Canadian Imperial Bank of Commerce : Quarterly financial report

Report to Shareholders for the First Quarter, 2023

www.cibc.com February 24, 2023

Report of the President and Chief Executive Officer

Overview of results

CIBC today announced its financial results for the first quarter ended January 31, 2023.

First quarter highlights

		Q1/23			Q1/22			Q4/22		YoY	QoQ
							Variance	Variance
Revenue		$5,927 million			$5,498 million			$5,388 million		+8%	+10%
Reported Net Income		$432 million			$1,869 million			$1,185 million		-77%	-64%
Adjusted Net Income (1)		$1,841 million			$1,894 million			$1,308 million		-3%	+41%
Adjusted pre-provision,pre-tax earnings (1)		$2,660 million			$2,508 million			$2,072 million		+6%	+28%
Reported Diluted Earnings Per Share (EPS) (2)	$0.39		$2.01		$1.26		-81%	-69%
Adjusted Diluted EPS (1)(2)	$1.94		$2.04		$1.39		-5%	+40%
Reported Return on Common Shareholders' Equity (ROE) (3)	3.1%		17.4%		10.1%
Adjusted ROE (1)	15.5%		17.6%		11.2%
Common Equity Tier 1 (CET1) Ratio (4)	11.6%		12.2%		11.7%

Results for the first quarter of 2023 were affected by the following items of note aggregating to a negative impact of $1.55 per share:

• $1,169 million ($844 million after-tax) increase in legal provisions (Corporate and Other);
• $545 million income tax charge related to the 2022 Canadian Federal budget(5) (Corporate and Other); and
• $26 million ($20 million after-tax) amortization of acquisition-related intangible assets.

Our CET1 ratio(4) was 11.6% at January 31, 2023, compared with 11.7% at the end of the prior quarter. CIBC's leverage ratio(4) and liquidity coverage ratio(4) at January 31, 2023 were 4.3% and 134%, respectively.

In the first quarter, we delivered solid financial results as we continued to make steady progress in executing our client-focused strategy. In an economic environment that remains fluid, our team is focused on living our purpose as we help make our clients' ambitions real. We have clear momentum in attracting and deepening client relationships, a resilient capital position, and strong risk management and credit quality, and we'll draw on these strengths throughout fiscal 2023 to create further value for our stakeholders.

Core business performance

Canadian Personal and Business Banking reported net income of $589 million for the first quarter, down $98 million or 14% from the first quarter a year ago, primarily due to higher non-interest expenses and a higher provision for credit losses, partially offset by higher revenue. Adjusted pre-provision,pre-tax earnings(1) were $977 million, down $67 million from the first quarter a year ago, as higher revenues were more than offset by higher expenses. Higher revenues were driven by volume growth, partially offset by lower fee and commission income, and lower net product spreads. Expenses were higher due to spending on strategic initiatives, including the Canadian Costco credit card portfolio, and employee-related compensation.

Canadian Commercial Banking and Wealth Management reported net income of $469 million for the first quarter, up $7 million or 2% from the first quarter a year ago, primarily due to higher revenue and lower non-interest expenses, partially offset by a higher provision for credit losses in the current quarter. Adjusted pre-provision,pre-tax earnings(1) were $686 million, up $62 million from the first quarter a year ago, primarily due to higher net interest income from higher deposit spreads that benefitted from the impact of higher interest rates, and volume growth in commercial banking. Lower expenses were primarily driven by lower performance-based compensation, partially offset by higher spending on strategic initiatives.

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 8 to 10; and adjusted pre-provision,pre-tax earnings on page 10.
2. CIBC completed a two-for-one share split of CIBC common shares effective at the close of business on May 13, 2022. All per common share amounts in this CEO message reflect the Share Split.
3. For additional information on the composition, see the "Glossary" section.
4. Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline and the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, all of which are based on the Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the "Capital management" and "Liquidity risk" sections.
5. The income tax charge is comprised of $510 million for the present value of the estimated amount of the Canada Recovery Dividend (CRD) tax of $555 million, and a charge of $35 million related to the fiscal 2022 impact of the 1.5% increase in the tax rate applied to taxable income of certain bank and insurance entities in excess of $100 million for periods after April 2022. The discount of $45 million on the CRD tax will accrete over the remaining four-year payment period.

U.S. Commercial Banking and Wealth Management reported net income of $201 million (US$150 million) for the first quarter, down $25 million (down US$28 million) from the first quarter a year ago, primarily due to a higher provision for credit losses and higher non-interest expenses, partially offset by higher revenue and the impact of foreign currency translation. Adjusted pre-provision,pre-tax earnings(1) were $342 million (US$255 million), up $34 million (up US$13 million) from the first quarter a year ago due to higher revenue and the impact of foreign currency translation, primarily driven by volume growth and higher net product spreads, partially offset by higher employee-related compensation and higher spending on strategic initiatives.

Capital Markets reported net income of $612 million for the first quarter, up $69 million or 13% from the first quarter a year ago, primarily due to higher revenue, partially offset by higher non-interest expenses and a lower provision reversal in the current quarter. Adjusted pre-provision,pre-tax earnings(1) were up $123 million or 17% from the first quarter a year ago, as higher revenue from our global markets and direct financial services businesses was partially offset by lower investment banking activity and higher expenses. Expenses were up due to strategic investments and employee-related expenses.

(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.

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:

• Team CIBC raised $6 million for children's charities globally from the 38th annual CIBC Miracle Day held on December 7 and other activities during the year. Every year, CIBC Capital Markets traders and CIBC Wood Gundy investment advisors donate a portion of their fees and commissions to help kids access vital support programs and services that help them thrive.
• CIBC and CIBC Foundation announced a donation of $1 million to the Montreal Children's Hospital in support of a groundbreaking advancement in pediatric liquid biopsy research. This new research holds tremendous promise for identifying solid pediatric tumors such as brain cancers, glioma, medulloblastoma, and tumors of the bone which are the most dangerous and deadliest forms of pediatric cancers.
• CIBC has been named to the Dow Jones Sustainability North America Index (DJSI) for the 18th consecutive year, demonstrating our continued commitment to enabling a more sustainable and equitable future. The DJSI is a widely recognized industry standard for measuring companies' performance of environmental, social and governance (ESG) criteria.
• CIBC Bank USA supported the new construction, rehabilitation and renovation of Roosevelt Square, a large mixed-use development on Chicago's West Side, with a strong focus on affordable housing that aims to improve quality of life, provide jobs, and increase public safety.

Victor G. Dodig

President and Chief Executive Officer

1. CIBC FIRST QUARTER 2023

Enhanced Disclosure Task Force

The Enhanced Disclosure Task Force (EDTF), established by the Financial Stability Board, released its report "Enhancing the Risk Disclosures of Banks" in 2012, which included thirty-two disclosure recommendations. The index below provides the listing of these disclosures, along with their locations. EDTF disclosures are located in our 2022 Annual Report, quarterly Report to Shareholders, and supplementary packages, which may be found on our website (www.cibc.com). No information on CIBC's website, including the supplementary packages, should be considered incorporated herein by reference.

			First quarter, 2023
					Pillar 3 report
					and
			Management's	Consolidated	Supplementary	2022
			discussion	financial	regulatory	Annual
			capital
Topics	Recommendations	Disclosures	and analysis	statements	disclosure	Report
				Page references
General	1	Index of risk information - current page
	2	Risk terminology and measures	45-48		69-71	104
	3	Top and emerging risks	23-25			55
	4	Key future regulatory ratio requirements	19-20, 35, 36	65	9, 16	40, 43, 78, 79,
						170-171
Risk	5	Risk management structure				48, 49
governance,	6	Risk culture and appetite				47, 50, 52
risk	7	Risks arising from business activities	25			53, 58
management
8	Bank-wide stress testing	28			35-36, 54, 62, 67
and business
					74, 76
model
Capital	9	Minimum capital requirements	18	65		35-36,170-171
adequacy and	10	Components of capital and reconciliation to			8-11	40
risk-weighted		the consolidated regulatory balance sheet
assets	11	Regulatory capital flow statement			12	41
	12	Capital management and planning				43, 170-171
	13	Business activities and risk-weighted	25		4	42, 58
		assets
	14	Risk-weighted assets and capital			4	38, 42
		requirements
	15	Credit risk by major portfolios			27-36	60-65
	16	Risk-weighted assets flow statement			4, 5	42
	17	Back-testing of models			67, 68	54, 62, 72
Liquidity	18	Liquid assets	34			77
Funding	19	Encumbered assets	35			77
	20	Contractual maturities of assets, liabilities	39			81
		and off-balance sheet instruments
	21	Funding strategy and sources	38			80
Market risk	22	Reconciliation of trading and non-trading	31			71
		portfolios to the consolidated balance
		sheet
	23	Significant trading and non-trading market	32-33			71-75
		risk factors
	24	Model assumptions, limitations and				71-75
		validation procedures
	25	Stress testing and scenario analysis				35, 74
Credit risk	26	Analysis of credit risk exposures	26-30		6-7,63-66	63-69,
						143-150, 189
	27	Impaired loan and forbearance techniques	26, 29			60, 68, 88, 123
	28	Reconciliation of impaired loans and the	29	60		68, 144
		allowance for credit losses
	29	Counterparty credit risk arising from	29		66, 35 (1)	60, 64,
		derivatives				159-160
	30	Credit risk mitigation	26		20, 51, 66	60,
						159-160
Other risks	31	Other risks	40			82-86
	32	Discussion of publicly known risk events		68		82, 182

(1) Included in our supplementary financial information package.

CIBC FIRST QUARTER 2023 iii

Management's discussion and analysis

Management's discussion and analysis (MD&A) is provided to enable readers to assess CIBC's financial condition and results of operations as at and for the quarter ended January 31, 2023 compared with corresponding periods. The MD&A should be read in conjunction with our 2022 Annual Report and the unaudited interim consolidated financial statements included in this report. Unless otherwise indicated, all financial information in this MD&A has been prepared in accordance with International Financial Reporting Standards (IFRS or GAAP) and all amounts are expressed in Canadian dollars (CAD). Certain disclosures in the MD&A have been shaded as they form an integral part of the interim consolidated financial statements. The MD&A is current as of February 23, 2023. Additional information relating to CIBC is available on SEDAR at www.sedar.com and on the United States (U.S.) Securities and Exchange Commission's (SEC) website at www.sec.gov. No information on CIBC's website (www.cibc.com) should be considered incorporated herein by reference. A glossary of terms used throughout this quarterly report can be found on pages 42 to 48.

Contents

2	First quarter financial highlights	22	Global systemically important banks - public disclosure
3	Financial performance overview		requirements
22	Off-balance sheet arrangements
3	Economic outlook	23	Management of risk
3	Significant and subsequent events
4	Financial results review	23	Risk overview
5	Review of quarterly financial information	23	Top and emerging risks
7	Non-GAAP measures	26	Credit risk
31	Market risk
11	Strategic business units overview	34	Liquidity risk
40	Other risks
11	Canadian Personal and Business Banking	40	Accounting and control matters
12	Canadian Commercial Banking and Wealth Management
13	U.S. Commercial Banking and Wealth Management	40	Critical accounting policies and estimates
15	Capital Markets	41	Accounting developments
16	Corporate and Other	41	Other regulatory developments
17	Financial condition	41	Controls and procedures
41	Related-party transactions
17	Review of condensed consolidated balance sheet	42	Glossary
18	Capital management

A NOTE ABOUT FORWARD-LOOKINGSTATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this report, in other filings with Canadian securities regulators or the SEC 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 "Financial performance overview - Economic outlook", "Financial performance overview - Significant and subsequent events", "Financial performance overview - Financial results review", "Financial performance overview - Review of quarterly financial information", "Financial condition - Capital management", "Management of risk - Risk overview", "Management of risk - Top and emerging risks", "Management of risk - Credit risk", "Management of risk - Market risk", "Management of risk - Liquidity risk", "Accounting and control matters - Critical accounting policies and estimates", "Accounting and control matters - Accounting developments", and "Accounting and control matters - Other regulatory developments" sections of this report and other statements about our operations, business lines, financial condition, risk management, priorities, targets and sustainability commitments (including with respect to net-zero emissions and our environmental, social and governance (ESG) related activities), ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2023 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target", "predict", "commit", "ambition", "goal", "strive", "project", "objective" and other similar expressions or future or conditional verbs such as "will", "may", "should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions set out in the "Financial performance overview - Economic outlook" section of this report, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of high inflation, rising interest rates, potential recession and the war in Ukraine on the global economy, financial markets, and our business, results of operations, reputation and financial condition, there is inherently more uncertainty associated with our assumptions as compared to prior periods. 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: inflationary pressures; global supply-chain disruptions; geopolitical risk, including from the war in Ukraine, the occurrence, continuance or intensification of public health emergencies, such as the COVID-19 pandemic, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, conduct and legal, regulatory and environmental risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; 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 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; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such 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, such as the war in Ukraine, and terrorism; natural disasters, 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; 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; climate change and other ESG related 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 benefits of an acquisition, merger or divestiture 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 report 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 report or in other communications except as required by law.

CIBC FIRST QUARTER 2023

1

First quarter financial highlights

						2023			2022			2022
Unaudited, as at or for the three months ended					Jan. 31			Oct. 31			Jan. 31
Financial results ($ millions)		$	3,205
Net interest income		$	3,185	$	3,132
Non-interest income						2,722			2,203			2,366
Total revenue						5,927			5,388			5,498
Provision for credit losses						295			436			75
Non-interest expenses						4,462			3,483			3,023
Income before income taxes						1,170			1,469			2,400
Income taxes						738			284			531
Net income		$	432	$	1,185	$	1,869
Net income attributable to non-controlling interests	$	9	$	7	$	5
Preferred shareholders and other equity instrument holders					72			37			41
Common shareholders						351			1,141			1,823
Net income attributable to equity shareholders	$	423	$	1,178	$	1,864
Financial measures						75.3 %			64.6 %			55.0 %
Reported efficiency ratio (1)
Reported operating leverage (1)						(39.8)%			(4.7)%			(0.1)%
Loan loss ratio (2)						0.19 %			0.16 %			0.11 %
Reported return on common shareholders' equity (1)					3.1 %			10.1 %			17.4 %
Net interest margin (1)						1.33 %			1.33 %			1.43 %
Net interest margin on average interest-earning assets (1)(3)					1.49 %			1.51 %			1.60 %
Return on average assets (1)(3)						0.18 %			0.50 %			0.85 %
Return on average interest-earning assets (1)(3)					0.20 %			0.56 %			0.95 %
Reported effective tax rate						63.1 %			19.3 %			22.1 %
Common share information	- basic earnings	$	0.39	$	1.26	$	2.02
Per share ($) (4)
	- reported diluted earnings					0.39			1.26			2.01
	- dividends					0.850			0.830			0.805
	- book value (5)					49.12			49.95			47.43
Closing share price ($) (4)						60.74			61.87			79.81
Shares outstanding (thousands) (4)	- weighted-average basic					906,770			905,120			901,870
	- weighted-average diluted					907,725			906,533			905,032
	- end of period					911,629			906,040			901,923
Market capitalization ($ millions)		$	55,372	$	56,057	$	71,982
Value measures						(0.30)%
Total shareholder return								(3.17)%			7.46 %
Dividend yield (based on closing share price)					5.6 %			5.3 %			4.0 %
Reported dividend payout ratio (1)						219.6 %			65.9 %			39.8 %
Market value to book value ratio						1.24			1.24			1.68

Selected financial measures - adjusted (6)

Adjusted efficiency ratio (7) Adjusted operating leverage (7)

Adjusted return on common shareholders' equity Adjusted effective tax rate

Adjusted diluted earnings per share (EPS) (4) Adjusted dividend payout ratio

On- and off-balance sheet information ($ millions) Cash, deposits with banks and securities

Loans and acceptances, net of allowance for credit losses Total assets

Deposits

Common shareholders' equity (1) Average assets (3)

Average interest-earning assets (1)(3) Average common shareholders' equity (1)(3) Assets under administration (AUA) (1)(8)(9) Assets under management (AUM) (1)(9)

Balance sheet quality and liquidity measures (10) Risk-weightedassets (RWA) ($ millions)

Common Equity Tier 1 (CET1) ratio (11)

Tier 1 capital ratio (11)

Total capital ratio (11)

Leverage ratio

Liquidity coverage ratio (LCR)

Net stable funding ratio (NSFR)

Other information

Full-time equivalent employees

	54.5 %			60.9 %			53.8 %
	(1.5)%			(5.8)%			0.2 %
	15.5 %			11.2 %			17.6 %
	22.2 %			20.1 %			22.1 %
$	1.94	$	1.39	$	2.04
	43.8 %			59.5 %			39.3 %
$	238,819	$	239,740	$	222,353
	531,306			528,657			483,387
	921,991			943,597			861,664
	694,724			697,572			649,708
	44,780			45,258			42,778
	953,164			947,830			870,553
	852,588			834,639			777,820
	45,078			44,770			41,610
	3,002,744			2,854,828			3,009,559
	304,948			291,513			317,380
$	315,038	$	315,634	$	284,226
	11.6 %			11.7 %			12.2 %
	13.2 %			13.3 %			13.8 %
	15.6 %			15.3 %			15.7 %
	4.3 %			4.4 %			4.3 %
	134 %			129 %			123 %
	115 %			118 %			116 %
	49,530			50,427			46,030

1. For additional information on the composition, see the "Glossary" 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. Average balances are calculated as a weighted average of daily closing balances.
4. On April 7, 2022, CIBC shareholders approved a two-for-one share split (Share Split) of CIBC's issued and outstanding common shares. Each shareholder of record at the close of business on May 6, 2022 (Record Date) received one additional share on May 13, 2022 (Payment Date) for every one share held on the Record Date. All common share numbers and per common share amounts have been adjusted to reflect the Share Split as if it was retroactively applied to the beginning of 2022.
5. Common shareholders' equity divided by the number of common shares issued and outstanding at end of period.
6. Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the "Non-GAAP measures" section.
7. Calculated on a taxable equivalent basis (TEB).
8. 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 $2,382.7 billion (October 31, 2022: $2,258.1 billion; January 31, 2022: $2,387.1 billion).
9. AUM amounts are included in the amounts reported under AUA.
10. RWA and our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution's (OSFI's) Capital Adequacy Requirements (CAR) Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on the Basel Committee on Banking Supervision (BCBS) standards. For additional information, see the "Capital management" and "Liquidity risk" sections.
11. The 2022 ratios reflect the expected credit loss (ECL) transitional arrangement announced by OSFI on March 27, 2020 in response to the onset of the COVID-19 pandemic. Effective November 1, 2022, the

ECL transitional arrangement was no longer applicable. n/a Not applicable.

2 CIBC FIRST QUARTER 2023