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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 906,003,982
Close 2022-11-30 C$ 64.79
Market Cap C$ 58,699,997,994
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CIBC earns $6.24B in fiscal 2022, hikes dividend

2022-12-01 09:17 ET - News Release

Mr. Victor Dodig reports


Canadian Imperial Bank of Commerce (CIBC) has released its results for the fourth quarter and fiscal year ended Oct. 31, 2022.

"In 2022, we delivered solid financial performance and furthered the strong momentum across our bank through the execution of our client-focused strategy, thanks to the efforts of our CIBC team who live our purpose each day -- to help make your ambition a reality," said Victor Dodig, president and chief executive officer of CIBC. "We enter the new fiscal year as a modern, relationship-oriented bank with a strong capital position and focus on growing in key client segments, elevating the client experience and investing in future differentiators that build long-term competitive advantages. Our bank is well diversified and resilient, and our proven ability to navigate in an uncertain operating environment will enable us to continue to deliver value to our stakeholders and contribute meaningfully to a more sustainable future," concluded Mr. Dodig.

CIBC's results for the fourth quarter of 2022 were affected by the following items of note aggregating to a negative impact of 13 cents per share:

  • $91-million ($67-million after tax) increase in legal provisions;
  • $37-million ($27-million after tax) charge related to the consolidation of the bank's real estate portfolio;
  • $27-million ($21-million after tax) amortization of acquisition-related intangible assets;
  • $12-million ($8-million after tax) in acquisition-related and integration-related costs as well as purchase accounting adjustments associated with the acquisition of the Canadian Costco credit card portfolio.

For the year ended Oct. 31, 2022, CIBC reported net income of $6.2-billion and adjusted net income of $6.6-billion, compared with reported net income of $6.4-billion and adjusted net income of $6.7-billion for 2021, and adjusted preprovision, pretax earnings of $9.4-billion, compared with $8.8-billion for 2021.

An attached table summarizes the bank's performance in 2022 against its key financial measures and targets, set over the medium term, which CIBC defines as three to five years, assuming a normal business environment and credit cycle.

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2022, CIBC maintained its capital strength and sound risk management practices:

  • Capital ratios were strong, with a CET1 (common equity Tier 1) ratio of 11.7 per cent and Tier 1 and total capital ratios of 13.3 per cent and 15.3 per cent, respectively, at Oct. 31, 2022.
  • Market risk, as measured by average value at risk, was $8.7-million in 2022 compared with $7.6-million in 2021.
  • CIBC continued to have solid credit performance, with a loan-loss ratio of 14 basis points, compared with 16 basis points in 2021.
  • The bank's liquidity coverage ratio was 129 per cent for the three months ended Oct. 31, 2022.
  • The bank's leverage ratio was 4.4 per cent at Oct. 31, 2022.

CIBC announced an increase in its quarterly common share dividend from 83 cents per share to 85 cents per share for the quarter ending Jan. 31, 2023.

Credit quality

Provision for credit losses was $436-million for the fourth quarter, up $358-million, or 459 per cent, from the same quarter last year. The current quarter included a provision for credit losses on performing loans of $217-million, mainly due to an unfavourable change in the bank's economic outlook, while the same quarter last year included a provision reversal of $34-million reflective of a favourable change in the bank's economic outlook, partially offset by model parameter updates. Provision for credit losses on impaired loans was up $107-million, mainly attributable to Canadian personal and business banking as well as U.S. commercial banking and wealth management.

Making a difference in the bank's communities

At CIBC, the bank believes there should be no limits to ambition. CIBC invests its time and resources to remove barriers to ambitions and demonstrate that when people come together, positive change happens that helps communities thrive. This quarter:

  • CIBC joined more than 45,000 Canadians, including nearly 10,000 team members, in support of the Canadian Cancer Society CIBC Run for the Cure. In total, more than $13-million was raised to help advance breast cancer research, education and support programs -- including over $2-million by Team CIBC.
  • In response to numerous domestic and international disasters, the bank provided timely donations to support communities with their recovery efforts. CIBC donated more than $450,000 to community organizations in response to hurricane Ian, hurricane Fiona, flooding in Pakistan and the tragedy in James Smith Cree Nation.
  • CIBC Foundation announced a new social impact alliance launched together with Microsoft Canada, which will focus on closing the digital skills gap by providing new education and employment opportunities in the technology sector and ensuring equal access for all communities across the country. To support this goal, CIBC Foundation and Microsoft will be working with NPower Canada and March of Dimes Canada to accelerate skills training and development as well as to create access to careers in technology.

In the first year of its operation, CIBC Foundation disbursed $3.5-million of new, incremental and impactful financing to 68 charitable organizations in Canada.

Basis of presentation

The interim consolidated financial information in this news release is prepared in accordance with IFRS (international financial reporting standards) 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 Oct. 31, 2022.

Conference call/webcast

The conference call will be held at 7:30 a.m. ET and is available in English (416-340-2217 or toll-free 1-800-806-5484; passcode 1028175 followed by the number sign) and French (514-392-1587 or toll-free 1-800-898-3989; passcode 7008374 followed by the number sign). 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 on CIBC's website.

Details of CIBC's 2022 fourth quarter and fiscal year results as well as a presentation to investors will be available in English and French on CIBC's website, under the 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 2796615 followed by the number sign) and French (514-861-2272 or 1-800-408-3053; passcode 7602633 followed by the number sign) until 11:59 p.m. ET on Jan. 1, 2023. The audio webcast will be archived on CIBC's website.

About Canadian Imperial Bank of Commerce (CIBC)

CIBC is a leading North American financial institution with 13 million personal banking, business, public-sector and institutional clients. Across its 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.

We seek Safe Harbor.

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