|
CIBC's 2016 audited annual consolidated financial statements and
accompanying management's discussion & analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information
report which includes fourth quarter financial information.
|
TORONTO, Dec. 1, 2016 /CNW/ - CIBC (TSX: CM) (NYSE:
CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2016.
Fourth quarter highlights
- Reported net income of $931 million, compared with $778
million for the fourth quarter a year ago, and $1,441 million for the prior quarter;
adjusted net income(1) of $1,041 million, compared with $952
million for the fourth quarter a year ago, and $1,072 million for the prior
quarter.
- Reported diluted earnings per share (EPS) of $2.32, compared with $1.93 for the fourth quarter a year ago, and $3.61 for the prior quarter;
adjusted diluted EPS(1) of $2.60, compared with $2.36 for
the fourth quarter a year ago, and $2.67 for the prior quarter.
- Reported return on common shareholders' equity (ROE) of 16.8% and adjusted ROE(1) of 18.8%.
- Basel III Common Equity Tier 1 ratio on an all-in basis (CET1 ratio) of 11.3%, compared with 10.8% a year ago.
- Announced a quarterly dividend increase of three cents to $1.24 per common share.
CIBC's results for the fourth quarter of 2016 were affected by the following items of note aggregating to a negative impact of
$0.28 per share:
- $134 million ($98 million after-tax, or $0.25 per share) in restructuring charges primarily relating to employee severance;
- $9 million ($7 million after-tax, or $0.02 per share) loss from the structured credit run-off business; and
- $7 million ($5 million after-tax, or $0.01 per share) amortization of intangible assets.
For the year ended October 31, 2016, CIBC reported net income of $4.3
billion and adjusted net income(1) of $4.1 billion, compared with reported net
income of $3.6 billion and adjusted net income(1) of $3.8
billion for 2015.
Subsequent to year end, CIBC entered into an agreement to sell and lease back 89 retail properties located mainly in
Ontario and British Columbia. The closing of the agreement is
expected to occur during the first quarter of 2017 and result in an after-tax gain of $247 million
that would add approximately 15 basis points to CIBC's CET1 ratio on an all-in basis.
The following table summarizes our strong performance in 2016 against our key financial measures and targets:
|
Financial Measure
|
Target
|
2016 Reported Results
|
2016 Adjusted Results (1)
|
|
Diluted EPS growth
|
5% to 10% on average, annually (2)
|
$10.70, up 21% from 2015
|
$10.22, up 8% from 2015
|
|
ROE
|
18% to 20% (2)
|
19.9%
|
19.0%
|
|
Efficiency ratio
|
55% by 2019
|
59.7%, an improvement of 420
basis points from 2015
|
58.0%, an improvement of 160
basis points from 2015
|
|
Basel III CET1 ratio
|
Strong buffer to regulatory minimum
|
11.3%
|
|
Dividend payout ratio
|
Approximately 50%
|
44.3%
|
46.4%
|
|
Total shareholder return
|
Outperform the S&P/TSX Composite
Banks Index over a rolling five-year
period
|
CIBC – 68.6%
Banks Index – 85.9%
|
|
(1)
|
For additional information, see the "Non-GAAP measures" section.
|
|
(2)
|
Going forward, our medium term EPS and ROE targets are at least 5% and at
least 15%, respectively.
|
"In 2016, CIBC delivered record net income, industry-leading capital strength and the highest return on equity of the major
North American banks," says Victor G. Dodig, CIBC President and Chief Executive Officer. "Our
transformation to build a strong, innovative, relationship-oriented bank by executing on our three integrated bank-wide priorities
of client focus, innovation and simplification gained momentum this year."
Core business performance
Retail and Business Banking reported net income of $2,689 million in 2016, compared with
$2,530 million in 2015. Excluding items of note(1), adjusted net income was $2,664 million, up $162 million or 6% from $2,502
million in 2015.
In 2016, Retail and Business Banking continued to make progress against its objectives of enhancing the client experience and
accelerating profitable revenue growth. Key highlights included:
- Delivering products that fit the lives of our clients, including the CIBC SmartTM account and the CIBC
SmartTM Prepaid Travel Visa Card, and transforming our physical banking centres to emphasize relationships and
advice;
- Continuing our leadership in innovation for our clients by launching Apple Pay, Digital Account Open, and the CIBC Hello
HomeTM app, to meet the needs of our clients who prefer to bank through their mobile devices;
- Partnering with fintechs to simplify our processes and enhance client experience, including our recent partnership with
Borrowell that provides qualified clients with a faster and easier loan process; and
- Formed a unique strategic alliance with National Australia Bank and Israel's Bank Leumi
focused on delivering new and innovative ways to enhance client experience.
In November 2016, we were the first bank in Canada to bring
Samsung Pay to our clients, providing them with another mobile payment option.
"We continued to build momentum in 2016 towards becoming the number one retail and business bank in Canada in client experience, and we delivered above-market growth in both lending and deposits," says
David Williamson, SEVP and Group Head, Retail and Business Banking. "We will accelerate our
transformation in the year ahead by maintaining our focus on deepening relationships with our clients, developing innovative
products and services, and making it easier to bank when, where and how our clients want."
Wealth Management reported net income of $864 million in 2016, compared with $518 million in 2015. Excluding the gain on the sale of our investment in American Century Investments (ACI) in
2016 and other items of note(1), adjusted net income was $490 million in 2016, down
$46 million or 9% from $536 million in 2015. Further adjusting for net
income from ACI of $15 million and $101 million for 2016 and 2015,
respectively, net income from our continuing businesses was up $40 million, or 9% from 2015.
Wealth Management made good progress in 2016 against its objectives of enhancing the client experience, driving asset growth,
and simplifying and optimizing its business platform. Key highlights included:
- Aligning our Canadian private wealth management and Wood Gundy businesses under one leadership structure to elevate our high
net worth client experience and better meet client needs;
- Launching several successful products including Renaissance Flexible Yield Fund, Renaissance Private Investment Program, and
PPS Income Generation Portfolios to meet the changing needs of investors; and
- Reporting progress in the most recent J.D. Power Canadian Investor Satisfaction Surveys for our Investor's Edge and Wood
Gundy businesses, reflecting our commitment to client relationships.
"Our Wealth Management businesses delivered solid results this year thanks to a clear focus on our clients," says Steve Geist, SEVP and Group Head, Wealth Management. "In 2017, we will continue to enhance our investment advice
and solutions, with an emphasis on delivering an integrated wealth management experience to meet the complex needs of high net
worth Canadian families."
Capital Markets reported net income of $1,076 million in 2016, compared with $957 million in 2015. Excluding items of note(1), adjusted net income was $1,104 million, up $139 million or 14% from $965
million in 2015.
Capital Markets provides integrated global markets products and services, investment banking advisory and execution, corporate
banking services and top-ranked research to corporate, government and institutional clients around the world. During 2016, Capital
Markets was:
- Financial advisor to Suncor Energy Inc. on its $7 billion acquisition of Canadian Oil Sands
Limited and joint bookrunner on Suncor's $2.9 billion bought common share offering, one of the
largest-ever equity bought deals in Canada;
- Financial advisor, financing co-underwriter and lead agent on related foreign exchange to Lowe's Companies Inc. on its
$3.2 billion acquisition of RONA Inc.;
- Financial advisor, lead bookrunner on $525 million of subscription receipts, sole lead
arranger, underwriter and bookrunner on $1.8 billion of credit facilities and sole foreign exchange
provider supporting Stantec's acquisition of MWH Global Inc.;
- Exclusive financial advisor, administrative agent and joint bookrunner on $925 million in
credit facilities supporting Cheung Kong Infrastructure Holdings Limited's and Power Assets Holdings Limited's acquisition of a
65% interest in midstream assets from Husky Energy Inc.; and
- Introduced CIBC Air Canada® AC ConversionTM Visa Prepaid Card, a first-of-its-kind in Canada, allowing travellers to purchase and store up to 10 currencies on a single card that can be used at
retailers around the globe.
"In 2016, we launched specialized new advisory teams to add value for clients in the areas of technology and innovation, private
capital and corporate finance solutions," says Harry Culham, SEVP and Group Head, Capital Markets.
"We also expanded our product capabilities to help meet client needs at home and abroad, while delivering innovative financial
solutions to clients across CIBC in areas such as foreign exchange and precious metals."
|
(1)
|
For additional information, see the "Non-GAAP measures" section.
|
Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2016, CIBC maintained its
capital strength, competitive productivity and sound risk management practices:
- CIBC's capital ratios were strong, with a Basel III CET1 ratio of 11.3% as noted above, and Tier 1 and Total capital ratios
of 12.8% and 14.8% respectively, at October 31, 2016;
- Market risk, as measured by average Value-at-Risk, was $5.8 million in 2016 compared with
$4.0 million in 2015; and
- We continued to have strong credit performance, with CIBC's loan loss ratio of 31 basis points compared with 27 basis points
in 2015.
Making a difference in our Communities
CIBC is committed to investing in the social and economic development of communities across Canada. During the fourth quarter of 2016, CIBC:
- Marked 20 years of partnership with the Canadian Breast Cancer Foundation (CBCF) and helped to raise an estimated
$17 million for breast cancer research, education and support programs through the 2016 CBCF CIBC
Run for the Cure, including the nearly $3 million contributed by Team CIBC;
- Partnered with the Canadian Paralympic Committee (CPC) to host seven Welcome Home events at CIBC banking centres across the
country as Premier Partner of the Canadian Paralympic Team, celebrating and honouring athletes returning home from the 2016
Paralympic Games; and
- Announced a 5-year partnership with the Canadian Hockey League (CHL), solidifying CIBC as the Official Bank of the CHL, its
three regional leagues, and 23 teams.
During the quarter, CIBC was:
- Ranked among the Top 10 Safest Banks in North America by Global Finance
magazine;
- Recipient of four awards at ACT Canada's IVIE Awards, including Silver for Most Innovative Organization; and
- Recognized by Mediacorp as one of Canada's Top 100 Employers for a fifth consecutive
year.
CIBC was once again named a constituent of the following widely regarded indices:
- Dow Jones Sustainability North American Index since its inception in 2005;
- FTSE4Good Index since 2001; and
- Jantzi Social Index since 2000.
Fourth quarter financial highlights
|
As at or for the
|
|
|
As at or for the
|
|
|
three months ended
|
|
|
twelve months ended
|
|
|
2016
|
2016
|
|
2015
|
|
|
2016
|
2015
|
|
|
Unaudited
|
Oct. 31
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct. 31
|
Oct. 31
|
|
|
Financial results ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
2,110
|
|
$
|
2,113
|
|
$
|
2,043
|
|
|
$
|
8,366
|
|
$
|
7,915
|
|
|
Non-interest income
|
|
1,571
|
|
|
2,023
|
|
|
1,440
|
|
|
|
6,669
|
|
|
5,941
|
|
|
Total revenue
|
|
3,681
|
|
|
4,136
|
|
|
3,483
|
|
|
|
15,035
|
|
|
13,856
|
|
|
Provision for credit losses
|
|
222
|
|
|
243
|
|
|
198
|
|
|
|
1,051
|
|
|
771
|
|
|
Non-interest expenses
|
|
2,347
|
|
|
2,218
|
|
|
2,383
|
|
|
|
8,971
|
|
|
8,861
|
|
|
Income before income taxes
|
|
1,112
|
|
|
1,675
|
|
|
902
|
|
|
|
5,013
|
|
|
4,224
|
|
|
Income taxes
|
|
181
|
|
|
234
|
|
|
124
|
|
|
|
718
|
|
|
634
|
|
|
Net income
|
$
|
931
|
|
$
|
1,441
|
|
$
|
778
|
|
|
$
|
4,295
|
|
$
|
3,590
|
|
|
Net income attributable to non-controlling interests
|
|
4
|
|
|
6
|
|
|
2
|
|
|
|
20
|
|
|
14
|
|
|
Preferred shareholders
|
|
10
|
|
|
9
|
|
|
9
|
|
|
|
38
|
|
|
45
|
|
|
Common shareholders
|
|
917
|
|
|
1,426
|
|
|
767
|
|
|
|
4,237
|
|
|
3,531
|
|
|
Net income attributable to equity shareholders
|
$
|
927
|
|
$
|
1,435
|
|
$
|
776
|
|
|
$
|
4,275
|
|
$
|
3,576
|
|
|
Financial measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported efficiency ratio
|
|
63.8
|
%
|
|
53.6
|
%
|
|
68.4
|
%
|
|
|
59.7
|
%
|
|
63.9
|
%
|
|
Adjusted efficiency ratio (1)
|
|
58.2
|
%
|
|
57.8
|
%
|
|
60.4
|
%
|
|
|
58.0
|
%
|
|
59.6
|
%
|
|
Loan loss ratio (2)
|
|
0.27
|
%
|
|
0.32
|
%
|
|
0.26
|
%
|
|
|
0.31
|
%
|
|
0.27
|
%
|
|
Reported return on common shareholders' equity
|
|
16.8
|
%
|
|
26.8
|
%
|
|
15.1
|
%
|
|
|
19.9
|
%
|
|
18.7
|
%
|
|
Adjusted return on common shareholders' equity (1)
|
|
18.8
|
%
|
|
19.8
|
%
|
|
18.5
|
%
|
|
|
19.0
|
%
|
|
19.9
|
%
|
|
Net interest margin
|
|
1.59
|
%
|
|
1.64
|
%
|
|
1.70
|
%
|
|
|
1.64
|
%
|
|
1.74
|
%
|
|
Net interest margin on average interest-earning assets
|
|
1.81
|
%
|
|
1.87
|
%
|
|
1.95
|
%
|
|
|
1.88
|
%
|
|
2.00
|
%
|
|
Return on average assets
|
|
0.70
|
%
|
|
1.12
|
%
|
|
0.65
|
%
|
|
|
0.84
|
%
|
|
0.79
|
%
|
|
Return on average interest-earning assets
|
|
0.80
|
%
|
|
1.28
|
%
|
|
0.74
|
%
|
|
|
0.96
|
%
|
|
0.91
|
%
|
|
Total shareholder return
|
|
2.54
|
%
|
|
(0.94)
|
%
|
|
8.61
|
%
|
|
|
5.19
|
%
|
|
1.96
|
%
|
|
Reported effective tax rate
|
|
16.2
|
%
|
|
14.0
|
%
|
|
13.7
|
%
|
|
|
14.3
|
%
|
|
15.0
|
%
|
|
Adjusted effective tax rate (1)
|
|
17.5
|
%
|
|
15.4
|
%
|
|
15.5
|
%
|
|
|
16.6
|
%
|
|
15.5
|
%
|
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share ($)
|
- basic earnings
|
$
|
2.32
|
|
$
|
3.61
|
|
$
|
1.93
|
|
|
$
|
10.72
|
|
$
|
8.89
|
|
|
|
- reported diluted earnings
|
|
2.32
|
|
|
3.61
|
|
|
1.93
|
|
|
|
10.70
|
|
|
8.87
|
|
|
|
- adjusted diluted earnings (1)
|
|
2.60
|
|
|
2.67
|
|
|
2.36
|
|
|
|
10.22
|
|
|
9.45
|
|
|
|
- dividends
|
|
1.21
|
|
|
1.21
|
|
|
1.12
|
|
|
|
4.75
|
|
|
4.30
|
|
|
|
- book value
|
|
56.59
|
|
|
54.54
|
|
|
51.25
|
|
|
|
56.59
|
|
|
51.25
|
|
|
Share price ($)
|
- high
|
|
104.46
|
|
|
104.19
|
|
|
102.74
|
|
|
|
104.46
|
|
|
107.16
|
|
|
|
- low
|
|
97.51
|
|
|
96.84
|
|
|
86.00
|
|
|
|
83.33
|
|
|
86.00
|
|
|
|
- closing
|
|
100.50
|
|
|
99.19
|
|
|
100.28
|
|
|
|
100.50
|
|
|
100.28
|
|
|
Shares outstanding (thousands)
|
- weighted-average basic
|
|
395,181
|
|
|
394,753
|
|
|
397,253
|
|
|
|
395,389
|
|
|
397,213
|
|
|
|
- weighted-average diluted
|
|
395,750
|
|
|
395,328
|
|
|
397,838
|
|
|
|
395,919
|
|
|
397,832
|
|
|
|
- end of period
|
|
397,070
|
|
|
394,838
|
|
|
397,291
|
|
|
|
397,070
|
|
|
397,291
|
|
|
Market capitalization ($ millions)
|
$
|
39,906
|
|
$
|
39,164
|
|
$
|
39,840
|
|
|
$
|
39,906
|
|
$
|
39,840
|
|
|
Value measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend yield (based on closing share price)
|
|
4.8
|
%
|
|
4.9
|
%
|
|
4.4
|
%
|
|
|
4.7
|
%
|
|
4.3
|
%
|
|
Reported dividend payout ratio
|
|
52.2
|
%
|
|
33.5
|
%
|
|
58.0
|
%
|
|
|
44.3
|
%
|
|
48.4
|
%
|
|
Adjusted dividend payout ratio (1)
|
|
46.6
|
%
|
|
45.2
|
%
|
|
47.4
|
%
|
|
|
46.4
|
%
|
|
45.4
|
%
|
|
Market value to book value ratio
|
|
1.78
|
|
|
1.82
|
|
|
1.96
|
|
|
|
1.78
|
|
|
1.96
|
|
|
On- and off-balance sheet information ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, deposits with banks and securities
|
$
|
101,588
|
|
$
|
98,093
|
|
$
|
93,619
|
|
|
$
|
101,588
|
|
$
|
93,619
|
|
|
Loans and acceptances, net of allowance
|
|
319,781
|
|
|
312,273
|
|
|
290,981
|
|
|
|
319,781
|
|
|
290,981
|
|
|
Total assets
|
|
501,357
|
|
|
494,490
|
|
|
463,309
|
|
|
|
501,357
|
|
|
463,309
|
|
|
Deposits
|
|
395,647
|
|
|
389,573
|
|
|
366,657
|
|
|
|
395,647
|
|
|
366,657
|
|
|
Common shareholders' equity
|
|
22,472
|
|
|
21,533
|
|
|
20,360
|
|
|
|
22,472
|
|
|
20,360
|
|
|
Average assets
|
|
527,702
|
|
|
511,925
|
|
|
476,700
|
|
|
|
509,140
|
|
|
455,324
|
|
|
Average interest-earning assets
|
|
462,970
|
|
|
448,834
|
|
|
415,783
|
|
|
|
445,134
|
|
|
395,616
|
|
|
Average common shareholders' equity
|
|
21,763
|
|
|
21,198
|
|
|
20,122
|
|
|
|
21,275
|
|
|
18,857
|
|
|
Assets under administration (AUA) (3)(4)
|
2,041,887
|
|
1,993,740
|
|
1,846,142
|
|
|
2,041,887
|
|
1,846,142
|
|
|
Assets under management (AUM) (4)
|
183,715
|
|
179,903
|
|
170,465
|
|
|
183,715
|
|
170,465
|
|
|
Balance sheet quality (All-in basis) and liquidity measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets (RWA) ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 (CET1) capital RWA
|
$
|
168,996
|
|
$
|
168,077
|
|
|
156,107
|
|
|
$
|
168,996
|
|
|
156,107
|
|
|
Tier 1 capital RWA
|
|
169,322
|
|
|
168,407
|
|
|
156,401
|
|
|
|
169,322
|
|
|
156,401
|
|
|
Total capital RWA
|
|
169,601
|
|
|
168,690
|
|
|
156,652
|
|
|
|
169,601
|
|
|
156,652
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 ratio
|
|
11.3
|
%
|
|
10.9
|
%
|
|
10.8
|
%
|
|
|
11.3
|
%
|
|
10.8
|
%
|
|
Tier 1 capital ratio
|
|
12.8
|
%
|
|
12.4
|
%
|
|
12.5
|
%
|
|
|
12.8
|
%
|
|
12.5
|
%
|
|
Total capital ratio
|
|
14.8
|
%
|
|
14.4
|
%
|
|
15.0
|
%
|
|
|
14.8
|
%
|
|
15.0
|
%
|
|
Basel III leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio exposure ($ millions)
|
|
545,480
|
|
|
537,172
|
|
|
502,552
|
|
|
|
545,480
|
|
|
502,552
|
|
|
Leverage ratio
|
|
4.0
|
%
|
|
3.9
|
%
|
|
3.9
|
%
|
|
|
4.0
|
%
|
|
3.9
|
%
|
|
Liquidity coverage ratio (LCR)
|
|
124
|
%
|
|
120
|
%
|
|
119
|
%
|
|
|
n/a
|
|
|
n/a
|
|
|
Other information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees
|
|
43,213
|
|
|
43,741
|
|
|
44,201
|
|
|
|
43,213
|
|
|
44,201
|
|
|
(1)
|
For additional information, see the "Non-GAAP measures" section.
|
|
(2)
|
The ratio is calculated as the provision for credit losses on impaired loans
to average loans and acceptances, net of allowance for credit losses.
|
|
(3)
|
Includes the full amount of AUA or custody under a 50/50 joint venture
between CIBC and The Bank of New York Mellon of $1,640.2 billion (July 31, 2016: $1,598.8 billion; October 31, 2015:
$1,465.7 billion).
|
|
(4)
|
AUM amounts are included in the amounts reported under AUA.
|
|
n/a
|
Not applicable.
|
Review of Retail and Business Banking fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
$ millions, for the three months ended
|
|
|
Oct. 31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Personal banking
|
|
$
|
1,825
|
|
$
|
1,779
|
|
$
|
1,743
|
|
|
Business banking
|
|
|
443
|
|
|
435
|
|
|
414
|
|
|
Other
|
|
|
22
|
|
|
11
|
|
|
19
|
|
|
Total revenue
|
|
|
2,290
|
|
|
2,225
|
|
|
2,176
|
|
|
Provision for credit losses
|
|
|
206
|
|
|
197
|
|
|
163
|
|
|
Non-interest expenses
|
|
|
1,149
|
|
|
1,121
|
|
|
1,100
|
|
|
Income before income taxes
|
|
|
935
|
|
|
907
|
|
|
913
|
|
|
Income taxes
|
|
|
248
|
|
|
241
|
|
|
241
|
|
|
Net income
|
|
$
|
687
|
|
$
|
666
|
|
$
|
672
|
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders (a)
|
|
$
|
687
|
|
$
|
666
|
|
$
|
672
|
|
|
Efficiency ratio
|
|
|
50.1
|
%
|
|
50.3
|
%
|
|
50.6
|
%
|
|
Return on equity (2)
|
|
|
49.6
|
%
|
|
50.0
|
%
|
|
54.7
|
%
|
|
Charge for economic capital (2) (b)
|
|
$
|
(135)
|
|
$
|
(129)
|
|
$
|
(146)
|
|
|
Economic profit (2) (a+b)
|
|
$
|
552
|
|
$
|
537
|
|
$
|
526
|
|
|
Full-time equivalent employees
|
|
|
20,280
|
|
|
20,414
|
|
|
21,532
|
|
|
(1)
|
Certain information has been reclassified to conform to the presentation
adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.
|
|
(2)
|
For additional information, see the "Non-GAAP measures" section.
|
Net income was $687 million, up $15 million from the fourth quarter
of 2015. Adjusted net income (2) was $688 million, up $15
million from the fourth quarter of 2015.
Revenue of $2,290 million was up $114 million from the fourth
quarter of 2015. Personal banking and business banking revenue increased primarily due to volume growth across most products and
higher fees.
Provision for credit losses of $206 million was up $43 million from
the fourth quarter of 2015, mainly due to higher losses in business lending, and higher write-offs and bankruptcies in our personal
lending and card portfolios.
Non-interest expenses of $1,149 million were up $49 million from the
fourth quarter of 2015, mainly due to higher spending on strategic initiatives.
Review of Wealth Management fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
$ millions, for the three months ended
|
|
|
|
Oct. 31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail brokerage
|
|
|
$
|
332
|
|
$
|
317
|
|
$
|
317
|
|
|
Asset management
|
|
|
|
190
|
|
|
196
|
|
|
178
|
|
|
Private wealth management
|
|
|
|
98
|
|
|
94
|
|
|
91
|
|
|
Other
|
|
|
|
-
|
|
|
428
|
|
|
21
|
|
|
Total revenue
|
|
|
|
620
|
|
|
1,035
|
|
|
607
|
|
|
Non-interest expenses
|
|
|
|
444
|
|
|
438
|
|
|
447
|
|
|
Income before income taxes
|
|
|
|
176
|
|
|
597
|
|
|
160
|
|
|
Income taxes
|
|
|
|
50
|
|
|
91
|
|
|
38
|
|
|
Net income
|
|
|
$
|
126
|
|
$
|
506
|
|
$
|
122
|
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders (a)
|
|
|
$
|
126
|
|
$
|
506
|
|
$
|
122
|
|
|
Efficiency ratio
|
|
|
|
71.5
|
%
|
|
42.4
|
%
|
|
73.5
|
%
|
|
Return on equity (2)
|
|
|
|
32.4
|
%
|
|
134.1
|
%
|
|
20.2
|
%
|
|
Charge for economic capital (2) (b)
|
|
|
$
|
(38)
|
|
$
|
(37)
|
|
$
|
(71)
|
|
|
Economic profit (2) (a+b)
|
|
|
$
|
88
|
|
$
|
469
|
|
$
|
51
|
|
|
Full-time equivalent employees
|
|
|
|
4,295
|
|
|
4,232
|
|
|
4,350
|
|
|
(1)
|
Certain information has been reclassified to conform to the presentation
adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.
|
|
(2)
|
For additional information, see the "Non-GAAP measures" section.
|
Net income for the quarter was $126 million, up $4 million from the
fourth quarter of 2015. Adjusted net income(2) was $127 million, down $1 million from the fourth quarter of 2015.
Revenue of $620 million was up $13 million from the fourth quarter
of 2015, driven by strong asset growth across all businesses reflecting market appreciation and strong net sales. This was
partially offset by lower revenue due to the sale of ACI, and lower commission revenue in full-service brokerage due to a decline
in transactional volumes.
Non-interest expenses of $444 million were down $3 million from the
fourth quarter of 2015, primarily due to lower employee-related costs including performance-based compensation.
Review of Capital Markets fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
$ millions, for the three months ended
|
|
|
|
Oct. 31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Global markets
|
|
|
$
|
365
|
|
$
|
415
|
|
$
|
271
|
|
|
Corporate and investment banking
|
|
|
|
313
|
|
|
364
|
|
|
302
|
|
|
Other
|
|
|
|
(5)
|
|
|
30
|
|
|
(2)
|
|
|
Total revenue (2)
|
|
|
|
673
|
|
|
809
|
|
|
571
|
|
|
Provision for credit losses
|
|
|
|
-
|
|
|
47
|
|
|
22
|
|
|
Non-interest expenses
|
|
|
|
333
|
|
|
370
|
|
|
326
|
|
|
Income before income taxes
|
|
|
|
340
|
|
|
392
|
|
|
223
|
|
|
Income taxes (2)
|
|
|
|
64
|
|
|
88
|
|
|
42
|
|
|
Net income
|
|
|
$
|
276
|
|
$
|
304
|
|
$
|
181
|
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders (a)
|
|
|
$
|
276
|
|
$
|
304
|
|
$
|
181
|
|
|
Efficiency ratio
|
|
|
|
49.4
|
%
|
|
45.7
|
%
|
|
57.1
|
%
|
|
Return on equity (3)
|
|
|
|
31.1
|
%
|
|
33.4
|
%
|
|
25.5
|
%
|
|
Charge for economic capital (3) (b)
|
|
|
$
|
(86)
|
|
$
|
(88)
|
|
$
|
(84)
|
|
|
Economic profit (3) (a+b)
|
|
|
$
|
190
|
|
$
|
216
|
|
$
|
97
|
|
|
Full-time equivalent employees
|
|
|
|
1,324
|
|
|
1,369
|
|
|
1,342
|
|
|
(1)
|
Certain information has been reclassified to conform to the presentation
adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.
|
|
(2)
|
Revenue and income taxes are reported on a taxable equivalent basis (TEB)
basis. Accordingly, revenue
and income taxes include a TEB adjustment of $97 million for the quarter ended October 31, 2016
(July 31, 2016: $142 million; October 31, 2015: $91 million).
|
|
(3)
|
For additional information, see the "Non-GAAP measures" section.
|
Net income for the quarter was $276 million, compared with net income of $181 million for the fourth quarter of 2015. Adjusted net income(3) for the quarter was $283 million, compared with $183 million for the prior year quarter.
Revenue of $673 million was up $102 million from the fourth quarter
of 2015. In global markets, higher commodities, interest rate and equity trading revenue, and higher global markets financing
activity were partially offset by lower foreign exchange trading revenue. In corporate and investment banking, higher corporate
banking and equity underwriting revenue was partially offset by lower debt underwriting and advisory revenue, and higher investment
portfolio write-downs.
Provision for credit losses was nil, compared with $22 million in the fourth quarter of 2015,
mainly due to lower losses in the oil and gas sector.
Non-interest expenses of $333 million were up $7 million from the
fourth quarter of 2015, as higher spending on strategic initiatives was largely offset by lower performance-related
compensation.
Review of Corporate and Other fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
2016
|
2016
|
2015
|
|
|
$ millions, for the three months ended
|
|
|
Oct. 31
|
Jul. 31
|
Oct. 31
|
(1)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
International banking
|
|
|
$
|
176
|
$
|
176
|
$
|
180
|
|
|
Other
|
|
|
|
(78)
|
|
(109)
|
|
(51)
|
|
|
Total revenue (2)
|
|
|
|
98
|
|
67
|
|
129
|
|
|
Provision for (reversal of) credit losses
|
|
|
|
16
|
|
(1)
|
|
13
|
|
|
Non-interest expenses
|
|
|
|
421
|
|
289
|
|
510
|
|
|
Loss before income taxes
|
|
|
|
(339)
|
|
(221)
|
|
(394)
|
|
|
Income taxes (2)
|
|
|
|
(181)
|
|
(186)
|
|
(197)
|
|
|
Net loss
|
|
|
$
|
(158)
|
$
|
(35)
|
$
|
(197)
|
|
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
$
|
4
|
$
|
6
|
$
|
2
|
|
|
Equity shareholders
|
|
|
|
(162)
|
|
(41)
|
|
(199)
|
|
|
Full-time equivalent employees
|
|
|
|
17,314
|
|
17,726
|
|
16,977
|
|
|
(1)
|
Certain information has been reclassified to conform to the presentation
adopted in the current year.
See the "External reporting changes" section of the MD&A for additional details.
|
|
(2)
|
TEB adjusted. See footnote 2 in the "Capital Markets" section for additional
details.
|
|
(3)
|
For additional information, see the "Non-GAAP measures" section.
|
Net loss for the quarter was $158 million, compared with a net loss of $197
million in the same quarter last year, primarily due to lower non-interest expenses. Adjusted net loss (3) for
the quarter was $57 million, compared with a net loss of $32 million
for the prior year quarter.
Revenue of $98 million was down $31 million from the fourth quarter
of 2015, primarily due to lower Treasury revenue.
Provision for credit losses was comparable with the fourth quarter of 2015.
Non-interest expenses of $421 million were down $89 million from the
fourth quarter of 2015, as the prior year included higher restructuring charges primarily relating to employee severance, shown as
items of note in both years.
Income tax benefit was down $16 million from the fourth quarter of 2015, mainly due to the tax
impact of the restructuring charges noted above.
Consolidated balance sheet
|
|
|
|
|
|
|
$ millions, as at October 31
|
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
Cash and non-interest-bearing deposits with banks
|
|
$
|
3,500
|
$
|
3,053
|
|
Interest-bearing deposits with banks
|
|
|
10,665
|
|
15,584
|
|
Securities
|
|
|
|
|
|
|
Trading
|
|
|
49,915
|
|
46,181
|
|
Available-for-sale (AFS)
|
|
|
37,253
|
|
28,534
|
|
Designated at fair value (FVO)
|
|
|
255
|
|
267
|
|
|
|
87,423
|
|
74,982
|
|
Cash collateral on securities borrowed
|
|
|
5,433
|
|
3,245
|
|
Securities purchased under resale agreements
|
|
|
28,377
|
|
30,089
|
|
Loans
|
|
|
|
|
|
|
Residential mortgages
|
|
|
187,298
|
|
169,258
|
|
Personal
|
|
|
38,041
|
|
36,517
|
|
Credit card
|
|
|
12,332
|
|
11,804
|
|
Business and government
|
|
|
71,437
|
|
65,276
|
|
Allowance for credit losses
|
|
|
(1,691)
|
|
(1,670)
|
|
|
|
307,417
|
|
281,185
|
|
Other
|
|
|
|
|
|
|
Derivative instruments
|
|
|
27,762
|
|
26,342
|
|
Customers' liability under acceptances
|
|
|
12,364
|
|
9,796
|
|
Land, buildings and equipment
|
|
|
1,898
|
|
1,897
|
|
Goodwill
|
|
|
1,539
|
|
1,526
|
|
Software and other intangible assets
|
|
|
1,410
|
|
1,197
|
|
Investments in equity-accounted associates and joint ventures
|
|
|
766
|
|
1,847
|
|
Deferred tax assets
|
|
|
771
|
|
507
|
|
Other assets
|
|
|
12,032
|
|
12,059
|
|
|
|
58,542
|
|
55,171
|
|
|
$
|
501,357
|
$
|
463,309
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Personal
|
|
$
|
148,081
|
$
|
137,378
|
|
Business and government
|
|
|
190,240
|
|
178,850
|
|
Bank
|
|
|
17,842
|
|
10,785
|
|
Secured borrowings
|
|
|
39,484
|
|
39,644
|
|
|
|
395,647
|
|
366,657
|
|
Obligations related to securities sold short
|
|
|
10,338
|
|
9,806
|
|
Cash collateral on securities lent
|
|
|
2,518
|
|
1,429
|
|
Obligations related to securities sold under repurchase
agreements
|
|
|
11,694
|
|
8,914
|
|
Other
|
|
|
|
|
|
|
Derivative instruments
|
|
|
28,807
|
|
29,057
|
|
Acceptances
|
|
|
12,395
|
|
9,796
|
|
Deferred tax liabilities
|
|
|
21
|
|
28
|
|
Other liabilities
|
|
|
12,898
|
|
12,195
|
|
|
|
54,121
|
|
51,076
|
|
Subordinated indebtedness
|
|
|
3,366
|
|
3,874
|
|
Equity
|
|
|
|
|
|
|
Preferred shares
|
|
|
1,000
|
|
1,000
|
|
Common shares
|
|
|
8,026
|
|
7,813
|
|
Contributed surplus
|
|
|
72
|
|
76
|
|
Retained earnings
|
|
|
13,584
|
|
11,433
|
|
Accumulated other comprehensive income (AOCI)
|
|
|
790
|
|
1,038
|
|
Total shareholders' equity
|
|
|
23,472
|
|
21,360
|
|
Non-controlling interests
|
|
|
201
|
|
193
|
|
Total equity
|
|
|
23,673
|
|
21,553
|
|
|
$
|
501,357
|
$
|
463,309
|
Consolidated statement of income
|
For the three
|
|
For the twelve
|
|
months ended
|
|
months ended
|
|
2016
|
2016
|
2015
|
|
2016
|
2015
|
|
$ millions, except as noted
|
Oct. 31
|
Jul. 31
|
Oct. 31
|
|
Oct. 31
|
Oct. 31
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
2,531
|
$
|
2,492
|
$
|
2,385
|
|
$
|
9,833
|
$
|
9,573
|
|
Securities
|
|
457
|
|
446
|
|
385
|
|
|
1,774
|
|
1,524
|
|
Securities borrowed or purchased under resale agreements
|
|
90
|
|
86
|
|
60
|
|
|
329
|
|
310
|
|
Deposits with banks
|
|
37
|
|
44
|
|
23
|
|
|
156
|
|
76
|
|
|
3,115
|
|
3,068
|
|
2,853
|
|
|
12,092
|
|
11,483
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
878
|
|
814
|
|
680
|
|
|
3,215
|
|
2,990
|
|
Securities sold short
|
|
45
|
|
57
|
|
52
|
|
|
199
|
|
230
|
|
Securities lent or sold under repurchase agreements
|
|
36
|
|
36
|
|
23
|
|
|
127
|
|
110
|
|
Subordinated indebtedness
|
|
35
|
|
37
|
|
39
|
|
|
137
|
|
181
|
|
Other
|
|
11
|
|
11
|
|
16
|
|
|
48
|
|
57
|
|
|
1,005
|
|
955
|
|
810
|
|
|
3,726
|
|
3,568
|
|
Net interest income
|
|
2,110
|
|
2,113
|
|
2,043
|
|
|
8,366
|
|
7,915
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting and advisory fees
|
|
103
|
|
142
|
|
100
|
|
|
446
|
|
427
|
|
Deposit and payment fees
|
|
207
|
|
206
|
|
208
|
|
|
832
|
|
830
|
|
Credit fees
|
|
166
|
|
169
|
|
140
|
|
|
638
|
|
533
|
|
Card fees
|
|
125
|
|
115
|
|
115
|
|
|
470
|
|
449
|
|
Investment management and custodial fees
|
|
233
|
|
223
|
|
208
|
|
|
882
|
|
814
|
|
Mutual fund fees
|
|
378
|
|
369
|
|
363
|
|
|
1,462
|
|
1,457
|
|
Insurance fees, net of claims
|
|
97
|
|
99
|
|
103
|
|
|
396
|
|
361
|
|
Commissions on securities transactions
|
|
83
|
|
87
|
|
88
|
|
|
342
|
|
385
|
|
Trading income (loss)
|
|
(32)
|
|
(28)
|
|
(114)
|
|
|
(88)
|
|
(139)
|
|
AFS securities gains, net
|
|
6
|
|
46
|
|
19
|
|
|
73
|
|
138
|
|
FVO gains (losses), net
|
|
10
|
|
(6)
|
|
19
|
|
|
17
|
|
(3)
|
|
Foreign exchange other than trading
|
|
53
|
|
201
|
|
46
|
|
|
367
|
|
92
|
|
Income from equity-accounted associates and joint ventures
|
|
24
|
|
23
|
|
37
|
|
|
96
|
|
177
|
|
Other
|
|
118
|
|
377
|
|
108
|
|
|
736
|
|
420
|
|
|
1,571
|
|
2,023
|
|
1,440
|
|
|
6,669
|
|
5,941
|
|
Total revenue
|
|
3,681
|
|
4,136
|
|
3,483
|
|
|
15,035
|
|
13,856
|
|
Provision for credit losses
|
|
222
|
|
243
|
|
198
|
|
|
1,051
|
|
771
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
|
1,292
|
|
1,274
|
|
1,379
|
|
|
4,982
|
|
5,099
|
|
Occupancy costs
|
|
209
|
|
196
|
|
209
|
|
|
804
|
|
782
|
|
Computer, software and office equipment
|
|
393
|
|
344
|
|
335
|
|
|
1,398
|
|
1,292
|
|
Communications
|
|
75
|
|
75
|
|
80
|
|
|
319
|
|
326
|
|
Advertising and business development
|
|
77
|
|
66
|
|
80
|
|
|
269
|
|
281
|
|
Professional fees
|
|
61
|
|
51
|
|
78
|
|
|
201
|
|
230
|
|
Business and capital taxes
|
|
18
|
|
14
|
|
16
|
|
|
68
|
|
68
|
|
Other
|
|
222
|
|
198
|
|
206
|
|
|
930
|
|
783
|
|
|
2,347
|
|
2,218
|
|
2,383
|
|
|
8,971
|
|
8,861
|
|
Income before income taxes
|
|
1,112
|
|
1,675
|
|
902
|
|
|
5,013
|
|
4,224
|
|
Income taxes
|
|
181
|
|
234
|
|
124
|
|
|
718
|
|
634
|
|
Net income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
|
Net income attributable to non-controlling interests
|
$
|
4
|
$
|
6
|
$
|
2
|
|
$
|
20
|
$
|
14
|
|
Preferred shareholders
|
$
|
10
|
$
|
9
|
$
|
9
|
|
$
|
38
|
$
|
45
|
|
Common shareholders
|
|
917
|
|
1,426
|
|
767
|
|
|
4,237
|
|
3,531
|
|
Net income attributable to equity shareholders
|
$
|
927
|
$
|
1,435
|
$
|
776
|
|
$
|
4,275
|
$
|
3,576
|
|
Earnings per share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.32
|
$
|
3.61
|
$
|
1.93
|
|
$
|
10.72
|
$
|
8.89
|
|
Diluted
|
|
2.32
|
|
3.61
|
|
1.93
|
|
|
10.70
|
|
8.87
|
|
Dividends per common share (in dollars)
|
|
1.21
|
|
1.21
|
|
1.12
|
|
|
4.75
|
|
4.30
|
Consolidated statement of comprehensive income
|
|
For the three
|
|
|
For the twelve
|
|
|
months ended
|
|
|
months ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
$ millions
|
|
Oct. 31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct. 31
|
|
Oct. 31
|
|
Net income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
|
Other comprehensive income (OCI), net of income tax, that is
subject
|
|
|
|
|
|
|
|
|
|
|
|
|
to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments in foreign operations
|
|
606
|
|
327
|
|
2
|
|
|
487
|
|
1,445
|
|
Net (gains) losses on investments in foreign operations
reclassified to net income
|
|
-
|
|
(254)
|
|
-
|
|
|
(272)
|
|
(21)
|
|
Net gains (losses) on hedges of investments in foreign
operations
|
|
(383)
|
|
(100)
|
|
(2)
|
|
|
(257)
|
|
(720)
|
|
Net (gains) losses on hedges of investments in foreign
operations reclassified
to net income
|
|
-
|
|
113
|
|
-
|
|
|
121
|
|
18
|
|
|
|
223
|
|
86
|
|
-
|
|
|
79
|
|
722
|
|
Net change in AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on AFS securities
|
|
14
|
|
73
|
|
(71)
|
|
|
125
|
|
(67)
|
|
Net (gains) losses on AFS securities reclassified to net income
|
|
(5)
|
|
(33)
|
|
(15)
|
|
|
(58)
|
|
(97)
|
|
|
|
9
|
|
40
|
|
(86)
|
|
|
67
|
|
(164)
|
|
Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on derivatives designated as cash flow hedges
|
|
8
|
|
1
|
|
35
|
|
|
13
|
|
(7)
|
|
Net (gains) losses on derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net income
|
|
(11)
|
|
7
|
|
(29)
|
|
|
(12)
|
|
3
|
|
|
(3)
|
|
8
|
|
6
|
|
|
1
|
|
(4)
|
|
OCI, net of income tax, that is not subject to subsequent reclassification
to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on post-employment defined benefit plans
|
|
55
|
|
(148)
|
|
240
|
|
|
(390)
|
|
374
|
|
Net fair value change of FVO liabilities attributable to changes
in credit risk
|
|
(3)
|
|
1
|
|
7
|
|
|
(5)
|
|
5
|
|
Total OCI
|
|
281
|
|
(13)
|
|
167
|
|
|
(248)
|
|
933
|
|
Comprehensive income
|
$
|
1,212
|
$
|
1,428
|
$
|
945
|
|
$
|
4,047
|
$
|
4,523
|
|
Comprehensive income attributable to non-controlling interests
|
$
|
4
|
$
|
6
|
$
|
2
|
|
$
|
20
|
$
|
14
|
|
Preferred shareholders
|
$
|
10
|
$
|
9
|
$
|
9
|
|
$
|
38
|
$
|
45
|
|
Common shareholders
|
|
1,198
|
|
1,413
|
|
934
|
|
|
3,989
|
|
4,464
|
|
Comprehensive income attributable to equity shareholders
|
$
|
1,208
|
$
|
1,422
|
$
|
943
|
|
$
|
4,027
|
$
|
4,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
|
|
|
For the twelve
|
|
|
|
months ended
|
|
|
months ended
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
$ millions
|
|
Oct. 31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct. 31
|
|
Oct. 31
|
|
Income tax (expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
Subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on investments in foreign operations
|
$
|
(19)
|
$
|
(34)
|
$
|
-
|
|
$
|
(17)
|
$
|
(118)
|
|
Net (gains) losses investments in foreign operations reclassified
to net income
|
|
-
|
|
37
|
|
-
|
|
|
37
|
|
3
|
|
Net gains (losses) on hedges of investments in foreign operations
|
|
69
|
|
60
|
|
1
|
|
|
128
|
|
91
|
|
Net (gains) losses on hedges of investments in foreign operations
reclassified to net income
|
|
-
|
|
(23)
|
|
-
|
|
|
(26)
|
|
(6)
|
|
|
|
50
|
|
40
|
|
1
|
|
|
122
|
|
(30)
|
|
Net change in AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on AFS securities
|
|
(6)
|
|
(16)
|
|
18
|
|
|
(24)
|
|
42
|
|
Net (gains) losses on AFS securities reclassified to net income
|
|
1
|
|
13
|
|
5
|
|
|
15
|
|
48
|
|
|
|
(5)
|
|
(3)
|
|
23
|
|
|
(9)
|
|
90
|
|
Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on derivatives designated as cash flow hedges
|
|
(3)
|
|
(1)
|
|
(13)
|
|
|
(5)
|
|
2
|
|
Net (gains) losses on derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net income
|
|
4
|
|
(2)
|
|
10
|
|
|
5
|
|
(2)
|
|
|
|
1
|
|
(3)
|
|
(3)
|
|
|
-
|
|
-
|
|
Not subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on post-employment defined benefit plans
|
|
(13)
|
|
54
|
|
(79)
|
|
|
149
|
|
(129)
|
|
Net fair value change of FVO liabilities attributable to changes
in credit risk
|
|
-
|
|
-
|
|
(2)
|
|
|
1
|
|
(1)
|
|
|
$
|
33
|
$
|
88
|
$
|
(60)
|
|
$
|
263
|
$
|
(70)
|
Consolidated statement of changes in equity
|
|
For the three
|
|
For the twelve
|
|
|
months ended
|
|
months ended
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
$ millions
|
|
Oct. 31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct. 31
|
|
Oct. 31
|
|
Preferred shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
|
$
|
1,000
|
$
|
1,031
|
|
Issue of preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
600
|
|
Redemption of preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(631)
|
|
Balance at end of period
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
|
$
|
1,000
|
$
|
1,000
|
|
Common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
7,806
|
$
|
7,792
|
$
|
7,800
|
|
$
|
7,813
|
$
|
7,782
|
|
Issue of common shares
|
|
212
|
|
23
|
|
8
|
|
|
273
|
|
30
|
|
Purchase of common shares for cancellation
|
|
-
|
|
-
|
|
(2)
|
|
|
(61)
|
|
(2)
|
|
Treasury shares
|
|
8
|
|
(9)
|
|
7
|
|
|
1
|
|
3
|
|
Balance at end of period
|
$
|
8,026
|
$
|
7,806
|
$
|
7,813
|
|
$
|
8,026
|
$
|
7,813
|
|
Contributed surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
73
|
$
|
74
|
$
|
79
|
|
$
|
76
|
$
|
75
|
|
Stock option expense
|
|
2
|
|
1
|
|
1
|
|
|
5
|
|
5
|
|
Stock options exercised
|
|
(2)
|
|
(2)
|
|
(1)
|
|
|
(9)
|
|
(4)
|
|
Other
|
|
(1)
|
|
-
|
|
(3)
|
|
|
-
|
|
-
|
|
Balance at end of period
|
$
|
72
|
$
|
73
|
$
|
76
|
|
$
|
72
|
$
|
76
|
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
13,145
|
$
|
12,197
|
$
|
11,119
|
|
$
|
11,433
|
$
|
9,626
|
|
Net income attributable to equity shareholders
|
|
927
|
|
1,435
|
|
776
|
|
|
4,275
|
|
3,576
|
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
(10)
|
|
(9)
|
|
(9)
|
|
|
(38)
|
|
(45)
|
|
Common
|
|
(478)
|
|
(478)
|
|
(445)
|
|
|
(1,879)
|
|
(1,708)
|
|
Premium on purchase of common shares for cancellation
|
|
-
|
|
-
|
|
(9)
|
|
|
(209)
|
|
(9)
|
|
Other
|
|
-
|
|
-
|
|
1
|
|
|
2
|
|
(7)
|
|
Balance at end of period
|
$
|
13,584
|
$
|
13,145
|
$
|
11,433
|
|
$
|
13,584
|
$
|
11,433
|
|
AOCI, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
AOCI, net of income tax, that is subject to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
891
|
$
|
805
|
$
|
1,035
|
|
$
|
1,035
|
$
|
313
|
|
Net change in foreign currency translation adjustments
|
|
223
|
|
86
|
|
-
|
|
|
79
|
|
722
|
|
Balance at end of period
|
$
|
1,114
|
$
|
891
|
$
|
1,035
|
|
$
|
1,114
|
$
|
1,035
|
|
Net gains (losses) on AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
152
|
$
|
112
|
$
|
180
|
|
$
|
94
|
$
|
258
|
|
Net change in AFS securities
|
|
9
|
|
40
|
|
(86)
|
|
|
67
|
|
(164)
|
|
Balance at end of period
|
$
|
161
|
$
|
152
|
$
|
94
|
|
$
|
161
|
$
|
94
|
|
Net gains (losses) on cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
26
|
$
|
18
|
$
|
16
|
|
$
|
22
|
$
|
26
|
|
Net change in cash flow hedges
|
|
(3)
|
|
8
|
|
6
|
|
|
1
|
|
(4)
|
|
Balance at end of period
|
$
|
23
|
$
|
26
|
$
|
22
|
|
$
|
23
|
$
|
22
|
|
AOCI, net of income tax, that is not subject to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on post-employment defined
benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
(563)
|
$
|
(415)
|
$
|
(358)
|
|
$
|
(118)
|
$
|
(492)
|
|
Net change in post-employment defined benefit plans
|
|
55
|
|
(148)
|
|
240
|
|
|
(390)
|
|
374
|
|
Balance at end of period
|
$
|
(508)
|
$
|
(563)
|
$
|
(118)
|
|
$
|
(508)
|
$
|
(118)
|
|
Net fair value change of FVO liabilities attributable to
changes in credit risk
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
3
|
$
|
2
|
$
|
(2)
|
|
$
|
5
|
$
|
-
|
|
Net change attributable to changes in credit risk
|
|
(3)
|
|
1
|
|
7
|
|
|
(5)
|
|
5
|
|
Balance at end of period
|
$
|
-
|
$
|
3
|
$
|
5
|
|
$
|
-
|
$
|
5
|
|
Total AOCI, net of income tax
|
$
|
790
|
$
|
509
|
$
|
1,038
|
|
$
|
790
|
$
|
1,038
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
$
|
188
|
$
|
187
|
$
|
194
|
|
$
|
193
|
$
|
164
|
|
Net income (loss) attributable to non-controlling interests
|
|
4
|
|
6
|
|
2
|
|
|
20
|
|
14
|
|
Dividends
|
|
-
|
|
(4)
|
|
-
|
|
|
(19)
|
|
(5)
|
|
Other
|
|
9
|
|
(1)
|
|
(3)
|
|
|
7
|
|
20
|
|
Balance at end of period
|
$
|
201
|
$
|
188
|
$
|
193
|
|
$
|
201
|
$
|
193
|
|
Equity at end of period
|
$
|
23,673
|
$
|
22,721
|
$
|
21,553
|
|
$
|
23,673
|
$
|
21,553
|
Consolidated statement of cash flows
|
|
For the three
|
|
|
For the twelve
|
|
|
months ended
|
|
|
months ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
$ millions
|
|
Oct. 31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct. 31
|
|
Oct. 31
|
|
Cash flows provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
|
Adjustments to reconcile net income to cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses
|
|
222
|
|
243
|
|
198
|
|
|
1,051
|
|
771
|
|
Amortization and impairment (1)
|
|
129
|
|
115
|
|
109
|
|
|
462
|
|
435
|
|
Stock option expense
|
|
2
|
|
1
|
|
1
|
|
|
5
|
|
5
|
|
Deferred income taxes
|
|
14
|
|
51
|
|
(11)
|
|
|
(20)
|
|
(61)
|
|
AFS securities gains, net
|
|
(6)
|
|
(46)
|
|
(19)
|
|
|
(73)
|
|
(138)
|
|
Net losses (gains) on disposal of land, buildings
and equipment
|
|
(11)
|
|
(2)
|
|
(4)
|
|
|
(72)
|
|
(2)
|
|
Other non-cash items, net
|
|
(93)
|
|
(459)
|
|
(27)
|
|
|
(692)
|
|
(257)
|
|
Net changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks
|
|
(479)
|
|
(1,552)
|
|
1,293
|
|
|
4,919
|
|
(4,731)
|
|
|
Loans, net of repayments
|
|
(9,003)
|
|
(8,344)
|
|
(4,104)
|
|
|
(27,464)
|
|
(22,610)
|
|
|
Deposits, net of withdrawals
|
|
6,277
|
|
20,148
|
|
5,847
|
|
|
28,440
|
|
40,510
|
|
|
Obligations related to securities sold short
|
|
905
|
|
(192)
|
|
(1,591)
|
|
|
532
|
|
(3,193)
|
|
|
Accrued interest receivable
|
|
(49)
|
|
34
|
|
(95)
|
|
|
(98)
|
|
(112)
|
|
|
Accrued interest payable
|
|
194
|
|
(130)
|
|
263
|
|
|
(72)
|
|
(77)
|
|
|
Derivative assets
|
|
768
|
|
208
|
|
3,675
|
|
|
(1,425)
|
|
(5,655)
|
|
|
Derivative liabilities
|
|
(1,386)
|
|
(2,548)
|
|
(2,815)
|
|
|
(232)
|
|
7,204
|
|
|
Trading securities
|
|
(746)
|
|
(2,971)
|
|
1,368
|
|
|
(3,734)
|
|
880
|
|
|
FVO securities
|
|
7
|
|
(7)
|
|
3
|
|
|
12
|
|
(14)
|
|
|
Other FVO assets and liabilities
|
|
15
|
|
527
|
|
421
|
|
|
807
|
|
327
|
|
|
Current income taxes
|
|
(20)
|
|
19
|
|
30
|
|
|
8
|
|
140
|
|
|
Cash collateral on securities lent
|
|
(212)
|
|
416
|
|
(138)
|
|
|
1,089
|
|
526
|
|
|
Obligations related to securities sold under
repurchase agreements
|
|
1,056
|
|
(3,781)
|
|
812
|
|
|
2,780
|
|
(948)
|
|
|
Cash collateral on securities borrowed
|
|
(116)
|
|
(871)
|
|
114
|
|
|
(2,188)
|
|
144
|
|
|
Securities purchased under resale agreements
|
|
2,766
|
|
133
|
|
(2,098)
|
|
|
1,712
|
|
3,318
|
|
|
Other, net
|
|
1,409
|
|
(886)
|
|
(92)
|
|
|
169
|
|
(569)
|
|
|
|
|
2,574
|
|
1,547
|
|
3,918
|
|
|
10,211
|
|
19,483
|
|
Cash flows provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of subordinated indebtedness
|
|
-
|
|
-
|
|
-
|
|
|
1,000
|
|
-
|
|
Redemption/repurchase/maturity of subordinated indebtedness
|
|
(14)
|
|
-
|
|
-
|
|
|
(1,514)
|
|
(1,130)
|
|
Issue of preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
600
|
|
Redemption of preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(631)
|
|
Issue of common shares for cash
|
|
210
|
|
21
|
|
7
|
|
|
264
|
|
26
|
|
Purchase of common shares for cancellation
|
|
-
|
|
-
|
|
(11)
|
|
|
(270)
|
|
(11)
|
|
Net proceeds from treasury shares
|
|
8
|
|
(9)
|
|
7
|
|
|
1
|
|
3
|
|
Dividends paid
|
|
(488)
|
|
(487)
|
|
(454)
|
|
|
(1,917)
|
|
(1,753)
|
|
Share issuance costs
|
|
-
|
|
-
|
|
1
|
|
|
-
|
|
(7)
|
|
|
|
|
(284)
|
|
(475)
|
|
(450)
|
|
|
(2,436)
|
|
(2,903)
|
|
Cash flows provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of AFS securities
|
|
(6,380)
|
|
(7,883)
|
|
(15,709)
|
|
|
(31,625)
|
|
(41,145)
|
|
Proceeds from sale of AFS securities
|
|
1,755
|
|
2,370
|
|
1,450
|
|
|
10,750
|
|
9,264
|
|
Proceeds from maturity of AFS securities
|
|
2,925
|
|
3,204
|
|
10,738
|
|
|
12,299
|
|
15,451
|
|
Net cash provided by dispositions
|
|
-
|
|
1,363
|
|
-
|
|
|
1,363
|
|
185
|
|
Net purchase of land, buildings and equipment
|
|
(75)
|
|
(66)
|
|
(91)
|
|
|
(170)
|
|
(256)
|
|
|
|
|
(1,775)
|
|
(1,012)
|
|
(3,612)
|
|
|
(7,383)
|
|
(16,501)
|
|
Effect of exchange rate changes on cash and non-interest-
bearing deposits with banks
|
|
43
|
|
61
|
|
(1)
|
|
|
55
|
|
280
|
|
Net increase (decrease) in cash and non-interest-bearing
deposits with banks
|
|
|
|
|
|
|
|
|
|
|
|
|
during period
|
|
558
|
|
121
|
|
(145)
|
|
|
447
|
|
359
|
|
Cash and non-interest-bearing deposits with banks at
beginning of period
|
|
2,942
|
|
2,821
|
|
3,198
|
|
|
3,053
|
|
2,694
|
|
Cash and non-interest-bearing deposits with banks at
end of period (2)
|
$
|
3,500
|
$
|
2,942
|
$
|
3,053
|
|
$
|
3,500
|
$
|
3,053
|
|
Cash interest paid
|
$
|
811
|
$
|
1,085
|
$
|
548
|
|
$
|
3,798
|
$
|
3,646
|
|
Cash income taxes paid
|
|
187
|
|
164
|
|
105
|
|
|
730
|
|
555
|
|
Cash interest and dividends received
|
|
3,066
|
|
3,102
|
|
2,758
|
|
|
11,994
|
|
11,371
|
|
(1)
|
Comprises amortization and impairment of buildings, furniture, equipment,
leasehold improvements, and software and other intangible assets.
|
|
(2)
|
Includes restricted balance of $422 million (July 31, 2016: $410 million;
October 31, 2015: $406 million).
|
Non-GAAP measures
We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in
accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning
under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find
these non-GAAP measures useful in analyzing financial performance.
The following table provides a quarterly reconciliation of non-GAAP to GAAP measures related to CIBC on a consolidated basis.
For a more detailed discussion and for an annual reconciliation of non-GAAP to GAAP measures, see the "Non-GAAP measures" section
of CIBC's 2016 Annual Report.
|
|
As at or for the
|
|
|
As at or for the
|
|
|
|
|
three months ended
|
|
|
twelve months ended
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
$ millions
|
|
|
|
Oct. 31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
|
|
|
Oct. 31
|
|
|
Oct. 31
|
|
|
|
Reported and adjusted diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income attributable to common shareholders
|
A
|
|
$
|
917
|
|
$
|
1,426
|
|
$
|
767
|
|
|
$
|
4,237
|
|
$
|
3,531
|
|
|
|
After-tax impact of items of note (1)
|
|
|
|
110
|
|
|
(369)
|
|
|
172
|
|
|
|
(191)
|
|
|
230
|
|
|
|
Adjusted net income attributable to common shareholders
(2)
|
B
|
|
$
|
1,027
|
|
$
|
1,057
|
|
$
|
939
|
|
|
$
|
4,046
|
|
$
|
3,761
|
|
|
|
Diluted weighted-average common shares outstanding (thousands)
|
C
|
|
|
395,750
|
|
|
395,328
|
|
|
397,838
|
|
|
|
395,919
|
|
|
397,832
|
|
|
|
Reported diluted EPS ($)
|
A/C
|
|
$
|
2.32
|
|
$
|
3.61
|
|
$
|
1.93
|
|
|
$
|
10.70
|
|
$
|
8.87
|
|
|
|
Adjusted diluted EPS ($) (2)
|
B/C
|
|
|
2.60
|
|
|
2.67
|
|
|
2.36
|
|
|
|
10.22
|
|
|
9.45
|
|
|
|
Reported and adjusted return on common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity
|
D
|
|
$
|
21,763
|
|
$
|
21,198
|
|
$
|
20,122
|
|
|
$
|
21,275
|
|
$
|
18,857
|
|
|
|
Reported return on common shareholders' equity
|
A/D
|
(3)
|
|
16.8
|
%
|
|
26.8
|
%
|
|
15.1
|
%
|
|
|
19.9
|
%
|
|
18.7
|
%
|
|
|
Adjusted return on common shareholders' equity (2)
|
B/D
|
(3)
|
|
18.8
|
%
|
|
19.8
|
%
|
|
18.5
|
%
|
|
|
19.0
|
%
|
|
19.9
|
%
|
|
|
|
|
Retail and
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Wealth
|
Capital
|
Corporate
|
CIBC
|
|
|
$ millions, for the three months ended
|
Banking
|
Management
|
Markets
|
and Other
|
Total
|
|
|
Oct. 31
|
Reported net income (loss)
|
$
|
687
|
$
|
126
|
$
|
276
|
$
|
(158)
|
$
|
931
|
|
|
2016
|
After-tax impact of items of note (1)
|
|
1
|
|
1
|
|
7
|
|
101
|
|
110
|
|
|
|
Adjusted net income (loss) (2)
|
$
|
688
|
$
|
127
|
$
|
283
|
$
|
(57)
|
$
|
1,041
|
|
|
Jul. 31
|
Reported net income (loss)
|
$
|
666
|
$
|
506
|
$
|
304
|
$
|
(35)
|
$
|
1,441
|
|
|
2016
|
After-tax impact of items of note (1)
|
|
1
|
|
(380)
|
|
9
|
|
1
|
|
(369)
|
|
|
|
Adjusted net income (loss) (2)
|
$
|
667
|
$
|
126
|
$
|
313
|
$
|
(34)
|
$
|
1,072
|
|
|
Oct. 31
|
Reported net income (loss)
|
$
|
672
|
$
|
122
|
$
|
181
|
$
|
(197)
|
$
|
778
|
|
|
2015(4)
|
After-tax impact of items of note (1)
|
|
1
|
|
6
|
|
2
|
|
165
|
|
174
|
|
|
|
Adjusted net income (loss) (2)
|
$
|
673
|
$
|
128
|
$
|
183
|
$
|
(32)
|
$
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions, for the twelve months ended
|
|
|
|
|
|
|
|
Oct. 31
|
Reported net income (loss)
|
$
|
2,689
|
$
|
864
|
$
|
1,076
|
$
|
(334)
|
$
|
4,295
|
|
|
2016
|
After-tax impact of items of note (1)
|
|
(25)
|
|
(374)
|
|
28
|
|
180
|
|
(191)
|
|
|
|
Adjusted net income (loss) (2)
|
$
|
2,664
|
$
|
490
|
$
|
1,104
|
$
|
(154)
|
$
|
4,104
|
|
|
Oct. 31
|
Reported net income (loss)
|
$
|
2,530
|
$
|
518
|
$
|
957
|
$
|
(415)
|
$
|
3,590
|
|
|
2015(4)
|
After-tax impact of items of note (1)
|
|
(28)
|
|
18
|
|
8
|
|
234
|
|
232
|
|
|
Adjusted net income (loss) (2)
|
$
|
2,502
|
$
|
536
|
$
|
965
|
$
|
(181)
|
$
|
3,822
|
|
|
(1)
|
Reflects impact of items of note under the "Financial results" section of the
MD&A.
|
|
|
(2)
|
Non-GAAP measure.
|
|
|
(3)
|
Annualized.
|
|
|
(4)
|
Certain information has been reclassified to conform to the presentation
adopted in the current year. See the "External reporting changes" section of the MD&A for additional
details.
|
Items of note
|
|
For the three
|
|
|
|
For the twelve
|
|
|
months ended
|
|
|
|
months ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
|
$ millions
|
|
Oct. 31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
|
Oct. 31
|
|
Oct. 31
|
|
Gain, net of related transaction costs, on the sale of our minority
investment in ACI
|
$
|
-
|
$
|
(428)
|
$
|
-
|
|
|
$
|
(428)
|
$
|
-
|
|
Gain, net of related transaction and severance costs, on the sale of a
processing centre
|
|
-
|
|
-
|
|
-
|
|
|
|
(53)
|
|
-
|
|
Gain arising from accounting adjustments on credit card-related balance sheet
amounts
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
(46)
|
|
Gain on sale of an investment in our merchant banking portfolio
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
(23)
|
|
Loss (income) from the structured credit run-off business
|
|
9
|
|
(28)
|
|
3
|
|
|
|
(3)
|
|
29
|
|
Amortization of intangible assets
|
|
7
|
|
7
|
|
11
|
|
|
|
30
|
|
42
|
|
Increase in legal provisions
|
|
-
|
|
-
|
|
-
|
|
|
|
77
|
|
-
|
|
Increase in collective allowance (1) recognized in Corporate and
Other
|
|
-
|
|
-
|
|
-
|
|
|
|
109
|
|
-
|
|
Loan losses in our exited European leveraged finance portfolio
|
|
-
|
|
40
|
|
-
|
|
|
|
40
|
|
-
|
|
Restructuring charges primarily relating to employee severance
|
|
134
|
|
-
|
|
211
|
|
|
|
134
|
|
296
|
|
Pre-tax impact of items of note on net income
|
|
150
|
|
(409)
|
|
225
|
|
|
|
(94)
|
|
298
|
|
Income tax impact on above items of note
|
|
(40)
|
|
40
|
|
(51)
|
|
|
|
(52)
|
|
(66)
|
|
Income tax recovery due to the settlement of transfer pricing-related
matters
|
|
-
|
|
-
|
|
-
|
|
|
|
(30)
|
|
-
|
|
Income tax recovery arising from a change in our expected utilization of tax
loss carryforwards
|
|
-
|
|
-
|
|
-
|
|
|
|
(15)
|
|
-
|
|
After-tax impact of items of note on net income
|
|
110
|
|
(369)
|
|
174
|
|
|
|
(191)
|
|
232
|
|
After-tax impact of items of note on non-controlling interests
|
|
-
|
|
-
|
|
(2)
|
|
|
|
-
|
|
(2)
|
|
After-tax impact of items of note on net income attributable to common
shareholders
|
$
|
110
|
$
|
(369)
|
$
|
172
|
|
|
$
|
(191)
|
$
|
230
|
|
(1)
|
Relates to the collective allowance, except for (i) residential mortgages
greater than 90 days delinquent; (ii) personal loans and scored small business loans greater than 30 days delinquent; and
(iii) net write-offs for the cards portfolio, which are all reported in the respective strategic business units.
|
Basis of presentation
The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited
whereas the annual consolidated financial information is derived from audited financial statements. These interim financial
statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements for the year
ended October 31, 2016.
Conference Call/Webcast
The conference call will be held at 8:00 a.m. (ET) and is available in English
(416-340-2217, or toll-free 1-866-696-5910, passcode 9489619#) and French (514-861-2255, or toll-free 1-877-405-9213, passcode
3878208#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC
executives will be available to answer questions.
A live audio webcast of the conference call will also be available in English and French at www.cibc.com/ca/investor-relations/quarterly-results.html.
Details of CIBC's 2016 fourth quarter and fiscal year results, as well as a presentation to investors, will be available in
English and French at www.cibc.com, Investor Relations section,
prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.
A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 1837101#) and French (514-861-2272 or
1-800-408-3053, passcode 7075207#) until 11:59 p.m. (ET) December 8,
2016. The audio webcast will be archived at www.cibc.com/ca/investor-relations/quarterly-results.html.
About CIBC
CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients.
Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full
range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news
releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
The information below forms a part of this press release.
Nothing in CIBC's corporate website (www.cibc.com) should be
considered incorporated herein by reference.
The Board of Directors of CIBC reviewed this news release prior to it being issued.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS:
From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws,
including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission
and in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be
forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities
Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the "Core business
performance", "Strong fundamentals", and "Making a difference in our Communities" sections of this news release, and the
Management's Discussion and Analysis in our 2016 Annual Report under the heading "Financial performance overview – Outlook for
calendar year 2017" and other statements about our operations, business lines, financial condition, risk management, priorities,
targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2017 and
subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend",
"estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will",
"should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions
set out in the "Financial performance overview – Outlook for calendar year 2017" section of our 2016 Annual Report, as updated by
quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many
of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ
materially from the expectations expressed in any of our forward-looking statements. These factors include: credit, market,
liquidity, strategic, insurance, operational, reputation and legal, regulatory and environmental risk; the effectiveness and
adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions
where we operate, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued and to be
issued thereunder, the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in
the United Kingdom and Europe, the Basel Committee on Banking
Supervision's global standards for capital and liquidity reform, and those relating to the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and
interest rate and liquidity regulatory guidance; the resolution of legal and regulatory proceedings and related matters; the effect
of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax
laws; changes to our credit ratings; political conditions and developments; the possible effect on our business of international
conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our
information technology systems and services; increasing cyber security risks which may include theft of assets, unauthorized access
to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud;
anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the
failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from
established competitors and new entrants in the financial services industry including through internet and mobile banking;
technological change; global capital market activity; changes in monetary and economic policy; currency value and interest rate
fluctuations, including as a result of market and oil price volatility; general business and economic conditions worldwide, as well
as in Canada, the U.S. and other countries where we have operations, including increasing Canadian
household debt levels and global credit risks; our success in developing and introducing new products and services, expanding
existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes
in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully
execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected synergies and benefits of
the acquisition of PrivateBancorp, Inc. will not be realized within the expected time frame or at all or the possibility that the
acquisition does not close when expected or at all because required regulatory, shareholder or other approvals are not received or
other conditions to the closing are not satisfied on a timely basis or at all; and our ability to anticipate and manage the risks
associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements.
These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking
statements. Any forward-looking statements contained in this news release represent the views of management only as of the date
hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial
position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented,
and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in
this news release or in other communications except as required by law.
SOURCE CIBC - Investor Relations
