Canadian Imperial Bank of Commerce (CM) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Macroeconomic and consumer trends

• Inflation and interest rates have both peaked and are now declining, leading to stabilization for consumers, though delinquencies and impaired loss rates have risen slightly and are expected to continue gradually increasing before improving in 2025.

• No specific geographic or customer segment is of particular concern; risk is managed through deep client relationships.

Portfolio strategy and diversification

• Residential mortgages remain the largest asset, reflecting client needs, with no active push to reduce exposure; diversification is expected to occur naturally through deepening client relationships and growth in credit cards and investment products.

• Comfortable with current mortgage exposure, which has performed well through various economic cycles.

Interest rates, NIM, and funding

• Lower rates are expected to benefit consumers more in 2025, with impaired loss rates expected to gradually decline.

• Net interest margin (NIM) is managed for stability, with hedging strategies and business mix (growth in credit cards, deposits) providing a positive outlook; NIM is expected to remain flat to gradually rising under most scenarios.

• Deposit growth is driven by customer acquisition and relationship depth, not aggressive rate competition; funding is diversified by product and geography.