Mr. Victor Dodig reports

CIBC ANNOUNCES SECOND QUARTER 2018 RESULTS

Canadian Imperial Bank of Commerce has released its financial results for the second quarter ended April 30, 2018.

                                      SECOND QUARTER HIGHLIGHTS
  
                                                              Q2 2018         Q2 2017         Q1 2018

Reported net income                                    $1,319-million  $1,050-million  $1,328-million
Adjusted net income                                    $1,345-million  $1,070-million  $1,433-million
Reported diluted earnings per share (EPS)                       $2.89           $2.59           $2.95
Adjusted diluted EPS                                            $2.95           $2.64           $3.18
Reported return on common shareholders' equity (ROE)            17.0%           17.7%           17.4%
Adjusted ROE                                                    17.4%           18.1%           18.8%
Basel III common equity Tier 1 ratio (all-in basis)             11.2%           12.2%           10.8%

"In the second quarter, each of our business units performed well," says Victor G. Dodig, CIBC president and chief executive officer. "We delivered robust earnings growth with continued progress on our strategy to build a relationship-oriented bank for a modern world with high-quality, diversified earnings growth and disciplined expense and capital management. We remain focused on building a strong North American platform to serve our clients and invest in our communities."

Results for the second quarter of 2018 were affected by the following items of note aggregating to a negative impact of six cents per share:

• $26-million ($19-million after tax) amortization of intangible assets;
• $9-million ($7-million after tax) in transaction and integration-related costs net of purchase accounting adjustments associated with the acquisitions of The PrivateBank and Geneva Advisors.

The bank maintained strong Basel III common equity Tier 1, Tier 1 and total capital ratios of 11.2 per cent, 12.7 per cent and 15.1 per cent, respectively, compared with 10.8 per cent, 12.4 per cent and 14.1 per cent, respectively, at the end of the prior quarter. CIBC's Basel III leverage ratio at April 30, 2018, was 4.1 per cent.

Today the bank announced its intention to seek Toronto Stock Exchange approval for a normal course issuer bid that would permit it to purchase for cancellation up to a maximum of nine million, or approximately 2 per cent, of its outstanding common shares, over the next 12 months.

Core business performance

Canadian personal and small business banking reported net income of $584-million for the second quarter, up $81-million or 16 per cent from the second quarter a year ago. Excluding items of note, adjusted net income was $586-million, up $82-million or 16 per cent from the second quarter a year ago. Solid volume growth, wider spreads and higher fees were partially offset by higher spending on strategic initiatives and a higher provision for credit losses.

Canadian commercial banking and wealth management reported net income of $310-million for the second quarter, up $26-million or 9 per cent from the second quarter a year ago, driven by higher revenue partially offset by higher expenses. The increase in revenue was driven primarily by deposit and lending growth, higher fees in commercial banking, and higher fee-based client assets in wealth management, partially offset by lower transactional volume and lower equity issuance activity.

U.S. commercial banking and wealth management reported net income of $138-million for the second quarter, up $112-million or 431 per cent from the second quarter a year ago. Excluding items of note, adjusted net income was $142-million, up $115-million or 426 per cent from the second quarter a year ago, primarily due to the inclusion of the results of CIBC Bank USA beginning in the third quarter of 2017.

Capital Markets reported net income of $249-million for the second quarter, down $20-million or 7 per cent from the second quarter a year ago, primarily due to higher non-interest expenses and a higher effective tax rate, partially offset by higher revenue. Higher foreign exchange trading revenue and higher revenue from corporate banking, debt underwriting and advisory activity were partially offset by lower equity derivatives trading revenue, lower equity underwriting revenue and lower investment portfolio gains.

Credit quality

Provision for credit losses was $212-million, up $33-million or 18 per cent from the second quarter a year ago, primarily due to an increase in provision on impaired loans as a result of the inclusion of the results of CIBC Bank USA. In addition, the same quarter last year included a reversal of credit losses on impaired loans due to recoveries in the oil and gas sector and a reduction in the collective allowance (prior to the adoption of international financial reporting standards in the first quarter of 2018).

Conference call/webcast

The conference call will be held at 8 a.m. ET and is available in English (416-340-2217 or toll-free 1-800-806-5484, passcode 8660945 followed by the pound key) and French (514-861-2255 or toll-free 1-877-405-9213, passcode 1105464 followed by the pound key). 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 the bank's website.

Details of CIBC's fiscal 2018 second quarter results, as well as a presentation to investors, will be available in English and French at the bank's website, investor relations section, prior to the conference call/webcast. The bank is 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 6527164 followed by the pound key) and French (514-861-2272 or 1-800-408-3053, passcode 9609900 followed by the pound key) until 11:59 p.m. ET on May 30, 2018. The audio webcast will be archived at CIBC's website.

About Canadian Imperial Bank of Commerce

CIBC is a leading Canadian-based global financial institution with 11 million personal banking, business, public sector and institutional clients. Across personal and small 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.

We seek Safe Harbor.