CIBC Announces Fourth Quarter and Fiscal 2016 Results

Donnerstag, 01.12.2016 12:00 von PR Newswire

Canada NewsWire

TORONTO, Dec. 1, 2016

CIBC's 2016 audited annual consolidated financial statements and accompanying management's discussion & analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information report which includes fourth quarter financial information.

TORONTO, Dec. 1, 2016 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2016.

Fourth quarter highlights

Reported net income of $931 million, compared with $778 million for the fourth quarter a year ago, and $1,441 million for the prior quarter; adjusted net income⁽¹⁾ of $1,041 million, compared with $952 million for the fourth quarter a year ago, and $1,072 million for the prior quarter.
Reported diluted earnings per share (EPS) of $2.32, compared with $1.93 for the fourth quarter a year ago, and $3.61 for the prior quarter; adjusted diluted EPS⁽¹⁾ of $2.60, compared with $2.36 for the fourth quarter a year ago, and $2.67 for the prior quarter.
Reported return on common shareholders' equity (ROE) of 16.8% and adjusted ROE⁽¹⁾ of 18.8%.
Basel III Common Equity Tier 1 ratio on an all-in basis (CET1 ratio) of 11.3%, compared with 10.8% a year ago.
Announced a quarterly dividend increase of three cents to $1.24 per common share.

CIBC's results for the fourth quarter of 2016 were affected by the following items of note aggregating to a negative impact of $0.28 per share:

$134 million ($98 million after-tax, or $0.25 per share) in restructuring charges primarily relating to employee severance;
$9 million ($7 million after-tax, or $0.02 per share) loss from the structured credit run-off business; and
$7 million ($5 million after-tax, or $0.01 per share) amortization of intangible assets.

For the year ended October 31, 2016, CIBC reported net income of $4.3 billion and adjusted net income⁽¹⁾ of $4.1 billion, compared with reported net income of $3.6 billion and adjusted net income⁽¹⁾ of $3.8 billion for 2015.

Subsequent to year end, CIBC entered into an agreement to sell and lease back 89 retail properties located mainly in Ontario and British Columbia. The closing of the agreement is expected to occur during the first quarter of 2017 and result in an after-tax gain of $247 million that would add approximately 15 basis points to CIBC's CET1 ratio on an all-in basis.

The following table summarizes our strong performance in 2016 against our key financial measures and targets:

Financial Measure	Target	2016 Reported Results	2016 Adjusted Results ⁽¹⁾
Diluted EPS growth	5% to 10% on average, annually ⁽²⁾	$10.70, up 21% from 2015	$10.22, up 8% from 2015
ROE	18% to 20% ⁽²⁾	19.9%	19.0%
Efficiency ratio	55% by 2019	59.7%, an improvement of 420 basis points from 2015	58.0%, an improvement of 160 basis points from 2015
Basel III CET1 ratio	Strong buffer to regulatory minimum	11.3%
Dividend payout ratio	Approximately 50%	44.3%	46.4%
Total shareholder return	Outperform the S&P/TSX Composite Banks Index over a rolling five-year period	CIBC – 68.6% Banks Index – 85.9%

(1)	For additional information, see the "Non-GAAP measures" section.
(2)	Going forward, our medium term EPS and ROE targets are at least 5% and at least 15%, respectively.

"In 2016, CIBC delivered record net income, industry-leading capital strength and the highest return on equity of the major North American banks," says Victor G. Dodig, CIBC President and Chief Executive Officer. "Our transformation to build a strong, innovative, relationship-oriented bank by executing on our three integrated bank-wide priorities of client focus, innovation and simplification gained momentum this year."

Core business performance

Retail and Business Banking reported net income of $2,689 million in 2016, compared with $2,530 million in 2015. Excluding items of note⁽¹⁾, adjusted net income was $2,664 million, up $162 million or 6% from $2,502 million in 2015.

In 2016, Retail and Business Banking continued to make progress against its objectives of enhancing the client experience and accelerating profitable revenue growth. Key highlights included:

Delivering products that fit the lives of our clients, including the CIBC Smart^TM account and the CIBC Smart^TM Prepaid Travel Visa Card, and transforming our physical banking centres to emphasize relationships and advice;
Continuing our leadership in innovation for our clients by launching Apple Pay, Digital Account Open, and the CIBC Hello Home^TM app, to meet the needs of our clients who prefer to bank through their mobile devices;
Partnering with fintechs to simplify our processes and enhance client experience, including our recent partnership with Borrowell that provides qualified clients with a faster and easier loan process; and
Formed a unique strategic alliance with National Australia Bank and Israel's Bank Leumi focused on delivering new and innovative ways to enhance client experience.

In November 2016, we were the first bank in Canada to bring Samsung Pay to our clients, providing them with another mobile payment option.

"We continued to build momentum in 2016 towards becoming the number one retail and business bank in Canada in client experience, and we delivered above-market growth in both lending and deposits," says David Williamson, SEVP and Group Head, Retail and Business Banking. "We will accelerate our transformation in the year ahead by maintaining our focus on deepening relationships with our clients, developing innovative products and services, and making it easier to bank when, where and how our clients want."

Wealth Management reported net income of $864 million in 2016, compared with $518 million in 2015. Excluding the gain on the sale of our investment in American Century Investments (ACI) in 2016 and other items of note⁽¹⁾, adjusted net income was $490 million in 2016, down $46 million or 9% from $536 million in 2015. Further adjusting for net income from ACI of $15 million and $101 million for 2016 and 2015, respectively, net income from our continuing businesses was up $40 million, or 9% from 2015.

Wealth Management made good progress in 2016 against its objectives of enhancing the client experience, driving asset growth, and simplifying and optimizing its business platform. Key highlights included:

Aligning our Canadian private wealth management and Wood Gundy businesses under one leadership structure to elevate our high net worth client experience and better meet client needs;
Launching several successful products including Renaissance Flexible Yield Fund, Renaissance Private Investment Program, and PPS Income Generation Portfolios to meet the changing needs of investors; and
Reporting progress in the most recent J.D. Power Canadian Investor Satisfaction Surveys for our Investor's Edge and Wood Gundy businesses, reflecting our commitment to client relationships.

"Our Wealth Management businesses delivered solid results this year thanks to a clear focus on our clients," says Steve Geist, SEVP and Group Head, Wealth Management. "In 2017, we will continue to enhance our investment advice and solutions, with an emphasis on delivering an integrated wealth management experience to meet the complex needs of high net worth Canadian families."

Capital Markets reported net income of $1,076 million in 2016, compared with $957 million in 2015. Excluding items of note⁽¹⁾, adjusted net income was $1,104 million, up $139 million or 14% from $965 million in 2015.

Capital Markets provides integrated global markets products and services, investment banking advisory and execution, corporate banking services and top-ranked research to corporate, government and institutional clients around the world. During 2016, Capital Markets was:

Financial advisor to Suncor Energy Inc. on its $7 billion acquisition of Canadian Oil Sands Limited and joint bookrunner on Suncor's $2.9 billion bought common share offering, one of the largest-ever equity bought deals in Canada;
Financial advisor, financing co-underwriter and lead agent on related foreign exchange to Lowe's Companies Inc. on its $3.2 billion acquisition of RONA Inc.;
Financial advisor, lead bookrunner on $525 million of subscription receipts, sole lead arranger, underwriter and bookrunner on $1.8 billion of credit facilities and sole foreign exchange provider supporting Stantec's acquisition of MWH Global Inc.;
Exclusive financial advisor, administrative agent and joint bookrunner on $925 million in credit facilities supporting Cheung Kong Infrastructure Holdings Limited's and Power Assets Holdings Limited's acquisition of a 65% interest in midstream assets from Husky Energy Inc.; and
Introduced CIBC Air Canada^® AC Conversion^TM Visa Prepaid Card, a first-of-its-kind in Canada, allowing travellers to purchase and store up to 10 currencies on a single card that can be used at retailers around the globe.

"In 2016, we launched specialized new advisory teams to add value for clients in the areas of technology and innovation, private capital and corporate finance solutions," says Harry Culham, SEVP and Group Head, Capital Markets. "We also expanded our product capabilities to help meet client needs at home and abroad, while delivering innovative financial solutions to clients across CIBC in areas such as foreign exchange and precious metals."

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

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2016, CIBC maintained its capital strength, competitive productivity and sound risk management practices:

CIBC's capital ratios were strong, with a Basel III CET1 ratio of 11.3% as noted above, and Tier 1 and Total capital ratios of 12.8% and 14.8% respectively, at October 31, 2016;
Market risk, as measured by average Value-at-Risk, was $5.8 million in 2016 compared with $4.0 million in 2015; and
We continued to have strong credit performance, with CIBC's loan loss ratio of 31 basis points compared with 27 basis points in 2015.

Making a difference in our Communities

CIBC is committed to investing in the social and economic development of communities across Canada. During the fourth quarter of 2016, CIBC:

Marked 20 years of partnership with the Canadian Breast Cancer Foundation (CBCF) and helped to raise an estimated $17 million for breast cancer research, education and support programs through the 2016 CBCF CIBC Run for the Cure, including the nearly $3 million contributed by Team CIBC;
Partnered with the Canadian Paralympic Committee (CPC) to host seven Welcome Home events at CIBC banking centres across the country as Premier Partner of the Canadian Paralympic Team, celebrating and honouring athletes returning home from the 2016 Paralympic Games; and
Announced a 5-year partnership with the Canadian Hockey League (CHL), solidifying CIBC as the Official Bank of the CHL, its three regional leagues, and 23 teams.

During the quarter, CIBC was:

Ranked among the Top 10 Safest Banks in North America by Global Finance magazine;
Recipient of four awards at ACT Canada's IVIE Awards, including Silver for Most Innovative Organization; and
Recognized by Mediacorp as one of Canada's Top 100 Employers for a fifth consecutive year.

CIBC was once again named a constituent of the following widely regarded indices:

Dow Jones Sustainability North American Index since its inception in 2005;
FTSE4Good Index since 2001; and
Jantzi Social Index since 2000.

Fourth quarter financial highlights

			As at or for the									As at or for the
			three months ended									twelve months ended
			2016		2016				2015			2016		2015
Unaudited			Oct. 31		Jul. 31				Oct. 31			Oct. 31		Oct. 31
Financial results ($ millions)
Net interest income			$	2,110		$	2,113		$	2,043		$	8,366		$	7,915
Non-interest income				1,571			2,023			1,440			6,669			5,941
Total revenue				3,681			4,136			3,483			15,035			13,856
Provision for credit losses				222			243			198			1,051			771
Non-interest expenses				2,347			2,218			2,383			8,971			8,861
Income before income taxes				1,112			1,675			902			5,013			4,224
Income taxes				181			234			124			718			634
Net income			$	931		$	1,441		$	778		$	4,295		$	3,590
Net income attributable to non-controlling interests				4			6			2			20			14
	Preferred shareholders			10			9			9			38			45
	Common shareholders			917			1,426			767			4,237			3,531
Net income attributable to equity shareholders			$	927		$	1,435		$	776		$	4,275		$	3,576
Financial measures
Reported efficiency ratio				63.8	%		53.6	%		68.4	%		59.7	%		63.9	%
Adjusted efficiency ratio⁽¹⁾				58.2	%		57.8	%		60.4	%		58.0	%		59.6	%
Loan loss ratio⁽²⁾				0.27	%		0.32	%		0.26	%		0.31	%		0.27	%
Reported return on common shareholders' equity				16.8	%		26.8	%		15.1	%		19.9	%		18.7	%
Adjusted return on common shareholders' equity⁽¹⁾				18.8	%		19.8	%		18.5	%		19.0	%		19.9	%
Net interest margin				1.59	%		1.64	%		1.70	%		1.64	%		1.74	%
Net interest margin on average interest-earning assets				1.81	%		1.87	%		1.95	%		1.88	%		2.00	%
Return on average assets				0.70	%		1.12	%		0.65	%		0.84	%		0.79	%
Return on average interest-earning assets				0.80	%		1.28	%		0.74	%		0.96	%		0.91	%
Total shareholder return				2.54	%		(0.94)	%		8.61	%		5.19	%		1.96	%
Reported effective tax rate				16.2	%		14.0	%		13.7	%		14.3	%		15.0	%
Adjusted effective tax rate⁽¹⁾				17.5	%		15.4	%		15.5	%		16.6	%		15.5	%
Common share information
Per share ($)		- basic earnings	$	2.32		$	3.61		$	1.93		$	10.72		$	8.89
		- reported diluted earnings		2.32			3.61			1.93			10.70			8.87
		- adjusted diluted earnings⁽¹⁾		2.60			2.67			2.36			10.22			9.45
		- dividends		1.21			1.21			1.12			4.75			4.30
		- book value		56.59			54.54			51.25			56.59			51.25
Share price ($)		- high		104.46			104.19			102.74			104.46			107.16
		- low		97.51			96.84			86.00			83.33			86.00
		- closing		100.50			99.19			100.28			100.50			100.28
Shares outstanding (thousands)		- weighted-average basic		395,181			394,753			397,253			395,389			397,213
		- weighted-average diluted		395,750			395,328			397,838			395,919			397,832
		- end of period		397,070			394,838			397,291			397,070			397,291
Market capitalization ($ millions)			$	39,906		$	39,164		$	39,840		$	39,906		$	39,840
Value measures
Dividend yield (based on closing share price)				4.8	%		4.9	%		4.4	%		4.7	%		4.3	%
Reported dividend payout ratio				52.2	%		33.5	%		58.0	%		44.3	%		48.4	%
Adjusted dividend payout ratio⁽¹⁾				46.6	%		45.2	%		47.4	%		46.4	%		45.4	%
Market value to book value ratio				1.78			1.82			1.96			1.78			1.96
On- and off-balance sheet information ($ millions)
Cash, deposits with banks and securities			$	101,588		$	98,093		$	93,619		$	101,588		$	93,619
Loans and acceptances, net of allowance				319,781			312,273			290,981			319,781			290,981
Total assets				501,357			494,490			463,309			501,357			463,309
Deposits				395,647			389,573			366,657			395,647			366,657
Common shareholders' equity				22,472			21,533			20,360			22,472			20,360
Average assets				527,702			511,925			476,700			509,140			455,324
Average interest-earning assets				462,970			448,834			415,783			445,134			395,616
Average common shareholders' equity				21,763			21,198			20,122			21,275			18,857
Assets under administration (AUA)⁽³⁾⁽⁴⁾			2,041,887			1,993,740			1,846,142			2,041,887			1,846,142
Assets under management (AUM)⁽⁴⁾			183,715			179,903			170,465			183,715			170,465
Balance sheet quality (All-in basis) and liquidity measures
Risk-weighted assets (RWA) ($ millions)
	Common Equity Tier 1 (CET1) capital RWA		$	168,996		$	168,077			156,107		$	168,996			156,107
	Tier 1 capital RWA			169,322			168,407			156,401			169,322			156,401
	Total capital RWA			169,601			168,690			156,652			169,601			156,652
Capital ratios
	CET1 ratio			11.3	%		10.9	%		10.8	%		11.3	%		10.8	%
	Tier 1 capital ratio			12.8	%		12.4	%		12.5	%		12.8	%		12.5	%
	Total capital ratio			14.8	%		14.4	%		15.0	%		14.8	%		15.0	%
Basel III leverage ratio
	Leverage ratio exposure ($ millions)			545,480			537,172			502,552			545,480			502,552
	Leverage ratio			4.0	%		3.9	%		3.9	%		4.0	%		3.9	%
Liquidity coverage ratio (LCR)				124	%		120	%		119	%		n/a			n/a
Other information
Full-time equivalent employees				43,213			43,741			44,201			43,213			44,201

(1)	For additional information, see the "Non-GAAP measures" section.
(2)	The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.
(3)	Includes the full amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $1,640.2 billion (July 31, 2016: $1,598.8 billion; October 31, 2015: $1,465.7 billion).
(4)	AUM amounts are included in the amounts reported under AUA.
n/a	Not applicable.

Review of Retail and Business Banking fourth quarter results


			2016			2016			2015
$ millions, for the three months ended			Oct. 31			Jul. 31			Oct. 31	⁽¹⁾
Revenue
	Personal banking	$	1,825		$	1,779		$	1,743
	Business banking		443			435			414
	Other		22			11			19
Total revenue			2,290			2,225			2,176
Provision for credit losses			206			197			163
Non-interest expenses			1,149			1,121			1,100
Income before income taxes			935			907			913
Income taxes			248			241			241
Net income		$	687		$	666		$	672
Net income attributable to:
	Equity shareholders (a)	$	687		$	666		$	672
Efficiency ratio			50.1	%		50.3	%		50.6	%
Return on equity⁽²⁾			49.6	%		50.0	%		54.7	%
Charge for economic capital⁽²⁾ (b)		$	(135)		$	(129)		$	(146)
Economic profit⁽²⁾ (a+b)		$	552		$	537		$	526
Full-time equivalent employees			20,280			20,414			21,532

(1)	Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.
(2)	For additional information, see the "Non-GAAP measures" section.

Net income was $687 million, up $15 million from the fourth quarter of 2015. Adjusted net income⁽²⁾ was $688 million, up $15 million from the fourth quarter of 2015.

Revenue of $2,290 million was up $114 million from the fourth quarter of 2015. Personal banking and business banking revenue increased primarily due to volume growth across most products and higher fees.

Provision for credit losses of $206 million was up $43 million from the fourth quarter of 2015, mainly due to higher losses in business lending, and higher write-offs and bankruptcies in our personal lending and card portfolios.

Non-interest expenses of $1,149 million were up $49 million from the fourth quarter of 2015, mainly due to higher spending on strategic initiatives.

Review of Wealth Management fourth quarter results


			2016			2016			2015
$ millions, for the three months ended			Oct. 31			Jul. 31			Oct. 31	⁽¹⁾
Revenue
	Retail brokerage	$	332		$	317		$	317
	Asset management		190			196			178
	Private wealth management		98			94			91
	Other		-			428			21
Total revenue			620			1,035			607
Non-interest expenses			444			438			447
Income before income taxes			176			597			160
Income taxes			50			91			38
Net income		$	126		$	506		$	122
Net income attributable to:
	Equity shareholders (a)	$	126		$	506		$	122
Efficiency ratio			71.5	%		42.4	%		73.5	%
Return on equity ⁽²⁾			32.4	%		134.1	%		20.2	%
Charge for economic capital⁽²⁾ (b)		$	(38)		$	(37)		$	(71)
Economic profit⁽²⁾ (a+b)		$	88		$	469		$	51
Full-time equivalent employees			4,295			4,232			4,350

(1)	Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.
(2)	For additional information, see the "Non-GAAP measures" section.

Net income for the quarter was $126 million, up $4 million from the fourth quarter of 2015. Adjusted net income⁽²⁾ was $127 million, down $1 million from the fourth quarter of 2015.

Revenue of $620 million was up $13 million from the fourth quarter of 2015, driven by strong asset growth across all businesses reflecting market appreciation and strong net sales. This was partially offset by lower revenue due to the sale of ACI, and lower commission revenue in full-service brokerage due to a decline in transactional volumes.

Non-interest expenses of $444 million were down $3 million from the fourth quarter of 2015, primarily due to lower employee-related costs including performance-based compensation.

Review of Capital Markets fourth quarter results


			2016			2016			2015
$ millions, for the three months ended			Oct. 31			Jul. 31			Oct. 31	⁽¹⁾
Revenue
	Global markets	$	365		$	415		$	271
	Corporate and investment banking		313			364			302
	Other		(5)			30			(2)
Total revenue⁽²⁾			673			809			571
Provision for credit losses			-			47			22
Non-interest expenses			333			370			326
Income before income taxes			340			392			223
Income taxes⁽²⁾			64			88			42
Net income		$	276		$	304		$	181
Net income attributable to:
	Equity shareholders (a)	$	276		$	304		$	181
Efficiency ratio			49.4	%		45.7	%		57.1	%
Return on equity⁽³⁾			31.1	%		33.4	%		25.5	%
Charge for economic capital⁽³⁾ (b)		$	(86)		$	(88)		$	(84)
Economic profit⁽³⁾ (a+b)		$	190		$	216		$	97
Full-time equivalent employees			1,324			1,369			1,342

(1)	Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.
(2)	Revenue and income taxes are reported on a taxable equivalent basis (TEB) basis. Accordingly, revenue and income taxes include a TEB adjustment of $97 million for the quarter ended October 31, 2016 (July 31, 2016: $142 million; October 31, 2015: $91 million).
(3)	For additional information, see the "Non-GAAP measures" section.

Net income for the quarter was $276 million, compared with net income of $181 million for the fourth quarter of 2015. Adjusted net income⁽³⁾ for the quarter was $283 million, compared with $183 million for the prior year quarter.

Revenue of $673 million was up $102 million from the fourth quarter of 2015. In global markets, higher commodities, interest rate and equity trading revenue, and higher global markets financing activity were partially offset by lower foreign exchange trading revenue. In corporate and investment banking, higher corporate banking and equity underwriting revenue was partially offset by lower debt underwriting and advisory revenue, and higher investment portfolio write-downs.

Provision for credit losses was nil, compared with $22 million in the fourth quarter of 2015, mainly due to lower losses in the oil and gas sector.

Non-interest expenses of $333 million were up $7 million from the fourth quarter of 2015, as higher spending on strategic initiatives was largely offset by lower performance-related compensation.

Review of Corporate and Other fourth quarter results


		2016		2016		2015
$ millions, for the three months ended		Oct. 31		Jul. 31		Oct. 31		⁽¹⁾
Revenue
	International banking	$	176	$	176	$	180
	Other		(78)		(109)		(51)
Total revenue⁽²⁾			98		67		129
Provision for (reversal of) credit losses			16		(1)		13
Non-interest expenses			421		289		510
Loss before income taxes			(339)		(221)		(394)
Income taxes⁽²⁾			(181)		(186)		(197)
Net loss		$	(158)	$	(35)	$	(197)
Net income (loss) attributable to:
	Non-controlling interests	$	4	$	6	$	2
	Equity shareholders		(162)		(41)		(199)
Full-time equivalent employees			17,314		17,726		16,977

(1)	Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.
(2)	TEB adjusted. See footnote 2 in the "Capital Markets" section for additional details.
(3)	For additional information, see the "Non-GAAP measures" section.

Net loss for the quarter was $158 million, compared with a net loss of $197 million in the same quarter last year, primarily due to lower non-interest expenses. Adjusted net loss ⁽³⁾ for the quarter was $57 million, compared with a net loss of $32 million for the prior year quarter.

Revenue of $98 million was down $31 million from the fourth quarter of 2015, primarily due to lower Treasury revenue.

Provision for credit losses was comparable with the fourth quarter of 2015.

Non-interest expenses of $421 million were down $89 million from the fourth quarter of 2015, as the prior year included higher restructuring charges primarily relating to employee severance, shown as items of note in both years.

Income tax benefit was down $16 million from the fourth quarter of 2015, mainly due to the tax impact of the restructuring charges noted above.

Consolidated balance sheet


$ millions, as at October 31		2016		2015
ASSETS
Cash and non-interest-bearing deposits with banks	$	3,500	$	3,053
Interest-bearing deposits with banks		10,665		15,584
Securities
Trading		49,915		46,181
Available-for-sale (AFS)		37,253		28,534
Designated at fair value (FVO)		255		267
		87,423		74,982
Cash collateral on securities borrowed		5,433		3,245
Securities purchased under resale agreements		28,377		30,089
Loans
Residential mortgages		187,298		169,258
Personal		38,041		36,517
Credit card		12,332		11,804
Business and government		71,437		65,276
Allowance for credit losses		(1,691)		(1,670)
		307,417		281,185
Other
Derivative instruments		27,762		26,342
Customers' liability under acceptances		12,364		9,796
Land, buildings and equipment		1,898		1,897
Goodwill		1,539		1,526
Software and other intangible assets		1,410		1,197
Investments in equity-accounted associates and joint ventures		766		1,847
Deferred tax assets		771		507
Other assets		12,032		12,059
		58,542		55,171
	$	501,357	$	463,309
LIABILITIES AND EQUITY
Deposits
Personal	$	148,081	$	137,378
Business and government		190,240		178,850
Bank		17,842		10,785
Secured borrowings		39,484		39,644
		395,647		366,657
Obligations related to securities sold short		10,338		9,806
Cash collateral on securities lent		2,518		1,429
Obligations related to securities sold under repurchase agreements		11,694		8,914
Other
Derivative instruments		28,807		29,057
Acceptances		12,395		9,796
Deferred tax liabilities		21		28
Other liabilities		12,898		12,195
		54,121		51,076
Subordinated indebtedness		3,366		3,874
Equity
Preferred shares		1,000		1,000
Common shares		8,026		7,813
Contributed surplus		72		76
Retained earnings		13,584		11,433
Accumulated other comprehensive income (AOCI)		790		1,038
Total shareholders' equity		23,472		21,360
Non-controlling interests		201		193
Total equity		23,673		21,553
	$	501,357	$	463,309

Consolidated statement of income

		For the three						For the twelve
		months ended						months ended
		2016		2016		2015		2016		2015
$ millions, except as noted		Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Interest income
Loans		$	2,531	$	2,492	$	2,385	$	9,833	$	9,573
Securities			457		446		385		1,774		1,524
Securities borrowed or purchased under resale agreements			90		86		60		329		310
Deposits with banks			37		44		23		156		76
			3,115		3,068		2,853		12,092		11,483
Interest expense
Deposits			878		814		680		3,215		2,990
Securities sold short			45		57		52		199		230
Securities lent or sold under repurchase agreements			36		36		23		127		110
Subordinated indebtedness			35		37		39		137		181
Other			11		11		16		48		57
			1,005		955		810		3,726		3,568
Net interest income			2,110		2,113		2,043		8,366		7,915
Non-interest income
Underwriting and advisory fees			103		142		100		446		427
Deposit and payment fees			207		206		208		832		830
Credit fees			166		169		140		638		533
Card fees			125		115		115		470		449
Investment management and custodial fees			233		223		208		882		814
Mutual fund fees			378		369		363		1,462		1,457
Insurance fees, net of claims			97		99		103		396		361
Commissions on securities transactions			83		87		88		342		385
Trading income (loss)			(32)		(28)		(114)		(88)		(139)
AFS securities gains, net			6		46		19		73		138
FVO gains (losses), net			10		(6)		19		17		(3)
Foreign exchange other than trading			53		201		46		367		92
Income from equity-accounted associates and joint ventures			24		23		37		96		177
Other			118		377		108		736		420
			1,571		2,023		1,440		6,669		5,941
Total revenue			3,681		4,136		3,483		15,035		13,856
Provision for credit losses			222		243		198		1,051		771
Non-interest expenses
Employee compensation and benefits			1,292		1,274		1,379		4,982		5,099
Occupancy costs			209		196		209		804		782
Computer, software and office equipment			393		344		335		1,398		1,292
Communications			75		75		80		319		326
Advertising and business development			77		66		80		269		281
Professional fees			61		51		78		201		230
Business and capital taxes			18		14		16		68		68
Other			222		198		206		930		783
			2,347		2,218		2,383		8,971		8,861
Income before income taxes			1,112		1,675		902		5,013		4,224
Income taxes			181		234		124		718		634
Net income		$	931	$	1,441	$	778	$	4,295	$	3,590
Net income attributable to non-controlling interests		$	4	$	6	$	2	$	20	$	14
	Preferred shareholders	$	10	$	9	$	9	$	38	$	45
	Common shareholders		917		1,426		767		4,237		3,531
Net income attributable to equity shareholders		$	927	$	1,435	$	776	$	4,275	$	3,576
Earnings per share (in dollars)
	Basic	$	2.32	$	3.61	$	1.93	$	10.72	$	8.89
	Diluted		2.32		3.61		1.93		10.70		8.87
Dividends per common share (in dollars)			1.21		1.21		1.12		4.75		4.30

Consolidated statement of comprehensive income

			For the three						For the twelve
			months ended						months ended
			2016		2016		2015		2016		2015
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Net income		$	931	$	1,441	$	778	$	4,295	$	3,590
Other comprehensive income (OCI), net of income tax, that is subject
to subsequent reclassification to net income
	Net foreign currency translation adjustments
	Net gains (losses) on investments in foreign operations		606		327		2		487		1,445
	Net (gains) losses on investments in foreign operations reclassified to net income		-		(254)		-		(272)		(21)
	Net gains (losses) on hedges of investments in foreign operations		(383)		(100)		(2)		(257)		(720)
	Net (gains) losses on hedges of investments in foreign operations reclassified to net income		-		113		-		121		18
			223		86		-		79		722
	Net change in AFS securities
	Net gains (losses) on AFS securities		14		73		(71)		125		(67)
	Net (gains) losses on AFS securities reclassified to net income		(5)		(33)		(15)		(58)		(97)
			9		40		(86)		67		(164)
	Net change in cash flow hedges
	Net gains (losses) on derivatives designated as cash flow hedges		8		1		35		13		(7)
	Net (gains) losses on derivatives designated as cash flow hedges
	reclassified to net income		(11)		7		(29)		(12)		3
			(3)		8		6		1		(4)
OCI, net of income tax, that is not subject to subsequent reclassification to net income
	Net gains (losses) on post-employment defined benefit plans		55		(148)		240		(390)		374
	Net fair value change of FVO liabilities attributable to changes in credit risk		(3)		1		7		(5)		5
Total OCI			281		(13)		167		(248)		933
Comprehensive income		$	1,212	$	1,428	$	945	$	4,047	$	4,523
Comprehensive income attributable to non-controlling interests		$	4	$	6	$	2	$	20	$	14
	Preferred shareholders	$	10	$	9	$	9	$	38	$	45
	Common shareholders		1,198		1,413		934		3,989		4,464
Comprehensive income attributable to equity shareholders		$	1,208	$	1,422	$	943	$	4,027	$	4,509


			For the three						For the twelve
			months ended						months ended
			2016		2016		2015		2016		2015
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Income tax (expense) benefit
Subject to subsequent reclassification to net income
	Net foreign currency translation adjustments
	Net gains (losses) on investments in foreign operations	$	(19)	$	(34)	$	-	$	(17)	$	(118)
	Net (gains) losses investments in foreign operations reclassified to net income		-		37		-		37		3
	Net gains (losses) on hedges of investments in foreign operations		69		60		1		128		91
	Net (gains) losses on hedges of investments in foreign operations reclassified to net income		-		(23)		-		(26)		(6)
			50		40		1		122		(30)
	Net change in AFS securities
	Net gains (losses) on AFS securities		(6)		(16)		18		(24)		42
	Net (gains) losses on AFS securities reclassified to net income		1		13		5		15		48
			(5)		(3)		23		(9)		90
	Net change in cash flow hedges
	Net gains (losses) on derivatives designated as cash flow hedges		(3)		(1)		(13)		(5)		2
	Net (gains) losses on derivatives designated as cash flow hedges
	reclassified to net income		4		(2)		10		5		(2)
			1		(3)		(3)		-		-
Not subject to subsequent reclassification to net income
	Net gains (losses) on post-employment defined benefit plans		(13)		54		(79)		149		(129)
	Net fair value change of FVO liabilities attributable to changes in credit risk		-		-		(2)		1		(1)
		$	33	$	88	$	(60)	$	263	$	(70)

Consolidated statement of changes in equity

		For the three						For the twelve
		months ended						months ended
			2016		2016		2015		2016		2015
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Preferred shares
Balance at beginning of period		$	1,000	$	1,000	$	1,000	$	1,000	$	1,031
Issue of preferred shares			-		-		-		-		600
Redemption of preferred shares			-		-		-		-		(631)
Balance at end of period		$	1,000	$	1,000	$	1,000	$	1,000	$	1,000
Common shares
Balance at beginning of period		$	7,806	$	7,792	$	7,800	$	7,813	$	7,782
Issue of common shares			212		23		8		273		30
Purchase of common shares for cancellation			-		-		(2)		(61)		(2)
Treasury shares			8		(9)		7		1		3
Balance at end of period		$	8,026	$	7,806	$	7,813	$	8,026	$	7,813
Contributed surplus
Balance at beginning of period		$	73	$	74	$	79	$	76	$	75
Stock option expense			2		1		1		5		5
Stock options exercised			(2)		(2)		(1)		(9)		(4)
Other			(1)		-		(3)		-		-
Balance at end of period		$	72	$	73	$	76	$	72	$	76
Retained earnings
Balance at beginning of period		$	13,145	$	12,197	$	11,119	$	11,433	$	9,626
Net income attributable to equity shareholders			927		1,435		776		4,275		3,576
Dividends
	Preferred		(10)		(9)		(9)		(38)		(45)
	Common		(478)		(478)		(445)		(1,879)		(1,708)
Premium on purchase of common shares for cancellation			-		-		(9)		(209)		(9)
Other			-		-		1		2		(7)
Balance at end of period		$	13,584	$	13,145	$	11,433	$	13,584	$	11,433
AOCI, net of income tax
AOCI, net of income tax, that is subject to subsequent reclassification to net income
	Net foreign currency translation adjustments
	Balance at beginning of period	$	891	$	805	$	1,035	$	1,035	$	313
	Net change in foreign currency translation adjustments		223		86		-		79		722
	Balance at end of period	$	1,114	$	891	$	1,035	$	1,114	$	1,035
	Net gains (losses) on AFS securities
	Balance at beginning of period	$	152	$	112	$	180	$	94	$	258
	Net change in AFS securities		9		40		(86)		67		(164)
	Balance at end of period	$	161	$	152	$	94	$	161	$	94
	Net gains (losses) on cash flow hedges
	Balance at beginning of period	$	26	$	18	$	16	$	22	$	26
	Net change in cash flow hedges		(3)		8		6		1		(4)
	Balance at end of period	$	23	$	26	$	22	$	23	$	22
AOCI, net of income tax, that is not subject to subsequent reclassification to net income
	Net gains (losses) on post-employment defined benefit plans
	Balance at beginning of period	$	(563)	$	(415)	$	(358)	$	(118)	$	(492)
	Net change in post-employment defined benefit plans		55		(148)		240		(390)		374
	Balance at end of period	$	(508)	$	(563)	$	(118)	$	(508)	$	(118)
	Net fair value change of FVO liabilities attributable to changes in credit risk
	Balance at beginning of period	$	3	$	2	$	(2)	$	5	$	-
	Net change attributable to changes in credit risk		(3)		1		7		(5)		5
	Balance at end of period	$	-	$	3	$	5	$	-	$	5
Total AOCI, net of income tax		$	790	$	509	$	1,038	$	790	$	1,038
Non-controlling interests
Balance at beginning of period		$	188	$	187	$	194	$	193	$	164
Net income (loss) attributable to non-controlling interests			4		6		2		20		14
Dividends			-		(4)		-		(19)		(5)
Other			9		(1)		(3)		7		20
Balance at end of period		$	201	$	188	$	193	$	201	$	193
Equity at end of period		$	23,673	$	22,721	$	21,553	$	23,673	$	21,553

Consolidated statement of cash flows

				For the three						For the twelve
				months ended						months ended
				2016		2016		2015		2016		2015
$ millions				Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Cash flows provided by (used in) operating activities
Net income			$	931	$	1,441	$	778	$	4,295	$	3,590
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
	Provision for credit losses			222		243		198		1,051		771
	Amortization and impairment ⁽¹⁾			129		115		109		462		435
	Stock option expense			2		1		1		5		5
	Deferred income taxes			14		51		(11)		(20)		(61)
	AFS securities gains, net			(6)		(46)		(19)		(73)		(138)
	Net losses (gains) on disposal of land, buildings and equipment			(11)		(2)		(4)		(72)		(2)
	Other non-cash items, net			(93)		(459)		(27)		(692)		(257)
	Net changes in operating assets and liabilities
		Interest-bearing deposits with banks		(479)		(1,552)		1,293		4,919		(4,731)
		Loans, net of repayments		(9,003)		(8,344)		(4,104)		(27,464)		(22,610)
		Deposits, net of withdrawals		6,277		20,148		5,847		28,440		40,510
		Obligations related to securities sold short		905		(192)		(1,591)		532		(3,193)
		Accrued interest receivable		(49)		34		(95)		(98)		(112)
		Accrued interest payable		194		(130)		263		(72)		(77)
		Derivative assets		768		208		3,675		(1,425)		(5,655)
		Derivative liabilities		(1,386)		(2,548)		(2,815)		(232)		7,204
		Trading securities		(746)		(2,971)		1,368		(3,734)		880
		FVO securities		7		(7)		3		12		(14)
		Other FVO assets and liabilities		15		527		421		807		327
		Current income taxes		(20)		19		30		8		140
		Cash collateral on securities lent		(212)		416		(138)		1,089		526
		Obligations related to securities sold under repurchase agreements		1,056		(3,781)		812		2,780		(948)
		Cash collateral on securities borrowed		(116)		(871)		114		(2,188)		144
		Securities purchased under resale agreements		2,766		133		(2,098)		1,712		3,318
		Other, net		1,409		(886)		(92)		169		(569)
				2,574		1,547		3,918		10,211		19,483
Cash flows provided by (used in) financing activities
Issue of subordinated indebtedness				-		-		-		1,000		-
Redemption/repurchase/maturity of subordinated indebtedness				(14)		-		-		(1,514)		(1,130)
Issue of preferred shares				-		-		-		-		600
Redemption of preferred shares				-		-		-		-		(631)
Issue of common shares for cash				210		21		7		264		26
Purchase of common shares for cancellation				-		-		(11)		(270)		(11)
Net proceeds from treasury shares				8		(9)		7		1		3
Dividends paid				(488)		(487)		(454)		(1,917)		(1,753)
Share issuance costs				-		-		1		-		(7)
				(284)		(475)		(450)		(2,436)		(2,903)
Cash flows provided by (used in) investing activities
Purchase of AFS securities				(6,380)		(7,883)		(15,709)		(31,625)		(41,145)
Proceeds from sale of AFS securities				1,755		2,370		1,450		10,750		9,264
Proceeds from maturity of AFS securities				2,925		3,204		10,738		12,299		15,451
Net cash provided by dispositions				-		1,363		-		1,363		185
Net purchase of land, buildings and equipment				(75)		(66)		(91)		(170)		(256)
				(1,775)		(1,012)		(3,612)		(7,383)		(16,501)
Effect of exchange rate changes on cash and non-interest- bearing deposits with banks				43		61		(1)		55		280
Net increase (decrease) in cash and non-interest-bearing deposits with banks
during period				558		121		(145)		447		359
Cash and non-interest-bearing deposits with banks at beginning of period				2,942		2,821		3,198		3,053		2,694
Cash and non-interest-bearing deposits with banks at end of period ⁽²⁾			$	3,500	$	2,942	$	3,053	$	3,500	$	3,053
Cash interest paid			$	811	$	1,085	$	548	$	3,798	$	3,646
Cash income taxes paid				187		164		105		730		555
Cash interest and dividends received				3,066		3,102		2,758		11,994		11,371
(1)	Comprises amortization and impairment of buildings, furniture, equipment, leasehold improvements, and software and other intangible assets.
(2)	Includes restricted balance of $422 million (July 31, 2016: $410 million; October 31, 2015: $406 million).

Non-GAAP measures

We use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures useful in analyzing financial performance.

The following table provides a quarterly reconciliation of non-GAAP to GAAP measures related to CIBC on a consolidated basis. For a more detailed discussion and for an annual reconciliation of non-GAAP to GAAP measures, see the "Non-GAAP measures" section of CIBC's 2016 Annual Report.

	As at or for the											As at or for the
	three months ended											twelve months ended
				2016			2016			2015			2016			2015
$ millions				Oct. 31			Jul. 31			Oct. 31			Oct. 31			Oct. 31
Reported and adjusted diluted EPS
Reported net income attributable to common shareholders	A		$	917		$	1,426		$	767		$	4,237		$	3,531
After-tax impact of items of note⁽¹⁾				110			(369)			172			(191)			230
Adjusted net income attributable to common shareholders⁽²⁾	B		$	1,027		$	1,057		$	939		$	4,046		$	3,761
Diluted weighted-average common shares outstanding (thousands)	C			395,750			395,328			397,838			395,919			397,832
Reported diluted EPS ($)	A/C		$	2.32		$	3.61		$	1.93		$	10.70		$	8.87
Adjusted diluted EPS ($)⁽²⁾	B/C			2.60			2.67			2.36			10.22			9.45
Reported and adjusted return on common shareholders' equity
Average common shareholders' equity	D		$	21,763		$	21,198		$	20,122		$	21,275		$	18,857
Reported return on common shareholders' equity	A/D	⁽³⁾		16.8	%		26.8	%		15.1	%		19.9	%		18.7	%
Adjusted return on common shareholders' equity⁽²⁾	B/D	⁽³⁾		18.8	%		19.8	%		18.5	%		19.0	%		19.9	%

		Retail and
		Business			Wealth	Capital		Corporate		CIBC
$ millions, for the three months ended		Banking		Management		Markets		and Other		Total
Oct. 31	Reported net income (loss)	$	687	$	126	$	276	$	(158)	$	931
2016	After-tax impact of items of note⁽¹⁾		1		1		7		101		110
	Adjusted net income (loss)⁽²⁾	$	688	$	127	$	283	$	(57)	$	1,041
Jul. 31	Reported net income (loss)	$	666	$	506	$	304	$	(35)	$	1,441
2016	After-tax impact of items of note⁽¹⁾		1		(380)		9		1		(369)
	Adjusted net income (loss)⁽²⁾	$	667	$	126	$	313	$	(34)	$	1,072
Oct. 31	Reported net income (loss)	$	672	$	122	$	181	$	(197)	$	778
2015⁽⁴⁾	After-tax impact of items of note⁽¹⁾		1		6		2		165		174
	Adjusted net income (loss)⁽²⁾	$	673	$	128	$	183	$	(32)	$	952

$ millions, for the twelve months ended
Oct. 31	Reported net income (loss)	$	2,689	$	864	$	1,076	$	(334)	$	4,295
2016	After-tax impact of items of note⁽¹⁾		(25)		(374)		28		180		(191)
	Adjusted net income (loss)⁽²⁾	$	2,664	$	490	$	1,104	$	(154)	$	4,104
Oct. 31	Reported net income (loss)	$	2,530	$	518	$	957	$	(415)	$	3,590
2015⁽⁴⁾	After-tax impact of items of note⁽¹⁾		(28)		18		8		234		232
	Adjusted net income (loss)⁽²⁾	$	2,502	$	536	$	965	$	(181)	$	3,822

(1)	Reflects impact of items of note under the "Financial results" section of the MD&A.
(2)	Non-GAAP measure.
(3)	Annualized.
(4)	Certain information has been reclassified to conform to the presentation adopted in the current year. See the "External reporting changes" section of the MD&A for additional details.

Items of note

			For the three						For the twelve
			months ended						months ended
			2016		2016		2015		2016		2015
$ millions			Oct. 31		Jul. 31		Oct. 31		Oct. 31		Oct. 31
Gain, net of related transaction costs, on the sale of our minority investment in ACI		$	-	$	(428)	$	-	$	(428)	$	-
Gain, net of related transaction and severance costs, on the sale of a processing centre			-		-		-		(53)		-
Gain arising from accounting adjustments on credit card-related balance sheet amounts			-		-		-		-		(46)
Gain on sale of an investment in our merchant banking portfolio			-		-		-		-		(23)
Loss (income) from the structured credit run-off business			9		(28)		3		(3)		29
Amortization of intangible assets			7		7		11		30		42
Increase in legal provisions			-		-		-		77		-
Increase in collective allowance ⁽¹⁾ recognized in Corporate and Other			-		-		-		109		-
Loan losses in our exited European leveraged finance portfolio			-		40		-		40		-
Restructuring charges primarily relating to employee severance			134		-		211		134		296
Pre-tax impact of items of note on net income			150		(409)		225		(94)		298
	Income tax impact on above items of note		(40)		40		(51)		(52)		(66)
	Income tax recovery due to the settlement of transfer pricing-related matters		-		-		-		(30)		-
	Income tax recovery arising from a change in our expected utilization of tax loss carryforwards		-		-		-		(15)		-
After-tax impact of items of note on net income			110		(369)		174		(191)		232
	After-tax impact of items of note on non-controlling interests		-		-		(2)		-		(2)
After-tax impact of items of note on net income attributable to common shareholders		$	110	$	(369)	$	172	$	(191)	$	230

(1)

Relates to the collective allowance, except for (i) residential mortgages greater than 90 days delinquent; (ii) personal loans and scored small business loans greater than 30 days delinquent; and (iii) net write-offs for the cards portfolio, which are all reported in the respective strategic business units.

Basis of presentation

The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements for the year ended October 31, 2016.

Conference Call/Webcast

The conference call will be held at 8:00 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-866-696-5910, passcode 9489619#) and French (514-861-2255, or toll-free 1-877-405-9213, passcode 3878208#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC executives will be available to answer questions.

A live audio webcast of the conference call will also be available in English and French at www.cibc.com/ca/investor-relations/quarterly-results.html.

Details of CIBC's 2016 fourth quarter and fiscal year results, as well as a presentation to investors, will be available in English and French at www.cibc.com, Investor Relations section, prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.

A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 1837101#) and French (514-861-2272 or 1-800-408-3053, passcode 7075207#) until 11:59 p.m. (ET) December 8, 2016. The audio webcast will be archived at www.cibc.com/ca/investor-relations/quarterly-results.html.

About CIBC

CIBC is a leading Canadian-based global financial institution with 11 million personal banking and business clients. Through our three major business units - Retail and Business Banking, Wealth Management and Capital Markets - CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre/ or by following on Twitter @CIBC, Facebook (www.facebook.com/CIBC) and Instagram @CIBCNow.

The information below forms a part of this press release.

Nothing in CIBC's corporate website (www.cibc.com) should be considered incorporated herein by reference.

The Board of Directors of CIBC reviewed this news release prior to it being issued.

A NOTE ABOUT FORWARD-LOOKING STATEMENTS:

From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this news release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the "Core business performance", "Strong fundamentals", and "Making a difference in our Communities" sections of this news release, and the Management's Discussion and Analysis in our 2016 Annual Report under the heading "Financial performance overview – Outlook for calendar year 2017" and other statements about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2017 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target", "objective" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions set out in the "Financial performance overview – Outlook for calendar year 2017" section of our 2016 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: credit, market, liquidity, strategic, insurance, operational, reputation and legal, regulatory and environmental risk; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued and to be issued thereunder, the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking Supervision's global standards for capital and liquidity reform, and those relating to the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; the resolution of legal and regulatory proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our information technology systems and services; increasing cyber security risks which may include theft of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change; global capital market activity; changes in monetary and economic policy; currency value and interest rate fluctuations, including as a result of market and oil price volatility; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations, including increasing Canadian household debt levels and global credit risks; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected synergies and benefits of the acquisition of PrivateBancorp, Inc. will not be realized within the expected time frame or at all or the possibility that the acquisition does not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.

SOURCE CIBC - Investor Relations