Actionable news
0
All posts from Actionable news
Actionable news in CM: CANADIAN IMPERIAL BANK OF COMMERCE,

Canadian Imperial Bank of: Toronto, On December 3, 2015

The following excerpt is from the company's SEC filing.

(TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2015.

Fourth quarter highlights

Reported net income was $778 million, compared with $811 million for the fourth quarter a year ago, and $978 million for the prior quarter.

Adjusted net income

was $952 million, compared with $911 million for the fourth quarter a year ago, and $990 million for the prior quarter.

Reported diluted earnings per share (EPS) was $1.93, compared with $1.98 for the fourth quarter a year ago, and $2.42 for the prior quarter.

Adjusted dilu ted EPS

was $2.36, compared with $2.24 for the fourth quarter a year ago, and $2.45 for the prior quarter.

Reported return on common shareholders equity (ROE) was 15.1% and adjusted ROE

was 18.5%.

CIBCs results for the fourth quarter of 2015 were affected by the following items of note aggregating to a negative impact of $0.43 per share:

$211 million ($161 million after-tax and non-controlling interests, or $0.40 per share) in restructuring charges;

$11 million ($9 million after-tax, or $0.02 per share) amortization of intangible assets; and

$3 million ($2 million after-tax, or $0.01 per share) loss from the structured credit run-off business.

For the year ended October 31, 2015, CIBC reported net income of $3.6 billion and record adjusted net income

of $3.8 billion, compared with reported net income of $3.2 billion and adjusted net income

of $3.7 billion for 2014. Reported diluted EPS of $8.87 and adjusted diluted EPS

of $9.45 for 2015 compared with reported diluted EPS of $7.86 and adjusted diluted EPS

of $8.94 for 2014.

CIBCs adjusted ROE

was 19.9% for the year ended October 31, 2015 and the Basel III Common Equity Tier 1 ratio was 10.8% as at October 31, 2015.

CIBC announced a quarterly dividend increase of 3 cents per common share to $1.15 per share.

In 2015, all three of our strategic business units delivered strong performance, says Victor G. Dodig, CIBC President and Chief Executive Officer. Looking to 2016, I am confident that our client-focused strategy and our investment in innovation and process improvements will add long-term value for our shareholders.

Core business performance

Retail and Business Banking reported net income of $2.5 billion in 2015, in-line with $2.5 billion in 2014. Excluding items of note

, adjusted net income was $2.5 billion, up $0.1 billion or 3% from $2.4 billion in 2014.

Throughout 2015, Retail and Business Banking continued to make progress against our objectives of accelerating profitable revenue growth and enhancing the client experience. Key highlights included:

Supporting our brand promise of

banking that fits your life

, we began the rollout of a program to simplify the structure of our banking centres, placing greater emphasis on advice for clients while continuing to invest in digital channels to allow clients to bank when, where and how they want;

Continuing our leadership in innovation, we brought mobile banking to the Apple Watch for our clients, joined the new FinTech cluster at MaRS focused on innovation in financial services, and became the first major bank to participate in the new suretap digital wallet as part of our focus on payments innovation; and

Bringing two new innovative foreign exchange solutions to market for our clients in partnership with Capital Markets: CIBC Global Money Transfer, our no-fee international remittance service, and CIBC Foreign Cash Online, which allows clients to order foreign cash online and have it delivered directly to their homes or Toronto Pearson airport at no extra cost.

This year we established clear momentum in client experience and continued to invest in profitable revenue growth by making banking easy, personalized, and flexible for our clients, says David Williamson, SEVP and Group Head, Retail and Business Banking. We will continue to focus on deepening client relationships by investing in advice for our clients across personal and business banking, and leveraging the power of digital to allow our clients to do more of their banking when, where and how they want.

Wealth Management reported net income of $520 million in 2015, compared with $471 million in 2014. Excluding items of note

, adjusted net income was $538 million, up $52 million or 11% from $486 million in 2014.

Wealth Management made good progress in 2015 against its strategic objectives of enhancing the client experience, attracting new clients and pursuing strategic growth opportunities. Key highlights included:

CIBC Asset Management achieved its 6th consecutive sales record for long-term mutual funds of $5.5 billion this year;

Strong partnership with Retail and Business Banking helped drive CIBC Investors Edge new account openings up 36% versus last year; and

Completed our integration of Atlantic Trust, a U.S. private wealth management firm as part of our strategic plan to grow our North American business.

All of our Wealth Management businesses delivered strong results this year, says Steve Geist, SEVP and Group Head, Wealth Management. In 2016 we will build on this momentum to continue offering integrated advice and investment solutions for our clients, drive asset growth and optimize our business platform.

Capital Markets reported net income of $1,004 million in 2015, compared with $895 million in 2014. Excluding items of note

, adjusted net income was $1,012 million, up $99 million or 11% from $913 million in 2014.

Capital Markets provides integrated credit and global markets products, investment banking advisory services and top-ranked research to corporate, government and institutional clients around the world. During 2015, Capital Markets was:

Lead financial advisor to Shred-it Inc. on its sale to Stericycle Inc. for US$2.3 billion;

Sole bookrunner on the inaugural $1.0 billion senior unsecured notes offering for CPPIB Capital Inc.;

Joint bookrunner for a US$1.15 billion Class A Limited Voting Share offering for Brookfield Asset Management Inc.; and

Co-lead arranger and co-underwriter for a $1.8 billion and US$593 million senior secured credit facility, in addition to joint bookrunner on a $950 million bought deal of subscription receipts and extendible convertible debentures in support of DH Corporations acquisition of Fundtech.

In 2015, we helped our clients navigate volatile markets by delivering integrated advisory, lending, trading and research solutions, says Harry Culham, SEVP and Group Head, Capital Markets. We also continued to innovate and leverage investments in our technology and our people to meet the banking needs of our clients globally.

Strong fundamentals

While investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2015, CIBC maintained its capital strength, competitive productivity and sound risk management practices:

CIBCs capital ratios were strong, with a Basel III Common Equity Tier 1 ratio of 10.8%, and Tier 1 and Total capital ratios of 12.5% and 15.0% respectively, at October 31, 2015;

Market risk, as measured by average Value-at-Risk, was $4.0 million in 2015 compared with $3.5 million in 2014; and

Credit quality improved, with CIBCs loan loss ratio of 27 basis points compared with 38 basis points in 2014.

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 2015, CIBC:

Helped to raise $21.5 million for breast cancer research, treatment and advocacy programs through the 2015 Canadian Breast Cancer Foundation CIBC Run for the Cure, including more than $3 million contributed by Team CIBC. 15,000 Team CIBC members participated, joining 115,000 Canadians in more than 60 communities;

Participated in announcing the Stand Up To Cancer Canada-Canadian Breast Cancer Foundation Dream Team, supported by CIBC - a $9 million investment in innovative research and new approaches to treating people with aggressive types of breast cancer; and

Brought the TORONTO 2015 Parapan Am Games to life as Lead Partner of the Games, Premier Partner of Canadas Paralympic Team, and proud supporter of CIBC Team Next para athletes.

During the quarter, CIBC was ranked among the Top 10 Safest Banks in North America by

Global Finance

magazine, one of the

Financial Posts

Ten Best Companies to Work For, and was also recognized by Mediacorp as one of Canadas Top 100 Employers for a fourth 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.

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

CIBC Fourth Quarter

News Release

Fourth quarter financial highlights

As at or for the

three months ended

twelve months ended

Unaudited

2015

Oct. 31

Jul. 31

2014

Financial results

($ millions)

Net interest income

2,043

2,021

1,881

7,915

7,459

Non-interest income

1,440

1,499

1,332

5,941

5,904

Total revenue

3,483

3,520

3,213

13,856

13,363

Provision for credit losses

198

189

194

771

937

Non-interest expenses

2,383

2,179

2,083

8,861

8,512

Income before income taxes

902

1,152

936

4,224

3,914

Income taxes

124

174

125

634

699

Net income

778

978

811

3,590

3,215

Net income (loss) attributable to non-controlling interests

(3)

Preferred shareholders

18

45

87

Common shareholders

767

962

791

3,531

3,131

Net income attributable to equity shareholders

776

973

809

3,576

3,218

Financial measures

Reported efficiency ratio

68.4 %

61.9 %

64.8 %

63.9 %

63.7 %

Adjusted efficiency ratio

60.4 %

59.3 %

59.6 %

59.0 %

Loan loss ratio

0.26 %

0.25 %

0.30 %

0.27 %

0.38 %

15.1 %

20.4 %

17.9 %

18.7 %

18.3 %

Adjusted return on common shareholders equity

18.5 %

20.6 %

20.1 %

19.9 %

20.9 %

Net interest margin

1.70 %

1.75 %

1.78 %

1.74 %

1.81 %

Net interest margin on average interest-earning assets

1.95 %

2.01 %

2.02 %

2.00 %

Return on average assets

0.65 %

0.85 %

0.77 %

0.79 %

0.78 %

Return on average interest-earning assets

0.74 %

0.97 %

0.87 %

0.91 %

0.89 %

Total shareholder return

8.61 %

(2.40) %

2.66 %

1.96 %

20.87 %

Reported effective tax rate

13.7 %

13.4 %

15.0 %

Adjusted effective tax rate

15.5 %

15.2 %

15.4 %

Common share information

Per share ($)

- basic earnings

1.93

2.42

1.99

8.89

7.87

- reported diluted earnings

1.98

8.87

7.86

- adjusted diluted earnings

2.36

2.45

2.24

9.45

8.94

- dividends

1.12

1.09

1.00

4.30

3.94

- book value

51.25

50.02

44.30

Share price ($)

- high

102.74

96.99

107.01

107.16

86.00

89.55

95.93

85.49

- closing

100.28

93.46

102.89

Shares outstanding (thousands)

- weighted-average basic

397,253

397,270

397,009

397,213

397,620

- weighted-average diluted

397,838

397,828

397,907

397,832

398,420

- end of period

397,291

397,234

397,021

Market capitalization ($ millions)

39,840

37,126

40,850

Value measures

Dividend yield (based on closing share price)

Reported dividend payout ratio

58.0 %

45.0 %

50.3 %

48.4 %

50.0 %

Adjusted dividend payout ratio

47.4 %

44.5 %

44.6 %

45.4 %

44.0 %

Market value to book value ratio

1.96

1.87

2.32

On- and off-balance sheet information

Cash, deposits with banks and securities

93,619

92,997

73,089

Loans and acceptances, net of allowance

290,981

285,502

268,240

Total assets

463,309

457,842

414,903

Deposits

366,657

360,525

325,393

Common shareholders equity

20,360

19,869

17,588

Average...


More