CIBC's 2019 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. All amounts are expressed in Canadian dollars, unless otherwise indicated.
|
TORONTO, Dec. 5, 2019 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2019.
"We remain focused on creating long-term value for all our stakeholders," says Victor G. Dodig, CIBC President and Chief Executive Officer. "In 2019, we continued to execute on our client-focused strategy by improving client experience and investing to build a relationship-oriented bank for a modern world."
Fourth quarter highlights
| Q4/19
| Q4/18
| Q3/19
| YoY Variance
| QoQ Variance
|
Reported Net Income
| $1,193 million
| $1,268 million
| $1,398 million
| -6%
| -15%
|
Adjusted Net Income (1)
| $1,309 million
| $1,364 million
| $1,415 million
| -4%
| -7%
|
Reported Diluted Earnings Per Share (EPS)
| $2.58
| $2.80
| $3.06
| -8%
| -16%
|
Adjusted Diluted EPS (1)
| $2.84
| $3.00
| $3.10
| -5%
| -8%
|
Reported Return on Common Shareholders' Equity (ROE)
| 12.9%
| 15.3%
| 15.5%
|
|
Adjusted ROE (1)
| 14.2%
| 16.4%
| 15.6%
|
Common Equity Tier 1 (CET1) Ratio
| 11.6%
| 11.4%
| 11.4%
|
(1)
| For additional information, see the "Non-GAAP measures" section.
|
CIBC's results for the fourth quarter of 2019 were affected by the following items of note aggregating to a negative impact of $0.26 per share:
- $135 million ($135 million after-tax, or $0.30 per share) goodwill impairment charge related to the expected sale of our controlling interest in FirstCaribbean International Bank Limited;
- $67 million ($49 million after-tax, or $0.11 per share) interest income related to the settlement of certain income tax matters;
- $28 million ($21 million after-tax, or $0.05 per share) increase in legal provisions;
- $28 million ($20 million after-tax, or $0.04 per share) amortization of acquisition-related intangible assets; and
- $16 million ($11 million after-tax net positive impact, or $0.02 per share) in purchase accounting adjustments net of transaction and integration-related costs associated with the acquisitions of The PrivateBank, Geneva Advisors and Wellington Financial.
For the year ended October 31, 2019, CIBC reported net income of $5.1 billion and adjusted net income(1) of $5.4 billion, compared with reported net income of $5.3 billion and adjusted net income(1) of $5.5 billion for 2018.
The following table summarizes our performance in 2019 against our key financial measures and targets:
Financial Measure
| Target
| 2019 Reported Results
| 2019 Adjusted Results (1)
|
Diluted EPS growth
| 5% to 10% on average, annually
| $11.19, down 4% from 2018
| $11.92, down 2% from 2018
|
ROE
| 15% +
| 14.5%
| 15.4%
|
Efficiency ratio
| 52% run rate in 2022 (2)
| 58.3%, an increase of 80 basis points
from 2018
| 55.5%, an improvement of 10 basis
points from 2018
|
CET1 ratio
| Strong buffer to regulatory minimum
| 11.6%
|
Dividend payout ratio
| 40% to 50%
| 49.9%
| 46.9%
|
Total shareholder return
| Outperform the S&P/TSX Composite
Banks Index over a rolling five-year
period
| CIBC – 38.4%
S&P/TSX Composite Banks Index – 51.3%
|
(1)
| For additional information, see the "Non-GAAP measures" section.
|
(2)
| Medium-term through the cycle.
|
Core business performance
F2019 Financial Highlights
(C$ million)
| F2019
| F2018
| YoY Variance
|
Canadian Personal and Small Business Banking
|
|
|
|
Reported Net Income
| $2,291
| $2,547
| down 10%
|
Adjusted Net Income (1)
| $2,465
| $2,556
| down 4%
|
|
|
|
|
Canadian Commercial Banking and Wealth Management
|
|
|
|
Reported Net Income
| $1,301
| $1,307
| down 0.5%
|
Adjusted Net Income (1)
| $1,302
| $1,308
| down 0.5%
|
|
|
|
|
U.S. Commercial Banking and Wealth Management
|
|
|
|
Reported Net Income
| $683
| $565
| up 21%
|
Adjusted Net Income (1)
| $723
| $592
| up 22%
|
|
|
|
|
Capital Markets
|
|
|
|
Reported Net Income
| $937
| $1,069
| down 12%
|
Adjusted Net Income (1)
| $937
| $1,069
| down 12%
|
(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 2019, 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 11.6% as noted above, and Tier 1 and Total capital ratios of 12.9% and 15.0%, respectively, at October 31, 2019;
- Market risk, as measured by average Value-at-Risk, was $5.7 million in 2019 compared with $5.3 million in 2018;
- We continued to have solid credit performance, with CIBC's loan loss ratio of 29 basis points compared with 26 basis points in 2018;
- CIBC's liquidity coverage ratio was 125% for the three months ended October 31, 2019; and
- CIBC's leverage ratio was 4.3% at October 31, 2019.
Making a difference in our Communities
At CIBC, our team is passionate about making a difference in our communities through our global community investment initiative, One for Change. In the fourth quarter, over 15,000 CIBC team members came together, with our clients, in shared purpose to raise an estimated $3 million for the Canadian Cancer Society CIBC Run for the Cure to help change the future of breast cancer.
Fourth quarter financial highlights
| As at or for the
|
|
| As at or for the
|
|
| three months ended
|
|
| twelve months ended
|
|
| 2019
| 2019
|
| 2018
|
|
| 2019
|
| 2018
|
|
Unaudited
| Oct. 31
|
| Jul. 31
|
| Oct. 31
|
|
| Oct. 31
|
| Oct. 31
|
|
Financial results ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
| $
| 2,801
|
| $
| 2,694
|
| $
| 2,539
|
|
| $
| 10,551
|
| $
| 10,065
|
|
Non-interest income
|
| 1,971
|
|
| 2,038
|
|
| 1,913
|
|
|
| 8,060
|
|
| 7,769
|
|
Total revenue
|
| 4,772
|
|
| 4,732
|
|
| 4,452
|
|
|
| 18,611
|
|
| 17,834
|
|
Provision for credit losses
|
| 402
|
|
| 291
|
|
| 264
|
|
|
| 1,286
|
|
| 870
|
|
Non-interest expenses
|
| 2,838
|
|
| 2,670
|
|
| 2,591
|
|
|
| 10,856
|
|
| 10,258
|
|
Income before income taxes
|
| 1,532
|
|
| 1,771
|
|
| 1,597
|
|
|
| 6,469
|
|
| 6,706
|
|
Income taxes
|
| 339
|
|
| 373
|
|
| 329
|
|
|
| 1,348
|
|
| 1,422
|
|
Net income
| $
| 1,193
|
| $
| 1,398
|
| $
| 1,268
|
|
| $
| 5,121
|
| $
| 5,284
|
|
Net income attributable to non-controlling interests
|
| 8
|
|
| 6
|
|
| 2
|
|
|
| 25
|
|
| 17
|
|
Preferred shareholders
|
| 32
|
|
| 28
|
|
| 24
|
|
|
| 111
|
|
| 89
|
|
Common shareholders
|
| 1,153
|
|
| 1,364
|
|
| 1,242
|
|
|
| 4,985
|
|
| 5,178
|
|
Net income attributable to equity shareholders
| $
| 1,185
|
| $
| 1,392
|
| $
| 1,266
|
|
| $
| 5,096
|
| $
| 5,267
|
|
Financial measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported efficiency ratio
|
| 59.5
| %
|
| 56.4
| %
|
| 58.2
| %
|
|
| 58.3
| %
|
| 57.5
| %
|
Adjusted efficiency ratio (1)
|
| 56.0
| %
|
| 55.4
| %
|
| 56.2
| %
|
|
| 55.5
| %
|
| 55.6
| %
|
Loan loss ratio (2)
|
| 0.33
| %
|
| 0.27
| %
|
| 0.27
| %
|
|
| 0.29
| %
|
| 0.26
| %
|
Reported return on common shareholders' equity
|
| 12.9
| %
|
| 15.5
| %
|
| 15.3
| %
|
|
| 14.5
| %
|
| 16.6
| %
|
Adjusted return on common shareholders' equity (1)
|
| 14.2
| %
|
| 15.6
| %
|
| 16.4
| %
|
|
| 15.4
| %
|
| 17.4
| %
|
Net interest margin
|
| 1.69
| %
|
| 1.65
| %
|
| 1.67
| %
|
|
| 1.65
| %
|
| 1.68
| %
|
Net interest margin on average interest-earning assets
|
| 1.90
| %
|
| 1.84
| %
|
| 1.86
| %
|
|
| 1.84
| %
|
| 1.88
| %
|
Return on average assets
|
| 0.72
| %
|
| 0.86
| %
|
| 0.83
| %
|
|
| 0.80
| %
|
| 0.88
| %
|
Return on average interest-earning assets
|
| 0.81
| %
|
| 0.96
| %
|
| 0.93
| %
|
|
| 0.89
| %
|
| 0.99
| %
|
Total shareholder return
|
| 9.60
| %
|
| (6.70)
| %
|
| (3.18)
| %
|
|
| 4.19
| %
|
| 4.70
| %
|
Reported effective tax rate
|
| 22.1
| %
|
| 21.1
| %
|
| 20.6
| %
|
|
| 20.8
| %
|
| 21.2
| %
|
Adjusted effective tax rate (1)
|
| 20.2
| %
|
| 21.0
| %
|
| 20.7
| %
|
|
| 20.6
| %
|
| 20.0
| %
|
Common share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share ($)
| - basic earnings
| $
| 2.59
|
| $
| 3.07
|
| $
| 2.81
|
|
| $
| 11.22
|
| $
| 11.69
|
|
|
| - reported diluted earnings
|
| 2.58
|
|
| 3.06
|
|
| 2.80
|
|
|
| 11.19
|
|
| 11.65
|
|
|
| - adjusted diluted earnings (1)
|
| 2.84
|
|
| 3.10
|
|
| 3.00
|
|
|
| 11.92
|
|
| 12.21
|
|
|
| - dividends
|
| 1.44
|
|
| 1.40
|
|
| 1.36
|
|
|
| 5.60
|
|
| 5.32
|
|
|
| - book value
|
| 79.87
|
|
| 78.58
|
|
| 73.83
|
|
|
| 79.87
|
|
| 73.83
|
|
Share price ($)
| - high
|
| 113.20
|
|
| 113.13
|
|
| 124.59
|
|
|
| 116.19
|
|
| 124.59
|
|
|
| - low
|
| 98.20
|
|
| 101.80
|
|
| 112.24
|
|
|
| 98.20
|
|
| 110.11
|
|
|
| - closing
|
| 112.31
|
|
| 103.83
|
|
| 113.68
|
|
|
| 112.31
|
|
| 113.68
|
|
Shares outstanding (thousands)
| - weighted-average basic (3)
|
| 445,357
|
|
| 444,868
|
|
| 443,015
|
|
|
| 444,324
|
|
| 443,082
|
|
|
| - weighted-average diluted
|
| 446,392
|
|
| 445,915
|
|
| 444,504
|
|
|
| 445,457
|
|
| 444,627
|
|
|
| - end of period (3)
|
| 445,342
|
|
| 445,437
|
|
| 442,826
|
|
|
| 445,342
|
|
| 442,826
|
|
Market capitalization ($ millions)
| $
| 50,016
|
| $
| 46,168
|
| $
| 50,341
|
|
| $
| 50,016
|
| $
| 50,341
|
|
Value measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend yield (based on closing share price)
|
| 5.1
| %
|
| 5.3
| %
|
| 4.7
| %
|
|
| 5.0
| %
|
| 4.7
| %
|
Reported dividend payout ratio
|
| 55.6
| %
|
| 45.7
| %
|
| 48.4
| %
|
|
| 49.9
| %
|
| 45.5
| %
|
Adjusted dividend payout ratio (1)
|
| 50.5
| %
|
| 45.1
| %
|
| 45.1
| %
|
|
| 46.9
| %
|
| 43.4
| %
|
Market value to book value ratio
|
| 1.41
|
|
| 1.32
|
|
| 1.54
|
|
|
| 1.41
|
|
| 1.54
|
|
On- and off-balance sheet information ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, deposits with banks and securities
| $
| 138,669
|
| $
| 136,398
|
| $
| 119,355
|
|
| $
| 138,669
|
| $
| 119,355
|
|
Loans and acceptances, net of allowance
|
| 398,108
|
|
| 395,440
|
|
| 381,661
|
|
|
| 398,108
|
|
| 381,661
|
|
Total assets
|
| 651,604
|
|
| 642,522
|
|
| 597,099
|
|
|
| 651,604
|
|
| 597,099
|
|
Deposits
|
| 485,712
|
|
| 481,044
|
|
| 461,015
|
|
|
| 485,712
|
|
| 461,015
|
|
Common shareholders' equity
|
| 35,569
|
|
| 35,003
|
|
| 32,693
|
|
|
| 35,569
|
|
| 32,693
|
|
Average assets
|
| 655,971
|
|
| 648,537
|
|
| 603,726
|
|
|
| 639,716
|
|
| 598,441
|
|
Average interest-earning assets
|
| 585,816
|
|
| 580,437
|
|
| 540,933
|
|
|
| 572,677
|
|
| 536,059
|
|
Average common shareholders' equity
|
| 35,553
|
|
| 35,028
|
|
| 32,200
|
|
|
| 34,467
|
|
| 31,184
|
|
Assets under administration (AUA) (4)(5)
| 2,425,651
|
| 2,368,067
|
| 2,303,962
|
|
| 2,425,651
|
| 2,303,962
|
|
Assets under management (AUM) (5)
| 252,007
|
| 248,391
|
| 225,379
|
|
| 252,007
|
| 225,379
|
|
Balance sheet quality and liquidity measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets (RWA) ($ millions) (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total RWA
| $
| 239,863
|
| $
| 236,836
|
|
| n/a
|
|
| $
| 239,863
|
|
| n/a
|
|
Common Equity Tier 1 (CET1) capital RWA
|
| n/a
|
|
| n/a
|
| $
| 216,144
|
|
|
| n/a
|
| $
| 216,144
|
|
Tier 1 capital RWA
|
| n/a
|
|
| n/a
|
|
| 216,303
|
|
|
| n/a
|
|
| 216,303
|
|
Total capital RWA
|
| n/a
|
|
| n/a
|
|
| 216,462
|
|
|
| n/a
|
|
| 216,462
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 ratio
|
| 11.6
| %
|
| 11.4
| %
|
| 11.4
| %
|
|
| 11.6
| %
|
| 11.4
| %
|
Tier 1 capital ratio
|
| 12.9
| %
|
| 12.7
| %
|
| 12.9
| %
|
|
| 12.9
| %
|
| 12.9
| %
|
Total capital ratio
|
| 15.0
| %
|
| 15.2
| %
|
| 14.9
| %
|
|
| 15.0
| %
|
| 14.9
| %
|
Leverage ratio
|
| 4.3
| %
|
| 4.3
| %
|
| 4.3
| %
|
|
| 4.3
| %
|
| 4.3
| %
|
Liquidity coverage ratio (LCR)
|
| 125
| %
|
| 129
| %
|
| 128
| %
|
|
| n/a
|
|
| n/a
|
|
Other information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent employees
|
| 45,157
|
|
| 45,763
|
|
| 44,220
|
|
|
| 45,157
|
|
| 44,220
|
|
(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)
| Excludes nil restricted shares as at October 31, 2019 (July 31, 2019: nil; October 31, 2018: 60,764).
|
(4)
| Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $1,923.2 billion (July 31, 2019: $1,864.4 billion; October 31, 2018: $1,834.0 billion).
|
(5)
| AUM amounts are included in the amounts reported under AUA.
|
(6)
| Beginning in 2019, the capital ratios are calculated by reference to the same level of RWA. Prior to 2019, before any capital floor requirement, there were three different levels of RWA for the calculation of CIBC's
CET1, Tier 1 and Total capital ratios as CIBC elected in 2014 to phase in the credit valuation adjustment (CVA) capital charge as permitted under the Office of the Superintendent of Financial Institutions (OSFI)
guideline; different scalars were applied to the CVA included in the RWA calculation applicable to each of the three tiers of capital.
|
n/a
| Not applicable.
|
Review of Canadian Personal and Small Business Banking fourth quarter results
|
|
| 2019
|
|
| 2019
|
|
| 2018
|
|
$ millions, for the three months ended
|
| Oct. 31
|
|
| Jul. 31
|
|
| Oct. 31
|
|
Revenue
| $
| 2,225
|
| $
| 2,239
|
| $
| 2,201
|
|
Provision for credit losses
|
|
|
|
|
|
|
|
|
|
| Impaired
|
| 218
|
|
| 197
|
|
| 182
|
|
| Performing
|
| 37
|
|
| 7
|
|
| 9
|
|
Provision for credit losses
|
| 255
|
|
| 204
|
|
| 191
|
|
Non-interest expenses
|
| 1,156
|
|
| 1,140
|
|
| 1,100
|
|
Income before income taxes
|
| 814
|
|
| 895
|
|
| 910
|
|
Income taxes
|
| 213
|
|
| 238
|
|
| 242
|
|
Net income
| $
| 601
|
| $
| 657
|
| $
| 668
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
| Equity shareholders (a)
| $
| 601
|
| $
| 657
|
| $
| 668
|
|
Efficiency ratio
|
| 51.9
| %
|
| 50.9
| %
|
| 50.0
| %
|
Return on equity (1)
|
| 66.5
| %
|
| 71.5
| %
|
| 68.9
| %
|
Charge for economic capital (1) (b)
| $
| (88)
|
| $
| (90)
|
| $
| (95)
|
|
Economic profit (1) (a+b)
| $
| 513
|
| $
| 567
|
| $
| 573
|
|
Full-time equivalent employees
|
| 13,431
|
|
| 13,833
|
|
| 14,086
|
|
(1)
| For additional information, see the "Non-GAAP measures" section
|
Net income for the quarter was $601 million, down $67 million from the fourth quarter of 2018. Adjusted net income (1) for the quarter was $603 million, down $66 million from the fourth quarter of 2018.
Revenue of $2,225 million was up $24 million from the fourth quarter of 2018, primarily due to favourable spreads and higher volumes, partially offset by lower fees.
Provision for credit losses of $255 million was up $64 million from the fourth quarter of 2018, due to a higher provision for credit losses on performing loans as a result of changes to our economic outlook and credit migration in the personal lending portfolio, as well as a higher provision for credit losses on impaired loans due to higher provisions and write-offs in the personal lending portfolio.
Non-interest expenses of $1,156 million were up $56 million from the fourth quarter of 2018, mainly due to higher spending on strategic initiatives.
Review of Canadian Commercial Banking and Wealth Management fourth quarter results
|
|
| 2019
|
|
| 2019
|
|
| 2018
|
|
$ millions, for the three months ended
|
| Oct. 31
|
|
| Jul. 31
|
|
| Oct. 31
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
| Commercial banking
| $
| 416
|
| $
| 414
|
| $
| 386
|
|
| Wealth management
|
| 612
|
|
| 609
|
|
| 600
|
|
Total revenue
|
| 1,028
|
|
| 1,023
|
|
| 986
|
|
Provision for (reversal of) credit losses
|
|
|
|
|
|
|
|
|
|
| Impaired
|
| 71
|
|
| 15
|
|
| 8
|
|
| Performing
|
| 9
|
|
| 2
|
|
| (1)
|
|
Provision for credit losses
|
| 80
|
|
| 17
|
|
| 7
|
|
Non-interest expenses
|
| 530
|
|
| 531
|
|
| 521
|
|
Income before income taxes
|
| 418
|
|
| 475
|
|
| 458
|
|
Income taxes
|
| 112
|
|
| 127
|
|
| 125
|
|
Net income
| $
| 306
|
| $
| 348
|
| $
| 333
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
| Equity shareholders (a)
| $
| 306
|
| $
| 348
|
| $
| 333
|
|
Efficiency ratio
|
| 51.6
| %
|
| 51.9
| %
|
| 52.8
| %
|
Return on equity (1)
|
| 33.4
| %
|
| 38.2
| %
|
| 39.6
| %
|
Charge for economic capital (1) (b)
| $
| (89)
|
| $
| (89)
|
| $
| (82)
|
|
Economic profit (1) (a+b)
| $
| 217
|
| $
| 259
|
| $
| 251
|
|
Full-time equivalent employees
|
| 5,048
|
|
| 5,087
|
|
| 4,999
|
|
(1)
| For additional information, see the "Non-GAAP measures" section
|
Net income for the quarter was $306 million, down $27 million from the fourth quarter of 2018. Adjusted net income(1) for the quarter was $307 million, down $27 million from the fourth quarter of 2018.
Revenue of $1,028 million was up $42 million from the fourth quarter of 2018, driven by strong volume growth from loans and deposits and higher fees in commercial banking, and strong volume growth and higher fee-based assets driven by market appreciation in wealth management.
Provision for credit losses of $80 million was up $73 million from the fourth quarter of 2018, mainly due to higher provisions on impaired loans.
Non-interest expenses of $530 million were up $9 million from the fourth quarter of 2018, primarily due to higher spending on strategic initiatives and higher employee-related compensation, partially offset by lower performance-based compensation.
Review of U.S. Commercial Banking and Wealth Management fourth quarter results
|
|
| 2019
|
|
| 2019
|
|
| 2018
|
|
$ millions, for the three months ended
|
| Oct. 31
|
|
| Jul. 31
|
|
| Oct. 31
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
| Commercial banking
| $
| 345
|
| $
| 347
|
| $
| 311
|
|
| Wealth management
|
| 159
|
|
| 156
|
|
| 148
|
|
| Other
|
| (1)
|
|
| 6
|
|
| (2)
|
|
Total revenue (1)(2)
|
| 503
|
|
| 509
|
|
| 457
|
|
Provision for (reversal of) credit losses
|
|
|
|
|
|
|
|
|
|
| Impaired
|
| 13
|
|
| 38
|
|
| 22
|
|
| Performing
|
| 4
|
|
| (9)
|
|
| 18
|
|
Provision for credit losses
|
| 17
|
|
| 29
|
|
| 40
|
|
Non-interest expenses
|
| 286
|
|
| 282
|
|
| 264
|
|
Income before income taxes
|
| 200
|
|
| 198
|
|
| 153
|
|
Income taxes (1)
|
| 20
|
|
| 26
|
|
| 22
|
|
Net income
| $
| 180
|
| $
| 172
|
| $
| 131
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
| Equity shareholders (a)
| $
| 180
|
| $
| 172
|
| $
| 131
|
|
Efficiency ratio
|
| 56.9
| %
|
| 55.3
| %
|
| 57.6
| %
|
Return on equity (3)
|
| 9.3
| %
|
| 9.1
| %
|
| 7.2
| %
|
Charge for economic capital (3) (b)
| $
| (183)
|
| $
| (181)
|
| $
| (172)
|
|
Economic profit (3) (a+b)
| $
| (3)
|
| $
| (9)
|
| $
| (41)
|
|
Full-time equivalent employees
|
| 2,113
|
|
| 2,111
|
|
| 1,947
|
|
(1)
| Revenue and income taxes are reported on a taxable equivalent basis (TEB) basis. Accordingly, revenue and income taxes include a TEB adjustment of nil for the quarter ended October 31, 2019 (July 31, 2019: $1
million; October 31, 2018: nil). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other
|
(2)
| Included $8 million of accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, shown as an item of note, for the quarter ended October 31, 2019 (July 31, 2019:
$8 million; October 31, 2018: $9 million)
|
(3)
| For additional information, see the "Non-GAAP measures" section
|
Net income for the quarter was $180 million, up $49 million from the fourth quarter of 2018. Adjusted net income(3) for the quarter was $191 million, up $52 million from the fourth quarter of 2018.
Revenue of $503 million was up $46 million from the fourth quarter of 2018, primarily due to loan growth and strong fee income, partially offset by margin compression.
Provision for credit losses of $17 million was down $23 million from the fourth quarter of 2018. The same quarter last year included a provision for credit losses on performing loans due to unfavourable credit migration within the performing portfolio. Provision for credit losses on impaired loans was down due to lower provisions in the U.S. commercial banking portfolio.
Non-interest expenses of $286 million were up $22 million from the fourth quarter of 2018, primarily due to higher spending on strategic initiatives.
Review of Capital Markets fourth quarter results
|
|
| 2019
|
|
| 2019
|
|
| 2018
|
|
$ millions, for the three months ended
|
| Oct. 31
|
|
| Jul. 31
|
|
| Oct. 31
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
| Global markets
| $
| 426
|
| $
| 438
|
| $
| 371
|
|
| Corporate and investment banking (1)
|
| 309
|
|
| 308
|
|
| 278
|
|
Total revenue (2)
|
| 735
|
|
| 746
|
|
| 649
|
|
Provision for (reversal of) credit losses
|
|
|
|
|
|
|
|
|
|
| Impaired
|
| 24
|
|
| 18
|
|
| 2
|
|
| Performing
|
| 21
|
|
| 24
|
|
| (6)
|
|
Provision for (reversal of) credit losses
|
| 45
|
|
| 42
|
|
| (4)
|
|
Non-interest expenses
|
| 386
|
|
| 390
|
|
| 356
|
|
Income before income taxes
|
| 304
|
|
| 314
|
|
| 297
|
|
Income taxes (2)
|
| 78
|
|
| 83
|
|
| 64
|
|
Net income
| $
| 226
|
| $
| 231
|
| $
| 233
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
| Equity shareholders (a)
| $
| 226
|
| $
| 231
|
| $
| 233
|
|
Efficiency ratio
|
| 52.5
| %
|
| 52.3
| %
|
| 55.0
| %
|
Return on equity (3)
|
| 30.4
| %
|
| 29.9
| %
|
| 35.3
| %
|
Charge for economic capital (3) (b)
| $
| (72)
|
| $
| (76)
|
| $
| (65)
|
|
Economic profit (3) (a+b)
| $
| 154
|
| $
| 155
|
| $
| 168
|
|
Full-time equivalent employees
|
| 1,449
|
|
| 1,408
|
|
| 1,396
|
|
(1)
| Certain information has been reclassified to conform to the presentation adopted in the first quarter of 2019. Corporate and investment banking includes the Other line of business
|
(2)
| Revenue and income taxes are reported on a TEB basis. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended October 31, 2019 (July 31, 2019: $45 million;
October 31, 2018: $30 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other
|
(3)
| For additional information, see the "Non-GAAP measures" section
|
Reported and adjusted(3) net income for the quarter was $226 million, compared with reported and adjusted net income of $233 million for the fourth quarter of 2018.
Revenue of $735 million was up $86 million from the fourth quarter of 2018. In global markets, revenue was up driven by global markets financing activities, and our commodities, foreign exchange and equity derivatives trading businesses. In corporate and investment banking, revenue was up driven by higher corporate banking and debt underwriting activity, partially offset by lower advisory revenue.
Provision for credit losses was $45 million, compared with reversal of credit losses of $4 million in the fourth quarter of 2018. The current quarter included a provision for credit losses on performing loans due to an unfavourable change to our economic outlook and unfavourable credit migration within the performing portfolio. Provision for credit losses on impaired loans was up primarily due to higher provisions in the oil and gas sector.
Non-interest expenses of $386 million were up $30 million from the fourth quarter of 2018, primarily due to higher performance and employee-related compensation.
Review of Corporate and Other fourth quarter results
| 2019
| 2019
| 2018
|
$ millions, for the three months ended
| Oct. 31
| Jul. 31
| Oct. 31
|
Revenue
|
|
|
|
|
|
|
| International banking
| $
| 204
| $
| 203
| $
| 127
|
| Other
|
| 77
|
| 12
|
| 32
|
Total revenue (1)
|
| 281
|
| 215
|
| 159
|
Provision for (reversal of) credit losses
|
|
|
|
|
|
|
| Impaired
|
| 4
|
| 4
|
| 45
|
| Performing
|
| 1
|
| (5)
|
| (15)
|
Provision for (reversal of) credit losses
|
| 5
|
| (1)
|
| 30
|
Non-interest expenses
|
| 480
|
| 327
|
| 350
|
Loss before income taxes
|
| (204)
|
| (111)
|
| (221)
|
Income taxes (1)
|
| (84)
|
| (101)
|
| (124)
|
Net income (loss)
| $
| (120)
| $
| (10)
| $
| (97)
|
Net income (loss) attributable to:
|
|
|
|
|
|
|
| Non-controlling interests
| $
| 8
| $
| 6
| $
| 2
|
| Equity shareholders
|
| (128)
|
| (16)
|
| (99)
|
Full-time equivalent employees
|
| 23,116
|
| 23,324
|
| 21,792
|
(1)
| Revenue and income taxes of Capital Markets and U.S. Commercial Banking and Wealth Management are reported on a TEB basis. The equivalent amounts are offset in the revenue and income taxes of Corporate
and Other. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended October 31, 2019 (July 31, 2019: $46 million; October 31, 2018: $30 million)
|
(2)
| For additional information, see the "Non-GAAP measures" section
|
Net loss for the quarter was $120 million, compared with a net loss of $97 million for the fourth quarter of 2018. Adjusted net loss (2) for the quarter was $18 million, compared with an adjusted net loss of $11 million for the fourth quarter of 2018.
Revenue of $281 million was up $122 million from the fourth quarter of 2018. International banking revenue was up as the prior year included incremental expected credit losses on debt securities in CIBC FirstCaribbean as a result of the Barbados government restructuring its public debt, shown as an item of note. Other revenue was up primarily due to interest income from the settlement of certain income tax matters, shown as an item of note, partially offset by a higher TEB adjustment.
Provision for credit losses was $5 million, down $25 million from the fourth quarter of 2018, as the fourth quarter of 2018 included a higher provision for credit losses on impaired loans in CIBC FirstCaribbean, which included losses on sovereign loans resulting from the Barbados government debt restructuring noted above.
Non-interest expenses of $480 million were up $130 million from the fourth quarter of 2018, primarily due to a goodwill impairment charge related to the expected sale of our controlling interest in CIBC FirstCaribbean and an increase in legal provisions, both shown as items of note.
Income tax benefit was down $40 million from the fourth quarter of 2018, primarily due to lower losses.
Consolidated balance sheet
$ millions, as at October 31
|
| 2019
|
| 2018
|
ASSETS
|
|
|
|
|
Cash and non-interest-bearing deposits with banks
| $
| 3,840
| $
| 4,380
|
Interest-bearing deposits with banks
|
| 13,519
|
| 13,311
|
Securities
|
| 121,310
|
| 101,664
|
Cash collateral on securities borrowed
|
| 3,664
|
| 5,488
|
Securities purchased under resale agreements
|
| 56,111
|
| 43,450
|
Loans
|
|
|
|
|
Residential mortgages
|
| 208,652
|
| 207,749
|
Personal
|
| 43,651
|
| 43,058
|
Credit card
|
| 12,755
|
| 12,673
|
Business and government
|
| 125,798
|
| 109,555
|
Allowance for credit losses
|
| (1,915)
|
| (1,639)
|
|
| 388,941
|
| 371,396
|
Other
|
|
|
|
|
Derivative instruments
|
| 23,895
|
| 21,431
|
Customers' liability under acceptances
|
| 9,167
|
| 10,265
|
Land, buildings and equipment
|
| 1,813
|
| 1,795
|
Goodwill
|
| 5,449
|
| 5,564
|
Software and other intangible assets
|
| 1,969
|
| 1,945
|
Investments in equity-accounted associates and joint ventures
|
| 586
|
| 526
|
Deferred tax assets
|
| 517
|
| 601
|
Other assets
|
| 20,823
|
| 15,283
|
|
| 64,219
|
| 57,410
|
| $
| 651,604
| $
| 597,099
|
LIABILITIES AND EQUITY
|
|
|
|
|
Deposits
|
|
|
|
|
Personal
| $
| 178,091
| $
| 163,879
|
Business and government
|
| 257,502
|
| 240,149
|
Bank
|
| 11,224
|
| 14,380
|
Secured borrowings
|
| 38,895
|
| 42,607
|
|
| 485,712
|
| 461,015
|
Obligations related to securities sold short
|
| 15,635
|
| 13,782
|
Cash collateral on securities lent
|
| 1,822
|
| 2,731
|
Obligations related to securities sold under repurchase agreements
|
| 51,801
|
| 30,840
|
Other
|
|
|
|
|
Derivative instruments
|
| 25,113
|
| 20,973
|
Acceptances
|
| 9,188
|
| 10,296
|
Deferred tax liabilities
|
| 38
|
| 43
|
Other liabilities
|
| 19,031
|
| 18,223
|
|
| 53,370
|
| 49,535
|
Subordinated indebtedness
|
| 4,684
|
| 4,080
|
Equity
|
|
|
|
|
Preferred shares
|
| 2,825
|
| 2,250
|
Common shares
|
| 13,591
|
| 13,243
|
Contributed surplus
|
| 125
|
| 136
|
Retained earnings
|
| 20,972
|
| 18,537
|
Accumulated other comprehensive income (AOCI)
|
| 881
|
| 777
|
Total shareholders' equity
|
| 38,394
|
| 34,943
|
Non-controlling interests
|
| 186
|
| 173
|
Total equity
|
| 38,580
|
| 35,116
|
| $
| 651,604
| $
| 597,099
|
Consolidated statement of income
| For the three
|
|
|
|
| For the twelve
|
| months ended
|
|
|
|
| months ended
|
| 2019
| 2019
| 2018
|
| 2019
| 2018
|
$ millions, except as noted
| Oct. 31
| Jul. 31
| Oct. 31
|
| Oct. 31
| Oct. 31
|
Interest income (1)
|
|
|
|
|
|
|
|
|
|
|
|
Loans
| $
| 4,091
| $
| 4,069
| $
| 3,764
|
| $
| 16,048
| $
| 13,901
|
Securities
|
| 707
|
| 720
|
| 583
|
|
| 2,779
|
| 2,269
|
Securities borrowed or purchased under resale agreements
|
| 375
|
| 378
|
| 310
|
|
| 1,474
|
| 1,053
|
Deposits with banks
|
| 104
|
| 104
|
| 79
|
|
| 396
|
| 282
|
|
| 5,277
|
| 5,271
|
| 4,736
|
|
| 20,697
|
| 17,505
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
| 2,040
|
| 2,117
|
| 1,852
|
|
| 8,422
|
| 6,240
|
Securities sold short
|
| 64
|
| 80
|
| 75
|
|
| 291
|
| 272
|
Securities lent or sold under repurchase agreements
|
| 307
|
| 321
|
| 224
|
|
| 1,198
|
| 736
|
Subordinated indebtedness
|
| 56
|
| 50
|
| 43
|
|
| 198
|
| 174
|
Other
|
| 9
|
| 9
|
| 3
|
|
| 37
|
| 18
|
|
| 2,476
|
| 2,577
|
| 2,197
|
|
| 10,146
|
| 7,440
|
Net interest income
|
| 2,801
|
| 2,694
|
| 2,539
|
|
| 10,551
|
| 10,065
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting and advisory fees
|
| 105
|
| 112
|
| 91
|
|
| 475
|
| 420
|
Deposit and payment fees
|
| 228
|
| 232
|
| 223
|
|
| 908
|
| 877
|
Credit fees
|
| 248
|
| 249
|
| 212
|
|
| 958
|
| 851
|
Card fees
|
| 110
|
| 117
|
| 128
|
|
| 458
|
| 510
|
Investment management and custodial fees
|
| 341
|
| 335
|
| 328
|
|
| 1,305
|
| 1,247
|
Mutual fund fees
|
| 403
|
| 403
|
| 406
|
|
| 1,595
|
| 1,624
|
Insurance fees, net of claims
|
| 107
|
| 102
|
| 105
|
|
| 430
|
| 431
|
Commissions on securities transactions
|
| 77
|
| 78
|
| 89
|
|
| 313
|
| 357
|
Gains (losses) from financial instruments measured/designated at
|
|
|
|
|
|
|
|
|
|
|
|
| fair value through profit or loss (FVTPL), net
|
| 168
|
| 180
|
| 191
|
|
| 761
|
| 603
|
Gains (losses) from debt securities measured at fair value through
|
|
|
|
|
|
|
|
|
|
|
|
| other comprehensive income (FVOCI) and amortized cost, net
|
| 6
|
| 5
|
| (58)
|
|
| 34
|
| (35)
|
Foreign exchange other than trading
|
| 59
|
| 84
|
| 64
|
|
| 304
|
| 310
|
Income from equity-accounted associates and joint ventures
|
| 22
|
| 25
|
| 27
|
|
| 92
|
| 121
|
Other
|
| 97
|
| 116
|
| 107
|
|
| 427
|
| 453
|
|
| 1,971
|
| 2,038
|
| 1,913
|
|
| 8,060
|
| 7,769
|
Total revenue
|
| 4,772
|
| 4,732
|
| 4,452
|
|
| 18,611
|
| 17,834
|
Provision for credit losses
|
| 402
|
| 291
|
| 264
|
|
| 1,286
|
| 870
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits
|
| 1,436
|
| 1,469
|
| 1,353
|
|
| 5,726
|
| 5,665
|
Occupancy costs
|
| 230
|
| 220
|
| 228
|
|
| 892
|
| 875
|
Computer, software and office equipment
|
| 493
|
| 476
|
| 467
|
|
| 1,874
|
| 1,742
|
Communications
|
| 71
|
| 76
|
| 78
|
|
| 303
|
| 315
|
Advertising and business development
|
| 95
|
| 93
|
| 95
|
|
| 359
|
| 327
|
Professional fees
|
| 67
|
| 59
|
| 71
|
|
| 226
|
| 226
|
Business and capital taxes
|
| 25
|
| 29
|
| 26
|
|
| 110
|
| 103
|
Other
|
| 421
|
| 248
|
| 273
|
|
| 1,366
|
| 1,005
|
|
| 2,838
|
| 2,670
|
| 2,591
|
|
| 10,856
|
| 10,258
|
Income before income taxes
|
| 1,532
|
| 1,771
|
| 1,597
|
|
| 6,469
|
| 6,706
|
Income taxes
|
| 339
|
| 373
|
| 329
|
|
| 1,348
|
| 1,422
|
Net income
| $
| 1,193
| $
| 1,398
| $
| 1,268
|
| $
| 5,121
| $
| 5,284
|
Net income attributable to non-controlling interests
| $
| 8
| $
| 6
| $
| 2
|
| $
| 25
| $
| 17
|
| Preferred shareholders
| $
| 32
| $
| 28
| $
| 24
|
| $
| 111
| $
| 89
|
| Common shareholders
|
| 1,153
|
| 1,364
|
| 1,242
|
|
| 4,985
|
| 5,178
|
Net income attributable to equity shareholders
| $
| 1,185
| $
| 1,392
| $
| 1,266
|
| $
| 5,096
| $
| 5,267
|
Earnings per share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
| Basic
| $
| 2.59
| $
| 3.07
| $
| 2.81
|
| $
| 11.22
| $
| 11.69
|
| Diluted
|
| 2.58
|
| 3.06
|
| 2.80
|
|
| 11.19
|
| 11.65
|
Dividends per common share (in dollars)
|
| 1.44
|
| 1.40
|
| 1.36
|
|
| 5.60
|
| 5.32
|
(1)
| Interest income included $4.8 billion for the three months ended October 31, 2019 (July 31, 2019: $4.8 billion; October 31, 2018: $4.4 billion) calculated based on the effective interest rate method
|
Consolidated statement of comprehensive income
|
|
| For the three
|
| For the twelve
|
|
|
| months ended
|
| months ended
|
|
|
| 2019
| 2019
| 2018
|
| 2019
| 2018
|
$ millions
| Oct. 31
| Jul. 31
| Oct. 31
|
| Oct. 31
| Oct. 31
|
Net income
| $
| 1,193
| $
| 1,398
| $
| 1,268
|
| $
| 5,121
| $
| 5,284
|
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
|
| (79)
|
| (492)
|
| 340
|
|
| (21)
|
| 635
|
| Net gains (losses) on hedges of investments in foreign operations
|
| 35
|
| 250
|
| (159)
|
|
| (10)
|
| (349)
|
|
|
|
| (44)
|
| (242)
|
| 181
|
|
| (31)
|
| 286
|
| Net change in debt securities measured at FVOCI
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on securities measured at FVOCI
|
| 53
|
| 43
|
| (28)
|
|
| 244
|
| (142)
|
| Net (gains) losses reclassified to net income
|
| (4)
|
| (4)
|
| -
|
|
| (28)
|
| (29)
|
|
|
|
| 49
|
| 39
|
| (28)
|
|
| 216
|
| (171)
|
| Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on derivatives designated as cash flow hedges
|
| 91
|
| (53)
|
| (66)
|
|
| 137
|
| (25)
|
| Net (gains) losses reclassified to net income
|
| (50)
|
| 58
|
| 38
|
|
| (6)
|
| (26)
|
|
| 41
|
| 5
|
| (28)
|
|
| 131
|
| (51)
|
OCI, net of income tax, that is not subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on post-employment defined benefit plans
|
| 11
|
| (88)
|
| (95)
|
|
| (220)
|
| 226
|
| Net gains (losses) due to fair value change of fair value option (FVO) liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
| attributable to changes in credit risk
|
| 13
|
| 11
|
| (8)
|
|
| 28
|
| (2)
|
| Net gains (losses) on equity securities designated at FVOCI
|
| 1
|
| (2)
|
| 10
|
|
| (2)
|
| 29
|
Total OCI (1)
|
| 71
|
| (277)
|
| 32
|
|
| 122
|
| 317
|
Comprehensive income
| $
| 1,264
| $
| 1,121
| $
| 1,300
|
| $
| 5,243
| $
| 5,601
|
Comprehensive income attributable to non-controlling interests
| $
| 8
| $
| 6
| $
| 2
|
| $
| 25
| $
| 17
|
| Preferred shareholders
| $
| 32
| $
| 28
| $
| 24
|
| $
| 111
| $
| 89
|
| Common shareholders
|
| 1,224
|
| 1,087
|
| 1,274
|
|
| 5,107
|
| 5,495
|
Comprehensive income attributable to equity shareholders
| $
| 1,256
| $
| 1,115
| $
| 1,298
|
| $
| 5,218
| $
| 5,584
|
(1)
| Includes $2 million of gains for the quarter ended October 31, 2019 (July 31, 2019: $11 million of gains; October 31, 2018: $3 million of losses), relating to our investments in equity-accounted associates and joint
ventures.
|
|
|
|
|
|
|
|
|
| For the three
|
| For the twelve
|
|
|
| months ended
|
| months ended
|
|
|
| 2019
| 2019
| 2018
|
| 2019
| 2018
|
$ millions
| Oct. 31
| Jul. 31
| Oct. 31
|
| Oct. 31
| Oct. 31
|
Income tax (expense) benefit allocated to each component of OCI
|
|
|
|
|
|
|
|
|
|
|
|
Subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
| Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on investments in foreign operations
| $
| -
| $
| 4
| $
| (2)
|
| $
| -
| $
| (31)
|
| Net gains (losses) on hedges of investments in foreign operations
|
| (8)
|
| (10)
|
| 5
|
|
| (16)
|
| 43
|
|
|
|
| (8)
|
| (6)
|
| 3
|
|
| (16)
|
| 12
|
| Net change in debt securities measured at FVOCI
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on securities measured at FVOCI
|
| (13)
|
| (3)
|
| 7
|
|
| (36)
|
| 18
|
| Net (gains) losses reclassified to net income
|
| 2
|
| 1
|
| -
|
|
| 10
|
| 8
|
|
|
|
| (11)
|
| (2)
|
| 7
|
|
| (26)
|
| 26
|
| Net change in cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on derivatives designated as cash flow hedges
|
| (32)
|
| 19
|
| 22
|
|
| (49)
|
| 8
|
| Net (gains) losses reclassified to net income
|
| 17
|
| (21)
|
| (14)
|
|
| 2
|
| 9
|
|
|
| (15)
|
| (2)
|
| 8
|
|
| (47)
|
| 17
|
Not subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
| Net gains (losses) on post-employment defined benefit plans
|
| 1
|
| 31
|
| 30
|
|
| 77
|
| (87)
|
| Net gains (losses) due to fair value change of FVO liabilities attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
| to changes in credit risk
|
| (4)
|
| (4)
|
| 3
|
|
| (10)
|
| 1
|
| Net gains (losses) on equity securities designated at FVOCI
|
| (1)
|
| -
|
| (4)
|
|
| -
|
| (11)
|
|
|
| $
| (38)
| $
| 17
| $
| 47
|
| $
| (22)
| $
| (42)
|
Consolidated statement of changes in equity
| For the three
|
| For the twelve
|
|
| months ended
|
| months ended
|
|
|
| 2019
|
| 2019
|
| 2018
|
|
| 2019
|
| 2018
|
$ millions
|
| Oct. 31
|
| Jul. 31
|
| Oct. 31
|
|
| Oct. 31
|
| Oct. 31
|
Preferred shares
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
| $
| 2,825
| $
| 2,575
| $
| 2,250
|
| $
| 2,250
| $
| 1,797
|
Issue of preferred shares
|
| -
|
| 250
|
| -
|
|
| 575
|
| 450
|
Treasury shares
|
| -
|
| -
|
| -
|
|
| -
|
| 3
|
Balance at end of period
| $
| 2,825
| $
| 2,825
| $
| 2,250
|
| $
| 2,825
| $
| 2,250
|
Common shares
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
| $
| 13,525
| $
| 13,443
| $
| 13,201
|
| $
| 13,243
| $
| 12,548
|
Issued pursuant to the acquisition of The PrivateBank
|
| -
|
| -
|
| -
|
|
| -
|
| 194
|
Issued pursuant to the acquisition of Wellington Financial
|
| -
|
| -
|
| -
|
|
| -
|
| 47
|
Other issue of common shares
|
| 97
|
| 80
|
| 94
|
|
| 377
|
| 555
|
Purchase of common shares for cancellation
|
| (30)
|
| -
|
| (52)
|
|
| (30)
|
| (104)
|
Treasury shares
|
| (1)
|
| 2
|
| -
|
|
| 1
|
| 3
|
Balance at end of period
| $
| 13,591
| $
| 13,525
| $
| 13,243
|
| $
| 13,591
| $
| 13,243
|
Contributed surplus
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
| $
| 128
| $
| 125
| $
| 133
|
| $
| 136
| $
| 137
|
Compensation expense arising from equity-settled share-based awards
|
| 2
|
| 5
|
| 8
|
|
| 16
|
| 31
|
Exercise of stock options and settlement of other equity-settled share-based awards
|
| (4)
|
| (3)
|
| (4)
|
|
| (27)
|
| (32)
|
Other
|
| (1)
|
| 1
|
| (1)
|
|
| -
|
| -
|
Balance at end of period
| $
| 125
| $
| 128
| $
| 136
|
| $
| 125
| $
| 136
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period before accounting policy changes
|
| n/a
|
| n/a
|
| n/a
|
| $
| 18,537
| $
| 16,101
|
Impact of adopting IFRS 9 at November 1, 2017
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
|
| (144)
|
Impact of adopting IFRS 15 at November 1, 2018
|
| n/a
|
| n/a
|
| n/a
|
|
| 6
|
| n/a
|
Balance at beginning of period after accounting policy changes
| $
| 20,535
| $
| 19,793
| $
| 18,051
|
|
| 18,543
|
| 15,957
|
Net income attributable to equity shareholders
|
| 1,185
|
| 1,392
|
| 1,266
|
|
| 5,096
|
| 5,267
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred
|
| (32)
|
| (28)
|
| (24)
|
|
| (111)
|
| (89)
|
| Common
|
| (641)
|
| (623)
|
| (602)
|
|
| (2,488)
|
| (2,356)
|
Premium on purchase of common shares for cancellation
|
| (79)
|
| -
|
| (163)
|
|
| (79)
|
| (313)
|
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI
|
| 5
|
| 2
|
| 1
|
|
| 18
|
| 49
|
Other (1)
|
| (1)
|
| (1)
|
| 8
|
|
| (7)
|
| 22
|
Balance at end of period
| $
| 20,972
| $
| 20,535
| $
| 18,537
|
| $
| 20,972
| $
| 18,537
|
AOCI, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
AOCI, net of income tax, that is subject to subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
| Net foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at beginning of period
| $
| 1,037
| $
| 1,279
| $
| 843
|
| $
| 1,024
| $
| 738
|
| Net change in foreign currency translation adjustments
|
| (44)
|
| (242)
|
| 181
|
|
| (31)
|
| 286
|
| Balance at end of period
| $
| 993
| $
| 1,037
| $
| 1,024
|
| $
| 993
| $
| 1,024
|
| Net gains (losses) on debt securities measured at FVOCI
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at beginning of period under IAS 39
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
| $
| 60
|
| Impact of adopting IFRS 9 at November 1, 2017
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
|
| (28)
|
| Balance at beginning of period under IFRS 9
| $
| 28
| $
| (11)
| $
| (111)
|
| $
| (139)
|
| 32
|
| Net change in securities measured at FVOCI
|
| 49
|
| 39
|
| (28)
|
|
| 216
|
| (171)
|
| Balance at end of period
| $
| 77
| $
| 28
| $
| (139)
|
| $
| 77
| $
| (139)
|
| Net gains (losses) on cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at beginning of period
| $
| 72
| $
| 67
| $
| 10
|
| $
| (18)
| $
| 33
|
| Net change in cash flow hedges
|
| 41
|
| 5
|
| (28)
|
|
| 131
|
| (51)
|
| Balance at end of period
| $
| 113
| $
| 72
| $
| (18)
|
| $
| 113
| $
| (18)
|
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
| $
| (374)
| $
| (286)
| $
| (48)
|
| $
| (143)
| $
| (369)
|
| Net change in post-employment defined benefit plans
|
| 11
|
| (88)
|
| (95)
|
|
| (220)
|
| 226
|
| Balance at end of period
| $
| (363)
| $
| (374)
| $
| (143)
|
| $
| (363)
| $
| (143)
|
| Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk
|
|
|
|
|
|
|
|
|
|
| Balance at beginning of period
| $
| 3
| $
| (8)
| $
| (4)
|
| $
| (12)
| $
| (10)
|
| Net change attributable to changes in credit risk
|
| 13
|
| 11
|
| (8)
|
|
| 28
|
| (2)
|
| Balance at end of period
| $
| 16
| $
| 3
| $
| (12)
|
| $
| 16
| $
| (12)
|
| Net gains (losses) on equity securities designated at FVOCI
|
|
|
|
|
|
|
|
|
|
|
|
| Impact of adopting IFRS 9 at November 1, 2017
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
| $
| 85
|
| Balance at beginning of period under IFRS 9
| $
| 49
| $
| 53
| $
| 56
|
| $
| 65
|
| 85
|
| Net gains (losses) on equity securities designated at FVOCI
|
| 1
|
| (2)
|
| 10
|
|
| (2)
|
| 29
|
| Realized gains (losses) on equity securities designated at FVOCI reclassified to retained earnings (2)
|
| (5)
|
| (2)
|
| (1)
|
|
| (18)
|
| (49)
|
| Balance at end of period
| $
| 45
| $
| 49
| $
| 65
|
| $
| 45
| $
| 65
|
Total AOCI, net of income tax
| $
| 881
| $
| 815
| $
| 777
|
| $
| 881
| $
| 777
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period under IAS 39
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
| $
| 202
|
Impact of adopting IFRS 9 at November 1, 2017
|
| n/a
|
| n/a
|
| n/a
|
|
| n/a
|
| (4)
|
Balance at beginning of period under IFRS 9
| $
| 182
| $
| 183
| $
| 173
|
| $
| 173
|
| 198
|
Net income attributable to non-controlling interests
|
| 8
|
| 6
|
| 2
|
|
| 25
|
| 17
|
Dividends
|
| (2)
|
| (5)
|
| (2)
|
|
| (11)
|
| (31)
|
Other
|
| (2)
|
| (2)
|
| -
|
|
| (1)
|
| (11)
|
Balance at end of period
| $
| 186
| $
| 182
| $
| 173
|
| $
| 186
| $
| 173
|
Equity at end of period
| $
| 38,580
| $
| 38,010
| $
| 35,116
|
| $
| 38,580
| $
| 35,116
|
(1)
| The third and fourth quarter of 2018 includes the recognition of loss carryforwards relating to foreign exchange translation amounts on CIBC's net investment in foreign operations that were previously reclassified to retained earnings as
part of our transition to IFRS in 2012.
|
(2)
| Includes nil reclassified to retained earnings for the three months ended October 31, 2019 (July 31, 2019: nil; October 31, 2018: $1 million of gains), relating to our investments in equity-accounted associates and joint ventures.
|
n/a
| Not applicable.
|
Consolidated statement of cash flows
|
|
| For the three
|
| For the twelve
|
|
|
| months ended
|
| months ended
|
|
|
|
| 2019
|
| 2019
|
|
| 2018
|
|
| 2019
|
| 2018
|
$ millions
|
| Oct. 31
|
| Jul. 31
|
|
| Oct. 31
|
|
| Oct. 31
|
| Oct. 31
|
Cash flows provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
| $
| 1,193
| $
| 1,398
|
| $
| 1,268
|
| $
| 5,121
| $
| 5,284
|
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for credit losses
|
| 402
|
| 291
|
|
| 264
|
|
| 1,286
|
| 870
|
| Amortization and impairment (1)
|
| 312
|
| 177
|
|
| 162
|
|
| 838
|
| 657
|
| Stock options and restricted shares expense
|
| 2
|
| 5
|
|
| 8
|
|
| 16
|
| 31
|
| Deferred income taxes
|
| 18
|
| 5
|
|
| (33)
|
|
| 108
|
| 69
|
| Losses (gains) from debt securities measured at FVOCI and amortized cost
|
| (6)
|
| (5)
|
|
| 58
|
|
| (34)
|
| 35
|
| Net losses (gains) on disposal of land, buildings and equipment
|
| -
|
| (6)
|
|
| -
|
|
| (7)
|
| (14)
|
| Other non-cash items, net
|
| (39)
|
| 175
|
|
| 10
|
|
| (229)
|
| (292)
|
| Net changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits with banks
|
| (761)
|
| (2,529)
|
|
| 827
|
|
| (208)
|
| (2,599)
|
|
| Loans, net of repayments
|
| (3,550)
|
| (2,751)
|
|
| (4,999)
|
|
| (17,653)
|
| (16,155)
|
|
| Deposits, net of withdrawals
|
| 3,187
|
| 2,868
|
|
| 1,151
|
|
| 19,838
|
| 20,770
|
|
| Obligations related to securities sold short
|
| 2,092
|
| (645)
|
|
| 1,630
|
|
| 1,853
|
| 69
|
|
| Accrued interest receivable
|
| (93)
|
| 77
|
|
| (176)
|
|
| (122)
|
| (341)
|
|
| Accrued interest payable
|
| 120
|
| (123)
|
|
| 126
|
|
| 138
|
| 205
|
|
| Derivative assets
|
| 667
|
| (2,458)
|
|
| 467
|
|
| (2,484)
|
| 2,780
|
|
| Derivative liabilities
|
| (884)
|
| 3,124
|
|
| (800)
|
|
| 4,037
|
| (2,084)
|
|
| Securities measured at FVTPL
|
| 2,704
|
| 5,753
|
|
| (1,786)
|
|
| (1,826)
|
| (647)
|
|
| Other assets and liabilities designated at fair value
|
| (417)
|
| 917
|
|
| (452)
|
|
| 1,222
|
| (380)
|
|
| Current income taxes
|
| 13
|
| (35)
|
|
| 22
|
|
| (309)
|
| (301)
|
|
| Cash collateral on securities lent
|
| (95)
|
| 29
|
|
| 269
|
|
| (909)
|
| 707
|
|
| Obligations related to securities sold under repurchase agreements
|
| 1,704
|
| 589
|
|
| (2,145)
|
|
| 20,961
|
| 2,869
|
|
| Cash collateral on securities borrowed
|
| 1,235
|
| 380
|
|
| (405)
|
|
| 1,824
|
| (453)
|
|
| Securities purchased under resale agreements
|
| (3,597)
|
| (2,506)
|
|
| 1,945
|
|
| (10,785)
|
| (1,195)
|
|
| Other, net
|
| 1,765
|
| (2,184)
|
|
| 1,377
|
|
| (4,041)
|
| (18)
|
|
|
|
| 5,972
|
| 2,546
|
|
| (1,212)
|
|
| 18,635
|
| 9,867
|
Cash flows provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of subordinated indebtedness
|
| -
|
| 1,500
|
|
| -
|
|
| 1,500
|
| 1,534
|
Redemption/repurchase/maturity of subordinated indebtedness
|
| (1,000)
|
| (1)
|
|
| (19)
|
|
| (1,001)
|
| (638)
|
Issue of preferred shares, net of issuance cost
|
| -
|
| 247
|
|
| -
|
|
| 568
|
| 445
|
Issue of common shares for cash
|
| 43
|
| 38
|
|
| 43
|
|
| 157
|
| 186
|
Purchase of common shares for cancellation
|
| (109)
|
| -
|
|
| (215)
|
|
| (109)
|
| (417)
|
Net sale (purchase) of treasury shares
|
| (1)
|
| 2
|
|
| -
|
|
| 1
|
| 6
|
Dividends paid
|
| (623)
|
| (612)
|
|
| (579)
|
|
| (2,406)
|
| (2,109)
|
|
|
|
| (1,690)
|
| 1,174
|
|
| (770)
|
|
| (1,290)
|
| (993)
|
Cash flows provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of securities measured/designated at FVOCI and amortized cost
|
| (12,619)
|
| (9,394)
|
|
| (8,676)
|
|
| (42,304)
|
| (33,011)
|
Proceeds from sale of securities measured/designated at FVOCI and amortized cost
|
| 2,640
|
| 3,704
|
|
| 6,865
|
|
| 13,764
|
| 12,992
|
Proceeds from maturity of debt securities measured at FVOCI and amortized cost
|
| 5,730
|
| 1,814
|
|
| 4,619
|
|
| 10,948
|
| 12,402
|
Cash used in acquisitions, net of cash acquired
|
| (25)
|
| -
|
|
| -
|
|
| (25)
|
| (315)
|
Net cash provided by dispositions of investments in equity-accounted associates and
|
|
|
|
|
|
|
|
|
|
|
|
|
| joint ventures
|
| -
|
| -
|
|
| -
|
|
| -
|
| 200
|
Net sale (purchase) of land, buildings and equipment
|
| (106)
|
| (54)
|
|
| (132)
|
|
| (272)
|
| (255)
|
|
|
|
| (4,380)
|
| (3,930)
|
|
| 2,676
|
|
| (17,889)
|
| (7,987)
|
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks
|
| (3)
|
| (27)
|
|
| 23
|
|
| 4
|
| 53
|
Net increase (decrease) in cash and non-interest-bearing deposits with banks
|
|
|
|
|
|
|
|
|
|
|
|
|
| during the period
|
| (101)
|
| (237)
|
|
| 717
|
|
| (540)
|
| 940
|
Cash and non-interest-bearing deposits with banks at beginning of period
|
| 3,941
|
| 4,178
|
|
| 3,663
|
|
| 4,380
|
| 3,440
|
Cash and non-interest-bearing deposits with banks at end of period (2)
| $
| 3,840
| $
| 3,941
|
| $
| 4,380
|
| $
| 3,840
| $
| 4,380
|
Cash interest paid
| $
| 2,356
| $
| 2,700
|
| $
| 2,071
|
| $
| 10,008
| $
| 7,235
|
Cash interest received
|
| 4,978
|
| 5,162
|
|
| 4,402
|
|
| 19,840
|
| 16,440
|
Cash dividends received
|
| 206
|
| 186
|
|
| 158
|
|
| 735
|
| 724
|
Cash income taxes paid
|
| 308
|
| 403
|
|
| 340
|
|
| 1,549
|
| 1,654
|
(1)
| Comprises amortization and impairment of buildings, furniture, equipment, leasehold improvements, goodwill, software and other intangible assets.
|
(2)
| Includes restricted balance of $479 million (July 31, 2019: $476 million; October 31, 2018: $438 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 understanding how management views underlying business 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 2019 Annual Report.
|
|
| As at or for the
|
|
| As at or for the
|
|
|
|
| three months ended
|
|
| twelve months ended
|
|
|
|
|
| 2019
|
|
| 2019
|
|
| 2018
|
|
|
| 2019
|
|
| 2018
|
|
$ millions
|
|
|
| Oct. 31
|
|
| Jul. 31
|
|
| Oct. 31
|
|
|
| Oct. 31
|
|
| Oct. 31
|
|
Reported and adjusted diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income attributable to common shareholders
| A
|
| $
| 1,153
|
| $
| 1,364
|
| $
| 1,242
|
|
| $
| 4,985
|
| $
| 5,178
|
|
After-tax impact of items of note (1)
|
|
|
| 116
|
|
| 17
|
|
| 91
|
|
|
| 323
|
|
| 252
|
|
Adjusted net income attributable to common shareholders (2)
| B
|
| $
| 1,269
|
| $
| 1,381
|
| $
| 1,333
|
|
| $
| 5,308
|
| $
| 5,430
|
|
Diluted weighted-average common shares outstanding (thousands)
| C
|
|
| 446,392
|
|
| 445,915
|
|
| 444,504
|
|
|
| 445,457
|
|
| 444,627
|
|
Reported diluted EPS ($)
| A/C
|
| $
| 2.58
|
| $
| 3.06
|
| $
| 2.80
|
|
| $
| 11.19
|
| $
| 11.65
|
|
Adjusted diluted EPS ($) (2)
| B/C
|
|
| 2.84
|
|
| 3.10
|
|
| 3.00
|
|
|
| 11.92
|
|
| 12.21
|
|
Reported and adjusted return on common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shareholders' equity
| D
|
| $
| 35,553
|
| $
| 35,028
|
| $
| 32,200
|
|
| $
| 34,467
|
| $
| 31,184
|
|
Reported return on common shareholders' equity
| A/D
| (3)
|
| 12.9
| %
|
| 15.5
| %
|
| 15.3
| %
|
|
| 14.5
| %
|
| 16.6
| %
|
Adjusted return on common shareholders' equity (2)
| B/D
| (3)
|
| 14.2
| %
|
| 15.6
| %
|
| 16.4
| %
|
|
| 15.4
| %
|
| 17.4
| %
|
|
|
|
| Canadian
| U.S.
|
|
|
|
|
| Canadian
| Commercial
| Commercial
|
|
|
|
|
| Personal and
| Banking and
| Banking and
|
|
|
|
|
| Small Business
| Wealth
| Wealth
| Capital
| Corporate
| CIBC
|
$ millions, for the three months ended
| Banking
| Management
| Management
| Markets
| and Other
| Total
|
Oct. 31
| Reported net income (loss)
| $
| 601
| $
| 306
| $
| 180
| $
| 226
| $
| (120)
| $
| 1,193
|
2019
| After-tax impact of items of note (1)
|
| 2
|
| 1
|
| 11
|
| -
|
| 102
|
| 116
|
| Adjusted net income (loss) (2)
| $
| 603
| $
| 307
| $
| 191
| $
| 226
| $
| (18)
| $
| 1,309
|
Jul. 31
| Reported net income (loss)
| $
| 657
| $
| 348
| $
| 172
| $
| 231
| $
| (10)
| $
| 1,398
|
2019
| After-tax impact of items of note (1)
|
| 2
|
| -
|
| 10
|
| -
|
| 5
|
| 17
|
| Adjusted net income (loss) (2)
| $
| 659
| $
| 348
| $
| 182
| $
| 231
| $
| (5)
| $
| 1,415
|
Oct. 31
| Reported net income (loss)
| $
| 668
| $
| 333
| $
| 131
| $
| 233
| $
| (97)
| $
| 1,268
|
2018
| After-tax impact of items of note (1)
|
| 1
|
| 1
|
| 8
|
| -
|
| 86
|
| 96
|
| Adjusted net income (loss) (2)
| $
| 669
| $
| 334
| $
| 139
| $
| 233
| $
| (11)
| $
| 1,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions, for the twelve months ended
|
|
|
|
|
|
|
Oct. 31
| Reported net income (loss)
| $
| 2,291
| $
| 1,301
| $
| 683
| $
| 937
| $
| (91)
| $
| 5,121
|
2019
| After-tax impact of items of note (1)
|
| 174
|
| 1
|
| 40
|
| -
|
| 108
|
| 323
|
| Adjusted net income (loss) (2)
| $
| 2,465
| $
| 1,302
| $
| 723
| $
| 937
| $
| 17
| $
| 5,444
|
Oct. 31
| Reported net income (loss)
| $
| 2,547
| $
| 1,307
| $
| 565
| $
| 1,069
| $
| (204)
| $
| 5,284
|
2018
| After-tax impact of items of note (1)
|
| 9
|
| 1
|
| 27
|
| -
|
| 220
|
| 257
|
| Adjusted net income (loss) (2)
| $
| 2,556
| $
| 1,308
| $
| 592
| $
| 1,069
| $
| 16
| $
| 5,541
|
|
(1)
| Reflects impact of items of note under the "2019 Financial results review" section of the 2019 Annual Report.
|
(2)
| Non-GAAP measure.
|
(3)
| Annualized.
|
Items of note
| For the three
|
| For the twelve
|
months ended
|
| months ended
|
2019
| 2019
| 2018
|
| 2019
| 2018
|
$ millions
| Oct. 31
| Jul. 31
| Oct. 31
|
| Oct. 31
| Oct. 31
|
Interest income related to the settlement of certain income tax matters
| $
| (67)
| $
| -
| $
| -
|
| $
| (67)
| -
|
Amortization of acquisition-related intangible assets
|
| 28
|
| 27
|
| 26
|
|
| 109
| 115
|
Goodwill impairment charge related to the expected sale of our controlling interest in CIBC FirstCaribbean
|
| 135
|
| -
|
| -
|
|
| 135
| -
|
Charge for a payment made to Air Canada, including related sales tax and transaction costs, to secure our
|
|
|
|
|
|
|
|
|
|
|
| participation in its new loyalty program
|
| -
|
| -
|
| -
|
|
| 227
| -
|
Incremental losses on debt securities and loans in CIBC FirstCaribbean resulting from the Barbados government
|
|
|
|
|
|
|
|
|
|
|
| debt restructuring
|
| -
|
| -
|
| 89
|
|
| -
| 89
|
Transaction and integration-related costs as well as purchase accounting adjustments associated with the
|
|
|
|
|
|
|
|
|
|
|
| acquisitions of The PrivateBank, Geneva Advisors and Wellington Financial (1)
|
| (16)
|
| (6)
|
| 8
|
|
| (45)
| 16
|
Increase in legal provisions
|
| 28
|
| -
|
| -
|
|
| 28
| -
|
Pre-tax impact of items of note on net income
|
| 108
|
| 21
|
| 123
|
|
| 387
| 220
|
| Income tax impact on above items of note
|
| 8
|
| (4)
|
| (27)
|
|
| (64)
| (51)
|
| Charge from net tax adjustments resulting from U.S. tax reforms
|
| -
|
| -
|
| -
|
|
| -
| 88
|
After-tax impact of items of note on net income
| $
| 116
| $
| 17
| $
| 96
|
| $
| 323
| 257
|
| After-tax impact of items of note on non-controlling interests
|
| -
|
| -
|
| (5)
|
|
| -
| (5)
|
After-tax impact of items of note on net income attributable to common shareholders
| $
| 116
| $
| 17
| $
| 91
|
| $
| 323
| 252
|
(1)
| Transaction costs include legal and other advisory fees and interest adjustments relating to the obligation payable to dissenting shareholders. Integration costs are comprised of direct and incremental costs incurred
as part of planning for and executing the integration of the businesses of The PrivateBank (subsequently rebranded as CIBC Bank USA) and Geneva Advisors with CIBC, including enabling cross-sell opportunities
and expansion of services in the U.S. market, the upgrade and conversion of systems and processes, project management, integration-related travel, severance, consulting fees and marketing costs related to rebranding
activities. Purchase accounting adjustments, included as items of note beginning in the fourth quarter of 2017, include the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank
and changes in the fair value of contingent consideration relating to the Geneva Advisors and Wellington Financial acquisitions.
|
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, 2019.
Conference Call/Webcast
The conference call will be held at 8:00 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-800-806-5484, passcode 8987973#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 1030719#). 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 2019 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 2545407#) and French (514-861-2272 or 1-800-408-3053, passcode 8849384#) until 11:59 p.m. (ET) December 13, 2019. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html
About CIBC
CIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Small 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://cibc.mediaroom.com/.
The information below forms a part of this news release.
Nothing in CIBC's corporate website (www.cibc.com) should be considered incorporated herein by reference.
The Board of Directors of CIBC reviewed this news release prior to it being issued.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS:
From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the "Core business performance", "Strong fundamentals", and "Making a difference in our Communities" sections of this news release, and the Management's Discussion and Analysis in our 2019 Annual Report under the heading "Economic and market environment – Outlook for calendar year 2020" 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 2020 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions set out in the "Economic and market environment – Outlook for calendar year 2020" section of our 2019 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, conduct 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 bank recapitalization legislation and the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; the resolution of legal and regulatory proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments, including changes relating to economic or trade matters; the possible effect on our business of international conflicts and terrorism; natural disasters, 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 or disclosure of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change; global capital market activity; changes in monetary and economic policy; 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 an acquisition will not be realized within the expected time frame or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.
SOURCE CIBC - Investor Relations
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Investor Relations: Geoff Weiss, SVP, 416-980-5093, geoffrey.weiss@cibc.com; Jason Patchett, analyst enquiries, 416-980-8691, jason.patchett@cibc.com; Alice Dunning, investor enquiries, 416-861-8870, alice.dunning@cibc.com; Media Enquiries: Erica Belling, 416-594-7251, erica.belling@cibc.com; Tom Wallis, 416-980-4048, tom.wallis@cibc.comCopyright CNW Group 2019