Second quarter highlights
Q2/23 | Q2/22 | Q1/23 | YoY Variance | QoQ | |
Revenue | +6 % | -4 % | |||
Reported Net Income | $432 million | +11 % | +291 % | ||
Adjusted Net Income (1) | -2 % | -12 % | |||
Adjusted pre-provision, pre-tax earnings (1) | +6 % | -7 % | |||
Reported Diluted Earnings Per Share (EPS) (2) | +9 % | +351 % | |||
Adjusted Diluted EPS (1)(2) | -4 % | -12 % | |||
Reported Return on Common Shareholders' Equity (ROE) (3) | 14.5 % | 14.0 % | 3.1 % | ||
Adjusted ROE (1) | 13.9 % | 15.2 % | 15.5 % | ||
Common Equity Tier 1 (CET1) Ratio (4) | 11.9 % | 11.7 % | 11.6 % |
"We continued to execute on our client-focused strategy, delivering solid financial results in the second quarter by leveraging the investments we've made in high-touch, high-growth markets and furthering our strengths in talent and technology," said
Results for the second quarter of 2023 were affected by the following items of note aggregating to a positive impact of
$114 million ($82 million after-tax) decrease in legal provisions (Corporate and Other); and$27 million ($21 million after-tax) amortization of acquisition-related intangible assets.
Our CET1 ratio(4) was 11.9% at
CIBC announced an increase in its quarterly common share dividend from
Canadian Personal and Business Banking reported net income of $637 million for the second quarter, up $141 million or 28% from the second quarter a year ago, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses. Adjusted pre-provision, pre-tax earnings(1) were
Canadian Commercial Banking and Wealth Management reported net income of $452 million for the second quarter, down $28 million or 6% from the second quarter a year ago, primarily due to a provision for credit losses in the current quarter compared with a provision reversal in the prior year quarter, and higher non-interest expenses, partially offset by higher revenue. Adjusted pre-provision, pre-tax earnings(1) were $663 million, up $15 million from the second quarter a year ago, primarily due to volume growth, higher net interest income from improved deposit margins, and higher fees in commercial banking. Expenses increased primarily driven by the timing of expenditures, partially offset by lower performance-based compensation.
(1) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, which section is incorporated by reference herein, including the quantitative reconciliations therein of reported GAAP measures to: adjusted net income on pages 3 to 7; and adjusted pre-provision, pre-tax earnings on page 8. |
(2) | CIBC completed a two-for-one share split of CIBC common shares effective at the close of business on |
(3) | Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Glossary" section of our Report to Shareholders for the second quarter of 2023 available on SEDAR at www.sedar.com. |
(4) | Our capital ratios are calculated pursuant to the Office of the Superintendent |
Capital Markets reported net income of $497 million for the second quarter, down $43 million or 8% from the second quarter a year ago, primarily due to higher non-interest expenses and a provision for credit losses in the current quarter compared with a provision reversal in the prior year quarter, partially offset by higher revenue. Adjusted pre-provision, pre-tax earnings(1) were down $26 million or 4% from the second quarter a year ago, as higher revenue from our direct financial services business, corporate banking, and advisory, was offset by lower underwriting activity, lower global markets revenue and higher expenses. Expenses were up due to higher employee-related costs.
Provision for credit losses was
(1) | This measure is a non-GAAP measure. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section. |
Non-GAAP measures
We use a number of financial measures to assess the performance of our business lines as described below. Some measures are calculated in accordance with GAAP (International Financial Reporting Standards), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", useful in understanding how management views underlying business performance.
Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures. Non-GAAP ratios include an adjusted measure as one or more of their components. Non-GAAP ratios include adjusted diluted EPS, adjusted efficiency ratio, adjusted operating leverage, adjusted dividend payout ratio, adjusted return on common shareholders' equity and adjusted effective tax rate.
Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section of our Report to Shareholders for the second quarter of 2023 available on SEDAR at www.sedar.com.
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,280 | $ | 1,336 | $ | 648 | $ | 1,362 | $ | 76 | $ | 5,702 | $ | 477 | |||
Provision for credit losses | 123 | 46 | 248 | 19 | 2 | 438 | 183 | ||||||||||
Non-interest expenses | 1,274 | 673 | 354 | 664 | 175 | 3,140 | 261 | ||||||||||
Income (loss) before income taxes | 883 | 617 | 46 | 679 | (101) | 2,124 | 33 | ||||||||||
Income taxes | 246 | 165 | (9) | 182 | (148) | 436 | (7) | ||||||||||
Net income | 637 | 452 | 55 | 497 | 47 | 1,688 | 40 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 11 | 11 | - | ||||||||||
Net income attributable to equity shareholders | 637 | 452 | 55 | 497 | 36 | 1,677 | 40 | ||||||||||
Diluted EPS ($) | $ | 1.76 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | $ | (6) | $ | - | $ | (18) | $ | - | $ | (3) | $ | (27) | $ | (13) | |||
Decrease in legal provisions | - | - | - | - | 114 | 114 | - | ||||||||||
Impact of items of note on non-interest expenses | (6) | - | (18) | - | 111 | 87 | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 6 | - | 18 | - | (111) | (87) | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | - | - | 5 | - | 1 | 6 | 3 | ||||||||||
Decrease in legal provisions | - | - | - | - | (32) | (32) | - | ||||||||||
Impact of items of note on income taxes | - | - | 5 | - | (31) | (26) | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 6 | $ | - | $ | 13 | $ | - | $ | (80) | $ | (61) | $ | 10 | |||
Impact of items of note on diluted EPS ($) | $ | (0.06) | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,280 | $ | 1,336 | $ | 648 | $ | 1,362 | $ | 76 | $ | 5,702 | $ | 477 | |||
Provision for credit losses – adjusted | 123 | 46 | 248 | 19 | 2 | 438 | 183 | ||||||||||
Non-interest expenses – adjusted | 1,268 | 673 | 336 | 664 | 286 | 3,227 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 889 | 617 | 64 | 679 | (212) | 2,037 | 46 | ||||||||||
Income taxes – adjusted | 246 | 165 | (4) | 182 | (179) | 410 | (4) | ||||||||||
Net income (loss) – adjusted | 643 | 452 | 68 | 497 | (33) | 1,627 | 50 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 11 | 11 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 643 | 452 | 68 | 497 | (44) | 1,616 | 50 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.70 | |||||||||||||||
(1) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||
(2) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||
(3) | CIBC total results excludes a TEB adjustment of | ||||||||||||||||
(4) | The income tax charge is comprised of | ||||||||||||||||
(5) | On | ||||||||||||||||
(6) | Acquisition and integration costs are comprised of incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,260 | $ | 1,351 | $ | 706 | $ | 1,481 | $ | 129 | $ | 5,927 | $ | 526 | |||
Provision for (reversal of) credit losses | 158 | 46 | 98 | (10) | 3 | 295 | 73 | ||||||||||
Non-interest expenses | 1,290 | 665 | 380 | 650 | 1,477 | 4,462 | 283 | ||||||||||
Income (loss) before income taxes | 812 | 640 | 228 | 841 | (1,351) | 1,170 | 170 | ||||||||||
Income taxes | 223 | 171 | 27 | 229 | 88 | 738 | 20 | ||||||||||
Net income (loss) | 589 | 469 | 201 | 612 | (1,439) | 432 | 150 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 9 | 9 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 589 | 469 | 201 | 612 | (1,448) | 423 | 150 | ||||||||||
Diluted EPS ($) | $ | 0.39 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | $ | (7) | $ | - | $ | (16) | $ | - | $ | (3) | $ | (26) | $ | (12) | |||
Increase in legal provisions | - | - | - | - | (1,169) | (1,169) | - | ||||||||||
Impact of items of note on non-interest expenses | (7) | - | (16) | - | (1,172) | (1,195) | (12) | ||||||||||
Total pre-tax impact of items of note on net income | 7 | - | 16 | - | 1,172 | 1,195 | 12 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 4 | - | - | 6 | 3 | ||||||||||
Increase in legal provisions | - | - | - | - | 325 | 325 | - | ||||||||||
Income tax charge related to the 2022 Canadian Federal budget (4) | - | - | - | - | (545) | (545) | - | ||||||||||
Impact of items of note on income taxes | 2 | - | 4 | - | (220) | (214) | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 5 | $ | - | $ | 12 | $ | - | $ | 1,392 | $ | 1,409 | $ | 9 | |||
Impact of items of note on diluted EPS ($) | $ | 1.55 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,260 | $ | 1,351 | $ | 706 | $ | 1,481 | $ | 129 | $ | 5,927 | $ | 526 | |||
Provision for (reversal of) credit losses – adjusted | 158 | 46 | 98 | (10) | 3 | 295 | 73 | ||||||||||
Non-interest expenses – adjusted | 1,283 | 665 | 364 | 650 | 305 | 3,267 | 271 | ||||||||||
Income (loss) before income taxes – adjusted | 819 | 640 | 244 | 841 | (179) | 2,365 | 182 | ||||||||||
Income taxes – adjusted | 225 | 171 | 31 | 229 | (132) | 524 | 23 | ||||||||||
Net income (loss) – adjusted | 594 | 469 | 213 | 612 | (47) | 1,841 | 159 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 9 | 9 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 594 | 469 | 213 | 612 | (56) | 1,832 | 159 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.94 | |||||||||||||||
See previous page for footnote references. | |||||||||||||||||
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the three months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 2,143 | $ | 1,303 | $ | 591 | $ | 1,316 | $ | 23 | $ | 5,376 | $ | 467 | |||
Provision for (reversal of) credit losses | 273 | (4) | 55 | (14) | (7) | 303 | 43 | ||||||||||
Non-interest expenses | 1,197 | 655 | 320 | 592 | 350 | 3,114 | 253 | ||||||||||
Income (loss) before income taxes | 673 | 652 | 216 | 738 | (320) | 1,959 | 171 | ||||||||||
Income taxes | 177 | 172 | 36 | 198 | (147) | 436 | 29 | ||||||||||
Net income (loss) | 496 | 480 | 180 | 540 | (173) | 1,523 | 142 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 5 | 5 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 496 | 480 | 180 | 540 | (178) | 1,518 | 142 | ||||||||||
Diluted EPS ($) (5) | $ | 1.62 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | $ | (4) | $ | - | $ | - | $ | - | $ | - | $ | (4) | $ | - | |||
Impact of items of note on revenue | (4) | - | - | - | - | (4) | - | ||||||||||
Provision for (reversal of) credit losses | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | (94) | - | - | - | - | (94) | - | ||||||||||
Impact of items of note on provision for (reversal of) credit losses | (94) | - | - | - | - | (94) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (4) | - | (17) | - | (3) | (24) | (14) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | (16) | - | - | - | - | (16) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (45) | (45) | - | ||||||||||
Impact of items of note on non-interest expenses | (20) | - | (17) | - | (48) | (85) | (14) | ||||||||||
Total pre-tax impact of items of note on net income | 110 | - | 17 | - | 48 | 175 | 14 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | - | - | 5 | - | - | 5 | 4 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | 29 | - | - | - | - | 29 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 12 | 12 | - | ||||||||||
Impact of items of note on income taxes | 29 | - | 5 | - | 12 | 46 | 4 | ||||||||||
Total after-tax impact of items of note on net income | $ | 81 | $ | - | $ | 12 | $ | - | $ | 36 | $ | 129 | $ | 10 | |||
Impact of items of note on diluted EPS ($) (5) | $ | 0.15 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,139 | $ | 1,303 | $ | 591 | $ | 1,316 | $ | 23 | $ | 5,372 | $ | 467 | |||
Provision for (reversal of) credit losses – adjusted | 179 | (4) | 55 | (14) | (7) | 209 | 43 | ||||||||||
Non-interest expenses – adjusted | 1,177 | 655 | 303 | 592 | 302 | 3,029 | 239 | ||||||||||
Income (loss) before income taxes – adjusted | 783 | 652 | 233 | 738 | (272) | 2,134 | 185 | ||||||||||
Income taxes – adjusted | 206 | 172 | 41 | 198 | (135) | 482 | 33 | ||||||||||
Net income (loss) – adjusted | 577 | 480 | 192 | 540 | (137) | 1,652 | 152 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 5 | 5 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 577 | 480 | 192 | 540 | (142) | 1,647 | 152 | ||||||||||
Adjusted diluted EPS ($) (5) | $ | 1.77 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the six months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 4,540 | $ | 2,687 | $ | 1,354 | $ | 2,843 | $ | 205 | $ | 11,629 | $ | 1,003 | |||
Provision for credit losses | 281 | 92 | 346 | 9 | 5 | 733 | 256 | ||||||||||
Non-interest expenses | 2,564 | 1,338 | 734 | 1,314 | 1,652 | 7,602 | 544 | ||||||||||
Income (loss) before income taxes | 1,695 | 1,257 | 274 | 1,520 | (1,452) | 3,294 | 203 | ||||||||||
Income taxes | 469 | 336 | 18 | 411 | (60) | 1,174 | 13 | ||||||||||
Net income (loss) | 1,226 | 921 | 256 | 1,109 | (1,392) | 2,120 | 190 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 20 | 20 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 1,226 | 921 | 256 | 1,109 | (1,412) | 2,100 | 190 | ||||||||||
Diluted EPS ($) | $ | 2.15 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | $ | (13) | $ | - | $ | (34) | $ | - | $ | (6) | $ | (53) | $ | (25) | |||
Increase in legal provisions | - | - | - | - | (1,055) | (1,055) | - | ||||||||||
Impact of items of note on non-interest expenses | (13) | - | (34) | - | (1,061) | (1,108) | (25) | ||||||||||
Total pre-tax impact of items of note on net income | 13 | - | 34 | - | 1,061 | 1,108 | 25 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 9 | - | 1 | 12 | 6 | ||||||||||
Increase in legal provisions | - | - | - | - | 293 | 293 | - | ||||||||||
Income tax charge related to the 2022 Canadian Federal budget (4) | - | - | - | - | (545) | (545) | - | ||||||||||
Impact of items of note on income taxes | 2 | - | 9 | - | (251) | (240) | 6 | ||||||||||
Total after-tax impact of items of note on net income | $ | 11 | $ | - | $ | 25 | $ | - | $ | 1,312 | $ | 1,348 | $ | 19 | |||
Impact of items of note on diluted EPS ($) | $ | 1.48 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 4,540 | $ | 2,687 | $ | 1,354 | $ | 2,843 | $ | 205 | $ | 11,629 | $ | 1,003 | |||
Provision for credit losses – adjusted | 281 | 92 | 346 | 9 | 5 | 733 | 256 | ||||||||||
Non-interest expenses – adjusted | 2,551 | 1,338 | 700 | 1,314 | 591 | 6,494 | 519 | ||||||||||
Income (loss) before income taxes – adjusted | 1,708 | 1,257 | 308 | 1,520 | (391) | 4,402 | 228 | ||||||||||
Income taxes – adjusted | 471 | 336 | 27 | 411 | (311) | 934 | 19 | ||||||||||
Net income (loss) – adjusted | 1,237 | 921 | 281 | 1,109 | (80) | 3,468 | 209 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 20 | 20 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,237 | 921 | 281 | 1,109 | (100) | 3,448 | 209 | ||||||||||
Adjusted diluted EPS ($) | $ | 3.63 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis. | |||||||||||||||||
Canadian | Commercial | ||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||
$ millions, for the six months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 4,326 | $ | 2,600 | $ | 1,200 | $ | 2,620 | $ | 128 | $ | 10,874 | $ | 946 | |||
Provision for (reversal of) credit losses | 371 | (8) | 83 | (52) | (16) | 378 | 65 | ||||||||||
Non-interest expenses | 2,349 | 1,328 | 638 | 1,188 | 634 | 6,137 | 503 | ||||||||||
Income (loss) before income taxes | 1,606 | 1,280 | 479 | 1,484 | (490) | 4,359 | 378 | ||||||||||
Income taxes | 423 | 338 | 73 | 401 | (268) | 967 | 58 | ||||||||||
Net income (loss) | 1,183 | 942 | 406 | 1,083 | (222) | 3,392 | 320 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 1,183 | 942 | 406 | 1,083 | (232) | 3,382 | 320 | ||||||||||
Diluted EPS ($) (5) | $ | 3.64 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | $ | (4) | $ | - | $ | - | $ | - | $ | - | $ | (4) | $ | - | |||
Impact of items of note on revenue | (4) | - | - | - | - | (4) | - | ||||||||||
Provision for (reversal of) credit losses | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | (94) | - | - | - | - | (94) | - | ||||||||||
Impact of items of note on provision for (reversal of) credit losses | (94) | - | - | - | - | (94) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (4) | - | (34) | - | (6) | (44) | (27) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | (29) | - | - | - | - | (29) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (45) | (45) | - | ||||||||||
Impact of items of note on non-interest expenses | (33) | - | (34) | - | (51) | (118) | (27) | ||||||||||
Total pre-tax impact of items of note on net income | 123 | - | 34 | - | 51 | 208 | 27 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | - | - | 9 | - | 1 | 10 | 7 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (6) | 32 | - | - | - | - | 32 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 12 | 12 | - | ||||||||||
Impact of items of note on income taxes | 32 | - | 9 | - | 13 | 54 | 7 | ||||||||||
Total after-tax impact of items of note on net income | $ | 91 | $ | - | $ | 25 | $ | - | $ | 38 | $ | 154 | $ | 20 | |||
Impact of items of note on diluted EPS ($) (5) | $ | 0.17 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 4,322 | $ | 2,600 | $ | 1,200 | $ | 2,620 | $ | 128 | $ | 10,870 | $ | 946 | |||
Provision for (reversal of) credit losses – adjusted | 277 | (8) | 83 | (52) | (16) | 284 | 65 | ||||||||||
Non-interest expenses – adjusted | 2,316 | 1,328 | 604 | 1,188 | 583 | 6,019 | 476 | ||||||||||
Income (loss) before income taxes – adjusted | 1,729 | 1,280 | 513 | 1,484 | (439) | 4,567 | 405 | ||||||||||
Income taxes – adjusted | 455 | 338 | 82 | 401 | (255) | 1,021 | 65 | ||||||||||
Net income (loss) – adjusted | 1,274 | 942 | 431 | 1,083 | (184) | 3,546 | 340 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,274 | 942 | 431 | 1,083 | (194) | 3,536 | 340 | ||||||||||
Adjusted diluted EPS ($) (5) | $ | 3.81 | |||||||||||||||
See previous pages for footnote references. |
The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis. | |||||||||||||||||||
Canadian | Commercial | ||||||||||||||||||
Canadian | Commercial | Commercial | Banking | ||||||||||||||||
Personal | Banking | Banking | and Wealth | ||||||||||||||||
and Business | and Wealth | and Wealth | Capital | Corporate | CIBC | Management | |||||||||||||
$ millions, for the three months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||||
2023 | Net income | $ | 637 | $ | 452 | $ | 55 | $ | 497 | $ | 47 | $ | 1,688 | $ | 40 | ||||
Add: provision for credit losses | 123 | 46 | 248 | 19 | 2 | 438 | 183 | ||||||||||||
Add: income taxes | 246 | 165 | (9) | 182 | (148) | 436 | (7) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,006 | 663 | 294 | 698 | (99) | 2,562 | 216 | ||||||||||||
Pre-tax impact of items of note (2) | 6 | - | 18 | - | (111) | (87) | 13 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,012 | $ | 663 | $ | 312 | $ | 698 | $ | (210) | $ | 2,475 | $ | 229 | |||||
2023 | Net income (loss) | $ | 589 | $ | 469 | $ | 201 | $ | 612 | $ | (1,439) | $ | 432 | $ | 150 | ||||
Add: provision for (reversal of) credit losses | 158 | 46 | 98 | (10) | 3 | 295 | 73 | ||||||||||||
Add: income taxes | 223 | 171 | 27 | 229 | 88 | 738 | 20 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 970 | 686 | 326 | 831 | (1,348) | 1,465 | 243 | ||||||||||||
Pre-tax impact of items of note (2) | 7 | - | 16 | - | 1,172 | 1,195 | 12 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 977 | $ | 686 | $ | 342 | $ | 831 | $ | (176) | $ | 2,660 | $ | 255 | |||||
2022 | Net income (loss) | $ | 496 | $ | 480 | $ | 180 | $ | 540 | $ | (173) | $ | 1,523 | $ | 142 | ||||
Add: provision for (reversal of) credit losses | 273 | (4) | 55 | (14) | (7) | 303 | 43 | ||||||||||||
Add: income taxes | 177 | 172 | 36 | 198 | (147) | 436 | 29 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 946 | 648 | 271 | 724 | (327) | 2,262 | 214 | ||||||||||||
Pre-tax impact of items of note (2)(4) | 16 | - | 17 | - | 48 | 81 | 14 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 962 | $ | 648 | $ | 288 | $ | 724 | $ | (279) | $ | 2,343 | $ | 228 | |||||
$ millions, for the six months ended | |||||||||||||||||||
2023 | Net income (loss) | $ | 1,226 | $ | 921 | $ | 256 | $ | 1,109 | $ | (1,392) | $ | 2,120 | $ | 190 | ||||
Add: provision for credit losses | 281 | 92 | 346 | 9 | 5 | 733 | 256 | ||||||||||||
Add: income taxes | 469 | 336 | 18 | 411 | (60) | 1,174 | 13 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,976 | 1,349 | 620 | 1,529 | (1,447) | 4,027 | 459 | ||||||||||||
Pre-tax impact of items of note (2) | 13 | - | 34 | - | 1,061 | 1,108 | 25 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,989 | $ | 1,349 | $ | 654 | $ | 1,529 | $ | (386) | $ | 5,135 | $ | 484 | |||||
2022 | Net income (loss) | $ | 1,183 | $ | 942 | $ | 406 | $ | 1,083 | $ | (222) | $ | 3,392 | $ | 320 | ||||
Add: provision for (reversal of) credit losses | 371 | (8) | 83 | (52) | (16) | 378 | 65 | ||||||||||||
Add: income taxes | 423 | 338 | 73 | 401 | (268) | 967 | 58 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,977 | 1,272 | 562 | 1,432 | (506) | 4,737 | 443 | ||||||||||||
Pre-tax impact of items of note (2)(4) | 29 | - | 34 | - | 51 | 114 | 27 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 2,006 | $ | 1,272 | $ | 596 | $ | 1,432 | $ | (455) | $ | 4,851 | $ | 470 | |||||
(1) | Non-GAAP measure. | ||||||||||||||||||
(2) | Items of note are removed from reported results to calculate adjusted results. | ||||||||||||||||||
(3) | Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures. | ||||||||||||||||||
(4) | Excludes the impact of the provision for credit losses for performing loans from the acquisition of the Canadian Costco credit card portfolio, as the amount is included in the add back of provision for (reversal of) credit losses. |
Making a difference in our communities
At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter we:
- Announced a
$1.25 million gift toMcGill University in support of the Sustainable Growth Initiative and its goal to contribute to a more sustainable society; - Donated
$100,000 and opened theCIBC Foundation Relief Fund to support the Türkiye andSyria earthquake relief efforts; and - Announced financing of the 50th property under the CIBC Housing Initiative in the
U.S. and will extend the program beyond its originalUS$10 million investment to continue its commitment to strengthening neighbourhoods through quality and affordable housing options.
The Board of Directors of CIBC reviewed this news release prior to it being issued. CIBC's controls and procedures support the ability of the President and Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) of CIBC to certify CIBC's second quarter financial report and controls and procedures. CIBC's CEO and CFO will voluntarily provide to the
All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted.
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
The conference call will be held at
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 fiscal 2023 second quarter results, as well as a presentation to investors, will be available in English and French at www.cibc.com, Investor Relations section, prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.
A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 4645396#) and French (514-861-2272 or 1-800-408-3053, passcode 7957917#) until
CIBC is a leading North American financial institution with 13 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across
SOURCE CIBC
© Canada Newswire, source