Q3/23 | Q3/22 | Q2/23 | YoY Variance | QoQ | |
Revenue | +5 % | +3 % | |||
Reported Net Income | -14 % | -15 % | |||
Adjusted Net Income (1) | -15 % | -9 % | |||
Adjusted pre-provision, pre-tax earnings (1) | +5 % | +5 % | |||
Reported Diluted Earnings Per Share (EPS) (2) | -17 % | -16 % | |||
Adjusted Diluted EPS (1)(2) | -18 % | -11 % | |||
Reported Return on Common Shareholders' Equity (ROE) (3) | 11.6 % | 14.6 % | 14.5 % | ||
Adjusted ROE (1) | 11.9 % | 15.1 % | 13.9 % | ||
Common Equity Tier 1 (CET1) Ratio (4) | 12.2 % | 11.8 % | 11.9 % |
"We delivered solid financial results in the third quarter despite a more challenging economic environment," said
Results for the third quarter of 2023 were affected by the following items of note aggregating to a negative impact of
$34 million ($25 million after-tax) commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget (Canadian Personal and Business Banking); and$23 million ($18 million after-tax) amortization of acquisition-related intangible assets.
Our CET1 ratio(4) was 12.2% at
Canadian Personal and Business Banking reported net income of $497 million for the third quarter, down $98 million or 16% from the third quarter a year ago, primarily due to a higher provision for credit losses and lower card fees, including from the commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget, shown as an item of note, partially offset by higher revenue mainly driven by higher net interest margin and volume growth, and lower non-interest expenses due to lower spending on strategic initiatives. Adjusted pre-provision, pre-tax earnings(1) were
Canadian Commercial Banking and Wealth Management reported net income of $467 million for the third quarter, down $17 million or 4% from the third quarter a year ago, primarily due to a higher provision for credit losses, partially offset by higher revenue. Higher revenue was primarily due to volume growth and higher deposit margins in commercial banking and higher fee-based revenue from market appreciation in wealth management, partially offset by lower revenue in wealth management primarily due to lower deposit volumes and commission revenue from decreased client activity. Expenses increased primarily due to higher spending on strategic initiatives, partially offset by lower employee-related and performance-based compensation as a result of lower wealth management revenue. Adjusted pre-provision, pre-tax earnings(1) were $676 million, up $8 million from the third quarter a year ago, primarily due to higher revenue in commercial banking partially offset by lower wealth management revenue and higher expenses.
(1) | This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 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 third quarter of 2023 available on SEDAR+ at www.sedarplus.ca. |
(4) | Our capital ratios are calculated pursuant to the Office of the Superintendent |
(5) | The temporary exclusion of Central bank reserves from the leverage ratio exposure measure in response to the onset of the COVID-19 pandemic was no longer applicable beginning in the second quarter of 2023. |
Capital Markets reported net income of $494 million for the third quarter, up $47 million or 11% from the third quarter a year ago, primarily due to higher revenue, partially offset by higher non-interest expenses and a provision for credit losses in the current quarter compared with a provision reversal in the same quarter last year. Higher revenue from our global markets and direct financial services businesses was partially offset by lower investment portfolio gains. Expenses were up due to higher performance-based and employee-related compensation, and investments in our businesses. Adjusted pre-provision, pre-tax earnings(1) were up $76 million or 13% from the third quarter a year ago due to higher revenue offset by higher expenses.
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. |
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 third quarter of 2023 available on SEDAR+ at www.sedarplus.ca.
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 | $ | 2,412 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,850 | $ | 499 | |||
Provision for credit losses | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses | 1,303 | 674 | 345 | 673 | 312 | 3,307 | 258 | ||||||||||
Income (loss) before income taxes | 686 | 636 | 66 | 676 | (257) | 1,807 | 50 | ||||||||||
Income taxes | 189 | 169 | (7) | 182 | (156) | 377 | (5) | ||||||||||
Net income (loss) | 497 | 467 | 73 | 494 | (101) | 1,430 | 55 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 497 | 467 | 73 | 494 | (111) | 1,420 | 55 | ||||||||||
Diluted EPS ($) | $ | 1.47 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Impact of items of note on non-interest expenses | (7) | - | (13) | - | (3) | (23) | (10) | ||||||||||
Total pre-tax impact of items of note on net income | 41 | - | 13 | - | 3 | 57 | 10 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 2 | - | 3 | - | - | 5 | 3 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Impact of items of note on income taxes | 11 | - | 3 | - | - | 14 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 30 | $ | - | $ | 10 | $ | - | $ | 3 | $ | 43 | $ | 7 | |||
Impact of items of note on diluted EPS ($) | $ | 0.05 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,446 | $ | 1,350 | $ | 666 | $ | 1,355 | $ | 67 | $ | 5,884 | $ | 499 | |||
Provision for credit losses – adjusted | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||
Non-interest expenses – adjusted | 1,296 | 674 | 332 | 673 | 309 | 3,284 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 727 | 636 | 79 | 676 | (254) | 1,864 | 60 | ||||||||||
Income taxes – adjusted | 200 | 169 | (4) | 182 | (156) | 391 | (2) | ||||||||||
Net income (loss) – adjusted | 527 | 467 | 83 | 494 | (98) | 1,473 | 62 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 10 | 10 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 527 | 467 | 83 | 494 | (108) | 1,463 | 62 | ||||||||||
Adjusted diluted EPS ($) | $ | 1.52 | |||||||||||||||
(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) | On | ||||||||||||||||
(5) | 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 franchising opportunities, the upgrade and conversion of systems and processes, project delivery, communication costs and client welcome bonuses. Purchase accounting adjustments include the accretion of the acquisition date fair value discount on the acquired Canadian Costco credit card receivables. Provision for credit losses for performing loans associated with the acquisition of the Canadian Costco credit card portfolio, shown as an item of note in the second quarter of 2022 included the stage 1 ECL allowance established immediately after the acquisition date and the impact of the migration of stage 1 accounts to stage 2 during the second quarter of 2022. | ||||||||||||||||
(6) | The income tax charge is comprised of |
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 | |||||||||||||||
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 | $ | 2,321 | $ | 1,338 | $ | 604 | $ | 1,199 | $ | 109 | $ | 5,571 | $ | 473 | |||
Provision for (reversal of) credit losses | 200 | 10 | 35 | (9) | 7 | 243 | 28 | ||||||||||
Non-interest expenses | 1,313 | 670 | 334 | 593 | 273 | 3,183 | 261 | ||||||||||
Income (loss) before income taxes | 808 | 658 | 235 | 615 | (171) | 2,145 | 184 | ||||||||||
Income taxes | 213 | 174 | 42 | 168 | (118) | 479 | 32 | ||||||||||
Net income (loss) | 595 | 484 | 193 | 447 | (53) | 1,666 | 152 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 6 | 6 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 595 | 484 | 193 | 447 | (59) | 1,660 | 152 | ||||||||||
Diluted EPS ($) (4) | $ | 1.78 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | $ | (6) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | - | |||
Impact of items of note on revenue | (6) | - | - | - | - | (6) | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (7) | - | (17) | - | (3) | (27) | (13) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | (56) | - | - | - | - | (56) | - | ||||||||||
Impact of items of note on non-interest expenses | (63) | - | (17) | - | (3) | (83) | (13) | ||||||||||
Total pre-tax impact of items of note on net income | 57 | - | 17 | - | 3 | 77 | 13 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 3 | - | 4 | - | - | 7 | 3 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments (5) | 12 | - | - | - | - | 12 | - | ||||||||||
Impact of items of note on income taxes | 15 | - | 4 | - | - | 19 | 3 | ||||||||||
Total after-tax impact of items of note on net income | $ | 42 | $ | - | $ | 13 | $ | - | $ | 3 | $ | 58 | $ | 10 | |||
Impact of items of note on diluted EPS ($) (4) | $ | 0.07 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 2,315 | $ | 1,338 | $ | 604 | $ | 1,199 | $ | 109 | $ | 5,565 | $ | 473 | |||
Provision for (reversal of) credit losses – adjusted | 200 | 10 | 35 | (9) | 7 | 243 | 28 | ||||||||||
Non-interest expenses – adjusted | 1,250 | 670 | 317 | 593 | 270 | 3,100 | 248 | ||||||||||
Income (loss) before income taxes – adjusted | 865 | 658 | 252 | 615 | (168) | 2,222 | 197 | ||||||||||
Income taxes – adjusted | 228 | 174 | 46 | 168 | (118) | 498 | 35 | ||||||||||
Net income (loss) – adjusted | 637 | 484 | 206 | 447 | (50) | 1,724 | 162 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 6 | 6 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 637 | 484 | 206 | 447 | (56) | 1,718 | 162 | ||||||||||
Adjusted diluted EPS ($) (4) | $ | 1.85 | |||||||||||||||
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 nine months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 6,952 | $ | 4,037 | $ | 2,020 | $ | 4,198 | $ | 272 | $ | 17,479 | $ | 1,502 | |||
Provision for credit losses | 704 | 132 | 601 | 15 | 17 | 1,469 | 447 | ||||||||||
Non-interest expenses | 3,867 | 2,012 | 1,079 | 1,987 | 1,964 | 10,909 | 802 | ||||||||||
Income (loss) before income taxes | 2,381 | 1,893 | 340 | 2,196 | (1,709) | 5,101 | 253 | ||||||||||
Income taxes | 658 | 505 | 11 | 593 | (216) | 1,551 | 8 | ||||||||||
Net income (loss) | 1,723 | 1,388 | 329 | 1,603 | (1,493) | 3,550 | 245 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 30 | 30 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 1,723 | 1,388 | 329 | 1,603 | (1,523) | 3,520 | 245 | ||||||||||
Diluted EPS ($) | $ | 3.63 | |||||||||||||||
Impact of items of note (1) | |||||||||||||||||
Revenue | |||||||||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | $ | 34 | $ | - | $ | - | $ | - | $ | - | $ | 34 | $ | - | |||
Impact of items of note on revenue | 34 | - | - | - | - | 34 | - | ||||||||||
Non-interest expenses | |||||||||||||||||
Amortization of acquisition-related intangible assets | (20) | - | (47) | $ | - | (9) | (76) | (35) | |||||||||
Increase in legal provisions | - | - | - | - | (1,055) | (1,055) | - | ||||||||||
Impact of items of note on non-interest expenses | (20) | - | (47) | - | (1,064) | (1,131) | (35) | ||||||||||
Total pre-tax impact of items of note on net income | 54 | - | 47 | - | 1,064 | 1,165 | 35 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 4 | - | 12 | - | 1 | 17 | 9 | ||||||||||
Commodity tax charge related to the retroactive impact of the 2023 Canadian Federal budget | 9 | - | - | - | - | 9 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 293 | 293 | - | ||||||||||
Income tax charge related to the 2022 Canadian Federal budget (6) | - | - | - | - | (545) | (545) | - | ||||||||||
Impact of items of note on income taxes | 13 | - | 12 | - | (251) | (226) | 9 | ||||||||||
Total after-tax impact of items of note on net income | $ | 41 | $ | - | $ | 35 | $ | - | $ | 1,315 | $ | 1,391 | $ | 26 | |||
Impact of items of note on diluted EPS ($) | $ | 1.52 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 6,986 | $ | 4,037 | $ | 2,020 | $ | 4,198 | $ | 272 | $ | 17,513 | $ | 1,502 | |||
Provision for credit losses – adjusted | 704 | 132 | 601 | 15 | 17 | 1,469 | 447 | ||||||||||
Non-interest expenses – adjusted | 3,847 | 2,012 | 1,032 | 1,987 | 900 | 9,778 | 767 | ||||||||||
Income (loss) before income taxes – adjusted | 2,435 | 1,893 | 387 | 2,196 | (645) | 6,266 | 288 | ||||||||||
Income taxes – adjusted | 671 | 505 | 23 | 593 | (467) | 1,325 | 17 | ||||||||||
Net income (loss) – adjusted | 1,764 | 1,388 | 364 | 1,603 | (178) | 4,941 | 271 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 30 | 30 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,764 | 1,388 | 364 | 1,603 | (208) | 4,911 | 271 | ||||||||||
Adjusted diluted EPS ($) | $ | 5.15 | |||||||||||||||
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 nine months ended | Banking | Management | Management | Markets | and Other | Total | (US$ millions) | ||||||||||
Operating results – reported | |||||||||||||||||
Total revenue | $ | 6,647 | $ | 3,938 | $ | 1,804 | $ | 3,819 | $ | 237 | $ | 16,445 | $ | 1,419 | |||
Provision for (reversal of) credit losses | 571 | 2 | 118 | (61) | (9) | 621 | 93 | ||||||||||
Non-interest expenses | 3,662 | 1,998 | 972 | 1,781 | 907 | 9,320 | 764 | ||||||||||
Income (loss) before income taxes | 2,414 | 1,938 | 714 | 2,099 | (661) | 6,504 | 562 | ||||||||||
Income taxes | 636 | 512 | 115 | 569 | (386) | 1,446 | 90 | ||||||||||
Net income (loss) | 1,778 | 1,426 | 599 | 1,530 | (275) | 5,058 | 472 | ||||||||||
Net income attributable to non-controlling interests | - | - | - | - | 16 | 16 | - | ||||||||||
Net income (loss) attributable to equity shareholders | 1,778 | 1,426 | 599 | 1,530 | (291) | 5,042 | 472 | ||||||||||
Diluted EPS ($) (4) | $ | 5.42 | |||||||||||||||
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 (5) | $ | (10) | $ | - | $ | - | $ | - | $ | - | $ | (10) | $ | - | |||
Impact of items of note on revenue | (10) | - | - | - | - | (10) | - | ||||||||||
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 (5) | (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 | (11) | - | (51) | - | (9) | (71) | (40) | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | (85) | - | - | - | - | (85) | - | ||||||||||
Increase in legal provisions | - | - | - | - | (45) | (45) | - | ||||||||||
Impact of items of note on non-interest expenses | (96) | - | (51) | - | (54) | (201) | (40) | ||||||||||
Total pre-tax impact of items of note on net income | 180 | - | 51 | - | 54 | 285 | 40 | ||||||||||
Income taxes | |||||||||||||||||
Amortization of acquisition-related intangible assets | 3 | - | 13 | - | 1 | 17 | 10 | ||||||||||
Acquisition and integration-related costs as well as purchase accounting adjustments and provision for credit losses for performing loans (5) | 44 | - | - | - | - | 44 | - | ||||||||||
Increase in legal provisions | - | - | - | - | 12 | 12 | - | ||||||||||
Impact of items of note on income taxes | 47 | - | 13 | - | 13 | 73 | 10 | ||||||||||
Total after-tax impact of items of note on net income | $ | 133 | $ | - | $ | 38 | $ | - | $ | 41 | $ | 212 | $ | 30 | |||
Impact of items of note on diluted EPS ($) (4) | $ | 0.24 | |||||||||||||||
Operating results – adjusted (2) | |||||||||||||||||
Total revenue – adjusted (3) | $ | 6,637 | $ | 3,938 | $ | 1,804 | $ | 3,819 | $ | 237 | $ | 16,435 | $ | 1,419 | |||
Provision for (reversal of) credit losses – adjusted | 477 | 2 | 118 | (61) | (9) | 527 | 93 | ||||||||||
Non-interest expenses – adjusted | 3,566 | 1,998 | 921 | 1,781 | 853 | 9,119 | 724 | ||||||||||
Income (loss) before income taxes – adjusted | 2,594 | 1,938 | 765 | 2,099 | (607) | 6,789 | 602 | ||||||||||
Income taxes – adjusted | 683 | 512 | 128 | 569 | (373) | 1,519 | 100 | ||||||||||
Net income (loss) – adjusted | 1,911 | 1,426 | 637 | 1,530 | (234) | 5,270 | 502 | ||||||||||
Net income attributable to non-controlling interests – adjusted | - | - | - | - | 16 | 16 | - | ||||||||||
Net income (loss) attributable to equity shareholders – adjusted | 1,911 | 1,426 | 637 | 1,530 | (250) | 5,254 | 502 | ||||||||||
Adjusted diluted EPS ($) (4) | $ | 5.66 | |||||||||||||||
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 (loss) | $ | 497 | $ | 467 | $ | 73 | $ | 494 | $ | (101) | $ | 1,430 | $ | 55 | ||||
Add: provision for credit losses | 423 | 40 | 255 | 6 | 12 | 736 | 191 | ||||||||||||
Add: income taxes | 189 | 169 | (7) | 182 | (156) | 377 | (5) | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,109 | 676 | 321 | 682 | (245) | 2,543 | 241 | ||||||||||||
Pre-tax impact of items of note (2) | 41 | - | 13 | - | 3 | 57 | 10 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,150 | $ | 676 | $ | 334 | $ | 682 | $ | (242) | $ | 2,600 | $ | 251 | |||||
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 | |||||
2022 | Net income (loss) | $ | 595 | $ | 484 | $ | 193 | $ | 447 | $ | (53) | $ | 1,666 | $ | 152 | ||||
Jul. 31 | Add: provision for (reversal of) credit losses | 200 | 10 | 35 | (9) | 7 | 243 | 28 | |||||||||||
Add: income taxes | 213 | 174 | 42 | 168 | (118) | 479 | 32 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 1,008 | 668 | 270 | 606 | (164) | 2,388 | 212 | ||||||||||||
Pre-tax impact of items of note (2)(4) | 57 | - | 17 | - | 3 | 77 | 13 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 1,065 | $ | 668 | $ | 287 | $ | 606 | $ | (161) | $ | 2,465 | $ | 225 | |||||
$ millions, for the nine months ended | |||||||||||||||||||
2023 | Net income (loss) | $ | 1,723 | $ | 1,388 | $ | 329 | $ | 1,603 | $ | (1,493) | $ | 3,550 | $ | 245 | ||||
Add: provision for credit losses | 704 | 132 | 601 | 15 | 17 | 1,469 | 447 | ||||||||||||
Add: income taxes | 658 | 505 | 11 | 593 | (216) | 1,551 | 8 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 3,085 | 2,025 | 941 | 2,211 | (1,692) | 6,570 | 700 | ||||||||||||
Pre-tax impact of items of note (2) | 54 | - | 47 | - | 1,064 | 1,165 | 35 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 3,139 | $ | 2,025 | $ | 988 | $ | 2,211 | $ | (628) | $ | 7,735 | $ | 735 | |||||
2022 | Net income (loss) | $ | 1,778 | $ | 1,426 | $ | 599 | $ | 1,530 | $ | (275) | $ | 5,058 | $ | 472 | ||||
Add: provision for (reversal of) credit losses | 571 | 2 | 118 | (61) | (9) | 621 | 93 | ||||||||||||
Add: income taxes | 636 | 512 | 115 | 569 | (386) | 1,446 | 90 | ||||||||||||
Pre-provision (reversal), pre-tax earnings (losses) (1) | 2,985 | 1,940 | 832 | 2,038 | (670) | 7,125 | 655 | ||||||||||||
Pre-tax impact of items of note (2)(4) | 86 | - | 51 | - | 54 | 191 | 40 | ||||||||||||
Adjusted pre-provision (reversal), pre-tax earnings (losses) (3) | $ | 3,071 | $ | 1,940 | $ | 883 | $ | 2,038 | $ | (616) | $ | 7,316 | $ | 695 | |||||
(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. |
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
$1.0 million donation toTrillium Health Partners Foundation in support of theirInstitute for Better Health . This investment will help advance research to improve equity in patient care through a better understanding of health disparities in the community, with a focus on cancer screening; - Were the proud official partner of the 27th edition of the Tour CIBC Charles-Bruneau, an annual event that raises funds and brings awareness to children living with pediatric cancer in
Quebec . Team CIBC raised over$1.1 million , and the event overall raised$3.5 million ; and - Supported communities affected by the wildfires in
Nova Scotia andAlberta by donating$110,000 to local organizations through theCIBC Foundation's Emergency Relief Funds and by making available financial relief, advice and support to affected clients.
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 third 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 8:00 a.m. (ET) and is available in English (416-406-0743, or toll-free 1-800-898-3989, passcode 6992806#) and French (514-392-1587, or toll-free 1-877-395-0279, passcode 6514906#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC executives will be available to answer questions.
A live audio webcast of the conference call will also be available in English and French at www.cibc.com/ca/investor-relations/quarterly-results.html.
Details of CIBC's fiscal 2023 third 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 11:59 p.m. (ET)
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
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