December 2015 Building a strong ... - Financial Servicesclient relationships to accelerate...

Building a strong, innovative, relationship-oriented bank

December 2015

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Forward Looking Statements

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 presentation, 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 about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies and outlook for calendar year 2015 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 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 U.S. Foreign

Account Tax Compliance Act 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, including the evolving risk of cyber attack; social media risk;

losses incurred as a result of internal or external fraud; 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; 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; 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 the high U.S. fiscal deficit; 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; 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. We do not undertake to update any forward-looking statement that is contained in this presentation or in other communications except as

required by law.

Investor Relations contacts:

Geoff Weiss, Senior Vice-President 416 980-5093

Investor Relations Fax Number 416 980-5028

Visit the Investor Relations section at www.cibc.com

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Our Stock & Our Company(1)

CIBC is a leading Canadian-based global financial institution with a

client-focused strategy that creates value for our stakeholders.

OUR STOCK(2)

CM SYMBOL

NYSE/ TSX EXCHANGE

$40B MARKET CAP

1.2M SHARES/DAY

Aa3, A+, AA-

DEBT RATINGS

4.3% YIELD

(1) Presented under IFRS basis. Non-GAAP measures which exclude items of note as referenced in our quarterly Report to Shareholders. (2) As of October 31, 2015 (3) Last 12 months as of October 31, 2015

2

OUR COMPANY(3)

~11M CLIENTS

+1,100 BRANCHES

+44K EMPLOYEES

$13.9B REVENUE

$3.6B NET INCOME

$463B TOTAL ASSETS

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2 0 1 6 S t r a t e g y

Corporate Objectives

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Simplifying our Bank Improving process efficiencies for

our clients and for our teams

Focusing on our Clients Culture focused on the needs of

our clients and on being advocates for our clients

Innovating for the Future Adopting technology to enhance

the client experience

Unlock value for reinvestment

Deepening client relationships

Reshape the way our clients bank and transact with CIBC

A strong,

innovative,

relationship

-oriented

bank

Strategy Objectives Our Goal

4

Our Business Segments

(1) Last twelve months (as of Q4/15). Net Income includes $224 MM loss from Corporate and Other. Results are adjusted for items of note.

4

THREE MAIN SEGMENTS (FY2015; Adjusted Net Income of $3.8) (1)

65% Retail and Business Banking

27% Capital Markets

14% Wealth Management

-6% Corporate & Other

65%

14%

27%

-6%

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Strong Performance….

Diluted Adjusted Earnings / Share(1) ($)

Basel III Common Equity Ratio (%)

5 Sound risk management is a key element of CIBC’s strategy

9.4

10.3 10.8

9.3 9.9

10.3

2014 2013

Peer Average CM

9.458.94

8.65

7.987.57

5.7%

2015 2014 2013 2012 2011

(1) Presented under IFRS basis. Non-GAAP measures which exclude items of note as referenced in our quarterly Report to Shareholders.

2015

6

Adjusted Return on Equity (%)

Dividend Yield (%)

6

…. and attractive returns to shareholders(1)

4.3

3.8

4.3

4.64.7

4.3

3.73.9

4.34.0

2015 2014 2013 2012 2011 2015 2014 2013 2012 2011

Peer Average CM Peer Average CM

Leader in ROE


19.920.9

22.922.8

24.8

15.816.917.2

18.519.1

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Cash Earnings >$3.6B Annually

7 Strong Capital Generation flexibility

Organic Growth

High priority

Focused on operational investment

Deeper client relationships

Acquisitions

Selective acquisitions to support strategic priorities

Consistent with defined risk appetite

Return to Shareholders

Moving to higher end of 40-50% dividend payout ratio

Share repurchase program in place (up to 2% of outstanding)

D i s c i p l i n e d C a p i t a l D e p l o y m e n t

Reinvestment / Return to Shareholders

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ENHANCING CLIENT EXPERIENCE ACCELERATING PROFITABLE REVENUE GROWTH

MODERN CONVENIENCE BANKING • Easy • Personalized • Flexible

STRATEGIC RELATIONSHIPS

INNOVATION

Retail & Business Banking

Delivering a better experience for our clients

Strategic Objectives:

Our Strategy to Win:

Growth Accelerators:

Foundation – continued investment in our people 8

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Retail & Business Banking: Key Priorities

Delivering on consumers’ preferences for a banking experience that is easy, personalized and flexible

2 Personalized

3 Flexible

1 Easy

KEY PRIORITIES OBJECTIVE

• Streamline / simplify / automate

processes

• Digitization of information

• Product & documentation simplification

Improve market position

• 360° view of client

• Differentiated experience based on

client value and preferences

• Over-index growth from Mass Affluent

and Commercial Banking

Differentiated position in market Leadership in

Mass Affluent

• Drive digital sales growth

• Enhance self-serve capabilities

• Channel integration

• Payments innovation

Leadership in emerging channels and banking

innovation

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R e t a i l a n d B u s i n e s s B a n k i n g

Making good progress(1)

Adjusted Net Income ($ billions)

Interest Earning Assets ($ billions)

Loan Loss Ratio (%)

(1) Presented under IFRS basis. Non-GAAP measures which exclude items of note as referenced in our quarterly Report to Shareholders. (2) Last Twelve Months.

2.20 2.38 2.50

0.22

2015 2014

0.04

2013

0.440.38

0.29

2015 2014 2013

156 162 172

2015 2014 2013

217 220 231

2015 2014 2013

Deposits ($ billions)

10

ex Aero

Aero

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• Continue to develop deep client

relationships

• Focus on eliminating platform gaps

• Build core Canadian Commerce

activities

Consistent, sustainable earnings

• Extend core business

• North American energy &

infrastructure build out

Higher long-term growth & diversification

• Enterprise-wide client management

• Align Private Banking & Corporate

contacts

• Investments in cash management

& other deposit gathering initiatives

New revenue & relationship opportunities

2 Client Capabilities Outside of Canada

3 Collaboration &

Innovation Across CIBC

1 Client Leadership

in Canada

Capital Markets: Key Priorities

Developing deep client relationships in Canada, growing execution capabilities in the U.S., and creating innovative solutions for Retail and Wealth clients.

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C a p i t a l M a r k e t s


Average Loans and Acceptances ($ billions)

Average Value at Risk ($ millions)

(1) Presented under IFRS basis. Non-GAAP measures which exclude items of note as referenced in our quarterly Report to Shareholders. (2) Last Twelve Months.

Adjusted Net Income ($ millions)

Adjusted Efficiency Ratio

(%)

21.625.0

30.0

2015 2014 2013

4.6

3.54.0

2015 2014 2013

12

52.0 49.9 50.0

2013 2014 2015

817 913

1,012

2014 2015 2013

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• Elevate our integrated Wealth offer

• Continue fee-based conversion

• Enhance investment capabilities

Improve and differentiate market

position

• Attract net new High Net Worth clients

• Grow self-directed business

• Elevate Asset Management

Organic growth

• Grow earnings contributions to >15%

• Target US Private Banking, Wealth

Management, Asset Management

Inorganic growth

2 Attract New

Clients

3 Strategic

US Acquisitions

1 Enhance

Client Experience

Wealth Management: Key Priorities

Capitalizing on client demand shifts, enhancing client experience, and advancing CIBC’s overall growth, diversification and funding objectives.

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W e a l t h M a n a g e m e n t


Adjusted Net Income ($ millions)

Contribution to CIBC’s Earnings

(%)

Assets Under Administration ($ billions)

Mutual Funds ($ billions)


389486

538

2015 2014 2013

226289 305

2015 2014 2013

66.777.0 84.2

2015 2014 2013

1113 14 15

2013 Target 2015 2014

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Summary

Retail & Business

Repositioned to focus on client relationships to accelerate profitable revenue growth and enhance the client experience

Wealth Management

Targeting 15%+ NIAT contribution in the

medium term through organic growth and strategic

acquisitions

Wholesale Banking

De-risked with plans to grow with our clients’ global needs for lending, advisory services and capital markets products

Committed to delivering sustainable shareholder value 15

Industry leading Return on Equity, Capital Strength, and Dividend Yield

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CIBC Contacts

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GEOFF WEISS, SENIOR VICE-PRESIDENT

Email: [email protected]

Phone: +1 416-980-5093

SELL-SIDE ANALYSTS, CONTACT:

JASON PATCHETT, SENIOR DIRECTOR


Phone: +1 416-980-8691

INSTITUTIONAL INVESTORS, CONTACT:

ALICE DUNNING, SENIOR DIRECTOR


Phone: +1 416-861-8870

December 2015 Building a strong ... - Financial Servicesclient relationships to accelerate...

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