CIBC's 2021 audited annual consolidated financial statements and accompanying management's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. Our 2021 Annual Report is available on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Dec. 2, 2021 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2021.

CIBC logo (CNW Group/CIBC)

"We delivered strong financial performance in 2021 with growth across all of our strategic business units as our entire team focused on helping our clients achieve their ambitions," said Victor Dodig, President and CEO, CIBC. "Against the backdrop of the ongoing global pandemic, our bank continued to invest for the future, including expanding our platform and capabilities in the U.S., accelerating the growth of our Canadian consumer franchise, and making foundational investments in cloud technology and other capabilities that will enable us to do more for clients in 2022 and beyond. We also launched our new brand, a statement on the bank we've become by living our purpose, and a symbol of the opportunities that lie ahead. We enter the new fiscal year well positioned for growth with a strong capital position, clear momentum across our business, and the full commitment of our team as we contribute to an equitable and sustainable future for our clients, our communities and our planet."

Fourth quarter highlights


Q4/21

Q4/20

Q3/21

YoY Variance

QoQ Variance

Reported Net Income

$1,440 million

$1,016 million

$1,730 million

+42%

-17%

Adjusted Net Income (1)

$1,573 million

$1,280 million

$1,808 million

+23%

-13%

Reported Diluted Earnings Per Share (EPS)

$3.07

$2.20

$3.76

+40%

-18%

Adjusted Diluted EPS (1)

$3.37

$2.79

$3.93

+21%

-14%

Reported Return on Common Shareholders' Equity (ROE) (2)

13.4%

10.7%

17.1%


Adjusted ROE (1)(2)

14.7%

13.5%

17.9%

Common Equity Tier 1 (CET1) Ratio (2)

12.4%

12.1%

12.3%

CIBC's results for the fourth quarter of 2021 were affected by the following items of note aggregating to a negative impact of $0.30 per share:

  • $109 million ($80 million after-tax) charge related to the consolidation of our real estate portfolio;
  • $40 million ($29 million after-tax) increase in legal provisions;
  • $19 million ($15 million after-tax) amortization of acquisition-related intangible assets; and
  • $12 million ($9 million after-tax) in transaction and integration-related costs(3) associated with the acquisition of the Canadian Costco credit card portfolio.

For the year ended October 31, 2021, CIBC reported net income of $6.4 billion and adjusted net income(1) of $6.7 billion, compared with reported net income of $3.8 billion and adjusted net income(1) of $4.4 billion for 2020.

The following table summarizes our performance in 2021 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.

Financial Measure

Target (4)

2021 Reported Results

2021 Adjusted Results (1)

Diluted EPS growth

5% to 10% annually

$13.93, up 69% from 2020

$14.47, up 49% from 2020

ROE (2)

15% +

16.1%

16.7%

Operating leverage (2)

Positive

5.3%, an increase of 930 basis points from 2020

0.7%, an increase of 130 basis points from 2020

CET1 ratio (2)

Strong buffer to regulatory minimum

12.4%

Dividend payout ratio (2)

40% to 50%

41.8%

40.3%

Total shareholder return

Outperform the S&P/TSX Composite Banks Index over a rolling five-year period

CIBC – 91.9%

S&P/TSX Composite Banks Index – 80.4%

(1)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

(2)

For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section.

(3)

Transaction and integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling cross-sell opportunities, the upgrade and conversion of systems and processes, project management, and communication costs. These items are recognized in Canadian Personal and Business Banking.

(4)

Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section.


Core business performance
F2021 Financial Highlights

(C$ million)

F2021

F2020

YoY Variance

Canadian Personal and Business Banking (1)




Reported Net Income

$2,494

$1,785

up 40%

Adjusted Net Income (2)

$2,503

$1,791

up 40%

Pre-provision, pre-tax earnings (2)

$3,736

$3,614

up 3%

Adjusted pre-provision, pre-tax earnings (2)

$3,748

$3,622

up 3%





Canadian Commercial Banking and Wealth Management




Reported Net Income

$1,665

$1,202

up 39%

Adjusted Net Income (2)

$1,665

$1,203

up 38%

Pre-provision, pre-tax earnings (2)

$2,227

$1,942

up 15%

Adjusted pre-provision, pre-tax earnings (2)

$2,227

$1,943

up 15%





U.S. Commercial Banking and Wealth Management (1)




Reported Net Income

$926

$375

up 147%

Adjusted Net Income (2)

$976

$436

up 124%

Pre-provision, pre-tax earnings (2)

$1,073

$917

up 17%

Adjusted pre-provision, pre-tax earnings (2)

$1,141

$1,000

up 14%





Capital Markets (1)




Reported Net Income

$1,857

$1,308

up 42%

Adjusted Net Income (2)

$1,857

$1,308

up 42%

Pre-provision, pre-tax earnings (2)

$2,403

$2,124

up 13%

Adjusted pre-provision, pre-tax earnings (2)

$2,403

$2,124

up 13%

(1)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

(2)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Strong fundamentals
While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2021, CIBC maintained its capital strength and sound risk management practices:

  • Capital ratios were strong, with a Basel III CET1 ratio(1) of 12.4% as noted above, and Tier 1(1) and Total capital ratios(1) of 14.1% and 16.2%, respectively, at October 31, 2021;
  • Market risk, as measured by average Value-at-Risk, was $7.6 million in 2021 compared with $8.5 million in 2020;
  • We continued to have solid credit performance, with a loan loss ratio(1) of 16 basis points compared with 26 basis points in 2020;
  • Liquidity Coverage Ratio(1) was 127% for the three months ended October 31, 2021; and
  • Leverage Ratio(1) was 4.7% at October 31, 2021.

CIBC announced an increase in its quarterly common share dividend from $1.46 per share to $1.61 per share for the quarter ending January 31, 2022.

Today we announced our intention to purchase for cancellation up to 10 million common shares, or approximately 2.2% of our outstanding common shares under a new normal course issuer bid, subject to the approval of the Toronto Stock Exchange.

(1)

For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section.

Credit quality
Provision for credit losses was $78 million for the fourth quarter, down $213 million or 73% from the same quarter last year. The current quarter included a provision reversal on performing loans of $34 million, while the same quarter last year included a provision for credit losses of $113 million. Provision for credit losses on impaired loans was down $66 million as the prior year quarter was adversely impacted by the COVID-19 pandemic.

Making a difference in our Communities
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 further strengthened our communities through the following initiatives:

  • Supported cancer research and care as Team CIBC participated in the annual Ride to Conquer Cancer and Weekend to Conquer Cancer benefitting the Princess Margaret Cancer Foundation, and celebrated our 25th anniversary as title partner of the CIBC Run for the Cure as we worked with the Canadian Cancer Society to support innovative breast cancer research and support programs.
  • Recognized the inaugural National Day for Truth and Reconciliation and announced initiatives supporting economic prosperity for Indigenous peoples in Canada. We announced further commitments to our newly launched Reconciliation Framework and donated $50,000 to the Orange Shirt Society, an organization working to support Survivors of the residential school system in Canada.
  • CIBC and the BlackNorth Initiative announced that applications are now being accepted for the Youth Accelerator, in partnership with BGC Canada, that will provide students from the Black community $50,000 over four years for tuition, mentorship, financial education and opportunities to secure paid internships or co-ops.
  • Together with our clients and team members, we responded to several global crises including donations to earthquake relief in Haiti, relief efforts following Hurricane Ida, clean drinking water for Iqaluit, and immediate aid to vulnerable groups in Afghanistan, including support for the evacuation and resettlement of Afghan women and families landing in Canada, and journalists fleeing persecution.

In 2021, corporate and employee giving to more than 4,000 charities was $132.7 million(1), while employee volunteering totalled more than 99,000 hours.

Subsequent to the end of the quarter, we announced the CIBC Foundation, which will serve our commitment to advance inclusion for a more equitable society and help make ambitions real for communities. To support this goal, we have made donations totalling $70 million in fiscal 2021 to launch the foundation, with plans to grow to $155 million over time.

(1)

Includes corporate giving, including $70 million to CIBC Foundation, corporate sponsorships and employee giving and fundraising.


Fourth quarter financial highlights


As at or for the




As at or for the







three months ended




twelve months ended



2021

2021


2020



2021

2020


Unaudited

Oct. 31

Jul. 31


Oct. 31



Oct. 31

Oct. 31


Financial results ($ millions)



Net interest income

$

2,980


$

2,893


$

2,792



$

11,459


$

11,044


Non-interest income


2,084



2,163



1,808




8,556



7,697


Total revenue


5,064



5,056



4,600




20,015



18,741


Provision for (reversal of) credit losses


78



(99)



291




158



2,489


Non-interest expenses


3,135



2,918



2,891




11,535



11,362


Income before income taxes


1,851



2,237



1,418




8,322



4,890


Income taxes


411



507



402




1,876



1,098


Net income

$

1,440


$

1,730


$

1,016



$

6,446


$

3,792


Net income attributable to non-controlling interests


4



5



1




17



2



Preferred shareholders and other equity instrument holders


47



30



30




158



122



Common shareholders


1,389



1,695



985




6,271



3,668


Net income attributable to equity shareholders

$

1,436


$

1,725


$

1,015



$

6,429


$

3,790


Financial measures

















Reported efficiency ratio (1)


61.9

%


57.7

%


62.9

%



57.6

%


60.6

%

Reported operating leverage (1)


1.7

%


(0.6)

%


(5.5)

%



5.3

%


(4.0)

%

Loan loss ratio (2)


0.10

%


0.10

%


0.17

%



0.16

%


0.26

%

Reported return on common shareholders' equity (1)(3)


13.4

%


17.1

%


10.7

%



16.1

%


10.0

%

Net interest margin (1)


1.41

%


1.42

%


1.43

%



1.42

%


1.50

%

Net interest margin on average interest-earning assets (4)(5)


1.58

%


1.60

%


1.60

%



1.59

%


1.69

%

Return on average assets (5)(6)


0.68

%


0.85

%


0.52

%



0.80

%


0.52

%

Return on average interest-earning assets (4)(5)(6)


0.77

%


0.96

%


0.58

%



0.89

%


0.58

%

Reported effective tax rate


22.2

%


22.7

%


28.3

%



22.5

%


22.5

%

Common share information

















Per share ($)

- basic earnings

$

3.08


$

3.77


$

2.21



$

13.97


$

8.23




- reported diluted earnings


3.07



3.76



2.20




13.93



8.22




- dividends


1.46



1.46



1.46




5.84



5.82




- book value (7)


91.66



90.06



84.05




91.66



84.05


Closing share price ($)


150.17



145.07



99.38




150.17



99.38


Shares outstanding (thousands)

- weighted-average basic


450,469



449,590



446,321




448,953



445,435




- weighted-average diluted


452,028



451,148



446,877




450,183



446,021




- end of period


450,828



450,082



447,085




450,828



447,085


Market capitalization ($ millions)

$

67,701


$

65,293


$

44,431



$

67,701


$

44,431


Value measures

















Total shareholder return


4.55

%


14.68

%


8.74

%



58.03

%


(5.90)

%

Dividend yield (based on closing share price)


3.9

%


4.0

%


5.8

%



3.9

%


5.9

%

Reported dividend payout ratio  (1)


47.3

%


38.7

%


66.2

%



41.8

%


70.7

%

Market value to book value ratio


1.64



1.61



1.18




1.64



1.18


Selected financial measures - adjusted  (8)

















Adjusted efficiency ratio (9)


57.8

%


55.1

%


56.4

%



55.4

%


55.8

%

Adjusted operating leverage (9)


(2.8)

%


(0.6)

%


(0.7)

%



0.7

%


(0.6)

%

Adjusted return on common shareholders' equity (3)


14.7

%


17.9

%


13.5

%



16.7

%


11.7

%

Adjusted effective tax rate


22.5

%


22.8

%


24.5

%



22.7

%


21.8

%

Adjusted diluted earnings per share

$

3.37


$

3.93


$

2.79



$

14.47


$

9.69


Adjusted dividend payout ratio


43.2

%


37.0

%


52.2

%



40.3

%


60.0

%

On- and off-balance sheet information ($ millions)

















Cash, deposits with banks and securities

$

218,398


$

207,774


$

211,564



$

218,398


$

211,564


Loans and acceptances, net of allowance for credit losses


462,879



449,167



416,388




462,879



416,388


Total assets


837,683



806,067



769,551




837,683



769,551


Deposits


621,158



602,969



570,740




621,158



570,740


Common shareholders' equity (1)


41,323



40,533



37,579




41,323



37,579


Average assets (5)


835,931



806,768



778,933




809,621



735,492


Average interest-earning assets (4)(5)


747,009



718,403



692,465




721,686



654,142


Average common shareholders' equity (1)(5)


40,984



39,263



36,762




38,881



36,792


Assets under administration (AUA) (1)(10)(11)(12)

2,963,221


2,982,469


2,364,005



2,963,221


2,364,005


Assets under management (AUM) (1)(11)(12)

316,834


310,560


261,037



316,834


261,037


Balance sheet quality and liquidity measures  (13)

















Risk-weighted assets (RWA) ($ millions)

$

272,814


$

268,999


$

254,871



$

272,814


$

254,871


CET1 ratio (14)


12.4

%


12.3

%


12.1

%



12.4

%


12.1

%

Tier 1 capital ratio (14)


14.1

%


13.7

%


13.6

%



14.1

%


13.6

%

Total capital ratio (14)


16.2

%


16.0

%


16.1

%



16.2

%


16.1

%

Leverage ratio


4.7

%


4.6

%


4.7

%



4.7

%


4.7

%

Liquidity coverage ratio (LCR) (15)


127

%


126

%


145

%



n/a



n/a


Other information


















Full-time equivalent employees


45,282



44,904



43,853




45,282



43,853


(1)

Certain additional disclosures on the composition of these specified financial measures have been incorporated by reference and can be found in the "Glossary" section on pages 100 to 102 of our 2021 Annual Report, available on SEDAR at www.sedar.com.

(2)

The ratio is calculated as the provision for (reversal of) credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.

(3)

Annualized.

(4)

Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with Bank of Canada, securities, cash collateral on securities borrowed, securities purchased under resale agreements, loans net of allowance for credit losses, and certain sublease-related assets.

(5)

Average balances are calculated as a weighted average of daily closing balances.

(6)

Net income expressed as a percentage of average assets or average interest-earning assets.

(7)

Common shareholders' equity divided by the number of common shares issued and outstanding at end of period.

(8)

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, see the "Non-GAAP measures" section.

(9)

Calculated on a taxable equivalent basis (TEB).

(10)

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 $2,341.1 billion (July 31, 2021: $2,380.2 billion; October 31, 2020: $1,861.5 billion).

(11)

AUM amounts are included in the amounts reported under AUA.

(12)

Certain prior period information was restated in the second quarter of 2021.

(13)

RWA and our capital ratios are calculated pursuant to OSFI's Capital Adequacy Requirements (CAR) Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR is calculated pursuant to OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on BCBS standards. For additional information, see the "Capital management" and "Liquidity risk" sections on pages 32 and 72, respectively, of our 2021 Annual Report.

(14)

Effective beginning in the second quarter of 2020, ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020 in response to the onset of the COVID-19 pandemic.

(15)

Average for the three months ended for each respective period.

n/a

Not applicable.

 

Review of Canadian Personal and Business Banking fourth quarter results













2021



2021



2020


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31(1)


Revenue

$

2,128


$

2,056


$

1,997


Provision for (reversal of) credit losses











Impaired


87



82



88



Performing


77



(15)



33


Total provision for credit losses


164



67



121


Non-interest expenses


1,152



1,118



1,076


Income before income taxes


812



871



800


Income taxes


215



229



210


Net income

$

597


$

642


$

590


Net income attributable to:











Equity shareholders

$

597


$

642


$

590


Efficiency ratio


54.1

%


54.4

%


53.9

%

Operating leverage


(0.4)

%


3.4

%


(4.2)

%

Return on equity (2)


35.9

%


38.6

%


36.1

%

Average allocated common equity (2)

$

6,608


$

6,595


$

6,509


Full-time equivalent employees


12,629



12,578



12,437


Net income for the quarter was $597 million, up $7 million from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(2) were $988 million, up $65 million from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $2,128 million was up $131 million from the fourth quarter of 2020, primarily due to strong volume growth and higher non-interest income, partially offset by lower product spreads. 

Provision for credit losses of $164 million was up $43 million from the fourth quarter of 2020, due to a higher provision for credit losses on performing loans mainly as a result of model parameter updates.

Non-interest expenses of $1,152 million were up $76 million from the fourth quarter of 2020 due to higher spending on strategic initiatives and higher performance-based compensation.

(1)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

(2)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of Canadian Commercial Banking and Wealth Management fourth quarter results













2021



2021



2020


$ millions, for the three months ended


Oct. 31



Jul. 31



Oct. 31


Revenue











Commercial banking

$

489


$

475


$

409



Wealth management


751



732



619


Total revenue


1,240



1,207



1,028


Provision for (reversal of) credit losses











Impaired


6



(11)



21



Performing


(11)



(38)



4


Total provision for (reversal of) credit losses


(5)



(49)



25


Non-interest expenses


646



617



540


Income before income taxes


599



639



463


Income taxes


157



169



123


Net income

$

442


$

470


$

340


Net income attributable to:











Equity shareholders

$

442


$

470


$

340


Efficiency ratio


52.0

%


51.2

%


52.5

%

Operating leverage


1.1

%


0.2

%


(1.5)

%

Return on equity (1)


24.9

%


27.2

%


20.7

%

Average allocated common equity (1)

$

7,039


$

6,863


$

6,551


Full-time equivalent employees


5,241



5,256



4,984


Net income for the quarter was $442 million, up $102 million from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(1) were $594 million, up $105 million from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $1,240 million was up $212 million from the fourth quarter of 2020, driven mainly by volume growth reflecting market appreciation and record net sales, as well as higher commissions in wealth management. Revenue increased in commercial banking due to volume growth in loans and deposits, and higher credit fees from increased client transactional activity.

Provision for credit losses was a reversal of $5 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision for credit losses of $25 million in the fourth quarter of 2020, reflective of an increased provision on one fraud-related impairment and a higher provision on impaired loans in the retail and wholesale sectors.

Non-interest expenses of $646 million were up $106 million from the fourth quarter of 2020, primarily due to higher performance-based compensation.

(1)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of U.S. Commercial Banking and Wealth Management fourth quarter results in Canadian dollars












2021


2021


2020


$ millions, for the three months ended

Oct. 31


Jul. 31


Oct. 31(1)


Revenue











Commercial banking

$

366


$

350


$

362



Wealth management


196



189



157


Total revenue (2)


562



539



519


Provision for (reversal of) credit losses











Impaired


8



25



55



Performing


(59)



(82)



27


Total provision for (reversal of) credit losses


(51)



(57)



82


Non-interest expenses


296



274



267


Income before income taxes


317



322



170


Income taxes


61



56



35


Net income

$

256


$

266


$

135


Net income attributable to:











Equity shareholders

$

256


$

266


$

135


Efficiency ratio


52.5

%


50.9

%


51.7

%

Return on equity (3)


11.2

%


12.1

%


5.9

%

Average allocated common equity (3)

$

9,085


$

8,738


$

9,127


Full-time equivalent employees


2,170



2,155



2,085


 

Review of U.S. Commercial Banking and Wealth Management fourth quarter results in U.S. dollars












2021


2021


2020


$ millions, for the three months ended

Oct. 31


Jul. 31


Oct. 31(1)


Revenue











Commercial banking

$

293


$

284


$

272



Wealth management


155



154



120


Total revenue (2)


448



438



392


Provision for (reversal of) credit losses











Impaired


7



19



41



Performing


(47)



(65)



20


Total provision for (reversal of) credit losses


(40)



(46)



61


Non-interest expenses


235



223



203


Income before income taxes


253



261



128


Income taxes


49



45



26


Net income

$

204


$

216


$

102


Net income attributable to:











Equity shareholders

$

204


$

216


$

102


Operating leverage


(1.9)

%


3.8

%


12.0

%

Net income for the quarter was $256 million (US$204 million), up $121 million (up US$102 million) from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(3) were $282 million (US$226 million), up $13 million (up US$24 million) from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of US$448 million was up US$56 million from the fourth quarter of 2020, primarily due to higher loan and deposit volumes and strong growth in asset management fees.

Provision for credit losses was a reversal of US$40 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision of US$61 million in the fourth quarter of 2020. The same quarter last year reflects a higher provision on performing loans as a result of an unfavourable change in our economic outlook, and a higher provision in the real estate and construction, and manufacturing sectors.

Non-interest expenses of US$235 million were up US$32 million from the fourth quarter of 2020, primarily due to higher employee-related compensation and higher expenses related to investments in the business and infrastructure.

(1)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

(2)

Included $3 million (US$3 million) of income relating to the accretion of the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2021 (July 31, 2021: $3 million (US$2 million); October 31, 2020: $5 million (US$4 million)).

(3)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of Capital Markets fourth quarter results












2021


2021


2020


$ millions, for the three months ended

Oct. 31


Jul. 31


Oct. 31(1)


Revenue











Global markets

$

420


$

503


$

427



Corporate and investment banking


382



428



322



Direct financial services


210



209



185


Total revenue (2)


1,012



1,140



934


Provision for (reversal of) credit losses











Impaired


-



(18)



20



Performing


(34)



(42)



(3)


Total provision for (reversal of) credit losses


(34)



(60)



17


Non-interest expenses


528



529



458


Income before income taxes


518



671



459


Income taxes (2)


140



180



149


Net income

$

378


$

491


$

310


Net income attributable to:











Equity shareholders

$

378


$

491


$

310


Efficiency ratio


52.2

%


46.4

%


49.0

%

Operating leverage


(7.2)

%


(9.0)

%


7.8

%

Return on equity (3)


19.7

%


26.6

%


17.8

%

Average allocated common equity (3)

$

7,632


$

7,331


$

6,926


Full-time equivalent employees


2,225



2,259



1,912













Reported net income for the quarter was $378 million, compared with reported net income of $310 million for the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(3) were up $8 million or 2% from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $1,012 million was up $78 million from the fourth quarter of 2020. In global markets, revenue decreased due to lower fixed income and commodities trading, partially offset by higher foreign exchange and equities trading revenue. In corporate and investment banking, revenue increased driven by higher equity and debt underwriting activity, higher advisory revenue and higher corporate banking revenue.

Provision for credit losses was a reversal of $34 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision of $17 million in the fourth quarter of 2020, reflective of a higher provision on impaired loans in the oil and gas sector.

Non-interest expenses of $528 million were up $70 million from the fourth quarter of 2020, primarily due to higher employee-related compensation and higher spending on strategic initiatives.

(1)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

(2)

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended October 31, 2021 (July 31, 2021: $51 million; October 31, 2020: $37 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(3)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Review of Corporate and Other fourth quarter results







2021

2021

2020

$ millions, for the three months ended

Oct. 31

Jul. 31

Oct. 31(1)

Revenue








International banking

$

180

$

165

$

178


Other


(58)


(51)


(56)

Total revenue (2)


122


114


122

Provision for (reversal of) credit losses








Impaired


11


30


(6)


Performing


(7)


(30)


52

Total provision for credit losses


4


-


46

Non-interest expenses


513


380


550

Loss before income taxes


(395)


(266)


(474)

Income taxes (2)


(162)


(127)


(115)

Net loss

$

(233)

$

(139)

$

(359)

Net income (loss) attributable to:








Non-controlling interests

$

4

$

5

$

1


Equity shareholders


(237)


(144)


(360)

Full-time equivalent employees


23,017


22,656


22,435

Net loss for the quarter was $233 million, compared with a net loss of $359 million for the fourth quarter of 2020. Adjusted pre-provision, pre-tax losses(3) were up $69 million or 41% from the fourth quarter of 2020, due to higher expenses.

Revenue of $122 million was comparable with the fourth quarter of 2020. Higher U.S. dollar revenue in CIBC FirstCaribbean driven by higher fees and volume growth, and higher treasury revenue were offset by the impact of foreign exchange translation and lower product margins.

Provision for credit losses was $4 million, down $42 million from the fourth quarter of 2020, due to a lower provision on performing loans, partially offset by a higher provision on impaired loans due to the impact of the COVID-19 pandemic in CIBC FirstCaribbean.

Non-interest expenses of $513 million were down $37 million from the fourth quarter of 2020. Adjusted non-interest expenses(3) of $361 million were up $69 million from the fourth quarter of 2020, primarily due to higher corporate support costs.

Income tax benefit was up $47 million from the fourth quarter of 2020, as that quarter included a goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, which was not deductible for tax purposes.

(1)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

(2)

Revenue and income taxes of Capital Markets are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended October 31, 2021 (July 31, 2021: $51 million; October 31, 2020: $37 million).

(3)

This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

 

Consolidated balance sheet








$ millions, as at October 31


2021


2020

ASSETS





Cash and non-interest-bearing deposits with banks

$

34,573

$

43,531

Interest-bearing deposits with banks


22,424


18,987

Securities



161,401


149,046

Cash collateral on securities borrowed


12,368


8,547

Securities purchased under resale agreements


67,572


65,595

Loans





Residential mortgages


251,526


221,165

Personal


41,897


42,222

Credit card


11,134


11,389

Business and government


150,213


135,546

Allowance for credit losses


(2,849)


(3,540)





451,921


406,782

Other





Derivative instruments


35,912


32,730

Customers' liability under acceptances


10,958


9,606

Property and equipment


3,286


2,997

Goodwill


4,954


5,253

Software and other intangible assets


2,029


1,961

Investments in equity-accounted associates and joint ventures


658


658

Deferred tax assets


402


650

Other assets


29,225


23,208





87,424


77,063




$

837,683

$

769,551

LIABILITIES AND EQUITY





Deposits





Personal

$

213,932

$

202,152

Business and government


344,388


311,426

Bank


20,246


17,011

Secured borrowings


42,592


40,151





621,158


570,740

Obligations related to securities sold short


22,790


15,963

Cash collateral on securities lent


2,463


1,824

Obligations related to securities sold under repurchase agreements


71,880


71,653

Other





Derivative instruments


32,101


30,508

Acceptances


10,961


9,649

Deferred tax liabilities


38


33

Other liabilities


24,923


22,134





68,023


62,324

Subordinated indebtedness


5,539


5,712

Equity





Preferred shares and other equity instruments


4,325


3,575

Common shares


14,351


13,908

Contributed surplus


110


117

Retained earnings


25,793


22,119

Accumulated other comprehensive income (AOCI)


1,069


1,435

Total shareholders' equity


45,648


41,154

Non-controlling interests


182


181

Total equity


45,830


41,335




$

837,683

$

769,551

 

Consolidated statement of income



For the three


For the twelve


months ended


months ended


2021

2021

2020


2021

2020

$ millions, except as noted

Oct. 31

Jul. 31

Oct. 31


Oct. 31

Oct. 31

Interest income (1)












Loans

$

3,103

$

3,042

$

3,099


$

12,150

$

13,863

Securities


527


516


572



2,141


2,568

Securities borrowed or purchased under resale agreements


75


75


87



319


842

Deposits with banks


32


27


42



131


249



3,737


3,660


3,800



14,741


17,522

Interest expense












Deposits


612


618


822



2,651


5,326

Securities sold short


61


57


59



236


254

Securities lent or sold under repurchase agreements


42


40


71



208


656

Subordinated indebtedness


29


30


36



122


159

Other


13


22


20



65


83



757


767


1,008



3,282


6,478

Net interest income


2,980


2,893


2,792



11,459


11,044

Non-interest income












Underwriting and advisory fees


151


197


103



713


468

Deposit and payment fees


216


199


186



797


781

Credit fees


295


292


265



1,152


1,020

Card fees


125


108


105



460


410

Investment management and custodial fees


441


417


357



1,621


1,382

Mutual fund fees


469


452


402



1,772


1,586

Insurance fees, net of claims


87


93


95



358


386

Commissions on securities transactions


101


102


83



426


362

Gains (losses) from financial instruments measured/designated at













fair value through profit or loss (FVTPL), net


82


134


86



607


694

Gains (losses) from debt securities measured at fair value through













other comprehensive income (FVOCI) and amortized cost, net


22


10


4



90


9

Foreign exchange other than trading


50


79


45



276


234

Income from equity-accounted associates and joint ventures


11


12


12



55


79

Other


34


68


65



229


286



2,084


2,163


1,808



8,556


7,697

Total revenue


5,064


5,056


4,600



20,015


18,741

Provision for (reversal of) credit losses


78


(99)


291



158


2,489

Non-interest expenses












Employee compensation and benefits


1,669


1,619


1,371



6,450


6,259

Occupancy costs


327


202


321



916


944

Computer, software and office equipment


552


504


516



2,030


1,939

Communications


76


76


72



318


308

Advertising and business development


87


55


71



237


271

Professional fees


95


78


53



277


203

Business and capital taxes


28


25


30



111


117

Other


301


359


457



1,196


1,321



3,135


2,918


2,891



11,535


11,362

Income before income taxes


1,851


2,237


1,418



8,322


4,890

Income taxes


411


507


402



1,876


1,098

Net income

$

1,440

$

1,730

$

1,016


$

6,446

$

3,792

Net income attributable to non-controlling interests

$

4

$

5

$

1


$

17

$

2


Preferred shareholders and other equity instrument holders

$

47

$

30

$

30


$

158

$

122


Common shareholders


1,389


1,695


985



6,271


3,668

Net income attributable to equity shareholders

$

1,436

$

1,725

$

1,015


$

6,429

$

3,790

Earnings per share (in dollars)













Basic

$

3.08

$

3.77

$

2.21


$

13.97

$

8.23


Diluted


3.07


3.76


2.20



13.93


8.22

Dividends per common share (in dollars)


1.46


1.46


1.46



5.84


5.82


(1)

Interest income included $3.4 billion for the quarter ended October 31, 2021 (July 31, 2021: $3.3 billion; October 31, 2020: $3.3 billion) calculated based on the effective interest rate method.


 

Consolidated statement of comprehensive income





























For the three


For the twelve




months ended


months ended




2021


2021


2020



2021


2020

$ millions

Oct. 31

Jul. 31

Oct. 31


Oct. 31

Oct. 31

Net income

$

1,440

$

1,730

$

1,016


$

6,446

$

3,792

Other comprehensive income (loss) (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


(301)


546


(187)



(2,610)


382


Net gains (losses) on hedges of investments in foreign operations


172


(318)


103



1,495


(202)





(129)


228


(84)



(1,115)


180


Net change in debt securities measured at FVOCI













Net gains (losses) on securities measured at FVOCI


(33)


(1)


5



(50)


254


Net (gains) losses reclassified to net income


(15)


(9)


(5)



(66)


(22)





(48)


(10)


-



(116)


232


Net change in cash flow hedges













Net gains (losses) on derivatives designated as cash flow hedges


(187)


211


32



178


142


Net (gains) losses reclassified to net income


32


(161)


(62)



(315)


19



(155)


50


(30)



(137)


161

OCI, net of income tax, that is not subject to subsequent reclassification to net income













Net gains (losses) on post-employment defined benefit plans


254


137


147



917


80


Net gains (losses) due to fair value change of fair value option (FVO) liabilities














attributable to changes in credit risk


17


10


(8)



12


(56)


Net gains (losses) on equity securities designated at FVOCI


30


25


25



100


50





301


172


164



1,029


74















Total OCI (1)


(31)


440


50



(339)


647

Comprehensive income

$

1,409

$

2,170

$

1,066


$

6,107

$

4,439

Comprehensive income attributable to non-controlling interests

$

4

$

5

$

1


$

17

$

2


Preferred shareholders and other equity instrument holders

$

47

$

30

$

30


$

158

$

122


Common shareholders


1,358


2,135


1,035



5,932


4,315

Comprehensive income attributable to equity shareholders

$

1,405

$

2,165

$

1,065


$

6,090

$

4,437















(1)

Includes $9 million of losses for the quarter ended October 31, 2021 (July 31, 2021: $3 million of losses; October 31, 2020: $1 million of losses), relating to our investments in equity-accounted associates and joint ventures.



















For the three


For the twelve




months ended


months ended





2021


2021


2020



2021


2020

$ millions

Oct. 31

Jul. 31

Oct. 31


Oct. 31

Oct. 31

Income tax (expense) benefit allocated to each component of OCI












Subject to subsequent reclassification to net income













Net foreign currency translation adjustments













Net gains (losses) on investments in foreign operations

$

11

$

(19)

$

1


$

45

$

42


Net gains (losses) on hedges of investments in foreign operations


(10)


18


(3)



(53)


(46)





1


(1)


(2)



(8)


(4)


Net change in debt securities measured at FVOCI













Net gains (losses) on securities measured at FVOCI


5


(3)


(7)



(11)


(59)


Net (gains) losses reclassified to net income


5


3


1



23


7





10


-


(6)



12


(52)


Net change in cash flow hedges













Net gains (losses) on derivatives designated as cash flow hedges


66


(75)


(12)



(64)


(51)


Net (gains) losses reclassified to net income


(11)


57


22



112


(7)




55


(18)


10



48


(58)

Not subject to subsequent reclassification to net income













Net gains (losses) on post-employment defined benefit plans


(74)


(49)


(42)



(311)


(19)


Net gains (losses) due to fair value change of FVO liabilities attributable














to changes in credit risk


(6)


(3)


4



(4)


20


Net gains (losses) on equity securities designated at FVOCI


(10)


(9)


(9)



(34)


(17)





(90)


(61)


(47)



(349)


(16)


















$

(24)

$

(80)

$

(45)


$

(297)

$

(130)

 

Consolidated statement of changes in equity



For the three


For the twelve



months ended


months ended




2021


2021


2020



2021


2020

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Preferred shares and other equity instruments












Balance at beginning of period

$

3,575

$

3,575

$

2,825


$

3,575

$

2,825

Issue of preferred shares and limited recourse capital notes


750


-


750



750


750

Balance at end of period

$

4,325

$

3,575

$

3,575


$

4,325

$

3,575

Common shares












Balance at beginning of period

$

14,252

$

14,130

$

13,800


$

13,908

$

13,591

Issue of common shares


99


124


89



458


371

Purchase of common shares for cancellation


-


-


-



-


(68)

Treasury shares


-


(2)


19



(15)


14

Balance at end of period

$

14,351

$

14,252

$

13,908


$

14,351

$

13,908

Contributed surplus












Balance at beginning of period

$

117

$

119

$

122


$

117

$

125

Compensation expense arising from equity-settled share-based awards


2


3


3



19


14

Exercise of stock options and settlement of other equity-settled share-based awards


(14)


(6)


(8)



(43)


(20)

Other


5


1


-



17


(2)

Balance at end of period

$

110

$

117

$

117


$

110

$

117

Retained earnings












Balance at beginning of period before accounting policy changes


n/a


n/a


n/a



n/a

$

20,972

Impact of adopting IFRS 16 at November 1, 2019


n/a


n/a


n/a



n/a


148

Balance at beginning of period after accounting policy changes

$

25,055

$

24,003

$

21,726


$

22,119


21,120

Net income attributable to equity shareholders


1,436


1,725


1,015



6,429


3,790

Dividends and distributions













Preferred and other equity instruments


(47)


(30)


(30)



(158)


(122)


Common


(657)


(657)


(652)



(2,622)


(2,592)

Premium on purchase of common shares for cancellation


-


-


-



-


(166)

Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI


9


14


62



27


93

Other


(3)


-


(2)



(2)


(4)

Balance at end of period

$

25,793

$

25,055

$

22,119


$

25,793

$

22,119

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

$

187

$

(41)

$

1,257


$

1,173

$

993


Net change in foreign currency translation adjustments


(129)


228


(84)



(1,115)


180


Balance at end of period

$

58

$

187

$

1,173


$

58

$

1,173


Net gains (losses) on debt securities measured at FVOCI













Balance at beginning of period

$

241

$

251

$

309


$

309

$

77


Net change in securities measured at FVOCI


(48)


(10)


-



(116)


232


Balance at end of period

$

193

$

241

$

309


$

193

$

309


Net gains (losses) on cash flow hedges













Balance at beginning of period

$

292

$

242

$

304


$

274

$

113


Net change in cash flow hedges


(155)


50


(30)



(137)


161


Balance at end of period

$

137

$

292

$

274


$

137

$

274

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

$

380

$

243

$

(430)


$

(283)

$

(363)


Net change in post-employment defined benefit plans


254


137


147



917


80


Balance at end of period

$

634

$

380

$

(283)


$

634

$

(283)


Net gains (losses) due to fair value change of FVO liabilities attributable to changes

   in credit risk











Balance at beginning of period

$

(45)

$

(55)

$

(32)


$

(40)

$

16


Net change attributable to changes in credit risk


17


10


(8)



12


(56)


Balance at end of period

$

(28)

$

(45)

$

(40)


$

(28)

$

(40)


Net gains (losses) on equity securities designated at FVOCI













Balance at beginning of period

$

54

$

43

$

39


$

2

$

45


Net gains (losses) on equity securities designated at FVOCI


30


25


25



100


50


Realized gains (losses) on equity securities designated at FVOCI reclassified to retained

   earnings


(9)


(14)


(62)



(27)


(93)


Balance at end of period

$

75

$

54

$

2


$

75

$

2

Total AOCI, net of income tax

$

1,069

$

1,109

$

1,435


$

1,069

$

1,435

Non-controlling interests












Balance at beginning of period

$

177

$

170

$

179


$

181

$

186

Net income attributable to non-controlling interests


4


5


1



17


2

Dividends


(6)


(1)


(2)



(9)


(15)

Other


7


3


3



(7)


8

Balance at end of period

$

182

$

177

$

181


$

182

$

181

Equity at end of period

$

45,830

$

44,285

$

41,335


$

45,830

$

41,335

n/a

Not applicable.



Consolidated statement of cash flows




















For the three


For the twelve





months ended


months ended






2021


2021


2020



2021


2020

$ millions


Oct. 31


Jul. 31


Oct. 31



Oct. 31


Oct. 31

Cash flows provided by (used in) operating activities












Net income

$

1,440

$

1,730

$

1,016


$

6,446

$

3,792

Adjustments to reconcile net income to cash flows provided by (used in) operating activities:












          Provision for (reversal of) credit losses


78


(99)


291



158


2,489

          Amortization and impairment (1)


287


244


536



1,017


1,311

          Stock options and restricted shares expense


2


3


3



19


14

          Deferred income taxes


(11)


(44)


(16)



(41)


(228)

          Losses (gains) from debt securities measured at FVOCI and amortized cost


(22)


(10)


(4)



(90)


(9)

          Net losses (gains) on disposal of land, buildings and equipment


-


-


-



-


4

          Other non-cash items, net


470


(55)


14



927


(767)

          Net changes in operating assets and liabilities












                    Interest-bearing deposits with banks


(2,362)


211


64



(3,437)


(5,468)

                    Loans, net of repayments


(14,462)


(17,188)


(2,256)



(46,883)


(18,891)

                    Deposits, net of withdrawals


18,948


25,466


3,775



47,521


82,120

                    Obligations related to securities sold short


975


1,546


(263)



6,827


328

                    Accrued interest receivable


(170)


77


(179)



46


97

                    Accrued interest payable


114


(249)


109



(419)


(238)

                    Derivative assets


(1,546)


973


10,715



(3,172)


(8,832)

                    Derivative liabilities


2,797


(4,855)


(12,386)



1,582


5,184

                    Securities measured at FVTPL


(191)


791


(1,868)



(9,552)


(8,296)

                    Other assets and liabilities measured/designated at FVTPL


6,081


(2,364)


975



7,277


1,563

                    Current income taxes


37


290


(221)



543


1,287

                    Cash collateral on securities lent


(1,148)


406


260



639


2

                    Obligations related to securities sold under repurchase agreements


1,533


1,752


6,678



(2,248)


19,852

                    Cash collateral on securities borrowed


928


(1,723)


(1,335)



(3,821)


(4,883)

                    Securities purchased under resale agreements


(4,662)


196


(10,747)



(1,977)


(9,394)

                    Other, net (2)


(812)


136


1,983



(4,694)


(270)



8,304


7,234


(2,856)



(3,332)


60,767

Cash flows provided by (used in) financing activities












Issue of subordinated indebtedness


-


-


-



1,000


1,000

Redemption/repurchase/maturity of subordinated indebtedness


-


-


(33)



(1,008)


(33)

Issue of preferred shares and limited recourse capital notes, net of issuance cost


748


-


747



748


747

Issue of common shares for cash


51


86


4



284


163

Purchase of common shares for cancellation


-


-


-



-


(234)

Net sale (purchase) of treasury shares


-


(2)


19



(15)


14

Dividends and distributions paid


(670)


(655)


(650)



(2,649)


(2,571)

Repayment of lease liabilities


(82)


(75)


(78)



(305)


(307)






47


(646)


9



(1,945)


(1,221)

Cash flows provided by (used in) investing activities












Purchase of securities measured/designated at FVOCI and amortized cost


(15,249)


(12,641)


(10,056)



(49,896)


(54,075)

Proceeds from sale of securities measured/designated at FVOCI and amortized cost


5,748


3,978


2,346



23,917


11,883

Proceeds from maturity of debt securities measured at FVOCI and amortized cost


5,780


5,555


4,968



23,312


23,093

Net sale (purchase) of property, equipment, software and other intangibles (2)


(270)


(210)


(238)



(839)


(781)






(3,991)


(3,318)


(2,980)



(3,506)


(19,880)

Effect of exchange rate changes on cash and non-interest-bearing deposits with banks


(21)


40


(13)



(175)


25

Net increase (decrease) in cash and non-interest-bearing deposits with banks












          during the period


4,339


3,310


(5,840)



(8,958)


39,691

Cash and non-interest-bearing deposits with banks at beginning of period


30,234


26,924


49,371



43,531


3,840

Cash and non-interest-bearing deposits with banks at end of period (3)

$

34,573

$

30,234

$

43,531


$

34,573

$

43,531

Cash interest paid

$

643

$

1,016

$

899


$

3,701

$

6,716

Cash interest received


3,363


3,545


3,401



13,890


16,774

Cash dividends received


204


192


220



897


845

Cash income taxes paid


385


261


639



1,374


39


(1)     Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill.

(2)     Restated from amounts previously presented.

(3)     Includes restricted cash of $446 million (July 31, 2021: $498 million; October 31, 2020: $463 million) and interest-bearing demand deposits with Bank of Canada.

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, 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.

Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section on page 15 of our 2021 Annual Report available on SEDAR at www.sedar.com. 

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a consolidated basis.














For the three



For the twelve







months ended



months ended




2021



2021



2020



2021



2020

$ millions


Oct. 31



Jul. 31



Oct. 31



Oct. 31



Oct. 31

Operating results – reported















Total revenue

$

5,064


$

5,056


$

4,600


$

20,015


$

18,741

Provision for (reversal of) credit losses


78



(99)



291



158



2,489

Non-interest expenses


3,135



2,918



2,891



11,535



11,362

Income before income taxes


1,851



2,237



1,418



8,322



4,890

Income taxes


411



507



402



1,876



1,098

Net income


1,440



1,730



1,016



6,446



3,792


Net income attributable to non-controlling interests


4



5



1



17



2


Net income attributable to equity shareholders


1,436



1,725



1,015



6,429



3,790

Diluted EPS ($)

$

3.07


$

3.76


$

2.20


$

13.93


$

8.22

Impact of items of note (1)















Non-interest expenses
















Amortization of acquisition-related intangible assets (2)

$

(19)


$

(20)


$

(23)


$

(79)


$

(105)


Transaction and integration-related costs (3)


(12)



-



-



(12)



-


Charge related to the consolidation of our real estate portfolio


(109)



-



(114)



(109)



(114)


Gain as a result of plan amendments related to pension and other post-employment plans


-



-



79



-



79


Restructuring charge (4)


-



-



-



-



(339)


Goodwill impairment (5)


-



-



(220)



-



(248)


Increase in legal provisions (6)


(40)



(85)



-



(125)



(70)

Impact of items of note on non-interest expenses


(180)



(105)



(278)



(325)



(797)

Total pre-tax impact of items of note on net income


180



105



278



325



797


Amortization of acquisition-related intangible assets (2)


4



5



5



19



25


Transaction and integration-related costs (3)


3



-



-



3



-


Charge related to the consolidation of our real estate portfolio


29



-



30



29



30


Gain as a result of plan amendments related to pension and other post-employment plans


-



-



(21)



-



(21)


Restructuring charge (4)


-



-



-



-



89


Increase in legal provisions (6)


11



22



-



33



19

Impact of items of note on income taxes


47



27



14



84



142

Total after-tax impact of items of note on net income


133



78



264



241



655

Impact of items of note on diluted EPS ($)

$

0.30


$

0.17


$

0.59


$

0.54


$

1.47

Operating results – adjusted (7)















Total revenue – adjusted (8)

$

5,064


$

5,056


$

4,600


$

20,015


$

18,741

Provision for (reversal of) credit losses – adjusted


78



(99)



291



158



2,489

Non-interest expenses – adjusted


2,955



2,813



2,613



11,210



10,565

Income before income taxes – adjusted


2,031



2,342



1,696



8,647



5,687

Income taxes – adjusted


458



534



416



1,960



1,240

Net income – adjusted


1,573



1,808



1,280



6,687



4,447


Net income attributable to non-controlling interests – adjusted


4



5



1



17



2


Net income attributable to equity shareholders – adjusted


1,569



1,803



1,279



6,670



4,445

Adjusted diluted EPS ($)

$

3.37


$

3.93


$

2.79


$

14.47


$

9.69







(1)

Items of note are removed from reported results to calculate adjusted results.

(2)

Amortization of acquisition-related intangible assets is recognized in the SBU of the acquired business or Corporate and Other. A summary is provided in the table below.


















Canadian Personal and Business Banking (pre-tax)

$

-


$

-


$

(2)


$

-


$

(8)


Canadian Personal and Business Banking (after-tax)


-



-



(1)



-



(6)


Canadian Commercial Banking and Wealth Management (pre-tax)


-



-



(1)



-



(1)


Canadian Commercial Banking and Wealth Management (after-tax)


-



-



(1)



-



(1)


U.S. Commercial Banking and Wealth Management (pre-tax)


(16)



(17)



(17)



(68)



(83)


U.S. Commercial Banking and Wealth Management (after-tax)


(12)



(13)



(13)



(50)



(61)


Corporate and Other (pre-tax)


(3)



(3)



(3)



(11)



(13)


Corporate and Other (after-tax)


(3)



(2)



(3)



(10)



(12)


(3)

Transaction and integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the Canadian Costco credit card portfolio, including enabling cross-sell opportunities, the upgrade and conversion of systems and processes, project management and communication costs. These items are recognized in Canadian Personal and Business Banking in the fourth quarter of 2021.

(4)

Restructuring charge associated with ongoing efforts to transform our cost structure and simplify our bank. This charge consists primarily of employee severance and related costs and was recognized in Corporate and Other.

(5)

Goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean recognized in Corporate and Other.

(6)

Recognized in Corporate and Other.

(7)

Adjusted to exclude the impact of items of note.

(8)

Excludes a TEB adjustment of $48 million (July 31, 2021: $51 million; October 31, 2020: $37 million). Our adjusted efficiency ratio and adjusted operating leverage are calculated on a TEB. For further details on TEB, see pages 15 and 18 of our 2021 Annual Report.

The following tables provide a reconciliation of GAAP (reported) net income and non-interest expenses to non-GAAP (adjusted) net income and non-interest expenses, respectively, on a segmented basis.






Canadian

U.S.












Canadian

Commercial

Commercial












Personal

Banking and

Banking and











and Business

Wealth

Wealth


Capital

Corporate

CIBC

$ millions, for the three months ended

Banking

Management

Management


Markets

and Other

Total

2021

Reported net income (loss)

$

597

$

442

$

256


$

378

$

(233)

$

1,440

Oct. 31

After-tax impact of items of note (1)


9


-


12



-


112


133



Adjusted net income (loss) (2)

$

606

$

442

$

268


$

378

$

(121)

$

1,573

2021

Reported net income (loss)

$

642

$

470

$

266


$

491

$

(139)

$

1,730

Jul. 31

After-tax impact of items of note (1)


-


-


13



-


65


78



Adjusted net income (loss) (2)

$

642

$

470

$

279


$

491

$

(74)

$

1,808

2020

Reported net income (loss)

$

590

$

340

$

135


$

310

$

(359)

$

1,016

Oct. 31 (3)

After-tax impact of items of note (1)


1


1


13



-


249


264



Adjusted net income (loss) (2)

$

591

$

341

$

148


$

310

$

(110)

$

1,280


















$ millions, for the twelve months ended








2021

Reported net income (loss)

$

2,494

$

1,665

$

926


$

1,857

$

(496)

$

6,446

Oct. 31

After-tax impact of items of note (1)


9


-


50



-


182


241



Adjusted net income (loss) (2)

$

2,503

$

1,665

$

976


$

1,857

$

(314)

$

6,687

2020

Reported net income (loss)

$

1,785

$

1,202

$

375


$

1,308

$

(878)

$

3,792

Oct. 31 (3)

After-tax impact of items of note (1)


6


1


61



-


587


655



Adjusted net income (loss) (2)

$

1,791

$

1,203

$

436


$

1,308

$

(291)

$

4,447


(1)

Items of note are removed from reported results to calculate adjusted results.

(2)

Non-GAAP measure.

(3)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

 






Canadian

U.S.












Canadian

Commercial

Commercial












Personal

Banking and

Banking and











and Business

Wealth

Wealth


Capital

Corporate

CIBC

$ millions, for the three months ended

Banking

Management

Management


Markets

and Other

Total

2021

Reported non-interest expenses

$

1,152

$

646

$

296


$

528

$

513

$

3,135

Oct. 31

Pre-tax impact of items of note (1)


12


-


16



-


152


180



Adjusted non-interest expenses (2)

$

1,140

$

646

$

280


$

528

$

361

$

2,955

2021

Reported non-interest expenses

$

1,118

$

617

$

274


$

529

$

380

$

2,918

Jul. 31

Pre-tax impact of items of note (1)


-


-


17



-


88


105



Adjusted non-interest expenses (2)

$

1,118

$

617

$

257


$

529

$

292

$

2,813

2020

Reported non-interest expenses

$

1,076

$

540

$

267


$

458

$

550

$

2,891

Oct. 31 (3)

Pre-tax impact of items of note (1)


2


1


17



-


258


278



Adjusted non-interest expenses (2)

$

1,074

$

539

$

250


$

458

$

292

$

2,613


















$ millions, for the twelve months ended








2021

Reported non-interest expenses

$

4,414

$

2,443

$

1,121


$

2,117

$

1,440

$

11,535

Oct. 31

Pre-tax impact of items of note (1)


12


-


68



-


245


325



Adjusted non-interest expenses (2)

$

4,402

$

2,443

$

1,053


$

2,117

$

1,195

$

11,210

2020

Reported non-interest expenses

$

4,308

$

2,179

$

1,126


$

1,929

$

1,820

$

11,362

Oct. 31 (3)

Pre-tax impact of items of note (1)


8


1


83



-


705


797



Adjusted non-interest expenses (2)

$

4,300

$

2,178

$

1,043


$

1,929

$

1,115

$

10,565


(1)

Items of note are removed from reported results to calculate adjusted results.

(2)

Non-GAAP measure.

(3)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

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

U.S.











Canadian

Commercial

Commercial











Personal

Banking and

Banking and










and Business

Wealth

Wealth

Capital

Corporate

CIBC

$ millions, for the three months ended

Banking

Management

Management

Markets

and Other

Total

2021

Net income (loss)

$

597

$

442

$

256

$

378

$

(233)

$

1,440

Oct. 31

Add: provision for (reversal of) credit losses


164


(5)


(51)


(34)


4


78


Add: income taxes


215


157


61


140


(162)


411



Pre-provision (reversal), pre-tax earnings (losses) (1)


976


594


266


484


(391)


1,929



Pre-tax impact of items of note (2)


12


-


16


-


152


180



Adjusted pre-provision (reversal), pre-tax earnings (losses) (1)
















CAD                                                                                       

$

988

$

594

$

282

$

484

$

(239)

$

2,109




USD


n/a


n/a


226


n/a


n/a


n/a

2021

Net income (loss)

$

642

$

470

$

266

$

491

$

(139)

$

1,730

Jul. 31

Add: provision for (reversal of) credit losses


67


(49)


(57)


(60)


-


(99)


Add: income taxes


229


169


56


180


(127)


507



Pre-provision (reversal), pre-tax earnings (losses) (1)


938


590


265


611


(266)


2,138



Pre-tax impact of items of note (2)


-


-


17


-


88


105



Adjusted pre-provision (reversal), pre-tax earnings (losses) (1)
















CAD

$

938

$

590

$

282

$

611

$

(178)

$

2,243




USD


n/a


n/a


228


n/a


n/a


n/a

2020

Net income (loss)

$

590

$

340

$

135

$

310

$

(359)

$

1,016

Oct. 31 (3)

Add: provision for (reversal of) credit losses


121


25


82


17


46


291


Add: income taxes


210


123


35


149


(115)


402



Pre-provision (reversal), pre-tax earnings (losses) (1)


921


488


252


476


(428)


1,709



Pre-tax impact of items of note (2)


2


1


17


-


258


278



Adjusted pre-provision (reversal), pre-tax earnings (losses) (1)
















CAD

$

923

$

489

$

269

$

476

$

(170)

$

1,987




USD


n/a


n/a


202


n/a


n/a


n/a

















$ millions, for the twelve months ended







2021

Net income (loss)

$

2,494

$

1,665

$

926

$

1,857

$

(496)

$

6,446

Oct. 31

Add: provision for (reversal of) credit losses


350


(39)


(75)


(100)


22


158


Add: income taxes


892


601


222


646


(485)


1,876



Pre-provision (reversal), pre-tax earnings (losses) (1)


3,736


2,227


1,073


2,403


(959)


8,480



Pre-tax impact of items of note (2)


12


-


68


-


245


325



Adjusted pre-provision (reversal), pre-tax earnings (losses) (1)
















CAD

$

3,748

$

2,227

$

1,141

$

2,403

$

(714)

$

8,805




USD


n/a


n/a


909


n/a


n/a


n/a

2020

Net income (loss)

$

1,785

$

1,202

$

375

$

1,308

$

(878)

$

3,792

Oct. 31 (3)

Add: provision for (reversal of) credit losses


1,189


303


487


311


199


2,489


Add: income taxes


640


437


55


505


(539)


1,098



Pre-provision (reversal), pre-tax earnings (losses) (1)


3,614


1,942


917


2,124


(1,218)


7,379



Pre-tax impact of items of note (2)


8


1


83


-


705


797



Adjusted pre-provision (reversal), pre-tax earnings (losses) (1)
















CAD

$

3,622

$

1,943

$

1,000

$

2,124

$

(513)

$

8,176




USD


n/a


n/a


744


n/a


n/a


n/a


(1)

Non-GAAP measure.

(2)

Items of note are removed from reported results to calculate adjusted results.

(3)

Certain prior period information has been revised. See the "External reporting changes" section of our 2021 Annual Report for additional details.

n/a

Not applicable.

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 consolidated financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements as at and for the year ended October 31, 2021.

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 1-800-806-5484, passcode 1028175#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 7008374#). 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/en/about-cibc/investor-relations/quarterly-results.html. 

Details of CIBC's 2021 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 2796615#) and French (514-861-2272 or 1-800-408-3053, passcode 7602633#) until 11:59 p.m. (ET) January 2, 2022. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

About CIBC
CIBC is a leading North American financial institution with 11 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 Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html.

The information below forms a part of this news 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, in other reports to shareholders, 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 2021 Annual Report under the heading "Economic and market environment – Outlook for calendar year 2022" 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 2022 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 "Economic and market environment – Outlook for calendar year 2022" section of our 2021 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of the coronavirus (COVID-19) pandemic 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: 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; 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, including changes relating to economic or trade matters; the possible effect on our business of international conflicts 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 environmental and social 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 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

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