Canadian Imperial Bank of Commerce (CM) Barclays 23rd Annual Global Financial Services Conference summary

Market conditions and strategic execution

• Despite an uneven operating environment, strong results have been achieved through focused execution of a four-pillar strategy, emphasizing mass affluent, digital tools, and productivity enhancements.

• Net investment flows and deposit growth have been robust, with leading mutual fund sales and active checking account growth.

• The Challenger brand and commercial banking have delivered broad-based growth, aided by disciplined expense management and positive operating leverage.

• Return on equity (ROE) has improved, boosting capital generation and confidence in earnings quality.

Return on equity and profitability outlook

• ROE target was adjusted due to higher regulatory capital requirements, but underlying profitability remains strong, with a 14.6% year-to-date ROE.

• Strategy aims to deliver better fee income, deeper client relationships, and more ROE-favorable deposits and investments.

• Focus remains on optimizing capital, balance sheet, and maintaining positive operating leverage for improved ROE.

Credit quality and lending

• Mortgage portfolio represents about 4% of total revenue, with low delinquency and write-off rates, and strong loan-to-value ratios.

• Delinquency rates have risen slightly but are not expected to result in material losses.

• Consumer lending impaired loss rates have plateaued, with mid-30s basis points guidance maintained.

• Credit risk is managed by deep client relationships and ongoing monitoring.