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CIBC Announces Fourth Quarter and Fiscal 2019 Results

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CIBC's 2019 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. All amounts are expressed in Canadian dollars, unless otherwise indicated.

 

TORONTO, Dec. 5, 2019 /CNW/ - CIBC (TSX:CM) (NYSE:CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2019.

CIBC (CNW Group/CIBC - Investor Relations)

"We remain focused on creating long-term value for all our stakeholders," says Victor G. Dodig, CIBC President and Chief Executive Officer. "In 2019, we continued to execute on our client-focused strategy by improving client experience and investing to build a relationship-oriented bank for a modern world."

Fourth quarter highlights


Q4/19

Q4/18

Q3/19

YoY Variance

QoQ Variance

Reported Net Income

$1,193 million

$1,268 million

$1,398 million

-6%

-15%

Adjusted Net Income (1)

$1,309 million

$1,364 million

$1,415 million

-4%

-7%

Reported Diluted Earnings Per Share (EPS)

$2.58

$2.80

$3.06

-8%

-16%

Adjusted Diluted EPS (1)

$2.84

$3.00

$3.10

-5%

-8%

Reported Return on Common Shareholders' Equity (ROE)

12.9%

15.3%

15.5%


Adjusted ROE (1)

14.2%

16.4%

15.6%

Common Equity Tier 1 (CET1) Ratio

11.6%

11.4%

11.4%

(1)

  For additional information, see the "Non-GAAP measures" section.

 

CIBC's results for the fourth quarter of 2019 were affected by the following items of note aggregating to a negative impact of $0.26 per share:

  • $135 million ($135 million after-tax, or $0.30 per share) goodwill impairment charge related to the expected sale of our controlling interest in FirstCaribbean International Bank Limited;
  • $67 million ($49 million after-tax, or $0.11 per share) interest income related to the settlement of certain income tax matters;
  • $28 million ($21 million after-tax, or $0.05 per share) increase in legal provisions;
  • $28 million ($20 million after-tax, or $0.04 per share) amortization of acquisition-related intangible assets; and
  • $16 million ($11 million after-tax net positive impact, or $0.02 per share) in purchase accounting adjustments net of transaction and integration-related costs associated with the acquisitions of The PrivateBank, Geneva Advisors and Wellington Financial.

For the year ended October 31, 2019, CIBC reported net income of $5.1 billion and adjusted net income(1) of $5.4 billion, compared with reported net income of $5.3 billion and adjusted net income(1) of $5.5 billion for 2018.

The following table summarizes our performance in 2019 against our key financial measures and targets:

Financial Measure

Target

2019 Reported Results

2019 Adjusted Results (1)

Diluted EPS growth

5% to 10% on average, annually

$11.19, down 4% from 2018

$11.92, down 2% from 2018

ROE

15% +

14.5%

15.4%

Efficiency ratio

52% run rate in 2022 (2)

58.3%, an increase of 80 basis points
from 2018

55.5%, an improvement of 10 basis
points from 2018

CET1 ratio

Strong buffer to regulatory minimum

11.6%

Dividend payout ratio

40% to 50%

49.9%

46.9%

Total shareholder return

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

CIBC – 38.4%

S&P/TSX Composite Banks Index – 51.3%

(1)

  For additional information, see the "Non-GAAP measures" section.

(2)

  Medium-term through the cycle.

 

Core business performance
F2019 Financial Highlights

(C$ million)

F2019

F2018

YoY Variance

Canadian Personal and Small Business Banking




Reported Net Income

$2,291

$2,547

down 10%

Adjusted Net Income (1)

$2,465

$2,556

down 4%





Canadian Commercial Banking and Wealth Management




Reported Net Income

$1,301

$1,307

down 0.5%

Adjusted Net Income (1)

$1,302

$1,308

down 0.5%





U.S. Commercial Banking and Wealth Management


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