CIBC's 2016
audited annual consolidated financial statements and accompanying
management's discussion & analysis (MD&A) will be available
today at www.cibc.com, along with the supplementary
financial information report which includes fourth quarter
financial information.
|
TORONTO, Dec. 1, 2016 /CNW/ - CIBC (TSX: CM)
(NYSE: CM) today announced its results for the fourth quarter and
fiscal year ended October 31,
2016.
Fourth quarter highlights
- Reported net income of $931
million, compared with $778
million for the fourth quarter a year ago, and $1,441 million for the prior quarter; adjusted
net income(1) of $1,041
million, compared with $952
million for the fourth quarter a year ago, and $1,072 million for the prior quarter.
- Reported diluted earnings per share (EPS) of $2.32, compared with $1.93 for the fourth quarter a year ago, and
$3.61 for the prior quarter; adjusted
diluted EPS(1) of $2.60,
compared with $2.36 for the fourth
quarter a year ago, and $2.67 for the
prior quarter.
- Reported return on common shareholders' equity (ROE) of
16.8% and adjusted ROE(1) of 18.8%.
- Basel III Common Equity Tier 1 ratio on an all-in basis
(CET1 ratio) of 11.3%, compared with 10.8% a year ago.
- Announced a quarterly dividend increase of three cents to $1.24 per common share.
CIBC's results for the fourth quarter of 2016 were affected by
the following items of note aggregating to a negative impact of
$0.28 per share:
- $134 million ($98 million after-tax, or $0.25 per share) in restructuring charges
primarily relating to employee severance;
- $9 million ($7 million after-tax, or $0.02 per share) loss from the structured credit
run-off business; and
- $7 million ($5 million after-tax, or $0.01 per share) amortization of intangible
assets.
For the year ended October 31,
2016, CIBC reported net income of $4.3 billion and adjusted net
income(1) of $4.1 billion,
compared with reported net income of $3.6
billion and adjusted net income(1) of
$3.8 billion for 2015.
Subsequent to year end, CIBC entered into an agreement to sell
and lease back 89 retail properties located mainly in Ontario and British
Columbia. The closing of the agreement is expected to occur
during the first quarter of 2017 and result in an after-tax gain of
$247 million that would add
approximately 15 basis points to CIBC's CET1 ratio on an all-in
basis.
The following table summarizes our strong performance in 2016
against our key financial measures and targets:
Financial
Measure
|
Target
|
2016 Reported
Results
|
2016 Adjusted
Results (1)
|
Diluted EPS
growth
|
5% to 10% on average,
annually (2)
|
$10.70, up 21% from
2015
|
$10.22, up 8% from
2015
|
ROE
|
18% to 20%
(2)
|
19.9%
|
19.0%
|
Efficiency
ratio
|
55% by
2019
|
59.7%, an improvement
of 420
basis points from 2015
|
58.0%, an improvement
of 160
basis points from 2015
|
Basel III CET1
ratio
|
Strong buffer to
regulatory minimum
|
11.3%
|
Dividend payout
ratio
|
Approximately
50%
|
44.3%
|
46.4%
|
Total shareholder
return
|
Outperform the
S&P/TSX Composite
Banks Index over a rolling five-year
period
|
CIBC –
68.6%
Banks Index –
85.9%
|
(1)
|
For additional
information, see the "Non-GAAP measures" section.
|
(2)
|
Going forward, our
medium term EPS and ROE targets are at least 5% and at least 15%,
respectively.
|
"In 2016, CIBC delivered record net income, industry-leading
capital strength and the highest return on equity of the major
North American banks," says Victor G.
Dodig, CIBC President and Chief Executive Officer. "Our
transformation to build a strong, innovative, relationship-oriented
bank by executing on our three integrated bank-wide priorities of
client focus, innovation and simplification gained momentum this
year."
Core business performance
Retail and Business Banking
reported net income of $2,689 million
in 2016, compared with $2,530 million
in 2015. Excluding items of note(1), adjusted net income
was $2,664 million, up $162 million or 6% from $2,502 million in 2015.
In 2016, Retail and Business Banking continued to make progress
against its objectives of enhancing the client experience and
accelerating profitable revenue growth. Key highlights
included:
- Delivering products that fit the lives of our clients,
including the CIBC SmartTM account and the CIBC
SmartTM Prepaid Travel Visa Card, and transforming our
physical banking centres to emphasize relationships and
advice;
- Continuing our leadership in innovation for our clients by
launching Apple Pay, Digital Account Open, and the CIBC Hello
HomeTM app, to meet the needs of our clients who prefer
to bank through their mobile devices;
- Partnering with fintechs to simplify our processes and enhance
client experience, including our recent partnership with Borrowell
that provides qualified clients with a faster and easier loan
process; and
- Formed a unique strategic alliance with National Australia Bank
and Israel's Bank Leumi focused on
delivering new and innovative ways to enhance client
experience.
In November 2016, we were the
first bank in Canada to bring
Samsung Pay to our clients, providing them with another mobile
payment option.
"We continued to build momentum in 2016 towards becoming the
number one retail and business bank in Canada in client experience, and we delivered
above-market growth in both lending and deposits," says
David Williamson, SEVP and Group
Head, Retail and Business Banking. "We will accelerate our
transformation in the year ahead by maintaining our focus on
deepening relationships with our clients, developing innovative
products and services, and making it easier to bank when, where and
how our clients want."
Wealth Management reported net income of $864 million in 2016, compared with $518 million in 2015. Excluding the gain on the
sale of our investment in American Century Investments (ACI) in
2016 and other items of note(1), adjusted net income was
$490 million in 2016, down
$46 million or 9% from $536 million in 2015. Further adjusting for net
income from ACI of $15 million and
$101 million for 2016 and 2015,
respectively, net income from our continuing businesses was up
$40 million, or 9% from 2015.
Wealth Management made good progress in 2016 against its
objectives of enhancing the client experience, driving asset
growth, and simplifying and optimizing its business platform. Key
highlights included:
- Aligning our Canadian private wealth management and Wood Gundy
businesses under one leadership structure to elevate our high net
worth client experience and better meet client needs;
- Launching several successful products including Renaissance
Flexible Yield Fund, Renaissance Private Investment Program, and
PPS Income Generation Portfolios to meet the changing needs of
investors; and
- Reporting progress in the most recent J.D. Power Canadian
Investor Satisfaction Surveys for our Investor's Edge and Wood
Gundy businesses, reflecting our commitment to client
relationships.
"Our Wealth Management businesses delivered solid results this
year thanks to a clear focus on our clients," says Steve Geist, SEVP and Group Head, Wealth
Management. "In 2017, we will continue to enhance our investment
advice and solutions, with an emphasis on delivering an integrated
wealth management experience to meet the complex needs of high net
worth Canadian families."
Capital Markets reported net income of $1,076 million in 2016, compared with
$957 million in 2015. Excluding items
of note(1), adjusted net income was $1,104 million, up $139
million or 14% from $965
million in 2015.
Capital Markets provides integrated global markets products and
services, investment banking advisory and execution, corporate
banking services and top-ranked research to corporate, government
and institutional clients around the world. During 2016, Capital
Markets was:
- Financial advisor to Suncor Energy Inc. on its $7 billion acquisition of Canadian Oil Sands
Limited and joint bookrunner on Suncor's $2.9 billion bought common share offering, one of
the largest-ever equity bought deals in Canada;
- Financial advisor, financing co-underwriter and lead agent on
related foreign exchange to Lowe's Companies Inc. on its
$3.2 billion acquisition of RONA
Inc.;
- Financial advisor, lead bookrunner on $525 million of subscription receipts, sole lead
arranger, underwriter and bookrunner on $1.8
billion of credit facilities and sole foreign exchange
provider supporting Stantec's acquisition of MWH Global Inc.;
- Exclusive financial advisor, administrative agent and joint
bookrunner on $925 million in credit
facilities supporting Cheung Kong Infrastructure Holdings Limited's
and Power Assets Holdings Limited's acquisition of a 65% interest
in midstream assets from Husky Energy Inc.; and
- Introduced CIBC Air Canada® AC
ConversionTM Visa Prepaid Card, a first-of-its-kind in
Canada, allowing travellers to
purchase and store up to 10 currencies on a single card that can be
used at retailers around the globe.
"In 2016, we launched specialized new advisory teams to add
value for clients in the areas of technology and innovation,
private capital and corporate finance solutions," says Harry Culham, SEVP and Group Head, Capital
Markets. "We also expanded our product capabilities to help meet
client needs at home and abroad, while delivering innovative
financial solutions to clients across CIBC in areas such as foreign
exchange and precious metals."
(1)
|
For additional
information, see the "Non-GAAP measures" section.
|
Strong fundamentals
While investing in core
businesses, CIBC has continued to strengthen key fundamentals. In
2016, CIBC maintained its capital strength, competitive
productivity and sound risk management practices:
- CIBC's capital ratios were strong, with a Basel III CET1 ratio
of 11.3% as noted above, and Tier 1 and Total capital ratios of
12.8% and 14.8% respectively, at October 31,
2016;
- Market risk, as measured by average Value-at-Risk, was
$5.8 million in 2016 compared with
$4.0 million in 2015; and
- We continued to have strong credit performance, with CIBC's
loan loss ratio of 31 basis points compared with 27 basis points in
2015.
Making a difference in our Communities
CIBC is
committed to investing in the social and economic development of
communities across Canada. During
the fourth quarter of 2016, CIBC:
- Marked 20 years of partnership with the Canadian Breast Cancer
Foundation (CBCF) and helped to raise an estimated $17 million for breast cancer research, education
and support programs through the 2016 CBCF CIBC Run for the Cure,
including the nearly $3 million
contributed by Team CIBC;
- Partnered with the Canadian Paralympic Committee (CPC) to host
seven Welcome Home events at CIBC banking centres across the
country as Premier Partner of the Canadian Paralympic Team,
celebrating and honouring athletes returning home from the 2016
Paralympic Games; and
- Announced a 5-year partnership with the Canadian Hockey League
(CHL), solidifying CIBC as the Official Bank of the CHL, its three
regional leagues, and 23 teams.
During the quarter, CIBC was:
- Ranked among the Top 10 Safest Banks in North America by Global Finance
magazine;
- Recipient of four awards at ACT Canada's IVIE Awards, including
Silver for Most Innovative Organization; and
- Recognized by Mediacorp as one of Canada's Top 100 Employers for a fifth
consecutive year.
CIBC was once again named a constituent of the following widely
regarded indices:
- Dow Jones Sustainability North American Index since its
inception in 2005;
- FTSE4Good Index since 2001; and
- Jantzi Social Index since 2000.
Fourth quarter financial highlights
|
As at or for
the
|
|
|
As at or for
the
|
|
|
three months
ended
|
|
|
twelve months
ended
|
|
|
2016
|
2016
|
|
2015
|
|
|
2016
|
2015
|
|
Unaudited
|
Oct.
31
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct.
31
|
Oct. 31
|
|
Financial
results ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,110
|
|
$
|
2,113
|
|
$
|
2,043
|
|
|
$
|
8,366
|
|
$
|
7,915
|
|
Non-interest
income
|
|
1,571
|
|
|
2,023
|
|
|
1,440
|
|
|
|
6,669
|
|
|
5,941
|
|
Total
revenue
|
|
3,681
|
|
|
4,136
|
|
|
3,483
|
|
|
|
15,035
|
|
|
13,856
|
|
Provision for credit
losses
|
|
222
|
|
|
243
|
|
|
198
|
|
|
|
1,051
|
|
|
771
|
|
Non-interest
expenses
|
|
2,347
|
|
|
2,218
|
|
|
2,383
|
|
|
|
8,971
|
|
|
8,861
|
|
Income before income
taxes
|
|
1,112
|
|
|
1,675
|
|
|
902
|
|
|
|
5,013
|
|
|
4,224
|
|
Income
taxes
|
|
181
|
|
|
234
|
|
|
124
|
|
|
|
718
|
|
|
634
|
|
Net income
|
$
|
931
|
|
$
|
1,441
|
|
$
|
778
|
|
|
$
|
4,295
|
|
$
|
3,590
|
|
Net income
attributable to non-controlling interests
|
|
4
|
|
|
6
|
|
|
2
|
|
|
|
20
|
|
|
14
|
|
|
Preferred
shareholders
|
|
10
|
|
|
9
|
|
|
9
|
|
|
|
38
|
|
|
45
|
|
|
Common
shareholders
|
|
917
|
|
|
1,426
|
|
|
767
|
|
|
|
4,237
|
|
|
3,531
|
|
Net income
attributable to equity shareholders
|
$
|
927
|
|
$
|
1,435
|
|
$
|
776
|
|
|
$
|
4,275
|
|
$
|
3,576
|
|
Financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported efficiency
ratio
|
|
63.8
|
%
|
|
53.6
|
%
|
|
68.4
|
%
|
|
|
59.7
|
%
|
|
63.9
|
%
|
Adjusted efficiency
ratio (1)
|
|
58.2
|
%
|
|
57.8
|
%
|
|
60.4
|
%
|
|
|
58.0
|
%
|
|
59.6
|
%
|
Loan loss
ratio (2)
|
|
0.27
|
%
|
|
0.32
|
%
|
|
0.26
|
%
|
|
|
0.31
|
%
|
|
0.27
|
%
|
Reported return on
common shareholders' equity
|
|
16.8
|
%
|
|
26.8
|
%
|
|
15.1
|
%
|
|
|
19.9
|
%
|
|
18.7
|
%
|
Adjusted return on
common shareholders' equity (1)
|
|
18.8
|
%
|
|
19.8
|
%
|
|
18.5
|
%
|
|
|
19.0
|
%
|
|
19.9
|
%
|
Net interest
margin
|
|
1.59
|
%
|
|
1.64
|
%
|
|
1.70
|
%
|
|
|
1.64
|
%
|
|
1.74
|
%
|
Net interest margin
on average interest-earning assets
|
|
1.81
|
%
|
|
1.87
|
%
|
|
1.95
|
%
|
|
|
1.88
|
%
|
|
2.00
|
%
|
Return on average
assets
|
|
0.70
|
%
|
|
1.12
|
%
|
|
0.65
|
%
|
|
|
0.84
|
%
|
|
0.79
|
%
|
Return on average
interest-earning assets
|
|
0.80
|
%
|
|
1.28
|
%
|
|
0.74
|
%
|
|
|
0.96
|
%
|
|
0.91
|
%
|
Total shareholder
return
|
|
2.54
|
%
|
|
(0.94)
|
%
|
|
8.61
|
%
|
|
|
5.19
|
%
|
|
1.96
|
%
|
Reported effective
tax rate
|
|
16.2
|
%
|
|
14.0
|
%
|
|
13.7
|
%
|
|
|
14.3
|
%
|
|
15.0
|
%
|
Adjusted effective
tax rate (1)
|
|
17.5
|
%
|
|
15.4
|
%
|
|
15.5
|
%
|
|
|
16.6
|
%
|
|
15.5
|
%
|
Common share
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
($)
|
- basic
earnings
|
$
|
2.32
|
|
$
|
3.61
|
|
$
|
1.93
|
|
|
$
|
10.72
|
|
$
|
8.89
|
|
|
|
- reported diluted
earnings
|
|
2.32
|
|
|
3.61
|
|
|
1.93
|
|
|
|
10.70
|
|
|
8.87
|
|
|
|
- adjusted diluted
earnings (1)
|
|
2.60
|
|
|
2.67
|
|
|
2.36
|
|
|
|
10.22
|
|
|
9.45
|
|
|
|
-
dividends
|
|
1.21
|
|
|
1.21
|
|
|
1.12
|
|
|
|
4.75
|
|
|
4.30
|
|
|
|
- book
value
|
|
56.59
|
|
|
54.54
|
|
|
51.25
|
|
|
|
56.59
|
|
|
51.25
|
|
Share price
($)
|
- high
|
|
104.46
|
|
|
104.19
|
|
|
102.74
|
|
|
|
104.46
|
|
|
107.16
|
|
|
|
- low
|
|
97.51
|
|
|
96.84
|
|
|
86.00
|
|
|
|
83.33
|
|
|
86.00
|
|
|
|
- closing
|
|
100.50
|
|
|
99.19
|
|
|
100.28
|
|
|
|
100.50
|
|
|
100.28
|
|
Shares outstanding
(thousands)
|
- weighted-average
basic
|
|
395,181
|
|
|
394,753
|
|
|
397,253
|
|
|
|
395,389
|
|
|
397,213
|
|
|
|
- weighted-average
diluted
|
|
395,750
|
|
|
395,328
|
|
|
397,838
|
|
|
|
395,919
|
|
|
397,832
|
|
|
|
- end of
period
|
|
397,070
|
|
|
394,838
|
|
|
397,291
|
|
|
|
397,070
|
|
|
397,291
|
|
Market
capitalization ($ millions)
|
$
|
39,906
|
|
$
|
39,164
|
|
$
|
39,840
|
|
|
$
|
39,906
|
|
$
|
39,840
|
|
Value
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend yield (based
on closing share price)
|
|
4.8
|
%
|
|
4.9
|
%
|
|
4.4
|
%
|
|
|
4.7
|
%
|
|
4.3
|
%
|
Reported dividend
payout ratio
|
|
52.2
|
%
|
|
33.5
|
%
|
|
58.0
|
%
|
|
|
44.3
|
%
|
|
48.4
|
%
|
Adjusted dividend
payout ratio (1)
|
|
46.6
|
%
|
|
45.2
|
%
|
|
47.4
|
%
|
|
|
46.4
|
%
|
|
45.4
|
%
|
Market value to book
value ratio
|
|
1.78
|
|
|
1.82
|
|
|
1.96
|
|
|
|
1.78
|
|
|
1.96
|
|
On- and
off-balance sheet information ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, deposits with
banks and securities
|
$
|
101,588
|
|
$
|
98,093
|
|
$
|
93,619
|
|
|
$
|
101,588
|
|
$
|
93,619
|
|
Loans and
acceptances, net of allowance
|
|
319,781
|
|
|
312,273
|
|
|
290,981
|
|
|
|
319,781
|
|
|
290,981
|
|
Total
assets
|
|
501,357
|
|
|
494,490
|
|
|
463,309
|
|
|
|
501,357
|
|
|
463,309
|
|
Deposits
|
|
395,647
|
|
|
389,573
|
|
|
366,657
|
|
|
|
395,647
|
|
|
366,657
|
|
Common shareholders'
equity
|
|
22,472
|
|
|
21,533
|
|
|
20,360
|
|
|
|
22,472
|
|
|
20,360
|
|
Average
assets
|
|
527,702
|
|
|
511,925
|
|
|
476,700
|
|
|
|
509,140
|
|
|
455,324
|
|
Average
interest-earning assets
|
|
462,970
|
|
|
448,834
|
|
|
415,783
|
|
|
|
445,134
|
|
|
395,616
|
|
Average common
shareholders' equity
|
|
21,763
|
|
|
21,198
|
|
|
20,122
|
|
|
|
21,275
|
|
|
18,857
|
|
Assets under
administration (AUA) (3)(4)
|
2,041,887
|
|
1,993,740
|
|
1,846,142
|
|
|
2,041,887
|
|
1,846,142
|
|
Assets under
management (AUM) (4)
|
183,715
|
|
179,903
|
|
170,465
|
|
|
183,715
|
|
170,465
|
|
Balance sheet
quality (All-in basis) and liquidity measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets
(RWA) ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
(CET1) capital RWA
|
$
|
168,996
|
|
$
|
168,077
|
|
|
156,107
|
|
|
$
|
168,996
|
|
|
156,107
|
|
|
Tier 1 capital
RWA
|
|
169,322
|
|
|
168,407
|
|
|
156,401
|
|
|
|
169,322
|
|
|
156,401
|
|
|
Total capital
RWA
|
|
169,601
|
|
|
168,690
|
|
|
156,652
|
|
|
|
169,601
|
|
|
156,652
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET1 ratio
|
|
11.3
|
%
|
|
10.9
|
%
|
|
10.8
|
%
|
|
|
11.3
|
%
|
|
10.8
|
%
|
|
Tier 1 capital
ratio
|
|
12.8
|
%
|
|
12.4
|
%
|
|
12.5
|
%
|
|
|
12.8
|
%
|
|
12.5
|
%
|
|
Total capital
ratio
|
|
14.8
|
%
|
|
14.4
|
%
|
|
15.0
|
%
|
|
|
14.8
|
%
|
|
15.0
|
%
|
Basel III leverage
ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio
exposure ($ millions)
|
|
545,480
|
|
|
537,172
|
|
|
502,552
|
|
|
|
545,480
|
|
|
502,552
|
|
|
Leverage
ratio
|
|
4.0
|
%
|
|
3.9
|
%
|
|
3.9
|
%
|
|
|
4.0
|
%
|
|
3.9
|
%
|
Liquidity coverage
ratio (LCR)
|
|
124
|
%
|
|
120
|
%
|
|
119
|
%
|
|
|
n/a
|
|
|
n/a
|
|
Other
information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
|
43,213
|
|
|
43,741
|
|
|
44,201
|
|
|
|
43,213
|
|
|
44,201
|
|
(1)
|
For additional
information, see the "Non-GAAP measures" section.
|
(2)
|
The ratio is
calculated as the provision for credit losses on impaired loans to
average loans and acceptances, net of allowance for credit
losses.
|
(3)
|
Includes the full
amount of AUA or custody under a 50/50 joint venture between CIBC
and The Bank of New York Mellon of $1,640.2 billion (July 31, 2016:
$1,598.8 billion; October 31, 2015: $1,465.7 billion).
|
(4)
|
AUM amounts are
included in the amounts reported under AUA.
|
n/a
|
Not
applicable.
|
Review of Retail and Business Banking fourth quarter
results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
$ millions, for the
three months ended
|
|
|
Oct.
31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Personal
banking
|
|
$
|
1,825
|
|
$
|
1,779
|
|
$
|
1,743
|
|
|
Business
banking
|
|
|
443
|
|
|
435
|
|
|
414
|
|
|
Other
|
|
|
22
|
|
|
11
|
|
|
19
|
|
Total
revenue
|
|
|
2,290
|
|
|
2,225
|
|
|
2,176
|
|
Provision for credit
losses
|
|
|
206
|
|
|
197
|
|
|
163
|
|
Non-interest
expenses
|
|
|
1,149
|
|
|
1,121
|
|
|
1,100
|
|
Income before income
taxes
|
|
|
935
|
|
|
907
|
|
|
913
|
|
Income
taxes
|
|
|
248
|
|
|
241
|
|
|
241
|
|
Net income
|
|
$
|
687
|
|
$
|
666
|
|
$
|
672
|
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders
(a)
|
|
$
|
687
|
|
$
|
666
|
|
$
|
672
|
|
Efficiency
ratio
|
|
|
50.1
|
%
|
|
50.3
|
%
|
|
50.6
|
%
|
Return on equity
(2)
|
|
|
49.6
|
%
|
|
50.0
|
%
|
|
54.7
|
%
|
Charge for economic
capital (2) (b)
|
|
$
|
(135)
|
|
$
|
(129)
|
|
$
|
(146)
|
|
Economic profit
(2) (a+b)
|
|
$
|
552
|
|
$
|
537
|
|
$
|
526
|
|
Full-time equivalent
employees
|
|
|
20,280
|
|
|
20,414
|
|
|
21,532
|
|
(1)
|
Certain information
has been reclassified to conform to the presentation adopted in the
current year.
See the "External reporting changes" section of the MD&A for
additional details.
|
(2)
|
For additional
information, see the "Non-GAAP measures" section.
|
Net income was $687 million, up
$15 million from the fourth quarter
of 2015. Adjusted net income (2) was $688 million, up $15
million from the fourth quarter of 2015.
Revenue of $2,290 million was up
$114 million from the fourth quarter
of 2015. Personal banking and business banking revenue increased
primarily due to volume growth across most products and higher
fees.
Provision for credit losses of $206
million was up $43 million
from the fourth quarter of 2015, mainly due to higher losses in
business lending, and higher write-offs and bankruptcies in our
personal lending and card portfolios.
Non-interest expenses of $1,149
million were up $49 million
from the fourth quarter of 2015, mainly due to higher spending on
strategic initiatives.
Review of Wealth Management fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
$ millions, for the
three months ended
|
|
|
|
Oct.
31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
brokerage
|
|
|
$
|
332
|
|
$
|
317
|
|
$
|
317
|
|
|
Asset
management
|
|
|
|
190
|
|
|
196
|
|
|
178
|
|
|
Private wealth
management
|
|
|
|
98
|
|
|
94
|
|
|
91
|
|
|
Other
|
|
|
|
-
|
|
|
428
|
|
|
21
|
|
Total
revenue
|
|
|
|
620
|
|
|
1,035
|
|
|
607
|
|
Non-interest
expenses
|
|
|
|
444
|
|
|
438
|
|
|
447
|
|
Income before income
taxes
|
|
|
|
176
|
|
|
597
|
|
|
160
|
|
Income
taxes
|
|
|
|
50
|
|
|
91
|
|
|
38
|
|
Net income
|
|
|
$
|
126
|
|
$
|
506
|
|
$
|
122
|
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders
(a)
|
|
|
$
|
126
|
|
$
|
506
|
|
$
|
122
|
|
Efficiency
ratio
|
|
|
|
71.5
|
%
|
|
42.4
|
%
|
|
73.5
|
%
|
Return on equity
(2)
|
|
|
|
32.4
|
%
|
|
134.1
|
%
|
|
20.2
|
%
|
Charge for economic
capital (2) (b)
|
|
|
$
|
(38)
|
|
$
|
(37)
|
|
$
|
(71)
|
|
Economic profit
(2) (a+b)
|
|
|
$
|
88
|
|
$
|
469
|
|
$
|
51
|
|
Full-time equivalent
employees
|
|
|
|
4,295
|
|
|
4,232
|
|
|
4,350
|
|
(1)
|
Certain information
has been reclassified to conform to the presentation adopted in the
current year.
See the "External reporting changes" section of the MD&A for
additional details.
|
(2)
|
For additional
information, see the "Non-GAAP measures" section.
|
Net income for the quarter was $126
million, up $4 million from
the fourth quarter of 2015. Adjusted net income(2) was
$127 million, down $1 million from the fourth quarter of 2015.
Revenue of $620 million was up
$13 million from the fourth quarter
of 2015, driven by strong asset growth across all businesses
reflecting market appreciation and strong net sales. This was
partially offset by lower revenue due to the sale of ACI, and lower
commission revenue in full-service brokerage due to a decline in
transactional volumes.
Non-interest expenses of $444
million were down $3 million
from the fourth quarter of 2015, primarily due to lower
employee-related costs including performance-based
compensation.
Review of Capital Markets fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
$ millions, for the
three months ended
|
|
|
|
Oct.
31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
(1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
markets
|
|
|
$
|
365
|
|
$
|
415
|
|
$
|
271
|
|
|
Corporate and
investment banking
|
|
|
|
313
|
|
|
364
|
|
|
302
|
|
|
Other
|
|
|
|
(5)
|
|
|
30
|
|
|
(2)
|
|
Total revenue
(2)
|
|
|
|
673
|
|
|
809
|
|
|
571
|
|
Provision for credit
losses
|
|
|
|
-
|
|
|
47
|
|
|
22
|
|
Non-interest
expenses
|
|
|
|
333
|
|
|
370
|
|
|
326
|
|
Income before income
taxes
|
|
|
|
340
|
|
|
392
|
|
|
223
|
|
Income taxes
(2)
|
|
|
|
64
|
|
|
88
|
|
|
42
|
|
Net income
|
|
|
$
|
276
|
|
$
|
304
|
|
$
|
181
|
|
Net income
attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders
(a)
|
|
|
$
|
276
|
|
$
|
304
|
|
$
|
181
|
|
Efficiency
ratio
|
|
|
|
49.4
|
%
|
|
45.7
|
%
|
|
57.1
|
%
|
Return on equity
(3)
|
|
|
|
31.1
|
%
|
|
33.4
|
%
|
|
25.5
|
%
|
Charge for economic
capital (3) (b)
|
|
|
$
|
(86)
|
|
$
|
(88)
|
|
$
|
(84)
|
|
Economic profit
(3) (a+b)
|
|
|
$
|
190
|
|
$
|
216
|
|
$
|
97
|
|
Full-time equivalent
employees
|
|
|
|
1,324
|
|
|
1,369
|
|
|
1,342
|
|
(1)
|
Certain information
has been reclassified to conform to the presentation adopted in the
current year.
See the "External reporting changes" section of the MD&A for
additional details.
|
(2)
|
Revenue and income
taxes are reported on a taxable equivalent basis (TEB) basis.
Accordingly, revenue
and income taxes include a TEB adjustment of $97 million for the
quarter ended October 31, 2016
(July 31, 2016: $142 million; October 31, 2015: $91
million).
|
(3)
|
For additional
information, see the "Non-GAAP measures" section.
|
Net income for the quarter was $276
million, compared with net income of $181 million for the fourth quarter of 2015.
Adjusted net income(3) for the quarter was $283 million, compared with $183 million for the prior year quarter.
Revenue of $673 million was up
$102 million from the fourth quarter
of 2015. In global markets, higher commodities, interest rate and
equity trading revenue, and higher global markets financing
activity were partially offset by lower foreign exchange trading
revenue. In corporate and investment banking, higher corporate
banking and equity underwriting revenue was partially offset by
lower debt underwriting and advisory revenue, and higher investment
portfolio write-downs.
Provision for credit losses was nil, compared with $22 million in the fourth quarter of 2015, mainly
due to lower losses in the oil and gas sector.
Non-interest expenses of $333
million were up $7 million
from the fourth quarter of 2015, as higher spending on strategic
initiatives was largely offset by lower performance-related
compensation.
Review of Corporate and Other fourth quarter results
|
|
|
|
|
|
|
|
|
|
|
2016
|
2016
|
2015
|
|
$ millions, for the
three months ended
|
|
|
Oct.
31
|
Jul. 31
|
Oct. 31
|
(1)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
International
banking
|
|
|
$
|
176
|
$
|
176
|
$
|
180
|
|
|
Other
|
|
|
|
(78)
|
|
(109)
|
|
(51)
|
|
Total revenue
(2)
|
|
|
|
98
|
|
67
|
|
129
|
|
Provision for
(reversal of) credit losses
|
|
|
|
16
|
|
(1)
|
|
13
|
|
Non-interest
expenses
|
|
|
|
421
|
|
289
|
|
510
|
|
Loss before income
taxes
|
|
|
|
(339)
|
|
(221)
|
|
(394)
|
|
Income taxes
(2)
|
|
|
|
(181)
|
|
(186)
|
|
(197)
|
|
Net loss
|
|
|
$
|
(158)
|
$
|
(35)
|
$
|
(197)
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
$
|
4
|
$
|
6
|
$
|
2
|
|
|
Equity
shareholders
|
|
|
|
(162)
|
|
(41)
|
|
(199)
|
|
Full-time equivalent
employees
|
|
|
|
17,314
|
|
17,726
|
|
16,977
|
|
(1)
|
Certain information
has been reclassified to conform to the presentation adopted in the
current year.
See the "External reporting changes" section of the MD&A for
additional details.
|
(2)
|
TEB adjusted. See
footnote 2 in the "Capital Markets" section for additional
details.
|
(3)
|
For additional
information, see the "Non-GAAP measures" section.
|
Net loss for the quarter was $158
million, compared with a net loss of $197 million in the same quarter last year,
primarily due to lower non-interest expenses. Adjusted net loss
(3) for the quarter was $57
million, compared with a net loss of $32 million for the prior year quarter.
Revenue of $98 million was down
$31 million from the fourth quarter
of 2015, primarily due to lower Treasury revenue.
Provision for credit losses was comparable with the fourth
quarter of 2015.
Non-interest expenses of $421
million were down $89 million
from the fourth quarter of 2015, as the prior year included higher
restructuring charges primarily relating to employee severance,
shown as items of note in both years.
Income tax benefit was down $16
million from the fourth quarter of 2015, mainly due to the
tax impact of the restructuring charges noted above.
Consolidated balance sheet
|
|
|
|
|
|
$ millions, as at
October 31
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
Cash and
non-interest-bearing deposits with banks
|
|
$
|
3,500
|
$
|
3,053
|
Interest-bearing
deposits with banks
|
|
|
10,665
|
|
15,584
|
Securities
|
|
|
|
|
|
Trading
|
|
|
49,915
|
|
46,181
|
Available-for-sale
(AFS)
|
|
|
37,253
|
|
28,534
|
Designated at fair
value (FVO)
|
|
|
255
|
|
267
|
|
|
|
87,423
|
|
74,982
|
Cash collateral on
securities borrowed
|
|
|
5,433
|
|
3,245
|
Securities
purchased under resale agreements
|
|
|
28,377
|
|
30,089
|
Loans
|
|
|
|
|
|
Residential
mortgages
|
|
|
187,298
|
|
169,258
|
Personal
|
|
|
38,041
|
|
36,517
|
Credit
card
|
|
|
12,332
|
|
11,804
|
Business and
government
|
|
|
71,437
|
|
65,276
|
Allowance for credit
losses
|
|
|
(1,691)
|
|
(1,670)
|
|
|
|
307,417
|
|
281,185
|
Other
|
|
|
|
|
|
Derivative
instruments
|
|
|
27,762
|
|
26,342
|
Customers' liability
under acceptances
|
|
|
12,364
|
|
9,796
|
Land, buildings and
equipment
|
|
|
1,898
|
|
1,897
|
Goodwill
|
|
|
1,539
|
|
1,526
|
Software and other
intangible assets
|
|
|
1,410
|
|
1,197
|
Investments in
equity-accounted associates and joint ventures
|
|
|
766
|
|
1,847
|
Deferred tax
assets
|
|
|
771
|
|
507
|
Other
assets
|
|
|
12,032
|
|
12,059
|
|
|
|
58,542
|
|
55,171
|
|
|
$
|
501,357
|
$
|
463,309
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
Personal
|
|
$
|
148,081
|
$
|
137,378
|
Business and
government
|
|
|
190,240
|
|
178,850
|
Bank
|
|
|
17,842
|
|
10,785
|
Secured
borrowings
|
|
|
39,484
|
|
39,644
|
|
|
|
395,647
|
|
366,657
|
Obligations
related to securities sold short
|
|
|
10,338
|
|
9,806
|
Cash collateral on
securities lent
|
|
|
2,518
|
|
1,429
|
Obligations
related to securities sold under repurchase
agreements
|
|
|
11,694
|
|
8,914
|
Other
|
|
|
|
|
|
Derivative
instruments
|
|
|
28,807
|
|
29,057
|
Acceptances
|
|
|
12,395
|
|
9,796
|
Deferred tax
liabilities
|
|
|
21
|
|
28
|
Other
liabilities
|
|
|
12,898
|
|
12,195
|
|
|
|
54,121
|
|
51,076
|
Subordinated
indebtedness
|
|
|
3,366
|
|
3,874
|
Equity
|
|
|
|
|
|
Preferred
shares
|
|
|
1,000
|
|
1,000
|
Common
shares
|
|
|
8,026
|
|
7,813
|
Contributed
surplus
|
|
|
72
|
|
76
|
Retained
earnings
|
|
|
13,584
|
|
11,433
|
Accumulated other
comprehensive income (AOCI)
|
|
|
790
|
|
1,038
|
Total
shareholders' equity
|
|
|
23,472
|
|
21,360
|
Non-controlling
interests
|
|
|
201
|
|
193
|
Total
equity
|
|
|
23,673
|
|
21,553
|
|
|
$
|
501,357
|
$
|
463,309
|
Consolidated statement of income
|
For the
three
|
|
For the
twelve
|
|
months
ended
|
|
months
ended
|
|
2016
|
2016
|
2015
|
|
2016
|
2015
|
$ millions, except as
noted
|
Oct.
31
|
Jul. 31
|
Oct. 31
|
|
Oct.
31
|
Oct. 31
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
2,531
|
$
|
2,492
|
$
|
2,385
|
|
$
|
9,833
|
$
|
9,573
|
Securities
|
|
457
|
|
446
|
|
385
|
|
|
1,774
|
|
1,524
|
Securities borrowed
or purchased under resale agreements
|
|
90
|
|
86
|
|
60
|
|
|
329
|
|
310
|
Deposits with
banks
|
|
37
|
|
44
|
|
23
|
|
|
156
|
|
76
|
|
|
3,115
|
|
3,068
|
|
2,853
|
|
|
12,092
|
|
11,483
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
878
|
|
814
|
|
680
|
|
|
3,215
|
|
2,990
|
Securities sold
short
|
|
45
|
|
57
|
|
52
|
|
|
199
|
|
230
|
Securities lent or
sold under repurchase agreements
|
|
36
|
|
36
|
|
23
|
|
|
127
|
|
110
|
Subordinated
indebtedness
|
|
35
|
|
37
|
|
39
|
|
|
137
|
|
181
|
Other
|
|
11
|
|
11
|
|
16
|
|
|
48
|
|
57
|
|
|
1,005
|
|
955
|
|
810
|
|
|
3,726
|
|
3,568
|
Net interest
income
|
|
2,110
|
|
2,113
|
|
2,043
|
|
|
8,366
|
|
7,915
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
|
Underwriting and
advisory fees
|
|
103
|
|
142
|
|
100
|
|
|
446
|
|
427
|
Deposit and payment
fees
|
|
207
|
|
206
|
|
208
|
|
|
832
|
|
830
|
Credit
fees
|
|
166
|
|
169
|
|
140
|
|
|
638
|
|
533
|
Card fees
|
|
125
|
|
115
|
|
115
|
|
|
470
|
|
449
|
Investment management
and custodial fees
|
|
233
|
|
223
|
|
208
|
|
|
882
|
|
814
|
Mutual fund
fees
|
|
378
|
|
369
|
|
363
|
|
|
1,462
|
|
1,457
|
Insurance fees, net
of claims
|
|
97
|
|
99
|
|
103
|
|
|
396
|
|
361
|
Commissions on
securities transactions
|
|
83
|
|
87
|
|
88
|
|
|
342
|
|
385
|
Trading income
(loss)
|
|
(32)
|
|
(28)
|
|
(114)
|
|
|
(88)
|
|
(139)
|
AFS securities gains,
net
|
|
6
|
|
46
|
|
19
|
|
|
73
|
|
138
|
FVO gains (losses),
net
|
|
10
|
|
(6)
|
|
19
|
|
|
17
|
|
(3)
|
Foreign exchange
other than trading
|
|
53
|
|
201
|
|
46
|
|
|
367
|
|
92
|
Income from
equity-accounted associates and joint ventures
|
|
24
|
|
23
|
|
37
|
|
|
96
|
|
177
|
Other
|
|
118
|
|
377
|
|
108
|
|
|
736
|
|
420
|
|
|
1,571
|
|
2,023
|
|
1,440
|
|
|
6,669
|
|
5,941
|
Total
revenue
|
|
3,681
|
|
4,136
|
|
3,483
|
|
|
15,035
|
|
13,856
|
Provision for
credit losses
|
|
222
|
|
243
|
|
198
|
|
|
1,051
|
|
771
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation
and benefits
|
|
1,292
|
|
1,274
|
|
1,379
|
|
|
4,982
|
|
5,099
|
Occupancy
costs
|
|
209
|
|
196
|
|
209
|
|
|
804
|
|
782
|
Computer, software
and office equipment
|
|
393
|
|
344
|
|
335
|
|
|
1,398
|
|
1,292
|
Communications
|
|
75
|
|
75
|
|
80
|
|
|
319
|
|
326
|
Advertising and
business development
|
|
77
|
|
66
|
|
80
|
|
|
269
|
|
281
|
Professional
fees
|
|
61
|
|
51
|
|
78
|
|
|
201
|
|
230
|
Business and capital
taxes
|
|
18
|
|
14
|
|
16
|
|
|
68
|
|
68
|
Other
|
|
222
|
|
198
|
|
206
|
|
|
930
|
|
783
|
|
|
2,347
|
|
2,218
|
|
2,383
|
|
|
8,971
|
|
8,861
|
Income before
income taxes
|
|
1,112
|
|
1,675
|
|
902
|
|
|
5,013
|
|
4,224
|
Income
taxes
|
|
181
|
|
234
|
|
124
|
|
|
718
|
|
634
|
Net
income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
Net income
attributable to non-controlling interests
|
$
|
4
|
$
|
6
|
$
|
2
|
|
$
|
20
|
$
|
14
|
|
Preferred
shareholders
|
$
|
10
|
$
|
9
|
$
|
9
|
|
$
|
38
|
$
|
45
|
|
Common
shareholders
|
|
917
|
|
1,426
|
|
767
|
|
|
4,237
|
|
3,531
|
Net income
attributable to equity shareholders
|
$
|
927
|
$
|
1,435
|
$
|
776
|
|
$
|
4,275
|
$
|
3,576
|
Earnings per share
(in dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.32
|
$
|
3.61
|
$
|
1.93
|
|
$
|
10.72
|
$
|
8.89
|
|
Diluted
|
|
2.32
|
|
3.61
|
|
1.93
|
|
|
10.70
|
|
8.87
|
Dividends per
common share (in dollars)
|
|
1.21
|
|
1.21
|
|
1.12
|
|
|
4.75
|
|
4.30
|
Consolidated statement of comprehensive income
|
|
For the
three
|
|
|
For the
twelve
|
|
|
months
ended
|
|
|
months
ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
$ millions
|
|
Oct.
31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct.
31
|
|
Oct. 31
|
Net income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
Other comprehensive
income (OCI), net of income tax, that is subject
|
|
|
|
|
|
|
|
|
|
|
|
to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign
currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
investments in foreign operations
|
|
606
|
|
327
|
|
2
|
|
|
487
|
|
1,445
|
|
Net (gains) losses on
investments in foreign operations
reclassified to net income
|
|
-
|
|
(254)
|
|
-
|
|
|
(272)
|
|
(21)
|
|
Net gains (losses) on
hedges of investments in foreign
operations
|
|
(383)
|
|
(100)
|
|
(2)
|
|
|
(257)
|
|
(720)
|
|
Net (gains) losses on
hedges of investments in foreign
operations reclassified
to net income
|
|
-
|
|
113
|
|
-
|
|
|
121
|
|
18
|
|
|
|
223
|
|
86
|
|
-
|
|
|
79
|
|
722
|
|
Net change in AFS
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
AFS securities
|
|
14
|
|
73
|
|
(71)
|
|
|
125
|
|
(67)
|
|
Net (gains) losses on
AFS securities reclassified to net income
|
|
(5)
|
|
(33)
|
|
(15)
|
|
|
(58)
|
|
(97)
|
|
|
|
9
|
|
40
|
|
(86)
|
|
|
67
|
|
(164)
|
|
Net change in cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivatives designated as cash flow hedges
|
|
8
|
|
1
|
|
35
|
|
|
13
|
|
(7)
|
|
Net (gains) losses on
derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net
income
|
|
(11)
|
|
7
|
|
(29)
|
|
|
(12)
|
|
3
|
|
|
(3)
|
|
8
|
|
6
|
|
|
1
|
|
(4)
|
OCI, net of income
tax, that is not subject to subsequent reclassification
to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses)
on post-employment defined benefit plans
|
|
55
|
|
(148)
|
|
240
|
|
|
(390)
|
|
374
|
|
Net fair value
change of FVO liabilities attributable to changes
in credit risk
|
|
(3)
|
|
1
|
|
7
|
|
|
(5)
|
|
5
|
Total
OCI
|
|
281
|
|
(13)
|
|
167
|
|
|
(248)
|
|
933
|
Comprehensive
income
|
$
|
1,212
|
$
|
1,428
|
$
|
945
|
|
$
|
4,047
|
$
|
4,523
|
Comprehensive
income attributable to non-controlling interests
|
$
|
4
|
$
|
6
|
$
|
2
|
|
$
|
20
|
$
|
14
|
|
Preferred
shareholders
|
$
|
10
|
$
|
9
|
$
|
9
|
|
$
|
38
|
$
|
45
|
|
Common
shareholders
|
|
1,198
|
|
1,413
|
|
934
|
|
|
3,989
|
|
4,464
|
Comprehensive
income attributable to equity shareholders
|
$
|
1,208
|
$
|
1,422
|
$
|
943
|
|
$
|
4,027
|
$
|
4,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three
|
|
|
For the
twelve
|
|
|
|
months
ended
|
|
|
months
ended
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
$ millions
|
|
Oct.
31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct.
31
|
|
Oct. 31
|
Income tax (expense)
benefit
|
|
|
|
|
|
|
|
|
|
|
|
Subject to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign
currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
investments in foreign operations
|
$
|
(19)
|
$
|
(34)
|
$
|
-
|
|
$
|
(17)
|
$
|
(118)
|
|
Net (gains) losses
investments in foreign operations reclassified
to net income
|
|
-
|
|
37
|
|
-
|
|
|
37
|
|
3
|
|
Net gains (losses) on
hedges of investments in foreign operations
|
|
69
|
|
60
|
|
1
|
|
|
128
|
|
91
|
|
Net (gains) losses on
hedges of investments in foreign operations
reclassified to net income
|
|
-
|
|
(23)
|
|
-
|
|
|
(26)
|
|
(6)
|
|
|
|
50
|
|
40
|
|
1
|
|
|
122
|
|
(30)
|
|
Net change in AFS
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
AFS securities
|
|
(6)
|
|
(16)
|
|
18
|
|
|
(24)
|
|
42
|
|
Net (gains) losses on
AFS securities reclassified to net income
|
|
1
|
|
13
|
|
5
|
|
|
15
|
|
48
|
|
|
|
(5)
|
|
(3)
|
|
23
|
|
|
(9)
|
|
90
|
|
Net change in cash
flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivatives designated as cash flow hedges
|
|
(3)
|
|
(1)
|
|
(13)
|
|
|
(5)
|
|
2
|
|
Net (gains) losses on
derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
reclassified to net
income
|
|
4
|
|
(2)
|
|
10
|
|
|
5
|
|
(2)
|
|
|
|
1
|
|
(3)
|
|
(3)
|
|
|
-
|
|
-
|
Not subject to
subsequent reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses)
on post-employment defined benefit plans
|
|
(13)
|
|
54
|
|
(79)
|
|
|
149
|
|
(129)
|
|
Net fair value
change of FVO liabilities attributable to changes
in credit risk
|
|
-
|
|
-
|
|
(2)
|
|
|
1
|
|
(1)
|
|
|
$
|
33
|
$
|
88
|
$
|
(60)
|
|
$
|
263
|
$
|
(70)
|
Consolidated statement of changes in equity
|
|
For the
three
|
|
For the
twelve
|
|
|
months
ended
|
|
months
ended
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
$ millions
|
|
Oct.
31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct.
31
|
|
Oct. 31
|
Preferred
shares
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
|
$
|
1,000
|
$
|
1,031
|
Issue of preferred
shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
600
|
Redemption of
preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(631)
|
Balance at end of
period
|
$
|
1,000
|
$
|
1,000
|
$
|
1,000
|
|
$
|
1,000
|
$
|
1,000
|
Common
shares
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
7,806
|
$
|
7,792
|
$
|
7,800
|
|
$
|
7,813
|
$
|
7,782
|
Issue of common
shares
|
|
212
|
|
23
|
|
8
|
|
|
273
|
|
30
|
Purchase of common
shares for cancellation
|
|
-
|
|
-
|
|
(2)
|
|
|
(61)
|
|
(2)
|
Treasury
shares
|
|
8
|
|
(9)
|
|
7
|
|
|
1
|
|
3
|
Balance at end of
period
|
$
|
8,026
|
$
|
7,806
|
$
|
7,813
|
|
$
|
8,026
|
$
|
7,813
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
73
|
$
|
74
|
$
|
79
|
|
$
|
76
|
$
|
75
|
Stock option
expense
|
|
2
|
|
1
|
|
1
|
|
|
5
|
|
5
|
Stock options
exercised
|
|
(2)
|
|
(2)
|
|
(1)
|
|
|
(9)
|
|
(4)
|
Other
|
|
(1)
|
|
-
|
|
(3)
|
|
|
-
|
|
-
|
Balance at end of
period
|
$
|
72
|
$
|
73
|
$
|
76
|
|
$
|
72
|
$
|
76
|
Retained
earnings
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
13,145
|
$
|
12,197
|
$
|
11,119
|
|
$
|
11,433
|
$
|
9,626
|
Net income
attributable to equity shareholders
|
|
927
|
|
1,435
|
|
776
|
|
|
4,275
|
|
3,576
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
|
(10)
|
|
(9)
|
|
(9)
|
|
|
(38)
|
|
(45)
|
|
Common
|
|
(478)
|
|
(478)
|
|
(445)
|
|
|
(1,879)
|
|
(1,708)
|
Premium on purchase
of common shares for cancellation
|
|
-
|
|
-
|
|
(9)
|
|
|
(209)
|
|
(9)
|
Other
|
|
-
|
|
-
|
|
1
|
|
|
2
|
|
(7)
|
Balance at end of
period
|
$
|
13,584
|
$
|
13,145
|
$
|
11,433
|
|
$
|
13,584
|
$
|
11,433
|
AOCI, net of
income tax
|
|
|
|
|
|
|
|
|
|
|
|
AOCI, net of income
tax, that is subject to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net foreign
currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
891
|
$
|
805
|
$
|
1,035
|
|
$
|
1,035
|
$
|
313
|
|
Net change in foreign
currency translation adjustments
|
|
223
|
|
86
|
|
-
|
|
|
79
|
|
722
|
|
Balance at end of
period
|
$
|
1,114
|
$
|
891
|
$
|
1,035
|
|
$
|
1,114
|
$
|
1,035
|
|
Net gains (losses)
on AFS securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
152
|
$
|
112
|
$
|
180
|
|
$
|
94
|
$
|
258
|
|
Net change in AFS
securities
|
|
9
|
|
40
|
|
(86)
|
|
|
67
|
|
(164)
|
|
Balance at end of
period
|
$
|
161
|
$
|
152
|
$
|
94
|
|
$
|
161
|
$
|
94
|
|
Net gains (losses)
on cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
26
|
$
|
18
|
$
|
16
|
|
$
|
22
|
$
|
26
|
|
Net change in cash
flow hedges
|
|
(3)
|
|
8
|
|
6
|
|
|
1
|
|
(4)
|
|
Balance at end of
period
|
$
|
23
|
$
|
26
|
$
|
22
|
|
$
|
23
|
$
|
22
|
AOCI, net of income
tax, that is not subject to subsequent
reclassification to net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses)
on post-employment defined
benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
(563)
|
$
|
(415)
|
$
|
(358)
|
|
$
|
(118)
|
$
|
(492)
|
|
Net change in
post-employment defined benefit plans
|
|
55
|
|
(148)
|
|
240
|
|
|
(390)
|
|
374
|
|
Balance at end of
period
|
$
|
(508)
|
$
|
(563)
|
$
|
(118)
|
|
$
|
(508)
|
$
|
(118)
|
|
Net fair value
change of FVO liabilities attributable to
changes in credit risk
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
3
|
$
|
2
|
$
|
(2)
|
|
$
|
5
|
$
|
-
|
|
Net change
attributable to changes in credit risk
|
|
(3)
|
|
1
|
|
7
|
|
|
(5)
|
|
5
|
|
Balance at end of
period
|
$
|
-
|
$
|
3
|
$
|
5
|
|
$
|
-
|
$
|
5
|
Total AOCI, net of
income tax
|
$
|
790
|
$
|
509
|
$
|
1,038
|
|
$
|
790
|
$
|
1,038
|
Non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
188
|
$
|
187
|
$
|
194
|
|
$
|
193
|
$
|
164
|
Net income (loss)
attributable to non-controlling interests
|
|
4
|
|
6
|
|
2
|
|
|
20
|
|
14
|
Dividends
|
|
-
|
|
(4)
|
|
-
|
|
|
(19)
|
|
(5)
|
Other
|
|
9
|
|
(1)
|
|
(3)
|
|
|
7
|
|
20
|
Balance at end of
period
|
$
|
201
|
$
|
188
|
$
|
193
|
|
$
|
201
|
$
|
193
|
Equity at end of
period
|
$
|
23,673
|
$
|
22,721
|
$
|
21,553
|
|
$
|
23,673
|
$
|
21,553
|
Consolidated statement of cash flows
|
|
For the
three
|
|
|
For the
twelve
|
|
|
months
ended
|
|
|
months
ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
$ millions
|
|
Oct.
31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
Oct.
31
|
|
Oct. 31
|
Cash flows
provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
931
|
$
|
1,441
|
$
|
778
|
|
$
|
4,295
|
$
|
3,590
|
Adjustments to
reconcile net income to cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
222
|
|
243
|
|
198
|
|
|
1,051
|
|
771
|
|
Amortization and
impairment (1)
|
|
129
|
|
115
|
|
109
|
|
|
462
|
|
435
|
|
Stock option
expense
|
|
2
|
|
1
|
|
1
|
|
|
5
|
|
5
|
|
Deferred income
taxes
|
|
14
|
|
51
|
|
(11)
|
|
|
(20)
|
|
(61)
|
|
AFS securities gains,
net
|
|
(6)
|
|
(46)
|
|
(19)
|
|
|
(73)
|
|
(138)
|
|
Net losses (gains) on
disposal of land, buildings
and equipment
|
|
(11)
|
|
(2)
|
|
(4)
|
|
|
(72)
|
|
(2)
|
|
Other non-cash items,
net
|
|
(93)
|
|
(459)
|
|
(27)
|
|
|
(692)
|
|
(257)
|
|
Net changes in
operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
(479)
|
|
(1,552)
|
|
1,293
|
|
|
4,919
|
|
(4,731)
|
|
|
Loans, net of
repayments
|
|
(9,003)
|
|
(8,344)
|
|
(4,104)
|
|
|
(27,464)
|
|
(22,610)
|
|
|
Deposits, net of
withdrawals
|
|
6,277
|
|
20,148
|
|
5,847
|
|
|
28,440
|
|
40,510
|
|
|
Obligations related
to securities sold short
|
|
905
|
|
(192)
|
|
(1,591)
|
|
|
532
|
|
(3,193)
|
|
|
Accrued interest
receivable
|
|
(49)
|
|
34
|
|
(95)
|
|
|
(98)
|
|
(112)
|
|
|
Accrued interest
payable
|
|
194
|
|
(130)
|
|
263
|
|
|
(72)
|
|
(77)
|
|
|
Derivative
assets
|
|
768
|
|
208
|
|
3,675
|
|
|
(1,425)
|
|
(5,655)
|
|
|
Derivative
liabilities
|
|
(1,386)
|
|
(2,548)
|
|
(2,815)
|
|
|
(232)
|
|
7,204
|
|
|
Trading
securities
|
|
(746)
|
|
(2,971)
|
|
1,368
|
|
|
(3,734)
|
|
880
|
|
|
FVO
securities
|
|
7
|
|
(7)
|
|
3
|
|
|
12
|
|
(14)
|
|
|
Other FVO assets and
liabilities
|
|
15
|
|
527
|
|
421
|
|
|
807
|
|
327
|
|
|
Current income
taxes
|
|
(20)
|
|
19
|
|
30
|
|
|
8
|
|
140
|
|
|
Cash collateral on
securities lent
|
|
(212)
|
|
416
|
|
(138)
|
|
|
1,089
|
|
526
|
|
|
Obligations related
to securities sold under
repurchase agreements
|
|
1,056
|
|
(3,781)
|
|
812
|
|
|
2,780
|
|
(948)
|
|
|
Cash collateral on
securities borrowed
|
|
(116)
|
|
(871)
|
|
114
|
|
|
(2,188)
|
|
144
|
|
|
Securities purchased
under resale agreements
|
|
2,766
|
|
133
|
|
(2,098)
|
|
|
1,712
|
|
3,318
|
|
|
Other, net
|
|
1,409
|
|
(886)
|
|
(92)
|
|
|
169
|
|
(569)
|
|
|
|
|
2,574
|
|
1,547
|
|
3,918
|
|
|
10,211
|
|
19,483
|
Cash flows
provided by (used in) financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Issue of subordinated
indebtedness
|
|
-
|
|
-
|
|
-
|
|
|
1,000
|
|
-
|
Redemption/repurchase/maturity of subordinated
indebtedness
|
|
(14)
|
|
-
|
|
-
|
|
|
(1,514)
|
|
(1,130)
|
Issue of preferred
shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
600
|
Redemption of
preferred shares
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(631)
|
Issue of common
shares for cash
|
|
210
|
|
21
|
|
7
|
|
|
264
|
|
26
|
Purchase of common
shares for cancellation
|
|
-
|
|
-
|
|
(11)
|
|
|
(270)
|
|
(11)
|
Net proceeds from
treasury shares
|
|
8
|
|
(9)
|
|
7
|
|
|
1
|
|
3
|
Dividends
paid
|
|
(488)
|
|
(487)
|
|
(454)
|
|
|
(1,917)
|
|
(1,753)
|
Share issuance
costs
|
|
-
|
|
-
|
|
1
|
|
|
-
|
|
(7)
|
|
|
|
|
(284)
|
|
(475)
|
|
(450)
|
|
|
(2,436)
|
|
(2,903)
|
Cash flows
provided by (used in) investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of AFS
securities
|
|
(6,380)
|
|
(7,883)
|
|
(15,709)
|
|
|
(31,625)
|
|
(41,145)
|
Proceeds from sale of
AFS securities
|
|
1,755
|
|
2,370
|
|
1,450
|
|
|
10,750
|
|
9,264
|
Proceeds from
maturity of AFS securities
|
|
2,925
|
|
3,204
|
|
10,738
|
|
|
12,299
|
|
15,451
|
Net cash provided by
dispositions
|
|
-
|
|
1,363
|
|
-
|
|
|
1,363
|
|
185
|
Net purchase of land,
buildings and equipment
|
|
(75)
|
|
(66)
|
|
(91)
|
|
|
(170)
|
|
(256)
|
|
|
|
|
(1,775)
|
|
(1,012)
|
|
(3,612)
|
|
|
(7,383)
|
|
(16,501)
|
Effect of exchange
rate changes on cash and non-interest-
bearing deposits with banks
|
|
43
|
|
61
|
|
(1)
|
|
|
55
|
|
280
|
Net increase
(decrease) in cash and non-interest-bearing
deposits with banks
|
|
|
|
|
|
|
|
|
|
|
|
during
period
|
|
558
|
|
121
|
|
(145)
|
|
|
447
|
|
359
|
Cash and
non-interest-bearing deposits with banks at
beginning of period
|
|
2,942
|
|
2,821
|
|
3,198
|
|
|
3,053
|
|
2,694
|
Cash and
non-interest-bearing deposits with banks at
end of period (2)
|
$
|
3,500
|
$
|
2,942
|
$
|
3,053
|
|
$
|
3,500
|
$
|
3,053
|
Cash interest
paid
|
$
|
811
|
$
|
1,085
|
$
|
548
|
|
$
|
3,798
|
$
|
3,646
|
Cash income taxes
paid
|
|
187
|
|
164
|
|
105
|
|
|
730
|
|
555
|
Cash interest and
dividends received
|
|
3,066
|
|
3,102
|
|
2,758
|
|
|
11,994
|
|
11,371
|
(1)
|
Comprises
amortization and impairment of buildings, furniture, equipment,
leasehold improvements, and software and other intangible
assets.
|
(2)
|
Includes restricted
balance of $422 million (July 31, 2016: $410 million; October 31,
2015: $406 million).
|
Non-GAAP measures
We use a number of financial
measures to assess the performance of our business lines. Some
measures are calculated in accordance with International Financial
Reporting Standards (IFRS or GAAP), while other measures do not
have a standardized meaning under GAAP, and accordingly, these
measures may not be comparable to similar measures used by other
companies. Investors may find these non-GAAP measures useful in
analyzing financial performance.
The following table provides a quarterly reconciliation of
non-GAAP to GAAP measures related to CIBC on a consolidated basis.
For a more detailed discussion and for an annual reconciliation of
non-GAAP to GAAP measures, see the "Non-GAAP measures" section of
CIBC's 2016 Annual Report.
|
|
As at or for
the
|
|
|
As at or for
the
|
|
|
|
|
three months
ended
|
|
|
twelve months
ended
|
|
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
$ millions
|
|
|
|
Oct.
31
|
|
|
Jul. 31
|
|
|
Oct. 31
|
|
|
|
Oct.
31
|
|
|
Oct. 31
|
|
|
Reported and
adjusted diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
attributable to common shareholders
|
A
|
|
$
|
917
|
|
$
|
1,426
|
|
$
|
767
|
|
|
$
|
4,237
|
|
$
|
3,531
|
|
|
After-tax impact of
items of note (1)
|
|
|
|
110
|
|
|
(369)
|
|
|
172
|
|
|
|
(191)
|
|
|
230
|
|
|
Adjusted net income
attributable to common shareholders (2)
|
B
|
|
$
|
1,027
|
|
$
|
1,057
|
|
$
|
939
|
|
|
$
|
4,046
|
|
$
|
3,761
|
|
|
Diluted
weighted-average common shares outstanding (thousands)
|
C
|
|
|
395,750
|
|
|
395,328
|
|
|
397,838
|
|
|
|
395,919
|
|
|
397,832
|
|
|
Reported diluted EPS
($)
|
A/C
|
|
$
|
2.32
|
|
$
|
3.61
|
|
$
|
1.93
|
|
|
$
|
10.70
|
|
$
|
8.87
|
|
|
Adjusted diluted EPS
($) (2)
|
B/C
|
|
|
2.60
|
|
|
2.67
|
|
|
2.36
|
|
|
|
10.22
|
|
|
9.45
|
|
|
Reported and
adjusted return on common shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
D
|
|
$
|
21,763
|
|
$
|
21,198
|
|
$
|
20,122
|
|
|
$
|
21,275
|
|
$
|
18,857
|
|
|
Reported return on
common shareholders' equity
|
A/D
|
(3)
|
|
16.8
|
%
|
|
26.8
|
%
|
|
15.1
|
%
|
|
|
19.9
|
%
|
|
18.7
|
%
|
|
Adjusted return on
common shareholders' equity (2)
|
B/D
|
(3)
|
|
18.8
|
%
|
|
19.8
|
%
|
|
18.5
|
%
|
|
|
19.0
|
%
|
|
19.9
|
%
|
|
|
|
|
Retail and
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Wealth
|
Capital
|
Corporate
|
CIBC
|
|
$ millions, for the
three months ended
|
Banking
|
Management
|
Markets
|
and Other
|
Total
|
|
Oct.
31
|
Reported net
income (loss)
|
$
|
687
|
$
|
126
|
$
|
276
|
$
|
(158)
|
$
|
931
|
|
2016
|
After-tax impact
of items of note (1)
|
|
1
|
|
1
|
|
7
|
|
101
|
|
110
|
|
|
|
Adjusted net
income (loss) (2)
|
$
|
688
|
$
|
127
|
$
|
283
|
$
|
(57)
|
$
|
1,041
|
|
Jul. 31
|
Reported net income
(loss)
|
$
|
666
|
$
|
506
|
$
|
304
|
$
|
(35)
|
$
|
1,441
|
|
2016
|
After-tax impact of
items of note (1)
|
|
1
|
|
(380)
|
|
9
|
|
1
|
|
(369)
|
|
|
|
Adjusted net income
(loss) (2)
|
$
|
667
|
$
|
126
|
$
|
313
|
$
|
(34)
|
$
|
1,072
|
|
Oct. 31
|
Reported net income
(loss)
|
$
|
672
|
$
|
122
|
$
|
181
|
$
|
(197)
|
$
|
778
|
|
2015(4)
|
After-tax impact of
items of note (1)
|
|
1
|
|
6
|
|
2
|
|
165
|
|
174
|
|
|
|
Adjusted net income
(loss) (2)
|
$
|
673
|
$
|
128
|
$
|
183
|
$
|
(32)
|
$
|
952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ millions, for the
twelve months ended
|
|
|
|
|
|
|
Oct.
31
|
Reported net
income (loss)
|
$
|
2,689
|
$
|
864
|
$
|
1,076
|
$
|
(334)
|
$
|
4,295
|
|
2016
|
After-tax impact
of items of note (1)
|
|
(25)
|
|
(374)
|
|
28
|
|
180
|
|
(191)
|
|
|
|
Adjusted net
income (loss) (2)
|
$
|
2,664
|
$
|
490
|
$
|
1,104
|
$
|
(154)
|
$
|
4,104
|
|
Oct. 31
|
Reported net income
(loss)
|
$
|
2,530
|
$
|
518
|
$
|
957
|
$
|
(415)
|
$
|
3,590
|
|
2015(4)
|
After-tax impact of
items of note (1)
|
|
(28)
|
|
18
|
|
8
|
|
234
|
|
232
|
|
|
Adjusted net income
(loss) (2)
|
$
|
2,502
|
$
|
536
|
$
|
965
|
$
|
(181)
|
$
|
3,822
|
|
(1)
|
Reflects impact of
items of note under the "Financial results" section of the
MD&A.
|
|
(2)
|
Non-GAAP
measure.
|
|
(3)
|
Annualized.
|
|
(4)
|
Certain information
has been reclassified to conform to the presentation adopted in the
current year. See the "External reporting changes" section of the
MD&A for additional details.
|
Items of note
|
|
For the
three
|
|
|
|
For the
twelve
|
|
|
months
ended
|
|
|
|
months
ended
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
$ millions
|
|
Oct.
31
|
|
Jul. 31
|
|
Oct. 31
|
|
|
|
Oct.
31
|
|
Oct. 31
|
Gain, net of related
transaction costs, on the sale of our minority investment in
ACI
|
$
|
-
|
$
|
(428)
|
$
|
-
|
|
|
$
|
(428)
|
$
|
-
|
Gain, net of related
transaction and severance costs, on the sale of a processing
centre
|
|
-
|
|
-
|
|
-
|
|
|
|
(53)
|
|
-
|
Gain arising from
accounting adjustments on credit card-related balance sheet
amounts
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
(46)
|
Gain on sale of an
investment in our merchant banking portfolio
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
|
(23)
|
Loss (income) from
the structured credit run-off business
|
|
9
|
|
(28)
|
|
3
|
|
|
|
(3)
|
|
29
|
Amortization of
intangible assets
|
|
7
|
|
7
|
|
11
|
|
|
|
30
|
|
42
|
Increase in legal
provisions
|
|
-
|
|
-
|
|
-
|
|
|
|
77
|
|
-
|
Increase in
collective allowance (1) recognized in Corporate and
Other
|
|
-
|
|
-
|
|
-
|
|
|
|
109
|
|
-
|
Loan losses in our
exited European leveraged finance portfolio
|
|
-
|
|
40
|
|
-
|
|
|
|
40
|
|
-
|
Restructuring charges
primarily relating to employee severance
|
|
134
|
|
-
|
|
211
|
|
|
|
134
|
|
296
|
Pre-tax impact of
items of note on net income
|
|
150
|
|
(409)
|
|
225
|
|
|
|
(94)
|
|
298
|
|
Income tax impact on
above items of note
|
|
(40)
|
|
40
|
|
(51)
|
|
|
|
(52)
|
|
(66)
|
|
Income tax recovery
due to the settlement of transfer pricing-related
matters
|
|
-
|
|
-
|
|
-
|
|
|
|
(30)
|
|
-
|
|
Income tax recovery
arising from a change in our expected utilization of tax loss
carryforwards
|
|
-
|
|
-
|
|
-
|
|
|
|
(15)
|
|
-
|
After-tax impact of
items of note on net income
|
|
110
|
|
(369)
|
|
174
|
|
|
|
(191)
|
|
232
|
|
After-tax impact of
items of note on non-controlling interests
|
|
-
|
|
-
|
|
(2)
|
|
|
|
-
|
|
(2)
|
After-tax impact of
items of note on net income attributable to common
shareholders
|
$
|
110
|
$
|
(369)
|
$
|
172
|
|
|
$
|
(191)
|
$
|
230
|
(1)
|
Relates to the
collective allowance, except for (i) residential mortgages greater
than 90 days delinquent; (ii) personal loans and scored small
business loans greater than 30 days delinquent; and (iii) net
write-offs for the cards portfolio, which are all reported in the
respective strategic business units.
|
Basis of presentation
The interim consolidated
financial information in this news release is prepared in
accordance with IFRS and is unaudited whereas the annual
consolidated financial information is derived from audited
financial statements. These interim financial statements follow the
same accounting policies and methods of application as CIBC's
consolidated financial statements for the year ended October 31, 2016.
Conference Call/Webcast
The conference call will be
held at 8:00 a.m. (ET) and is
available in English (416-340-2217, or toll-free 1-866-696-5910,
passcode 9489619#) and French (514-861-2255, or toll-free
1-877-405-9213, passcode 3878208#). 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 2016 fourth quarter and fiscal year results,
as well as a presentation to investors, will be available in
English and French at www.cibc.com, Investor Relations section,
prior to the conference call/webcast. We are not incorporating
information contained on the website in this news release.
A telephone replay will be available in English (905-694-9451 or
1-800-408-3053, passcode 1837101#) and French (514-861-2272 or
1-800-408-3053, passcode 7075207#) until 11:59 p.m. (ET) December
8, 2016. The audio webcast will be archived at
www.cibc.com/ca/investor-relations/quarterly-results.html.
About CIBC
CIBC is a leading Canadian-based global
financial institution with 11 million personal banking and business
clients. Through our three major business units - Retail and
Business Banking, Wealth Management and Capital Markets - CIBC
offers a full range of products and services through its
comprehensive electronic banking network, branches and offices
across Canada with offices in
the United States and around the
world. Ongoing news releases and more information about CIBC can be
found at www.cibc.com/ca/media-centre/ or by following on Twitter
@CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.
The information below forms a part of this press release.
Nothing in CIBC's corporate website (www.cibc.com) should be
considered incorporated herein by reference.
The Board of Directors of CIBC reviewed this news release prior
to it being issued.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS:
From time
to time, we make written or oral forward-looking statements within
the meaning of certain securities laws, including in this news
release, in other filings with Canadian securities regulators or
the U.S. Securities and Exchange Commission and in other
communications. All such statements are made pursuant to the "safe
harbour" provisions of, and are intended to be forward-looking
statements under applicable Canadian and U.S. securities
legislation, including the U.S. Private Securities Litigation
Reform Act of 1995. These statements include, but are not limited
to, statements made in the "Core business performance", "Strong
fundamentals", and "Making a difference in our Communities"
sections of this news release, and the Management's Discussion and
Analysis in our 2016 Annual Report under the heading "Financial
performance overview – Outlook for calendar year 2017" and other
statements about our operations, business lines, financial
condition, risk management, priorities, targets, ongoing
objectives, strategies, the regulatory environment in which we
operate and outlook for calendar year 2017 and subsequent periods.
Forward-looking statements are typically identified by the words
"believe", "expect", "anticipate", "intend", "estimate",
"forecast", "target", "objective" and other similar expressions or
future or conditional verbs such as "will", "should", "would" and
"could". By their nature, these statements require us to make
assumptions, including the economic assumptions set out in the
"Financial performance overview – Outlook for calendar year 2017"
section of our 2016 Annual Report, as updated by quarterly reports,
and are subject to inherent risks and uncertainties that may be
general or specific. A variety of factors, many of which are beyond
our control, affect our operations, performance and results, and
could cause actual results to differ materially from the
expectations expressed in any of our forward-looking statements.
These factors include: credit, market, liquidity, strategic,
insurance, operational, reputation and legal, regulatory and
environmental risk; the effectiveness and adequacy of our risk
management and valuation models and processes; legislative or
regulatory developments in the jurisdictions where we operate,
including the Dodd-Frank Wall Street Reform and Consumer Protection
Act and the regulations issued and to be issued thereunder, the
Organisation for Economic Co-operation and Development Common
Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking
Supervision's global standards for capital and liquidity reform,
and those relating to the payments system in Canada; amendments to, and interpretations of,
risk-based capital guidelines and reporting instructions, and
interest rate and liquidity regulatory guidance; the resolution of
legal and regulatory proceedings and related matters; the effect of
changes to accounting standards, rules and interpretations; changes
in our estimates of reserves and allowances; changes in tax laws;
changes to our credit ratings; political conditions and
developments; the possible effect on our business of international
conflicts and the war on terror; natural disasters, public health
emergencies, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide
components of our business infrastructure; potential disruptions to
our information technology systems and services; increasing cyber
security risks which may include theft of assets, unauthorized
access to sensitive information, or operational disruption; social
media risk; losses incurred as a result of internal or external
fraud; anti-money laundering; the accuracy and completeness of
information provided to us concerning clients and counterparties;
the failure of third parties to comply with their obligations to us
and our affiliates or associates; intensifying competition from
established competitors and new entrants in the financial services
industry including through internet and mobile banking;
technological change; global capital market activity; changes in
monetary and economic policy; currency value and interest rate
fluctuations, including as a result of market and oil price
volatility; general business and economic conditions worldwide, as
well as in Canada, the U.S. and
other countries where we have operations, including increasing
Canadian household debt levels and global credit risks; our success
in developing and introducing new products and services, expanding
existing distribution channels, developing new distribution
channels and realizing increased revenue from these channels;
changes in client spending and saving habits; our ability to
attract and retain key employees and executives; our ability to
successfully execute our strategies and complete and integrate
acquisitions and joint ventures; the risk that expected synergies
and benefits of the acquisition of PrivateBancorp, Inc. will not be
realized within the expected time frame or at all or the
possibility that the acquisition does not close when expected or at
all because required regulatory, shareholder or other approvals are
not received or other conditions to the closing are not satisfied
on a timely basis or at all; and our ability to anticipate and
manage the risks associated with these factors. This list is not
exhaustive of the factors that may affect any of our
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
our forward-looking statements. Any forward-looking statements
contained in this news release represent the views of management
only as of the date hereof and are presented for the purpose of
assisting our shareholders and financial analysts in understanding
our financial position, objectives and priorities and anticipated
financial performance as at and for the periods ended on the dates
presented, and may not be appropriate for other purposes. We do not
undertake to update any forward-looking statement that is contained
in this news release or in other communications except as required
by law.
SOURCE CIBC - Investor Relations