidated statement of income

For the three

For the twelve

months ended

2024

2023

2024

2023

$ millions, except as noted

Oct. 31

Jul. 31

Oct. 31

(1)

Oct. 31

(1)

Interest income (2)

Loans

8,668

8,726

8,215

33,925

30,235

Securities

2,393

2,482

2,165

9,560

7,341

Securities borrowed or purchased under resale agreements

1,441

1,528

1,357

5,811

4,566

Deposits with banks and other

729

711

720

2,889

2,877

13,231

13,447

12,457

52,185

45,019

Interest expense

Deposits

7,476

7,713

7,569

30,476

26,633

Securities sold short

163

156

109

625

408

Securities lent or sold under repurchase agreements

1,719

1,769

1,299

6,334

4,283

Subordinated indebtedness

120

134

120

510

458

Other

120

143

163

545

412

9,598

9,915

9,260

38,490

32,194

Net interest income

3,633

3,532

3,197

13,695

12,825

Non-interest income

Underwriting and advisory fees

182

165

137

707

519

Deposit and payment fees

250

249

229

958

924

Credit fees

217

303

369

1,218

1,385

Card fees

105

100

414

379

Investment management and custodial fees

526

508

454

1,980

1,768

Mutual fund fees

465

452

421

1,796

1,743

Income from insurance activities, net (1)

356

347

Commissions on securities transactions

129

109

431

338

Gains (losses) from financial instruments measured/designated at

fair value through profit or loss (FVTPL), net

827

869

611

3,226

2,346

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

other comprehensive income (FVOCI) and amortized cost, net

(6)

Foreign exchange other than trading

386

360

Income from equity-accounted associates and joint ventures

(5)

Other

111

317

285

2,984

3,072

2,650

11,911

10,507

Total revenue

6,617

6,604

5,847

25,606

23,332

Provision for credit losses

419

483

541

2,001

2,010

Non-interest expenses

Employee compensation and benefits

2,207

2,095

1,890

8,261

7,550

Occupancy costs

208

197

216

830

823

Computer, software and office equipment

723

722

658

2,719

2,467

Communications

362

364

Advertising and business development

103

344

304

Professional fees

257

245

Business and capital taxes

128

124

Other

353

401

395

1,538

2,472

3,791

3,682

3,440

14,439

14,349

Income before income taxes

2,407

2,439

1,866

9,166

6,973

Income taxes

525

644

381

2,012

1,934

Net income

1,882

1,795

1,485

7,154

5,039

Net income attributable to non-controlling interests

Preferred shareholders and other equity instrument holders

263

267

Common shareholders

1,802

1,723

1,415

6,852

4,734

Net income attributable to equity shareholders

1,874

1,786

1,477

7,115

5,001

Earnings per share (in dollars)

Basic

1.91

1.83

1.53

7.29

5.17

Diluted

1.90

1.82

1.53

7.28

5.17

Dividends per common share (in dollars)

0.90

0.87

3.60

3.44

(1)

(2)

Interest income included $12.2 billion for the quarter ended October 31, 2024 (July 31, 2024: $12.4 billion; October 31, 2023: $11.7 billion) calculated based on the effective interest rate method.

Consolidated statement of comprehensive income

For the three

For the twelve

months ended

2024

2023

2024

2023

$ millions

Oct. 31

Jul. 31

Oct. 31

(1)

Oct. 31

(1)

Net income

1,882

1,795

1,485

7,154

5,039

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

479

161

2,594

281

1,163

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

(339)

(111)

(1,600)

(267)

(812)

140

994

351

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI

(56)

(72)

127

274

Net (gains) losses reclassified to net income

(1)

(13)

(27)

(65)

(51)

(85)

100

209

Net change in cash flow hedges

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

581

1,270

(217)

2,348

(222)

Net (gains) losses reclassified to net income

(331)

(274)

173

(813)

(142)

250

996

(44)

1,535

(364)

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

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

143

172

(95)

250

(240)

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

attributable to changes in credit risk

(19)

(216)

(106)

Net gains (losses) on equity securities designated at FVOCI

(1)

(2)

–

(13)

123

229

(15)

(327)

Total OCI (2)

462

1,276

850

1,670

(131)

Comprehensive income

2,344

3,071

2,335

8,824

4,908

Comprehensive income attributable to non-controlling interests

Preferred shareholders and other equity instrument holders

263

267

Common shareholders

2,264

2,999

2,265

8,522

4,603

Comprehensive income attributable to equity shareholders

2,336

3,062

2,327

8,785

4,870

(1)

(2)

Includes $45 million of gains for the quarter ended October 31, 2024 (July 31, 2024: $14 million of gains; October 31, 2023: $11 million of gains), relating to our investments in equity-accounted associates and joint ventures.

For the three

For the twelve

months ended

2024

2023

2024

2023

$ millions

Oct. 31

Jul. 31

Oct. 31

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

Subject to subsequent reclassification to net income

Net foreign currency translation adjustments

Net gains (losses) on investments in foreign operations

(12)

(4)

(72)

(5)

(26)

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

–

(5)

–

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI

(12)

(65)

Net (gains) losses reclassified to net income

(2)

–

(2)

(40)

Net change in cash flow hedges

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

(223)

(489)

(903)

106

Net (gains) losses reclassified to net income

127

106

(67)

313

(96)

(383)

(590)

152

Not subject to subsequent reclassification to net income

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

(28)

(66)

(68)

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

to changes in credit risk

(23)

(30)

Net gains (losses) on equity securities designated at FVOCI

–

(6)

(20)

(88)

107

(104)

(461)

(578)

219

Consolidated statement of changes in equity

For the three

For the twelve

months ended

2024

2023

2024

2023

$ millions

Oct. 31

Jul. 31

Oct. 31

(1)

Oct. 31

(1)

Preferred shares and other equity instruments

Balance at beginning of period

4,949

5,098

4,925

4,923

Issue of preferred shares and limited recourse capital notes

–

500

–

1,000

–

Redemption of preferred shares

–

(650)

–

(975)

–

Treasury shares

(3)

–

(4)

Balance at end of period

4,946

4,949

4,925

4,946

4,925

Common shares

Balance at beginning of period

16,919

16,813

15,742

16,082

14,726

Issue of common shares

182

103

338

1,019

1,358

Purchase of common shares for cancellation

(90)

–

(90)

–

Treasury shares

–

(2)

Balance at end of period

17,011

16,919

16,082

17,011

16,082

Contributed surplus

Balance at beginning of period

128

114

103

109

115

Compensation expense arising from equity-settled share-based awards

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

(5)

(1)

–

(9)

(20)

Other (2)

Balance at end of period

159

128

109

159

109

Retained earnings

Balance at beginning of period before accounting policy changes

n/a

29,744

n/a

28,823

Impact of adopting IFRS 17 at November 1, 2022

n/a

(56)

Balance at beginning of period

32,844

31,990

29,744

30,352

28,767

Net income attributable to equity shareholders

1,874

1,786

1,477

7,115

5,001

Dividends and distributions

Preferred and other equity instruments

(72)

(63)

(62)

(263)

(267)

Common

(850)

(849)

(804)

(3,382)

(3,149)

Premium on purchase of common shares for cancellation

(329)

–

(329)

–

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

(19)

(4)

(15)

–

Other

(1)

(7)

–

Balance at end of period

33,471

32,844

30,352

33,471

30,352

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

2,036

1,986

1,168

2,162

1,811

Net change in foreign currency translation adjustments

140

994

351

Balance at end of period

2,176

2,036

2,162

2,176

2,162

Net gains (losses) on debt securities measured at FVOCI

Balance at beginning of period

(256)

(257)

(322)

(407)

(616)

Net change in securities measured at FVOCI

(51)

(85)

100

209

Balance at end of period

(307)

(256)

(407)

(307)

(407)

Net gains (losses) on cash flow hedges

Balance at beginning of period

259

(737)

(982)

(1,026)

(662)

Net change in cash flow hedges

250

996

(44)

1,535

(364)

Balance at end of period

509

259

(1,026)

509

(1,026)

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

699

527

687

592

832

Net change in post-employment defined benefit plans

143

172

(95)

250

(240)

Balance at end of period

842

699

592

842

592

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

in credit risk

Balance at beginning of period

(69)

(128)

128

234

Net change attributable to changes in credit risk

(19)

(216)

(106)

Balance at end of period

(88)

(69)

128

(88)

128

Net gains (losses) on equity securities designated at FVOCI

Balance at beginning of period

(5)

Net gains (losses) on equity securities designated at FVOCI

(1)

(2)

–

(13)

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

earnings

(3)

–

Balance at end of period

Total AOCI, net of income tax

3,148

2,689

1,463

3,148

1,463

Non-controlling interests

Balance at beginning of period

254

247

216

232

201

Net income attributable to non-controlling interests

Dividends

(2)

(8)

Other

–

Balance at end of period

272

254

232

272

232

Equity at end of period

59,007

57,783

53,163

59,007

53,163

(1)

(2)

Includes the portion of the estimated tax benefit related to employee stock options that is incremental to the amount recognized in the interim consolidated statement of income.

n/a

Not applicable.

Consolidated statement of cash flows

For the three

For the twelve

months ended

2024

2023

2024

2023

$ millions

Oct. 31

Jul. 31

Oct. 31

(1)

Oct. 31

(1)

Cash flows provided by (used in) operating activities

Net income

1,882

1,795

1,485

7,154

5,039

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

Provision for credit losses

419

483

541

2,001

2,010

Amortization and impairment (2)

289

317

310

1,170

1,143

Stock options and restricted shares expense

Deferred income taxes

(203)

(22)

(244)

(87)

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

(3)

(15)

(43)

(83)

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

(1)

–

(1)

(3)

Other non-cash items, net

(258)

(1,075)

179

(1,822)

1,822

Net changes in operating assets and liabilities

Interest-bearing deposits with banks

(3,334)

2,679

(8,035)

(4,597)

(2,576)

Loans, net of repayments

(8,255)

(11,803)

(2,643)

(28,930)

(14,301)

Deposits, net of withdrawals

20,126

9,523

17,515

34,467

17,045

Obligations related to securities sold short

(2,398)

591

917

2,976

3,382

Accrued interest receivable

(226)

(528)

(711)

(1,272)

Accrued interest payable

(180)

(130)

474

452

2,521

Derivative assets

(6,188)

1,145

(3,215)

(3,240)

9,826

Derivative liabilities

4,664

(3,004)

2,972

(813)

(10,382)

Securities measured at FVTPL

127

(9,337)

(291)

(23,319)

(15,427)

Other assets and liabilities measured/designated at FVTPL

290

748

2,955

3,431

8,259

Current income taxes

(174)

(15)

111

(257)

361

Cash collateral on securities lent

(518)

(114)

2,989

(84)

3,228

Obligations related to securities sold under repurchase agreements

(5,215)

14,359

3,699

23,035

9,319

Cash collateral on securities borrowed

(533)

(2,740)

(1,154)

(2,377)

675

Securities purchased under resale agreements

(4,400)

6,721

(6,296)

(3,537)

(10,971)

Other, net

3,230

2,115

6,361

2,613

(843)

12,289

12,106

11,088

12,154

Cash flows provided by (used in) financing activities

Issue of subordinated indebtedness

–

1,000

–

2,250

1,750

Redemption/repurchase/maturity of subordinated indebtedness

–

(1,536)

–

(1,536)

(1,500)

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

–

498

–

996

–

Redemption of preferred shares

–

(650)

–

(975)

–

Issue of common shares for cash

131

312

183

Purchase of common shares for cancellation

(419)

–

(419)

–

Net sale (purchase) of treasury shares

(3)

(4)

–

Dividends and distributions paid

(876)

(867)

(573)

(2,947)

(2,261)

Repayment of lease liabilities

(80)

(79)

(82)

(287)

(331)

(1,247)

(1,573)

(608)

(2,610)

(2,159)

Cash flows provided by (used in) investing activities

Purchase of securities measured/designated at FVOCI and amortized cost

(16,320)

(20,641)

(17,193)

(76,528)

(79,487)

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

8,299

4,864

6,479

29,761

26,914

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

7,351

6,709

6,653

27,105

32,824

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

(393)

(275)

(290)

(1,089)

(1,014)

(1,063)

(9,343)

(4,351)

(20,751)

(20,763)

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

124

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

during the period

(3,119)

1,385

7,271

(12,251)

(10,719)

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

11,684

10,299

13,545

20,816

31,535

Cash and non-interest-bearing deposits with banks at end of period (3)

8,565

11,684

20,816

8,565

20,816

Cash interest paid

9,777

10,045

8,786

38,038

29,673

Cash interest received

12,578

13,037

11,598

49,761

42,600

Cash dividends received

427

463

331

1,713

1,147

Cash income taxes paid

903

679

230

2,513

1,657

(1)

(2)

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

(3)

Includes restricted cash of $466 million (July 31, 2024: $465 million; October 31, 2023: $491 million) and interest-bearing demand deposits with Bank of Canada.

Non-GAAP measures

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

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

Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the “Non-GAAP measures” section of our 2024 Annual Report 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.

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the three months ended October 31, 2024

Banking

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

2,670

1,523

732

1,407

285

6,617

537

Provision for credit losses

266

419

Non-interest expenses

1,373

790

411

779

438

3,791

301

Income (loss) before income taxes

1,031

710

238

582

(154)

2,407

175

Income taxes

288

194

154

(147)

525

Net income (loss)

743

516

202

428

(7)

1,882

148

Net income attributable to non-controlling interests

–

Net income (loss) attributable to equity shareholders

743

516

202

428

(15)

1,874

148

Diluted EPS ($)

1.90

Impact of items of note (1)

Non-interest expenses

Amortization and impairment of acquisition-related intangible assets

(6)

–

(6)

–

(12)

(4)

Reversal related to the special assessment imposed by the FDIC

–

Impact of items of note on non-interest expenses

(6)

–

(3)

–

(9)

(2)

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

–

Income taxes

Amortization and impairment of acquisition-related intangible assets

–

Reversal related to the special assessment imposed by the FDIC

–

(1)

–

(1)

Impact of items of note on income taxes

–

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

–

Impact of items of note on diluted EPS ($) (2)

0.01

Operating results – adjusted (3)

Total revenue – adjusted (4)

2,670

1,523

732

1,407

285

6,617

537

Provision for credit losses – adjusted

266

419

Non-interest expenses – adjusted

1,367

790

408

779

438

3,782

299

Income (loss) before income taxes – adjusted

1,037

710

241

582

(154)

2,416

177

Income taxes – adjusted

289

194

154

(147)

527

Net income (loss) – adjusted

748

516

204

428

(7)

1,889

150

Net income attributable to non-controlling interests – adjusted

–

Net income (loss) attributable to equity shareholders – adjusted

748

516

204

428

(15)

1,881

150

Adjusted diluted EPS ($)

1.91

(1)

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

(2)

Includes the impact of rounding differences between diluted EPS and adjusted diluted EPS.

(3)

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

(4)

CIBC total results excludes a TEB adjustment of nil (July 31, 2024: excludes a reversal of $123 million; October 31, 2023: excludes a TEB adjustment of $62 million) and excludes a TEB adjustment of $16 million for the twelve months ended October 31, 2024 (October 31, 2023: excludes a TEB adjustment of $254 million).

(5)

This item of note reports the impact to the consolidated income tax expense in the third quarter of 2024 from the enactment on June 20, 2024 of Bill C-59 that denies the dividends received deduction for dividends received by banks on and after January 1, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note.

(6)

(7)

Relates to the net legal provisions recognized in the first and second quarters of 2023.

(8)

The income tax charge is comprised of $510 million for the present value of the estimated amount of the Canada Recovery Dividend (CRD) tax of $555 million, and a charge of $35 million related to the fiscal 2022 impact of the 1.5% increase in the tax rate applied to taxable income of certain bank and insurance entities in excess of $100 million for periods after April 2022. The discount of

$45 million on the CRD tax accretes over the four-year payment period from initial recognition.

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

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the three months ended July 31, 2024

Banking

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

2,598

1,449

726

1,348

483

6,604

530

Provision for credit losses

338

483

Non-interest expenses

1,388

762

416

770

346

3,682

304

Income before income taxes

872

645

263

533

126

2,439

193

Income taxes

244

177

145

644

Net income

628

468

215

388

1,795

158

Net income attributable to non-controlling interests

–

Net income attributable to equity shareholders

628

468

215

388

1,786

158

Diluted EPS ($)

1.82

Impact of items of note (1)

Revenue

Adjustments related to enactment of a Federal tax measure in June

2024 that denies the dividends received deduction for Canadian banks (5)

–

123

(123)

–

Impact of items of note on revenue

–

123

(123)

–

Non-interest expenses

Amortization and impairment of acquisition-related intangible assets

(7)

–

(8)

–

(15)

(6)

Charge related to the special assessment imposed by the FDIC

–

(2)

–

(2)

Impact of items of note on non-interest expenses

(7)

–

(10)

–

(17)

(8)

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

–

123

(123)

Income taxes

Amortization and impairment of acquisition-related intangible assets

–

Adjustments related to enactment of a Federal tax measure in June

2024 that denies the dividends received deduction for Canadian banks (5)

–

(123)

(88)

–

Charge related to the special assessment imposed by the FDIC

–

Impact of items of note on income taxes

–

(123)

(83)

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

–

100

Impact of items of note on diluted EPS ($) (2)

0.11

Operating results – adjusted (3)

Total revenue – adjusted (4)

2,598

1,449

726

1,471

360

6,604

530

Provision for credit losses – adjusted

338

483

Non-interest expenses – adjusted

1,381

762

406

770

346

3,665

296

Income before income taxes – adjusted

879

645

273

656

2,456

201

Income taxes – adjusted

246

177

180

(93)

561

Net income – adjusted

633

468

222

476

1,895

163

Net income attributable to non-controlling interests – adjusted

–

Net income attributable to equity shareholders – adjusted

633

468

222

476

1,886

163

Adjusted diluted EPS ($)

1.93

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.

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the three months ended October 31, 2023

Banking

(6)

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

2,458

1,366

672

1,290

5,847

492

Provision for (reversal of) credit losses

282

249

(5)

541

183

Non-interest expenses

1,307

679

387

734

333

3,440

284

Income (loss) before income taxes

869

676

552

(267)

1,866

Income taxes

232

186

(14)

169

(192)

381

(10)

Net income (loss)

637

490

383

(75)

1,485

Net income attributable to non-controlling interests

–

Net income (loss) attributable to equity shareholders

637

490

383

(83)

1,477

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

–

Income taxes

Amortization and impairment of acquisition-related intangible assets

–

Impact of items of note on income taxes

–

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

–

Impact of items of note on diluted EPS ($) (2)

0.04

Operating results – adjusted (3)

Total revenue – adjusted (4)

2,458

1,366

672

1,290

5,847

492

Provision for (reversal of) credit losses – adjusted

282

249

(5)

541

183

Non-interest expenses – adjusted

1,301

679

378

734

303

3,395

278

Income (loss) before income taxes – adjusted

875

676

552

(237)

1,911

Income taxes – adjusted

234

186

(11)

169

(189)

389

(8)

Net income (loss) – adjusted

641

490

383

(48)

1,522

Net income attributable to non-controlling interests – adjusted

–

Net income (loss) attributable to equity shareholders – adjusted

641

490

383

(56)

1,514

Adjusted diluted EPS ($)

1.57

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.

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the twelve months ended October 31, 2024

Banking

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

10,241

5,730

2,805

5,804

1,026

25,606

2,063

Provision for credit losses

1,203

122

560

115

2,001

412

Non-interest expenses

5,360

2,941

1,701

2,967

1,470

14,439

1,251

Income (loss) before income taxes

3,678

2,667

544

2,722

(445)

9,166

400

Income taxes

1,008

729

734

(502)

2,012

Net income

2,670

1,938

501

1,988

7,154

368

Net income attributable to non-controlling interests

–

Net income attributable to equity shareholders

2,670

1,938

501

1,988

7,115

368

Diluted EPS ($)

7.28

Impact of items of note (1)

Non-interest expenses

Amortization and impairment of acquisition-related intangible assets

(26)

–

(30)

–

(56)

(22)

Charge related to the special assessment imposed by the FDIC

–

(103)

–

(103)

(77)

Impact of items of note on non-interest expenses

(26)

–

(133)

–

(159)

(99)

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

–

133

–

159

Income taxes

Amortization and impairment of acquisition-related intangible assets

–

Charge related to the special assessment imposed by the FDIC

–

Impact of items of note on income taxes

–

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

–

118

Impact of items of note on diluted EPS ($) (2)

0.12

Operating results – adjusted (3)

Total revenue – adjusted (4)

10,241

5,730

2,805

5,804

1,026

25,606

2,063

Provision for credit losses – adjusted

1,203

122

560

115

2,001

412

Non-interest expenses – adjusted

5,334

2,941

1,568

2,967

1,470

14,280

1,152

Income (loss) before income taxes – adjusted

3,704

2,667

677

2,722

(445)

9,325

499

Income taxes – adjusted

1,015

729

734

(502)

2,053

Net income – adjusted

2,689

1,938

600

1,988

7,272

442

Net income attributable to non-controlling interests – adjusted

–

Net income attributable to equity shareholders – adjusted

2,689

1,938

600

1,988

7,233

442

Adjusted diluted EPS ($)

7.40

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.

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the twelve months ended October 31, 2023

Banking

(6)

Management

Services

and Other

Total

(US$ millions)

Operating results – reported

Total revenue

9,416

5,403

2,692

5,488

333

23,332

1,994

Provision for credit losses

986

143

850

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

3,256

2,569

376

2,748

(1,976)

6,973

278

Income taxes

892

691

(3)

762

(408)

1,934

(2)

Net income (loss)

2,364

1,878

379

1,986

(1,568)

5,039

280

Net income attributable to non-controlling interests

–

Net income (loss) attributable to equity shareholders

2,364

1,878

379

1,986

(1,606)

5,001

280

Diluted EPS ($)

5.17

Impact of items of note (1)

Revenue

Commodity tax charge related to the retroactive impact of the 2023

Canadian Federal budget

–

Impact of items of note on revenue

–

Non-interest expenses

Amortization and impairment of acquisition-related intangible assets

(26)

–

(56)

–

(39)

(121)

(41)

Increase in legal provisions (7)

–

(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

–

1,094

1,210

Income taxes

Amortization and impairment of acquisition-related intangible assets

–

Commodity tax charge related to the retroactive impact of the 2023

Canadian Federal budget

–

Increase in legal provisions (7)

–

293

–

Income tax charge related to the 2022 Canadian Federal budget (8)

–

(545)

–

Impact of items of note on income taxes

–

(248)

(218)

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

–

1,342

1,428

Impact of items of note on diluted EPS ($) (2)

1.56

Operating results – adjusted (3)

Total revenue – adjusted (4)

9,450

5,403

2,692

5,488

333

23,366

1,994

Provision for credit losses – adjusted

986

143

850

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

3,316

2,569

432

2,748

(882)

8,183

319

Income taxes – adjusted

907

691

762

(656)

1,716

Net income (loss) – adjusted

2,409

1,878

420

1,986

(226)

6,467

310

Net income attributable to non-controlling interests – adjusted

–

Net income (loss) attributable to equity shareholders – adjusted

2,409

1,878

420

1,986

(264)

6,429

310

Adjusted diluted EPS ($)

6.73

See previous pages for footnote references.

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

U.S.

Canadian

U.S.

Capital

Commercial

Canadian

Commercial

Markets

Banking

Personal

Banking

and Direct

and Wealth

and Business

and Wealth

Financial

Corporate

CIBC

Management

$ millions, for the three months ended

Banking

Management

Services

and Other

Total

(US$ millions)

2024

Net income (loss)

743

516

202

428

(7)

1,882

148

Oct. 31

Add: provision for credit losses

266

419

Add: income taxes

288

194

154

(147)

525

Pre-provision (reversal), pre-tax earnings (losses) (1)

1,297

733

321

628

(153)

2,826

236

Pre-tax impact of items of note (2)

–

Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)

1,303

733

324

628

(153)

2,835

238

2024

Net income (loss)

628

468

215

388

1,795

158

Jul. 31

Add: provision for credit losses

338

483

Add: income taxes

244

177

145

644

Pre-provision, pre-tax earnings (1)

1,210

687

310

578

137

2,922

226

Pre-tax impact of items of note (2)

–

123

(123)

Adjusted pre-provision, pre-tax earnings (3)

1,217

687

320

701

2,939

234

2023

Net income (loss)

637

490

383

(75)

1,485

Oct. 31 (4)

Add: provision for (reversal of) credit losses

282

249

(5)

541

183

Add: income taxes

232

186

(14)

169

(192)

381

(10)

Pre-provision (reversal), pre-tax earnings (losses) (1)

1,151

687

285

556

(272)

2,407

208

Pre-tax impact of items of note (2)

–

Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)

1,157

687

294

556

(242)

2,452

214

$ millions, for the twelve months ended

2024

Net income

2,670

1,938

501

1,988

7,154

368

Oct. 31

Add: provision for credit losses

1,203

122

560

115

2,001

412

Add: income taxes

1,008

729

734

(502)

2,012

Pre-provision (reversal), pre-tax earnings (losses) (1)

4,881

2,789

1,104

2,837

(444)

11,167

812

Pre-tax impact of items of note (2)

–

133

–

159

Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)

4,907

2,789

1,237

2,837

(444)

11,326

911

2023

Net income (loss)

2,364

1,878

379

1,986

(1,568)

5,039

280

Oct. 31 (4)

Add: provision for credit losses

986

143

850

2,010

630

Add: income taxes

892

691

(3)

762

(408)

1,934

(2)

Pre-provision (reversal), pre-tax earnings (losses) (1)

4,242

2,712

1,226

2,767

(1,964)

8,983

908

Pre-tax impact of items of note (2)

–

1,094

1,210

Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)

4,302

2,712

1,282

2,767

(870)

10,193

949

(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)

Basis of presentation

The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim consolidated financial statements follow the same accounting policies and methods of application as CIBC’s consolidated financial statements as at and for the year ended October 31, 2024 .

Conference Call/Webcast

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 1073773#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 5601311#). 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 2024 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 8797228#) and French (514-861-2272 or 1-800-408-3053, passcode 6432963#) until 11:59 p.m. (ET) December 19, 2024 . The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html .

About CIBC

CIBC is a leading North American financial institution with 14 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada , in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html .

The information below forms a part of this news release.

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

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

A NOTE ABOUT FORWARD-LOOKING STATEMENTS:

From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, in other reports to shareholders, and in other communications. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the “Core business performance”, “Strong fundamentals”, and “Making a difference in our Communities” sections of this news release, and the Management’s Discussion and Analysis in our 2024 Annual Report under the heading “Economic and market environment – Outlook for calendar year 2025” and other statements about our operations, business lines, financial condition, risk management, priorities, targets and sustainability commitments (including with respect to net-zero emissions and our environmental, social and governance (ESG) related activities), ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2025 and subsequent periods. Forward-looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “target”, “predict”, “commit”, “ambition”, “goal”, “strive”, “project”, “objective” and other similar expressions or future or conditional verbs such as “will”, “may”, “should”, “would” and “could”. By their nature, these statements require us to make assumptions, including the economic assumptions set out in the “Economic and market environment – Outlook for calendar year 2025” section of our 2024 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of the interest rate, inflationary, macroeconomic, banking and regulatory environment, the impact of hybrid work arrangements and the lagged impact of high interest rates on the U.S. real estate sector, the softening labour market and uncertain political conditions in the U.S., and the war in Ukraine and conflict in the Middle East on the global economy, financial markets, and our business, results of operations, reputation and financial condition, there is inherently more uncertainty associated with our assumptions as compared to prior periods. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: inflationary pressures; global supply-chain disruptions; geopolitical risk, including from the war in Ukraine and conflict in the Middle East , the occurrence, continuance or intensification of public health emergencies, such as the impact of post-pandemic hybrid work arrangements, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, conduct and legal, regulatory and environmental risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate, including the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in the United Kingdom and Europe , the Basel Committee on Banking Supervision’s global standards for capital and liquidity reform, and those relating to bank recapitalization legislation and the payments system in Canada ; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments, including changes relating to economic or trade matters; the possible effect on our business of international conflicts, such as the war in Ukraine and conflict in the Middle East , and terrorism; natural disasters, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our information technology systems and services; increasing cyber security risks which may include theft or disclosure of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud ; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change including the use of data and artificial intelligence in our business; global capital market activity; changes in monetary and economic policy; general business and economic conditions worldwide, as well as in Canada , the U.S. and other countries where we have operations, including increasing Canadian household debt levels and global credit risks; climate change and other ESG related risks including our ability to implement various sustainability-related initiatives internally and with our clients under expected time frames and our ability to scale our sustainable finance products and services; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected benefits of an acquisition, merger or divestiture will not be realized within the expected time frame or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Additional information about these factors can be found in the “Management of risk” section of our 2024 Annual Report, as updated by our quarterly reports. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.

SOURCE CIBC – Investor Relations

CIBC announces fourth quarter and fiscal 2024 results

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