Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,514.37 65.12 0.40%
S&P 500 1,879.55 7.66 0.41%
NASDAQ 4,161.46 39.91 0.97%
Ticker Volume Price Price Delta
STOXX 50 3,194.84 -4.85 -0.15%
FTSE 100 6,691.22 9.46 0.14%
DAX 9,591.49 -8.60 -0.09%
Ticker Volume Price Price Delta
NIKKEI 14,546.27 157.50 1.09%
TOPIX 1,173.81 11.31 0.97%
HANG SENG 22,514.88 -215.80 -0.95%

CIBC Announces First Quarter 2013 Results


TORONTO, Feb. 28, 2013 /CNW/ - CIBC (TSX: CM) (NYSE: CM) reported today net income of $798 million for the first quarter ended January 31, 2013, compared with net income of $835 million for the same period last year and $852 million for the prior quarter. Reported diluted earnings per share (EPS) was $1.91, compared with $1.93 a year ago and $2.02 for the prior quarter.  Return on common shareholders' equity for the first quarter was 19.9%.

Excluding items of note listed below, CIBC reported record adjusted net income of $895((1)) million for the first quarter, compared with adjusted net income of $833((1)) million for the same period last year and $858((1)) million for the prior quarter. Adjusted diluted EPS was $2.15((1)), compared with adjusted diluted EPS of $1.97((1)) a year ago and $2.04((1)) for the prior quarter.

Results for the first quarter of 2013 were affected by the following items of note netting to a negative impact of $0.24 per share:


    --  $148 million ($109 million after-tax or $0.27 per share) loss
        from the structured credit run-off business, including the
        charge in respect of a settlement of the U.S. Bankruptcy Court
        adversary proceeding brought by the Estate of Lehman Brothers
        Holdings, Inc.;
    --  $16 million ($16 million after-tax or $0.04 per share) gain,
        net of associated expenses, on the sale of our Hong Kong and
        Singapore-based private wealth management business; and
    --  $5 million ($4 million after-tax or $0.01 per share)
        amortization of intangible assets.

Effective January 2013, CIBC adopted the Office of the Superintendent of 
Financial Institution's (OSFI) revised Capital Adequacy Requirements (CAR) 
guideline reflecting changes to capital requirements, referred to as Basel 
III.  As a result of the change in methodology, the regulatory capital 
information at January 31, 2013 is not comparable to prior periods. CIBC's 
Basel III Common Equity Tier 1 ratio at January 31, 2013 was 9.6%, and our 
Tier 1 capital ratio and Total capital ratio were 12.0% and 15.3%, 
respectively, on an all-in basis.

"CIBC's solid results in the first quarter reflect our strong focus on our 
clients as well as our underlying business fundamentals," says Gerald T. 
McCaughey, President and Chief Executive Officer.  "The broad-based 
performance across our core businesses reflects our first principle which is 
to be a lower risk bank delivering consistent, sustainable earnings."

Core business performance
Retail and Business Banking reported net income of $611 million for the first 
quarter, up from $567 million for the same quarter last year.

Revenue of $2.1 billion was up 2% from the first quarter of 2012, primarily 
due to volume growth across most products, higher fees and wider spreads, 
partially offset by lower treasury allocations.

Provision for credit losses of $241 million was down $40 million, or 14%, from 
the same quarter last year due to lower write-offs and bankruptcies in the 
cards portfolio.

During the first quarter of 2013, our retail and business banking business 
continued to make progress against our objectives of accelerating profitable 
revenue growth and enhancing client experience:
    --  We launched the CIBC Mobile Payments App, marking another first
        for CIBC. Our clients now have an ability to make credit card
        payments using their smartphone, putting them at the leading
        edge of a market that will grow significantly in 2013 and
        beyond;
    --  CIBC continues to deliver mobile innovations, offering anytime,
        anywhere access to banking and financial information, with the
        launch of a new mobile banking app for President's Choice
        Financial clients. The new PC Financial Mobile Banking App is
        compatible with iPhone, iPod touch and iPad, with Android
        support coming soon;
    --  The ongoing conversion of our FirstLine clients into
        CIBC-branded mortgages continues to exceed our targets;
    --  We opened three branches and will open, expand or relocate 23
        branches by the end of 2013 to better serve our clients;
    --  As the lead sponsor of the CIBC Pan Am and Parapan Am Games, we
        announced the start of construction for the new CIBC Pan Am and
        Parapan Am Athletics Stadium at York University. CIBC's
        objectives for the Pan Am and Parapan Am Games are to inspire a
        generation of young athletes, enrich our communities, provide
        significant opportunities for local businesses and leave behind
        a sustainable legacy; and
    --  To enhance financial literacy, we entered into a new
        partnership with HGTV's Income Property and trusted Canadian
        real estate expert, Scott McGillivray, to reach consumers who
        want to better equip themselves with financial know-how prior
        to home purchases or renovations.

Wealth Management reported net income of $90 million for the first quarter, 
down $10 million or 10% from the same quarter last year. Excluding a gain of 
$37 million ($35 million after-tax) relating to an equity-accounted investment 
in the first quarter of 2012, included as an item of note, net income was up 
$25 million or 38% from the same quarter last year.

Revenue of $432 million was down $3 million or 1% compared to the first 
quarter of 2012. Excluding the above-mentioned item of note, revenue was up 
$34 million or 9% from the same quarter last year.

During the first quarter of 2013, our wealth management business continued its 
progress in support of our strategic priority to build our wealth management 
platform:
    --  Wealth Management has achieved an all-time high of $223 billion
        in assets under administration as a result of deepening client
        relationships and sustained sales momentum in our investment
        solutions;
    --  CIBC Investor's Edge launched a new online interface, providing
        clients with additional tools and functionality to monitor
        their investment portfolios;
    --  We achieved our strongest quarterly long-term mutual fund net
        sales results on record with $1.7 billion for the first
        quarter; and
    --  In CIBC Wood Gundy, we continued to invest in our strong
        technology platform with the launch of the latest portfolio
        management system to support client relationships through
        enhanced functionalities and advisor-focused work flow.

Wholesale Banking reported net income of $91 million for the first quarter, 
down $102 million from the prior quarter. Excluding items of note, which 
include the settlement related to the Estate of Lehman Brothers Holdings, 
Inc., adjusted net income was $200((1)) million, up $8 million from the prior 
quarter.

Revenue of $563 million was down $12 million or 2% from the prior quarter, 
primarily due to lower gains in the structured credit run-off business, 
partially offset by higher capital markets revenue in fixed income and higher 
revenue from corporate credit products.

Wholesale Banking had several notable achievements during the first quarter 
that supported its objective to be the premier client-focused wholesale bank 
centred in Canada:
    --  CIBC acted as lead coordinator for Canada Housing Trust No.1's
        $5.0 billion issuance of 1.7% Canada Mortgage Bonds due
        December 15, 2017;
    --  CIBC acted as joint bookrunner on Husky Energy's $3.2 billion
        credit facilities; 
    --  CIBC acted as financial advisor to GDF Suez on the sale of 60%
        interest in its Canadian renewable generation portfolio to
        Mitsui & Co. and a consortium led by Fiera Axium Infrastructure
        with an enterprise value in excess of $2.0 billion;
    --  CIBC acted as joint bookrunner on a $700 million bond offering
        for Reliance LP;
    --  CIBC acted as financial advisor to Penn West on the sale of its
        11.7% Net Royalty Interest in its Weyburn Oil Unit to
        Franco-Nevada for $400 million; and
    --  CIBC acted as joint bookrunner of Hudson's Bay Company's $380
        million common share initial public offering.

"CIBC delivered solid performance during the first quarter," says Mr. 
McCaughey. "The investments we are making in our retail and business banking, 
wealth management and wholesale banking businesses are furthering our strength 
and positioning us well for the future."

CIBC in our communities
CIBC is committed to supporting causes that matter to our clients, our 
employees and our communities. During the quarter:
    --  CIBC Miracle Day raised a record $4.5 million in donated fees
        and commissions that will support over 450 children's charities
        across Canada, and in the U.K. and the U.S.;
    --  CIBC's 2012 United Way campaign raised $11.1 million, marking
        an increase of 30% per cent over last year's total of $8.5
        million; and
    --  The top student fundraisers in the Canadian Breast Cancer
        Foundation CIBC Run for the Cure Post Secondary Challenge won
        $2,500 CIBC Education Awards to help pay for their studies.

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

________________________________________________

The information on the following pages forms a part of this press release.

(The board of directors of CIBC reviewed this press release prior to it being 
issued. CIBC's controls and procedures support the ability of the President 
and Chief Executive Officer and the Chief Financial Officer of CIBC to certify 
CIBC's first quarter financial report and controls and procedures. CIBC's CEO 
and CFO will voluntarily provide to the Securities and Exchange Commission a 
certification relating to CIBC's first quarter financial information, 
including the attached unaudited interim consolidated financial statements, 
and will provide the same certification to the Canadian Securities 
Administrators.)

Management's discussion and analysis

Management's discussion and analysis (MD&A) is provided to enable readers to 
assess CIBC's financial condition and results of operations as at and for the 
quarter ended January 31, 2013, compared with prior quarters. The MD&A should 
be read in conjunction with our 2012 Annual Report and the unaudited interim 
consolidated financial statements included in this report. Unless otherwise 
indicated, all financial information in this MD&A has been prepared in 
accordance with International Financial Reporting Standards (IFRS or GAAP) and 
all amounts are expressed in Canadian dollars. This MD&A is current as of 
February 27, 2013. Additional information relating to CIBC is available on 
SEDAR at www.sedar.com and on the U.S. Securities and Exchange Commission's 
(SEC) website at www.sec.gov. No information on CIBC's website (www.cibc.com) 
should be considered incorporated herein by reference. A glossary of terms 
used throughout this quarterly report can be found on pages 182 to 185 of our 
2012 Annual Report.

External reporting changes

Basel III
We adopted the Office of the Superintendent of Financial Institution's (OSFI) 
revised Capital Adequacy Requirements (CAR) Guideline effective January 
2013.  The revised CAR Guideline reflects the changes to capital 
requirements, commonly referred to as Basel III, that have been issued by the 
Basel Committee on Banking Supervision (BCBS). 

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 report, in other filings with Canadian securities regulators 
or the U.S. Securities and Exchange Commission and in other communications. 
These statements include, but are not limited to, statements made in the 
"Overview - Income taxes", "Overview - Outlook for calendar year 2013", 
"Review of quarterly financial information", "Capital Resources", "Management 
of risk - Credit risk", "Management of risk - Market risk", "Management of 
risk - Liquidity risk", "Management of risk - Operational risk", and 
"Accounting and control matters" sections of this report and other statements 
about our operations, business lines, financial condition, risk management, 
priorities, targets, ongoing objectives, strategies and outlook for 2013 and 
subsequent periods. Forward-looking statements are typically identified by the 
words "believe", "expect", "anticipate", "intend", "estimate" 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 "Overview - 
Outlook for calendar year 2013" section of this report, 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 models and processes; 
legislative or regulatory developments in the jurisdictions where we operate; 
amendments to, and interpretations of, risk-based capital guidelines and 
reporting instructions; the resolution of legal 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; the 
accuracy and completeness of information provided to us by clients and 
counterparties; the failure of third parties to comply with their obligations 
to us and our affiliates; intensifying competition from established 
competitors and new entrants in the financial services industry; technological 
change; global capital market activity; changes in monetary and economic 
policy; currency value fluctuations; general business and economic conditions 
worldwide, as well as in Canada, the U.S. and other countries where we have 
operations; changes in market rates and prices which may adversely affect the 
value of financial products; 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; 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. We do not undertake to update any forward-looking statement that 
is contained in this report or in other communications except as required by 
law.

First quarter financial highlights

(


                                   2013             2012 (1))           2012  

Unaudited, as at or                                            
for the three months
ended                           Jan. 31          Oct. 31             Jan. 31  

Financial results ($                                           
millions)                                                                     

Net interest income        $     1,855      $     1,848         $     1,842   

Non-interest income              1,326            1,311               1,315   

Total revenue                    3,181            3,159               3,157   

Provision for credit                                           
losses                             265              328                 338   

Non-interest                                                   
expenses                         1,987            1,829               1,791   

Income before taxes                929            1,002               1,028   

Income taxes                       131              150                 193   

Net income                 $       798      $       852         $       835   

Net income                                                     
attributable to
non-controlling
interests                  $         2      $         2         $         3   

  Preferred                                                    
  shareholders                      25               29                  56   

  Common                                                       
  shareholders                     771              821                 776   

Net income                                                     
attributable to
equity shareholders        $       796      $       850         $       832   

Financial measures                                                            

Reported efficiency                                            
ratio                             62.5  %          57.9  %             56.7  %

Adjusted efficiency                                            
ratio ((2))                       56.1  %          56.5  %             55.3  %

Loan loss ratio (                                              
(3))                              0.42  %          0.53  %             0.54  %

Return on common                                               
shareholders' equity              19.9  %          21.7  %             22.4  %

Net interest margin               1.83  %          1.83  %             1.85  %

Net interest margin                                            
on average
interest-earning
assets ((4))                      2.12  %          2.14  %             2.16  %

Return on average                                              
assets ((5))                      0.79  %          0.85  %             0.84  %

Return on average                                              
interest-earning
assets ((4)(5))                   0.91  %          0.99  %             0.98  %

Total shareholder                                              
return                            7.13  %          8.42  %             2.78  %

Common share                                                   
information                                                                   

Per share ($)                                                                 
    - basic earnings       $      1.91      $      2.02         $      1.94   
    - reported                                                 
    diluted earnings              1.91             2.02                1.93   
    - adjusted                                                 
    diluted earnings
    ((2))                          2.15            2.04                1.97   
    - dividends                   0.94             0.94                0.90   
    - book value                 38.07            37.48               34.31   

Share price ($)                                                               
    - high                       84.10            78.56               78.00   
    - low                        76.70            72.97               68.43   
    - closing                    83.20            78.56               76.25   

Shares outstanding                                             
(thousands)                                                                   
    -                                                          
    weighted-average
    basic                      403,332          405,404             401,099   
    -                                                          
    weighted-average
    diluted                    403,770          405,844             401,613   
    - end of period            401,960          404,485             402,728   

Market                                                         
capitalization ($
millions)                  $    33,443      $    31,776         $    30,708   

Value measures                                                                

Dividend yield                                                 
(based on closing
share price)                       4.5  %           4.8  %              4.7  %

Reported dividend                                              
payout ratio                      49.2  %          46.4  %             46.5  %

Adjusted dividend                                              
payout ratio((2))                 43.7  %          46.1  %             45.5  %

Market value to book                                           
value ratio                       2.19             2.10                2.22   

On- and off-balance                                            
sheet information ($
millions)                                                                     

Cash, deposits with                                            
banks and securities       $    72,656      $    70,061         $    71,065   

Loans and                                                      
acceptances, net of
allowance                      251,139          252,732             250,719   

Total assets                   392,783          393,385             391,449   

Deposits                       306,304          300,344             296,137   

Common shareholders'                                           
equity                          15,303           15,160              13,817   

Average assets                 402,313          401,092             396,122   

Average                                                        
interest-earning
assets ((4))                   347,020          343,840             339,567   

Average common                                                 
shareholders' equity            15,361           15,077              13,826   

Assets under                                                   
administration((6))          1,429,049        1,445,870           1,364,509   

Balance sheet                                                  
quality measures                                                              

Basel III -                                                                   
Transitional basis                                                            

  Risk-weighted                                                
  assets (RWA) ($
  billions)                $     134.8               n/a                 n/a  

  Common Equity Tier                                           
  1 ratio                         11.5  %            n/a                 n/a  

  Tier 1 capital                                               
  ratio                           12.4  %            n/a                 n/a  

  Total capital                                                
  ratio                           15.3  %            n/a                 n/a  

Basel III - All-in                                             
basis                                                                         

  RWA ($ billions)         $     126.4               n/a                 n/a  

  Common Equity Tier                                           
  1 ratio                          9.6  %            n/a                 n/a  

  Tier 1 capital                                               
  ratio                           12.0  %            n/a                 n/a  

  Total capital                                                
  ratio                           15.3  %            n/a                 n/a  

Basel II                                                                      

  RWA ($ billions)                  n/a     $     115.2         $     111.5   

  Tier 1 capital                                               
  ratio                             n/a            13.8  %             14.3  %

  Total capital                                                
  ratio                             n/a            17.3  %             18.1  %

Other information                                                             

Retail / wholesale                                             
ratio ((2)(7))                78 % / 22 %      77 % / 23 %         78 % / 22 %

Full-time equivalent                                           
employees( (8))                 42,793           42,595              42,181   

(1)   Certain amounts have been reclassified to conform to the
      presentation adopted in the current period.  

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

(3)   The ratio is calculated as the provision for credit losses on
      impaired loans to average loans and acceptances, net of allowance
      for credit losses. The provision for credit losses on impaired
      loans includes provision for: individual allowance; collective
      allowance on personal, scored small business and mortgages that
      are greater than 90 days delinquent; and net credit card
      write-offs.  

(4)   Average interest-earning assets include interest-bearing deposits
      with banks, securities, securities borrowed or purchased under
      resale agreements, and loans net of allowances.

(5)   Net income expressed as a percentage of average assets or average
      interest-earning assets.  

(6)   Includes the full contract amount of assets under administration
      or custody under a 50/50 joint venture between CIBC and The Bank
      of New York Mellon.  

(7)   For the purposes of calculating this ratio, Retail includes
      Retail and Business Banking, Wealth Management, and International
      banking operations (reported as part of Corporate and Other). The
      ratio represents the amount of economic capital attributed to
      these businesses as at the end of the period.

(8)   Full-time equivalent employees is a measure that normalizes the
      number of full-time and part-time employees, base plus
      commissioned employees, and 100% commissioned employees into
      equivalent full time units based on actual hours of paid work
      during a given period.  

n/a   Not applicable.  
       

Overview

Financial results
Reported net income for the quarter was $798 million, compared to $835 million 
for the same quarter last year and $852 million for the prior quarter.

Reported diluted earnings per share (EPS) for the quarter was $1.91, compared 
to $1.93 for the same quarter last year and $2.02 for the prior quarter.

Adjusted diluted EPS((1)) for the quarter was $2.15, compared to $1.97 for the 
same quarter last year and $2.04 for the prior quarter.

Net income was affected by the following items of note:
    --  $148 million ($109 million after-tax) loss from the structured
        credit run-off business, including the charge in respect of a
        settlement of the U.S. Bankruptcy Court adversary proceeding
        brought by the Estate of Lehman Brothers Holdings, Inc.
        (Wholesale Banking);
    --  $16 million ($16 million after-tax) gain, net of associated
        expenses, on the sale of our Hong Kong and Singapore-based
        private wealth management business (Corporate and Other); and
    --  $5 million ($4 million after-tax) amortization of intangible
        assets ($2 million after-tax in Retail and Business Banking and
        $2 million after-tax in Corporate and Other).

The above items of note increased revenue by $28 million, non-interest 
expenses by $165 million, and decreased income tax expenses by $40 million. In 
aggregate, these items of note decreased net income by $97 million.

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

Net interest income
Net interest income was up $13 million or 1% from the same quarter last year, 
primarily due to higher trading-related net interest income, wider retail 
spreads, and volume growth across most retail products, partially offset by 
lower treasury-related net interest income.

Net interest income was up $7 million from the prior quarter, primarily due to 
higher trading-related net interest income and wider retail spreads, largely 
offset by lower treasury-related net interest income.

Non-interest income
Non-interest income was up $11 million or 1% from the same quarter last year, 
primarily due to higher mutual fund and credit fees, and higher gains net of 
write-downs on available-for-sale (AFS) securities, partially offset by lower 
trading income.  The current quarter had a gain on sale of the private wealth 
management business as noted above, while the same quarter last year had a 
gain relating to an equity-accounted investment in our Wealth Management 
strategic business unit (SBU), also included as an item of note.

Non-interest income was up $15 million or 1% from the prior quarter. The prior 
quarter included a loss relating to the change in valuation of collateralized 
derivatives to an overnight index swap (OIS) basis, and a gain on sale of 
interests in entities in relation to the acquisition of TMX Group Inc. (TMX 
Group) by Maple Group Acquisition Corporation (Maple), both included as items 
of note. The current quarter had a gain on sale of the private wealth 
management business as noted above, higher gains net of write-downs on AFS 
securities, and higher mutual fund fees, partially offset by lower income from 
our equity accounted investments, and underwriting and advisory fees.

Provision for credit losses
The provision for credit losses was down $73 million or 22% from the same 
quarter last year. In Retail and Business Banking, provisions were down due to 
lower write-offs and bankruptcies in the cards portfolio. In Wholesale 
Banking, provisions were down due to lower losses in the U.S. real estate 
finance portfolio. In Corporate and Other, provisions were down due to lower 
losses in CIBC FirstCaribbean International Bank (CIBC FirstCaribbean) and 
higher net provision reversals related to collective allowance reported in 
this segment.

The provision for credit losses was down $63 million or 19% from the prior 
quarter. In Retail and Business Banking, provisions were down due to lower 
losses in the business lending portfolio. In Wholesale Banking, provisions 
were down due to lower losses in the exited U.S. leveraged finance portfolio. 
In Corporate and Other, provisions were up due to higher losses in CIBC 
FirstCaribbean, and the provision for collective allowance reported in this 
segment was comparable to the prior quarter.

Non-interest expenses
Non-interest expenses were up $196 million or 11% compared to the same quarter 
last year, primarily due to higher expenses in the structured credit run-off 
business noted above, and higher employee compensation and benefits.

Non-interest expenses were up $158 million or 9% from the prior quarter, 
primarily due to higher expenses in the structured credit run-off business 
noted above, and higher employee compensation and benefits, partially offset 
by lower advertising, computer and office equipment, and occupancy costs.

Income taxes
Income tax expense was down $62 million or 32% from the same quarter last 
year, primarily due to lower income and higher tax-exempt income.

Income tax expense was down $19 million or 13% from the prior quarter, mainly 
due to lower income.

In prior years, the Canada Revenue Agency issued reassessments disallowing the 
deduction of approximately $3.0 billion of the 2005 Enron settlement payments 
and related legal expenses. The matter is currently in litigation and on 
December 21, 2011 (and reconfirmed on July 5, 2012), in connection with a 
motion by CIBC to strike the Crown's replies, the Tax Court of Canada struck 
certain portions of the replies and directed the Crown to submit amended 
replies. Both the Crown and CIBC appealed the ruling to the Federal Court of 
Appeal, and the appeal was heard on November 21, 2012. A decision has not yet 
been rendered.

Should we successfully defend our tax filing position in its entirety, we 
would recognize an additional accounting tax benefit of $214 million and 
taxable refund interest of approximately $187 million. Should we fail to 
defend our position in its entirety, we would incur an additional tax expense 
of approximately $866 million and non-deductible interest of approximately 
$124 million.

Foreign exchange 
The estimated impact of U.S. dollar translation on key lines of our interim 
consolidated statement of income, as a result of changes in average exchange 
rates, is as follows: 
                                      Jan. 31, 2013     Jan. 31, 2013  
                                                vs.               vs.  

$ millions, for the three             Jan. 31, 2012     Oct. 31, 2012  
months ended

Estimated increase                                                     
(decrease) in:

  Total revenue                     $           (7)   $            2   

  Provision for credit                           -                 -   
losses

  Non-interest expense                          (3)                1   

  Income taxes                                   -                 -   

  Net income                                    (4)                1   

Average US$ appreciation                        (2) %              1  %
(depreciation) relative
to C$
                                                                       

Impact of items of note in prior periods
Net income for the prior quarters was affected by the following items of note:

Q4, 2012
    --  $57 million ($32 million after-tax) loan losses in our exited
        U.S. leveraged finance portfolio (Wholesale Banking);
    --  $51 million ($37 million after-tax) gain from the structured
        credit run-off business (Wholesale Banking);
    --  $33 million ($24 million after-tax) loss relating to the change
        in valuation of collateralized derivatives to the OIS basis
        ($23 million after-tax in Wholesale Banking and $1 million
        after-tax in Corporate and Other);
    --  $24 million ($19 million after-tax) gain on sale of interests
        in entities in relation to the acquisition of TMX Group by
        Maple, net of associated expenses (Wholesale Banking); and
    --  $7 million ($6 million after-tax) amortization of intangible
        assets ($2 million after-tax in Retail and Business Banking and
        $4 million after-tax in Corporate and Other).

The above items of note increased revenue by $52 million, provision for credit 
losses by $53 million, non-interest expenses by $21 million, and decreased 
income tax expenses by $16 million. In aggregate, these items of note 
decreased net income by $6 million.

Q1, 2012
    --  $37 million ($35 million after-tax) gain relating to an
        equity-accounted investment (Wealth Management);
    --  $35 million ($26 million after-tax) loss from the structured
        credit run-off business (Wholesale Banking); and
    --  $9 million ($7 million after-tax) amortization of intangible
        assets ($2 million after-tax in Retail and Business Banking and
        $5 million after-tax in Corporate and Other).

The above items of note increased revenue by $10 million, non-interest 
expenses by $17 million, and decreased income tax expenses by $9 million. In 
aggregate, these items of note increased net income by $2 million.

In addition, net income attributable to common shareholders was also affected 
by the following item of note:
    --  $18 million premium paid on preferred share redemptions.

Significant events

Lehman Brothers bankruptcy proceedings
During the quarter, CIBC recognized a US$150 million charge (US$110 million 
after-tax) in respect of the full settlement of the U.S. Bankruptcy Court 
adversary proceeding brought by the Estate of Lehman Brothers Holdings, Inc. 
challenging the reduction to zero of our unfunded commitment on a variable 
funding note. In 2008, we recognized a US$841 million gain on the variable 
funding note as further detailed in Note 23 of the 2012 consolidated financial 
statements.

Private wealth management (Asia)
On January 25, 2013, CIBC sold its stand-alone Hong Kong and Singapore-based 
private wealth management business. This niche advisory and brokerage 
business, which was included in International banking within Corporate and 
Other, provided private banking services to a small number of high-net-worth 
individuals in the Asia-Pacific region and had assets under management of 
approximately $2 billion. As a result, CIBC recognized a gain, net of 
associated expenses, of $16 million ($16 million after-tax) during the 
quarter. CIBC's other businesses in Asia are unaffected by this transaction.

Outlook for calendar year 2013

Moderate economic growth is likely to continue in both Canada and the U.S. in 
2013. Real GDP gains are likely to be in the vicinity of 2% in both Canada and 
the U.S. in the face of soft growth overseas, and ongoing fiscal tightening. 
We expect European governments will prevent sovereign debt troubles from 
spilling over into a larger Eurozone banking crisis but fiscal tightening has 
left Europe in a mild recession. In the U.S., improving household credit 
fundamentals and continued recovery in home building will help offset the drag 
from tighter fiscal policy, although the degree of spending cuts remains to be 
determined.

Canada's economy will benefit from a pick-up in oil output, but will see 
somewhat less robust domestic demand. Government spending will remain a slight 
negative for growth as fiscal tightening continues. Consumer demand will be 
supported by ongoing job creation, but will be held close to income gains as 
the appetite for credit is held in check by existing high debt levels, even 
with the Bank of Canada avoiding interest rate increases through 2013. Housing 
is turning from a strong growth contributor to a slight negative this year as 
the impact of softer sales shows up in a modest retreat in construction 
activity.

Retail and Business Banking is expected to face slightly slower growth in 
demand for mortgages, while consumer credit demand could continue to see 
limited growth. Demand for business credit should continue at a healthy growth 
rate. Slightly slower economic growth is unlikely to result in deterioration 
in household credit quality, with the unemployment rate holding nearly steady.

Wealth Management should see an improvement in demand for equities and other 
risk assets over the course of 2013 as global uncertainties are gradually 
resolved.

Wholesale Banking will continue to benefit from a healthy pace of debt 
financings as both governments and corporations take advantage of low interest 
rates and robust market conditions. Equity issuance could improve over the 
course of the year as global growth uncertainties are gradually resolved, a 
trend that should also support merger activity. Corporate credit demand should 
be supported by growth in capital spending, although the public debt market 
and internal cash flows will be a competitive source of funding.

Review of quarterly financial information
                                                                                                                

$ millions,                                                                                              
except per share
amounts,                                                                                                        

for the three                                                                                            
months ended                2013                                           2012                             2011
                                                                                                                
                            Jan.       Oct.    (     Jul.       Apr.       Jan.       Oct.       Jul.       Apr.
                              31         31 (1))       31         30         31         31         31         30

Revenue                                                                                                         

  Retail and            $          $             $          $          $          $          $          $
  Business
  Banking                 2,065      2,036         2,085      2,004      2,029      2,076      2,035      1,932 

  Wealth                                                                                                 
  Management                432        420           401        418        435        396        404        420 

  Wholesale                                                                                              
  Banking ((2))             563        575           527        463        495        561        503        477 

  Corporate and                                                                                          
  Other ((2))               121        128           136        199        198        162        189        186 

Total revenue           $ 3,181    $ 3,159       $ 3,149    $ 3,084    $ 3,157    $ 3,195    $ 3,131    $ 3,015 

Net interest            $          $             $          $          $          $          $          $
income                    1,855      1,848         1,883      1,753      1,842      1,776      1,785      1,731 

Non-interest                                                                                             
income                    1,326      1,311         1,266      1,331      1,315      1,419      1,346      1,284 

Total revenue             3,181      3,159         3,149      3,084      3,157      3,195      3,131      3,015 

Provision for                                                                                            
credit losses               265        328           317        308        338        306        310        245 

Non-interest                                                                                             
expenses                  1,987      1,829         1,831      1,764      1,791      1,920      2,005      1,756 
                            929      1,002         1,001      1,012      1,028        969        816      1,014 

Income taxes                131        150           160        201        193        212        225        247 

Net income              $   798    $   852       $   841    $   811    $   835    $   757    $   591    $   767 

Net income                                                                                               
attributable to:                                                                                                

  Non-controlling       $          $             $          $          $          $          $          $
  interests                   2          2             2          1          3          3          2          3 

  Equity                                                                                                 
  shareholders              796        850           839        810        832        754        589        764 

Earnings per                                                                                             
share                                                                                                           
    - basic             $  1.91    $  2.02       $  2.00    $  1.90    $  1.94    $  1.80    $  1.35    $  1.83 
    - diluted              1.91       2.02          2.00       1.90       1.93       1.79       1.33       1.80 

(1)   Certain amounts have been reclassified to conform to the
      presentation adopted in the current period.  

(2)   Wholesale Banking revenue and income taxes are reported on a
      taxable equivalent basis (TEB) with an equivalent offset in the
      revenue and income taxes of Corporate and Other.  
       

Our quarterly results are modestly affected by seasonal factors. The second 
quarter has fewer days as compared with the other quarters, generally leading 
to lower earnings. The summer months (July - third quarter and August - fourth 
quarter) typically experience lower levels of capital markets activity, which 
affects our brokerage, investment management, and wholesale banking activities.

Revenue
Retail and Business Banking revenue has benefitted from volume growth across 
most retail products, offset to some extent by the continued low interest rate 
environment and attrition in our exited FirstLine mortgage business.

Wealth Management revenue has benefitted from continued strong net sales of 
long-term mutual funds and higher average assets under management. Income from 
our proportionate share in American Century Investments (ACI) is included from 
September 1, 2011 and a gain related to this equity-accounted investment was 
included in the first quarter of 2012.

Wholesale Banking revenue is influenced to a large extent by capital market 
conditions. Revenue had been adversely affected by losses in the structured 
credit run-off business up to the third quarter of 2012, while the fourth 
quarter included a gain. The second quarter of 2012 included the hedge 
accounting loss on leveraged leases. The fourth quarter of 2012 included a 
gain on sale of interests in entities in relation to the acquisition of TMX 
Group by Maple and a loss relating to the change in valuation of 
collateralized derivatives to an OIS basis.

Corporate and Other had lower unallocated treasury revenue in the second half 
of 2012 and first quarter of 2013. The current quarter also included a gain on 
sale of the private wealth management business (Asia).

Provision for credit losses
The provision for credit losses is dependent upon the credit cycle in general 
and on the credit performance of the loan portfolios. Losses in the cards 
portfolio improved in 2012 and the first quarter of 2013. Wholesale Banking 
provisions declined in the second and third quarters of 2011, while the fourth 
quarter of 2011 had higher losses in the exited European leveraged finance 
portfolio. During 2012, we had higher losses in U.S. real estate finance and 
the exited U.S. leveraged finance portfolio.

Non-interest expenses
Non-interest expenses have fluctuated over the period largely due to changes 
in employee compensation and benefits, including pension expense. An 
impairment loss relating to CIBC FirstCaribbean goodwill was recognized in the 
third quarter of 2011. The current quarter had higher expenses in the 
structured credit run-off business.

Income taxes
Income taxes vary with changes in income subject to tax, and the jurisdictions 
in which the income is earned. Taxes can also be affected by the impact of 
significant items. Tax-exempt income has been trending higher since the second 
quarter of 2011. The above-noted impairment loss relating to CIBC 
FirstCaribbean goodwill was not tax-effected.

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 GAAP (IFRS), 
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. For a more detailed discussion on our 
non-GAAP measures, see page 19 of the 2012 Annual Report.

The following table provides a reconciliation of non-GAAP to GAAP measures 
related to CIBC on a consolidated basis.
                                       2013           2012           2012  

$ millions, as                                                
at or for the
three months
ended                               Jan. 31        Oct. 31        Jan. 31  

Reported and                                                  
adjusted diluted
EPS                                                                        

Reported net                                                  
income
attributable to
diluted common
shareholders            A        $     771      $     821      $     776   

Adjusting items:                                                           

  After-tax                                                   
  impact of
  items of note(
  (1))                                  97              6             16   

Adjusted net                                                  
income
attributable to
diluted common
shareholders(
(2))                    B        $     868      $     827      $     792   

Reported diluted                                              
weighted-average
common shares
outstanding
(thousands)             C          403,770        405,844        401,613   

Reported diluted                                              
EPS ($)                A/C       $    1.91      $    2.02      $    1.93   

Adjusted diluted                                              
EPS ($) ((2))          B/C            2.15           2.04           1.97   

Reported and                                                  
adjusted
efficiency ratio                                                           

Reported total                                                
revenue                 D        $   3,181      $   3,159      $   3,157   

Adjusting items:                                                           

  Pre-tax impact                                              
  of items of
  note((1))                            (28)           (52)           (10)  

  TEB                                   92             92             57   

Adjusted total                                                
revenue ((2))           E        $   3,245      $   3,199      $   3,204   

Reported                                                      
non-interest
expenses                F        $   1,987      $   1,829      $   1,791   

Adjusting items:                                                           

  Pre-tax impact                                              
  of items of
  note((1))                           (165)           (21)           (17)  

Adjusted                                                      
non-interest
expenses ((2))          G        $   1,822      $   1,808      $   1,774   

Reported                                                      
efficiency ratio       F/D            62.5  %        57.9  %        56.7  %

Adjusted                                                      
efficiency ratio
((2))                  G/E            56.1  %        56.5  %        55.3  %

Reported and                                                  
adjusted
dividend payout
ratio                                                                      

Reported net                                                  
income
attributable to
common
shareholders            H        $     771            821            776   

Adjusting items:                                                           

  After-tax                                                   
  impact of
  items of note(
  (1))                                  97              6             16   

Adjusted net                                                  
income
attributable to
common
shareholders (
(2))                    I        $     868      $     827      $     792   

Dividends paid                                                
to common
shareholders            J        $     379      $     381      $     360   

Reported                                                      
dividend payout
ratio                  J/H            49.2  %        46.4  %        46.5  %

Adjusted                                                      
dividend payout
ratio ((2))            J/I            43.7  %        46.1  %        45.5  %
      
                         Retail

and $ millions, for the Business Wealth Wholesale Corporate CIBC three months ended Banking Management Banking and Other Total

Jan. 31 Reported net $ 611 $ 90 $ 91 $ 6 $ 798


        income

2013    Adjusting     ( )   ( ) ( )    ( ) ( )   ( ) ( )   ( ) ( )   ( )
        items:

After-tax ( ) ( ) ( ) impact of ( ) 2 - 109 (14) 97


            items of
            note((1))
        Adjusted net    $  613    $    90    $  200    $   (8)   $  895 
        income((2))

Oct. 31 Reported net    $  569    $    84    $  193    $    6    $  852 
        income

2012    Adjusting     ( )   ( ) ( )    ( ) ( )   ( ) ( )   ( ) ( )   ( )
        items:

After-tax ( ) ( ) ( ) impact of ( ) 2 - (1) 5 6


            items of
            note((1))
        Adjusted net    $  571    $    84    $  192    $   11    $  858 
        income((2))

Jan. 31 Reported net    $  567    $   100    $  133    $   35    $  835 
        income

2012    Adjusting     ( )   ( ) ( )    ( ) ( )   ( ) ( )   ( ) ( )   ( )
        items:

After-tax ( ) ( ) ( ) impact of ( ) 2 (35) 26 5 (2)


            items of
            note((1))
        Adjusted net    $  569    $    65    $  159    $   40    $  833 
        income((2))

(1) Reflects impact of items of note under "Financial results" section.

(2) Non-GAAP measure.

 

Strategic business units overview

CIBC has three SBUs - Retail and Business Banking, Wealth Management and 
Wholesale Banking. These SBUs are supported by six functional groups - 
Technology and Operations, Corporate Development, Finance, Treasury, 
Administration, and Risk Management, which form part of Corporate and Other. 
The revenue, expenses and balance sheet resources of these functional groups 
are generally allocated to the business lines within the SBUs. Corporate and 
Other also includes our International banking operations comprising mainly 
CIBC FirstCaribbean, strategic investments in the CIBC Mellon joint ventures 
and The Bank of N.T. Butterfield & Son Limited, and other income statement and 
balance sheet items not directly attributable to the business lines. The key 
methodologies and assumptions used in reporting financial results of our SBUs 
are provided on page 22 of the 2012 Annual Report.

Retail and Business Banking

Retail and Business Banking provides clients across Canada with financial 
advice, banking, investment, and authorized insurance products and services 
through a strong team of advisors and more than 1,100 branches, as well as our 
ABMs, mobile sales force, and telephone, online and mobile banking.

Results ((1))                                                        
                                                                       
                                   2013          2012          2012  

$ millions, for                                          
the three months
ended                           Jan. 31       Oct. 31       Jan. 31  

Revenue                                                              

  Personal                                               
  banking                     $  1,623      $  1,616      $  1,563   

  Business                                               
  banking                          380           378           373   

  Other                             62            42            93   

Total revenue                    2,065         2,036         2,029   

Provision for                                            
credit losses                      241           255           281   

Non-interest                                             
expenses                         1,021         1,030           996   

Income before                                            
taxes                              803           751           752   

Income taxes                       192           182           185   

Net income                    $    611      $    569      $    567   

Net income                                               
attributable to:                                                     

  Equity                                                 
  shareholders
  (a)                         $    611      $    569      $    567   

Efficiency ratio                  49.4  %       50.6  %       49.1  %

Return on equity                                         
((2))                             58.3  %       57.1  %       58.2  %

Charge for                                               
economic capital
((2))(b)                      $   (132)     $   (126)     $   (130)  

Economic profit (                                        
(2))(a+b)                     $    479      $    443      $    437   

Full-time                                                
equivalent
employees                       22,063        21,857        21,706   

(1)   For additional segmented information, see the  
      notes to the interim consolidated financial
      statements.

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

Financial overview
Net income for the quarter was $611 million, up $44 million or 8% from the 
same quarter last year, primarily due to lower provision for credit losses and 
higher revenue, partially offset by higher non-interest expenses.

Net income was up $42 million or 7% compared to the prior quarter, primarily 
due to higher revenue and lower provision for credit losses.

Revenue
Revenue was up $36 million or 2% from the same quarter last year.

Personal banking revenue was up $60 million or 4%, primarily due to volume 
growth across most products and wider spreads.

Business banking revenue was up $7 million or 2%, primarily due to volume 
growth and higher fees, partially offset by narrower spreads.

Other revenue was down $31 million mainly due to lower treasury allocations.

Revenue was up $29 million or 1% from the prior quarter.

Personal banking revenue was up $7 million, primarily due to volume growth.

Business banking revenue was comparable to the prior quarter.

Other revenue was up $20 million due to higher treasury allocations.

Provision for credit losses
Provision for credit losses was down $40 million or 14% from the same quarter 
last year due to lower write-offs and bankruptcies in the cards portfolio.

Provision for credit losses was down $14 million or 5% from the prior quarter, 
mainly due to lower losses in the business lending portfolio.

Non-interest expenses
Non-interest expenses were up $25 million or 3% from the same quarter last 
year, primarily due to increased spending on strategic business initiatives.

Non-interest expenses were down $9 million or 1% from the prior quarter, 
primarily due to lower advertising costs.

Income taxes
Income taxes were up $7 million or 4% from the same quarter last year due to 
higher income.

Income taxes were up $10 million or 5% from the prior quarter due to higher 
income.

Aeorplan Agreement
CIBC and Aimia Canada Inc. (Aimia) are parties to an agreement (the Aeroplan 
Agreement) pursuant to which CIBC pays Aimia for Aeroplan miles credited to 
participating CIBC cardholders' accounts, based on the value of the 
cardholders' purchases using such cards. The Aeroplan Agreement will expire on 
December 31, 2013 unless extended by the parties or replaced in accordance 
with its terms. CIBC has engaged in periodic extension discussions with Aimia 
but is also exploring alternatives to extending the Aeroplan Agreement. At 
this stage, there can be no assurance that the Aeroplan Agreement will be 
extended. 

Wealth Management

Wealth Management provides relationship-based advisory services and an 
extensive suite of leading investment solutions to meet the needs of 
institutional, retail and high net worth clients. Our asset management, retail 
brokerage and private wealth management businesses combine to create an 
integrated offer, delivered through nearly 1,500 advisors across Canada.

Results ((1))                                                          
                                                                       
                                     2013          2012          2012  

$ millions, for the                                        
three months ended                Jan. 31       Oct. 31       Jan. 31  

Revenue                                                                

  Retail brokerage              $    259      $    256      $    249   

  Asset management                   144           138           162   

  Private wealth                                           
  management                          29            26            24   

Total revenue                        432           420           435   

Non-interest expenses                315           308           312   

Income before taxes                  117           112           123   

Income taxes                          27            28            23   

Net income                      $     90      $     84      $    100   

Net income                                                 
attributable to:                                                       

  Equity shareholders                                      
  (a)                           $     90      $     84      $    100   

Efficiency ratio                    73.0  %       73.4  %       71.7  %

Return on equity (                                         
(2))                                19.1  %       18.9  %       24.5  %

Charge for economic                                        
capital ((2))(b)                $    (58)     $    (55)     $    (52)  

Economic profit ((2))                                      
(a+b)                           $     32      $     29      $     48   

Full-time equivalent                                       
employees                          3,765         3,783         3,721   

(1)   For additional segmented information, see the notes to the
      interim consolidated financial statements.

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

Financial overview
Net income for the quarter was $90 million, a decrease of $10 million or 10% 
from the same quarter last year due to a gain relating to an equity-accounted 
investment in the first quarter of 2012 included as an item of note. Excluding 
this gain, revenue was higher across all lines of business.

Net income was up $6 million or 7% compared to the prior quarter, primarily 
due to higher revenue, partially offset by higher non-interest expenses.

Revenue
Revenue was down $3 million or 1% compared to the same quarter last year.

Retail brokerage revenue was up $10 million or 4%, primarily due to higher 
fee-based revenue.

Asset management revenue was down $18 million or 11%, primarily due to a gain 
in the same quarter last year noted above, partially offset by higher client 
assets under management driven by higher long-term net sales of mutual funds 
and improved capital markets.

Private wealth management revenue was up $5 million or 21%, mainly due to 
higher assets under management driven by client growth, including the impact 
of the acquisition of the MFS McLean Budden private wealth management business 
in September 2012.

Revenue was up $12 million or 3% from the prior quarter.

Retail brokerage revenue was up $3 million or 1%, primarily due to higher 
commissions from equity trading and fee-based revenue.

Asset management revenue was up $6 million or 4%, primarily due to higher 
client assets under management driven by higher long-term net sales of mutual 
funds and improved capital markets.

Private wealth management revenue was up $3 million or 12%, mainly due to 
higher assets under management, including a full quarter impact of the 
acquisition noted above.

Non-interest expenses
Non-interest expenses were up $3 million or 1% from the same quarter last 
year, and up $7 million or 2% from the prior quarter, primarily due to higher 
performance-based compensation.

Income taxes
Income taxes were up $4 million from the same quarter last year mainly due to 
a lower tax rate on the gain discussed above.

Income taxes were comparable to the prior quarter.

Wholesale Banking

Wholesale Banking provides a wide range of credit, capital markets, investment 
banking and research products and services to government, institutional, 
corporate and retail clients in Canada and in key markets around the world.

Results ((1))                                                          
                                                                       
                                     2013          2012          2012  

$ millions, for the                                        
three months ended                Jan. 31       Oct. 31       Jan. 31  

Revenue                                                                

  Capital markets               $    328      $    295      $    307   

  Corporate and                                                        
  investment banking                 213           206           197 

  Other                               22            74            (9)  

Total revenue ((2))                  563           575           495   

Provision for credit                                       
losses                                10            66            26   

Non-interest expenses                445           263           289   

Income before taxes                  108           246           180   

Income taxes ((2))                    17            53            47   

Net income                      $     91      $    193      $    133   

Net income                                                 
attributable to:                                                       

  Equity shareholders                                                  
  (a)                           $     91      $    193      $    133 

Efficiency ratio (                                         
(2))                                79.0  %       45.7  %       58.3  %

Return on equity (                                         
(3))                                16.3  %       35.0  %       26.5  %

Charge for economic                                        
capital ((3))(b)                $    (68)     $    (70)     $    (65)  

Economic profit ((3))                                      
(a+b)                           $     23      $    123      $     68   

Full-time equivalent                                       
employees                          1,261         1,268         1,214   

(1)   For additional segmented information, see the notes to the
      interim consolidated financial statements.

(2)   Revenue and income taxes are reported on a TEB basis.
      Accordingly, revenue and income taxes include a TEB
      adjustment of $92 million for the three months ended
      January 31, 2013 ($92 million for the three months ended
      October 31, 2012 and $57 million for the three months
      ended January 31, 2012).  The equivalent amounts are
      offset in the revenue and income taxes of Corporate and
      Other.

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

Financial overview
Net income for the quarter was $91 million, down $42 million from the same 
quarter last year, mainly due to higher non-interest expenses, partially 
offset by higher revenue, a lower provision for credit losses and lower income 
taxes.

Net income was down $102 million from the prior quarter, mainly due to higher 
non-interest expenses, partially offset by a lower provision for credit losses.

Revenue 
Revenue was up $68 million or 14% from the same quarter last year.

Capital markets revenue was up $21 million, primarily due to higher revenue 
from equity derivatives and a reversal of a credit valuation adjustment (CVA) 
charge against credit exposures to derivative counterparties (other than 
financial guarantors), partially offset by lower foreign exchange and 
commodities trading revenue.

Corporate and investment banking revenue was up $16 million as higher revenue 
from corporate credit products was partially offset by lower revenue from U.S. 
real estate finance.

Other revenue was up $31 million, primarily due to gains in the structured 
credit run-off business in the current quarter compared to losses in the prior 
year quarter.

Revenue was down $12 million or 2% from the prior quarter.

Capital markets revenue was up $33 million, mainly due to higher revenue from 
fixed income and a reversal of the CVA charge noted above, partially offset by 
lower revenue from equity derivatives trading.  The prior quarter included a 
loss relating to the change in valuation of collateralized derivatives to an 
OIS basis, which was partially offset by a gain on the sale of an interest in 
an entity in relation to the acquisition of TMX Group by Maple, both included 
as items of note.

Corporate and investment banking revenue was up $7 million, primarily due to 
higher investment portfolio gains and higher revenue from corporate credit 
products, partially offset by lower revenue from U.S. real estate finance.

Other revenue was down $52 million from the prior quarter, primarily due to 
lower gains in the structured credit run-off business.

Provision for credit losses
Provision for credit losses was down $16 million from the same quarter last 
year due to lower losses in the U.S. real estate finance portfolio, and down 
$56 million from the prior quarter due to lower losses in the exited U.S. 
leveraged finance portfolio.

Non-interest expenses
Non-interest expenses were up $156 million or 54% from the same quarter last 
year, due to higher expenses in the structured credit run-off business related 
to the charge in respect of a settlement of the U.S. Bankruptcy Court 
adversary proceeding brought by the Estate of Lehman Brothers Holdings, Inc. 
(refer to "Structured credit run-off business" section for further details).

Non-interest expenses were up $182 million or 69% from the prior quarter, 
primarily due to higher expenses in the structured credit run-off business as 
noted above, and higher performance-based compensation.

Income taxes
Income tax expense for the quarter was $30 million lower than the prior year 
quarter, primarily due to lower income in the current quarter.

Income tax expense was $36 million lower than the prior quarter, primarily due 
to lower income in the current quarter.

Structured credit run-off business

The results of the structured credit run-off business are included in the 
Wholesale Banking SBU. 

Results                                                                
                                                                       
                                         2013        2012        2012  

$ millions, for the three             Jan. 31     Oct. 31     Jan. 31  
months ended

Net interest income                 $    (14)   $    (19)   $    (15)  
(expense)

Trading income (loss)                     18          31          (8)  

FVO losses                                (3)         (1)         (5)  

Other income                               5          42           1   

Total revenue                              6          53         (27)  

Non-interest expenses                    154           2           8   

Income (loss) before                    (148)         51         (35)  
taxes

Income taxes                             (39)         14          (9)  

Net income (loss)                   $   (109)   $     37    $    (26)  
                                                                       

The net loss for the quarter was $109 million (US$110 million), compared with 
$26 million (US$26 million) for the same quarter last year and net income of 
$37 million (US$37 million) for the prior quarter.

The net loss for the quarter was mainly due to a charge in respect of a 
settlement of the U.S. Bankruptcy Court adversary proceeding brought by the 
Estate of Lehman Brothers Holdings, Inc., a decrease in the value of 
receivables related to protection purchased from financial guarantors (on loan 
assets that are carried at amortized cost), resulting from an increase in the 
mark-to-market (MTM) of the underlying positions, and net interest expense, 
partially offset by a CVA gain relating to financial guarantors and gains on 
unhedged positions.

Position summary 
The following table summarizes our positions within our structured credit 
run-off business:  
                                                                                       Written credit                   
                           

derivatives, liquidity Credit protection purchased from

( Financial Other US$ millions, as at January 31, 2013 Investments and loans (1)) and credit facilities guarantors counterparties


                                   Fair                                                                                 
                           
                               value of           Fair       Carrying                                                   
                           
                               trading,       value of       value of                            Fair                   
                           

AFS securities securities value of Fair Fair

value value

and FVO classified classified written net net

credit of of

Notional securities as loans as loans Notional derivatives Notional CVA Notional CVA

USRMM - $ - $ - $ - $ - $ 278 $ 231 $ - $ - $ 278 $ 232 CDO

CLO 3,804 - 3,634 3,627 3,129 60 6,031 87 267 6

Corporate - - - - 4,977 38 - - 4,977 42 debt

Other 865 559 51 54 641 69 287 27 26 1

Unmatched - - - - - - 134 112 374 -

$ 4,669 $ 559 $ 3,685 $ 3,681 $ 9,025 $ 398 $ 6,452 $ 226 $ 5,922 $ 281

October $ 4,742 $ 564 $ 3,731 $ 3,749 $ 9,035 $ 455 $ 6,492 $ 269 $ 5,926 $ 316 31, 2012

(1) Excluded from the table above are equity and surplus note AFS


      securities that we obtained in consideration for commutation of
      our U.S. residential mortgage market (USRMM) contracts with
      financial guarantors. The equity securities had a carrying value
      of US$8 million (October 31, 2012: US$9 million) and the surplus
      notes had a notional value of US$140 million (October 31, 2012:
      US$140 million) and a carrying value of US$12 million (October
      31, 2012: US$12 million).
       

USRMM - collateralized debt obligation (CDO)
Our net USRMM position, consisting of a written credit derivative, amounted to 
US$47 million. This position was hedged through protection purchased from a 
large U.S.-based diversified multinational insurance and financial services 
company with which we have market-standard collateral arrangements.

Collateralized loan obligation (CLO)
CLO positions consist of super senior tranches of CLOs backed by diversified 
pools of primarily U.S. (62%) and European-based (36%) senior secured 
leveraged loans. As at January 31, 2013, approximately 22% of the total 
notional amount of the CLO tranches was rated equivalent to AAA, 72% was rated 
between the equivalent of AA+ and AA-, and the remainder was the equivalent of 
A. As at January 31, 2013, approximately 17% of the underlying collateral was 
rated equivalent to BB- or higher, 53% was rated between the equivalent of B+ 
and B-, 7% was rated equivalent to CCC+ or lower, with the remainder unrated. 
The CLO positions have a weighted-average life of 2.7 years and average 
subordination of 30%.

Corporate debt
Corporate debt exposure consists of a large matched super senior derivative, 
where CIBC has purchased and sold credit protection on the same reference 
portfolio. The reference portfolio consists of highly diversified, 
predominantly investment grade corporate credit. Claims on these contracts do 
not occur until cumulative credit default losses from the reference portfolio 
exceed 30% during the 47 month term of the contract. On this reference 
portfolio, we have sold protection to an investment dealer.

Other
Our significant positions in Other, as at January 31, 2013, include:
    --  US$214 million notional value of CDOs consisting of trust
        preferred securities (TruPs) collateral, which are Tier I
        Innovative Capital Instruments issued by U.S. regional banks
        and insurers. These securities are classified as FVO securities
        and had a fair value of US$167 million;
    --  US$167 million notional value of trading securities with a fair
        value of US$135 million, and US$292 million notional value of
        written protection with a fair value of US$67 million, on
        inflation-linked notes, and CDO tranches with collateral
        consisting of high-yield corporate debt portfolios, TruPs and
        non-U.S. residential mortgage-backed securities, with 55% rated
        between the equivalent of A+ and A-, 36% rated between the
        equivalent of BBB+ and BBB-, and the majority of the remaining
        rated equivalent of BB+ or lower;
    --  US$58 million notional value of an asset-backed security (ABS)
        classified as a loan, with fair value of US$49 million and
        carrying value of US$52 million;
    --  Variable rate Class A-1/A-2 notes classified as trading
        securities with a notional value of US$290 million and a fair
        value of US$247 million, tracking notes classified as AFS with
        a notional value of US$10 million and a fair value of US$2
        million, and loans with a notional value of US$59 million and
        fair value and carrying value of nil. These notes were
        originally received in exchange for our non-bank sponsored
        asset-backed commercial paper (ABCP) in January 2009, upon the
        ratification of the Montreal Accord restructuring; and
    --  US$296 million of undrawn Margin Funding Facility related to
        the Montreal Accord restructuring.

Unmatched
The underlyings in our unmatched positions are a reference portfolio of 
corporate debt and a loan backed by film receivables.

Credit protection purchased from financial guarantors and other counterparties
The following table presents the notional amounts and fair values of credit 
protection purchased from financial guarantors and other counterparties by 
counterparty credit quality, based on external credit ratings (Standard & 
Poor's (S&P) and/or Moody's Investors Service (Moody's)), and the underlying 
referenced assets. Excluded from the table below are certain performing loans 
and tranched securities positions in our continuing businesses, with a total 
notional amount of approximately US$60 million, which are partly secured by 
direct guarantees from financial guarantors or by bonds guaranteed by 
financial guarantors.

Credit protection purchased

from financial guarantors

Notional amounts of referenced assets and other counterparties

Corporate CDO - Total Fair Fair

value value

US$ millions as CLO debt USRMM Other Unmatched notional before CVA net at January 31, CVA of 2013 CVA

Financial

guarantors ((1))

Investment $ 3,697 $ - $ - $ 57 $ 134 $ 3,888 $ 223 $ (37) $ 186 grade

Non-investment 75 - - 177 - 252 35 (21) 14 grade

Unrated 2,259 - - 53 - 2,312 50 (24) 26

- - 287 134 6,452 308 (82) 226

6,031

Other

counterparties ( (1))

Investment 267 20 278 26 - 591 238 2 240 grade

Unrated - 4,957 - - 374 5,331 41 - 41

267 4,977 278 26 374 5,922 279 2 281

$ 6,298 $ 4,977 $ 278 $ 313 $ 508 $ 12,374 $ 587 $ (80) $ 507

October 31, 2012 $ 6,284 $ 4,968 $ 298 $ 356 $ 512 $ 12,418 $ 692 $ (107) $ 585

(1) In cases where one credit rating agency does not provide a


        rating, the classification in the table is based on the rating
        provided by the other agency. Where ratings differ between
        agencies, we use the lower rating.
       

The unrated other counterparties are primarily two Canadian conduits. These 
conduits are in compliance with their collateral posting arrangements and have 
posted collateral exceeding current market exposure. The fair value of the 
collateral as at January 31, 2013 was US$360 million relative to US$41 million 
of net exposure.

Lehman Brothers bankruptcy proceedings
During the quarter, CIBC recognized a US$150 million charge (US$110 million 
after-tax) in respect of the full settlement of the U.S. Bankruptcy Court 
adversary proceeding brought by the Estate of Lehman Brothers Holdings, Inc. 
challenging the reduction to zero of our unfunded commitment on a variable 
funding note. In 2008, we recognized a US$841 million gain on the variable 
funding note as further detailed in Note 23 of the 2012 consolidated financial 
statements.

Corporate and Other

Corporate and Other includes the six functional groups - Technology and 
Operations, Corporate Development, Finance, Treasury, Administration, and Risk 
Management - that support CIBC's SBUs. The revenue, expenses and balance sheet 
resources of these functional groups are generally allocated to the business 
lines within the SBUs. Corporate and Other also includes our International 
banking operations comprising mainly CIBC FirstCaribbean, strategic 
investments in the CIBC Mellon joint ventures and The Bank of N.T. Butterfield 
& Son Limited, and other income statement and balance sheet items not directly 
attributable to the business lines.

Results ((1))                                                          
                                                                       
                                       2013          2012          2012

$ millions, for the                                            
three months ended                  Jan. 31       Oct. 31       Jan. 31

Revenue                                                                

  International                 $             $             $  
  banking                              163           149           148 

  Other                                (42)          (21)           50 

Total revenue ((2))                    121           128           198 

Provision for credit                                           
losses                                  14             7            31 

Non-interest expenses                  206           228           194 

Income (loss) before                                           
taxes                                  (99)         (107)          (27)

Income taxes ((2))                    (105)         (113)          (62)

Net income                      $        6    $        6    $       35 

Net income                                                     
attributable to:                                                       

  Non-controlling               $             $             $  
  interests                              2             2             3 

  Equity shareholders                    4             4            32 

Full-time equivalent                                           
employees                           15,704        15,687        15,540 

(1)    For additional segmented information, see the notes to the
       interim consolidated financial statements.  

(2)    TEB adjusted. See footnote 2 in "Wholesale Banking" section for
       additional details.
        

Financial overview
Net income for the quarter was $6 million, down $29 million from the same 
quarter last year primarily due to lower revenue.

Net income was comparable to the prior quarter.

Revenue
Revenue was down $77 million or 39% from the same quarter last year.

International banking revenue was up $15 million or 10% from the same quarter 
last year, primarily due to a gain on sale of the private wealth management 
business, included as an item of note.

Other revenue was down $92 million from the same quarter last year due to 
lower unallocated treasury revenue and a higher TEB adjustment.

Revenue was down $7 million or 5% from the prior quarter.

International banking revenue was up $14 million or 9% from the prior quarter, 
primarily due to a gain on sale of the private wealth management business 
noted above.

Other revenue was down $21 million from the prior quarter, primarily due to 
lower unallocated treasury revenue and lower income from equity-accounted 
investments.

Provision for credit losses
Provision for credit losses was down $17 million compared to the same quarter 
last year, mainly due to lower losses in CIBC FirstCaribbean and higher 
provision reversals of collectively assessed credit losses relating to the 
cards and commercial banking portfolios, partially offset by higher provision 
in the personal lending portfolio.

Provision for credit losses was up $7 million from the prior quarter, mainly 
due to higher losses in CIBC FirstCaribbean. Net higher provision reversals of 
collectively assessed credit losses relating to the cards portfolio were 
offset by higher provision in the personal lending portfolio.

Non-interest expenses
Non-interest expenses were up $12 million or 6% from the same quarter last 
year, mainly due to higher unallocated corporate support costs.

Non-interest expenses were down $22 million or 10% from the prior quarter, 
mainly due to lower unallocated corporate support costs.

Income taxes
Income tax benefit was up $43 million from the same quarter last year, 
primarily due to a higher TEB adjustment.

Income tax benefit was down $8 million from the prior quarter.

Financial condition

Review of condensed consolidated balance sheet
                                                    2013           2012

$ millions, as at                                Jan. 31        Oct. 31

Assets                                                                 

Cash and deposits with banks                  $   5,636      $   4,727 

Securities                                       67,020         65,334 

Securities borrowed or purchased under           29,058         28,474 
resale agreements

Loans and acceptances, net of allowance         251,139        252,732 

Derivative instruments                           25,085         27,039 

Other assets                                     14,845         15,079 
                                              $ 392,783      $ 393,385 

Liabilities and equity                                                 

Deposits                                      $ 306,304      $ 300,344 

Capital Trust securities                          1,669          1,678 

Obligations related to securities lent           18,289         21,259 
or sold short or under repurchase
agreements

Derivative instruments                           24,551         27,091 

Other liabilities                                20,004         21,152 

Subordinated indebtedness                         4,791          4,823 

Equity                                           17,175         17,038 
                                              $ 392,783      $ 393,385 
                                                                

Assets
As at January 31, 2013, total assets were down $602 million from October 31, 
2012.

Cash and deposits with banks increased by $909 million or 19% mostly due to 
higher treasury deposit placements.

Securities increased by $1.7 billion or 3%, with increases in both AFS 
securities and trading securities. AFS securities increased mainly in 
government-issued or guaranteed securities. Trading securities increased 
largely in the equity portfolios.

Net loans and acceptances decreased by $1.6 billion. Residential mortgages 
were down $1.1 billion, primarily due to attrition in our FirstLine mortgage 
business, partially offset by new mortgage originations through CIBC channels. 
Personal loans were down $556 million and credit card loans were down $330 
million due to net repayments. Business and government loans and acceptances 
were up $348 million due to growth in our domestic and international 
portfolios.

Derivative instruments decreased by $2.0 billion or 7% largely driven by 
valuation of interest rate derivatives.

Other assets decreased by $234 million or 2%, mainly due to a decrease in 
collateral pledged for derivatives, partially offset by an increase in income 
taxes receivable as a result of payments made in the quarter.

Liabilities
As at January 31, 2013, total liabilities were down $739 million from October 
31, 2012.

Deposits increased by $6.0 billion or 2%, primarily driven by business and 
government and personal volume growth.

Obligations related to securities lent or sold short or under repurchase 
agreements decreased by $3.0 billion or 14%, primarily due to client-driven 
activities.

Derivative instruments decreased by $2.5 billion or 9% due to the valuation of 
interest rate derivatives.

Other liabilities decreased by $1.1 billion or 5%, mainly due to lower 
acceptances and accrued liabilities.

Equity
As at January 31, 2013, equity increased by $137 million or 1%, primarily due 
to a net increase in retained earnings, and the issuance of common shares 
pursuant to the stock option, shareholder investment, and employee share 
purchase plans (ESPP). These were offset in part by common shares purchased 
for cancellation, as explained in the "Significant capital management 
activity" section below.

Capital resources

We actively manage our capital to maintain a strong and efficient capital 
base, to maximize risk-adjusted returns to shareholders, and to meet 
regulatory requirements. For additional details on capital resources, see 
pages 35 to 39 of the 2012 Annual Report.

Basel III and revisions to regulatory capital requirements
Our regulatory capital requirements are determined in accordance with 
guidelines issued by OSFI.

On December 10, 2012, OSFI issued the final version of revisions to its 
guidelines for capital adequacy in Canada which incorporate the adoption of 
the significant capital reforms, referred to as Basel III, issued by the BCBS. 
The most significant aspects of the reforms are measures to improve the 
quality of capital and increase capital requirements for the global financial 
system. These measures are discussed further on page 37 of the 2012 Annual 
Report.

OSFI expects all institutions to establish target capital ratios that meet or 
exceed the 2019 all-in( (i))( )minimum ratios plus conservation buffer early 
in the transition period. For the Common Equity Tier 1 ratio, the target is 7% 
by the first quarter of 2013. The targets for the Tier 1 capital ratio and 
Total capital ratio are 8.5% and 10.5%, respectively, to be established by the 
first quarter of 2014. These targets may be higher for certain institutions or 
groups of institutions if OSFI feels the circumstances warrant it.

OSFI's capital adequacy guidelines provide for a deferral of the additional 
capital charge to cover credit valuation charges for bilateral OTC derivatives 
to January 1, 2014.  The delay provides for a coordinated start on the 
implementation of this new requirement with other significant jurisdictions

Regulatory capital

Our capital ratios and assets-to-capital multiple (ACM) are presented in the 
following table:  
                                         2013               2012  

$ millions, as                                       
at                                    Jan. 31 ((1))      Oct. 31 ((1))

Basel III-                                           
Transitional
basis                                                             

Common Equity                                        
Tier 1 capital                     $  15,556                 n/a  

Tier 1 capital                        16,718                 n/a  

Total capital                         20,689                 n/a  

RWA                                  134,821                 n/a  

Common Equity                                        
Tier 1 ratio                            11.5  %              n/a  

Tier 1 capital                                       
ratio                                   12.4  %              n/a  

Total capital                                        
ratio                                   15.3  %              n/a  

ACM                                     17.9  x              n/a  

Basel III-                                           
All-in basis                                                      

Common Equity                                        
Tier 1 capital                     $  12,077                 n/a  

Tier 1 capital                        15,179                 n/a  

Total capital                         19,352                 n/a  

RWA                                  126,366                 n/a  

Common Equity                                        
Tier 1 ratio                             9.6  %              n/a  

Tier 1 capital                                       
ratio                                   12.0  %              n/a  

Total capital                                        
ratio                                   15.3  %              n/a  

Basel II                                                          

Tier 1 capital                            n/a         $  15,940  ((2))

Total capital                             n/a            19,924  ((2))

RWA                                       n/a           115,229   

Tier 1 capital                                       
ratio                                     n/a              13.8  %

Total capital                                        
ratio                                     n/a              17.3  %

ACM                                       n/a              17.4  x

(1)   Capital measures for fiscal year 2013 are based on Basel III
      whereas prior period measures are based on Basel II.

(2)   Incorporates OSFI's IFRS transitional relief election.  

n/a   Not applicable.   
       

Effective in the first quarter of 2013, regulatory capital requirements are 
based on the Basel III methodology, while requirements for the fourth quarter 
of 2012 were determined on a Basel II basis. As a result of the change in 
methodology, the regulatory capital information at October 31, 2012 and 
January 31, 2013 is not comparable.

All-in basis((i))
On an all-in basis((i)) under Basel III, regulatory adjustments are deducted 
from common equity for the purpose of calculating the new Common Equity Tier 1 
ratio. The regulatory adjustments include a broad range of items, such as 
goodwill, intangible assets, pension assets, deferred tax assets and equity 
investments in financial entities subject to investment thresholds and limits.

RWAs increased from October 31, 2012. This is largely attributable to the 
implementation of the following Basel III changes:
    --  A 1.25 multiplier is applied to the correlation parameter for
        exposures to financial institutions under the internal ratings
        based approach subject to certain criteria;
    --  Items that were previously deducted from capital under Basel II
        (such as significant investments in commercial entities and
        exposures relating to securitization that were deducted from
        capital) are now risk-weighted at 1,250%;
    --  Significant investments in the equity of financial entities and
        deferred tax assets arising from temporary differences are only
        deducted if they exceed certain thresholds; the amounts not
        deducted are risk weighted at 250%; and
    --  Higher capital requirements for exposures that give rise to
        greater degrees of wrong-way risk.

Transitional basis
Under Basel III, transitional RWAs differ from RWAs on an all-in basis. On a 
transitional basis certain deductions from capital will be phased in at 20% 
per year starting in 2014.  The amount not yet deducted from capital is 
risk-weighted accordingly.

((i)) "All-in" is defined by OSFI as capital calculated to include all of the 
regulatory adjustments that will be required by 2019, but retaining the 
phase-out rules for non-qualifying capital instruments.

Significant capital management activity 
Normal course issuer bid
During the quarter, we purchased and cancelled 3,337,300 common shares under 
the normal course issuer bid at an average price of $80.69 for a total amount 
of $269 million.

Off-balance sheet arrangements

We enter into off-balance sheet arrangements in the normal course of our 
business. We consolidate all of our sponsored trusts that securitize our own 
assets with the exception of the commercial mortgage securitization trust.

CIBC-sponsored conduits
We sponsor a single-seller conduit and several multi-seller conduits 
(collectively, the conduits) in Canada.

As at January 31, 2013, the underlying collateral for various asset types in 
our multi-seller conduits amounted to $1.5 billion (October 31, 2012: $1.6 
billion). The estimated weighted-average life of these assets was 1.3 years 
(October 31, 2012: 9 months). Our holdings of commercial paper issued by our 
non-consolidated sponsored multi-seller conduits that offer commercial paper 
to external investors were $15 million (October 31, 2012: $23 million). Our 
committed backstop liquidity facilities to these conduits were $2.2 billion 
(October 31, 2012: $2.2 billion). We also provided credit facilities of $30 
million (October 31, 2012: $30 million) to these conduits as at January 31, 
2013.

We participated in a syndicated facility for a 3-year commitment of $575 
million to our single-seller conduit that provides funding to franchisees of a 
major Canadian retailer. Our portion of the commitment was $110 million 
(October 31, 2012: $110 million). As at January 31, 2013, we funded $81 
million (October 31, 2012: $80 million) through the issuance of bankers' 
acceptances.

2013 2012

$ millions, as

at Jan. 31 Oct. 31


                                              Undrawn                                                 Undrawn           
          

Investment liquidity Written Investment liquidity Written

and and credit credit and and credit credit


                                     (                                   (                   (                          
         (

loans (1)) facilities derivatives (2)) loans (1)) facilities derivatives (2))

CIBC sponsored $ $ $ $ $ $

conduits 96 1,464 - 103 1,554

-

CIBC

structured CDO vehicles 229 42 210 232 40 207

Third-party

structured vehicles

Structured

credit run-off 4,449 370 3,509 4,313 333 4,382

Continuing 765 25 - 1,004 23

-

Pass-through

investment structures 2,716 - - 2,182 -

-

Commercial

mortgage securitization trust 2 - - 1 -

-

(1) Excludes securities issued by, retained interest in, and


      derivatives with entities established by CMHC, Federal National
      Mortgage Association (Fannie Mae), Federal Home Loan Mortgage
      Corporation (Freddie Mac), Government National Mortgage
      Association (Ginnie Mae), Federal Home Loan Banks, Federal Farm
      Credit Bank, and Student Loan Marketing Association (Sallie Mae).
      $3.8 billion (October 31, 2012: $3.7 billion) of the exposures
      related to CIBC-structured vehicles and third-party structured
      vehicles - structured credit run-off were hedged.

(2)   The negative fair value recorded on the interim consolidated
      balance sheet was $486 million (October 31, 2012: $1.2 billion).
      Notional of $3.3 billion (October 31, 2012: $3.3 billion) was
      hedged with credit derivatives protection from third parties. The
      fair value of these hedges net of CVA was $277 million (October
      31, 2012: $307 million). An additional notional of $198 million
      (October 31, 2012: $1.0 billion) was hedged through a limited
      recourse note. Accumulated fair value losses were $24 million
      (October 31, 2012: $26 million) on unhedged written credit
      derivatives.  
         

Additional details of our structured entities are provided in Note 5 to the 
interim consolidated financial statements. Details of our other off-balance 
sheet arrangements are provided on pages 39 to 41 of the 2012 Annual Report. 

Management of risk

Our approach to management of risk has not changed significantly from that 
described on pages 42 to 68 of the 2012 Annual Report. Certain disclosures in 
this section have been shaded as they are required under IFRS 7 "Financial 
Instruments - Disclosures" and form an integral part of the interim 
consolidated financial statements.

Risk overview
We manage risk and related balance sheet resources within tolerance levels 
established by our management committees and approved by the Board of 
Directors and its committees. Key risk management policies are reviewed and 
approved by the applicable Board and management committees annually. Further 
details on the Board and management committees, as applicable to the 
management of risk, are provided on pages 42 and 43 of the 2012 Annual Report.

The five key groups within Risk Management, independent of the originating 
businesses, contribute to our management of risk:
    --  Capital Markets Risk Management - This unit provides
        independent oversight of the measurement, monitoring and
        control of market risks (both trading and non-trading), trading
        credit risk and trading operational risk across CIBC's
        portfolios;
    --  Card Products Risk Management - This unit oversees the
        management of credit risk in the card products portfolio,
        including the optimization of credit portfolio quality;
    --  Retail Lending and Wealth Risk Management - This unit primarily
        oversees the management of credit and fraud risk in the retail
        lines of credit and loans, residential mortgage, and small
        business loan portfolios, including the optimization of credit
        portfolio quality. This unit is also responsible for overall
        risk management oversight of wealth management activities;
    --  Wholesale Credit and Investment Risk Management - This unit is
        responsible for the adjudication and oversight of credit risks
        associated with our commercial and wholesale lending activities
        globally, management of the risks of our investment portfolios,
        as well as management of the special loans portfolios; and
    --  Risk Services - This unit is responsible for enterprise-wide
        analysis and reporting. Risk Services is also responsible for
        economic capital methodologies and policies, and CIBC's
        operational risk framework.

Liquidity, funding and interest rate risks are managed by Treasury. The 
measurement, monitoring and control of these risks are addressed in 
collaboration with Risk Management, with oversight provided by the Asset 
Liability Committee (ALCO).

Credit risk

Credit risk primarily arises from our direct lending, trading, investment and 
hedging activities. Credit risk is defined as the risk of financial loss due 
to a borrower or counterparty failing to meet its obligations in accordance 
with contractual terms.

Exposure to credit risk                                           
                                               2013           2012

$ millions, as at                           Jan. 31        Oct. 31

Business and government                                           
portfolios-advanced internal
ratings-based (AIRB) approach

Drawn                                    $  78,123      $  75,666 

Undrawn commitments                         33,251         33,208 

Repo-style transactions                     47,119         56,938 

Other off-balance sheet                     54,115         52,322 

Over-the-counter (OTC) derivatives          14,398         14,426 

Gross exposure at default (EAD) on         227,006        232,560 
business and government portfolios

Less: repo collateral                       37,381         48,152 

Net EAD on business and government         189,625        184,408 
portfolios

Retail portfolios-AIRB approach                                   

Drawn                                      193,113        194,586 

Undrawn commitments                         60,219         69,778 

Other off-balance sheet                        345            370 

Gross EAD on retail portfolios             253,677        264,734 

Standardized portfolios                     11,667         11,808 

Securitization exposures                    18,872         19,003 

Gross EAD                                $ 511,222      $ 528,105 

Net EAD                                  $ 473,841      $ 479,953 
                                                           

Real estate secured personal lending
Real estate secured personal lending comprises residential mortgages and 
personal loans and lines secured by residential property (HELOC). This 
portfolio is low risk where we have a first charge on the majority of the 
properties, and second lien on only a small portion of the portfolio. We use 
the same lending criteria in the adjudication of both first lien and second 
lien loans.

Under the Bank Act, banks are limited to providing residential real estate 
loans of no more than 80% of the collateral value. An exception is made for 
loans with a higher loan-to-value (LTV) ratio if they are insured by either 
Canada Mortgage and Housing Corporation (CMHC) or a private mortgage insurer. 
Mortgage insurance protects banks from the risk of default by the borrower, 
over the term of the coverage. Private mortgage insurers are subject to 
regulatory capital requirements, which aim to ensure that they are well 
capitalized.  If a private mortgage insurer becomes insolvent, the Government 
of Canada has, provided certain conditions are met, obligations in respect of 
policies underwritten by certain insolvent private mortgage insurers as more 
fully described in the recently enacted Protection of Residential Mortgage or 
Hypothecary Insurance Act (PRMHIA).  There is a possibility that losses could 
be incurred in respect of insured mortgages if, among other things, CMHC or 
the applicable private mortgage insurer denies a claim, or further, if a 
private mortgage insurer becomes insolvent and either the conditions under the 
PRMHIA are not met or the Government of Canada denies the claim.  No material 
losses are expected in the mortgage portfolio.

The following table provides details on our Canadian residential mortgage and 
HELOC portfolios:
                               Residential mortgages             HELOC( (1))                                Total

$                                   (                                                                (                  
  
billions,                        (2))                                                             (2))
as at
January
31, 2013                 Insured              Uninsured            Uninsured              Insured              
Uninsured

Ontario         $  49.0      74     %   $ 16.8      26  %   $  9.5      100  %   $  49.0      65     %   $ 26.3      35 
 %

British                      73            7.7      27         4.0      100         20.8      64           11.7      36 
  
Columbia           20.8 

Alberta            18.1      77            5.3      23         3.0      100         18.1      69            8.3      31 
    Quebec              8.4      81            2.0      19         1.5      100          8.4      71            3.5      29 
    Other              12.6      82            2.8      18         1.9      100         12.6      73            4.7      27 

Total 76 34.6 24 19.9 100 108.9 67 54.5 33

Canadian portfolio 108.9

October $ 76 % $ 34.8 24 % $ 20.1 100 % $ 109.5 67 % $ 54.9 33 % 31, 2012 109.5

(1) We did not have any insured HELOCs as at


      January 31, 2013 and October 31, 2012.

(2)   93% (October 31, 2012: 93%) is insured by   
      CMHC and the remaining by two private
      Canadian insurers, both rated at least AA
      (low) by DBRS.
                                                  

The average LTV ratio((1)) for our Canadian uninsured residential mortgages 
and HELOCs portfolios originated during the quarter are provided in the 
following table. We did not acquire uninsured residential mortgages and HELOCs 
from a third party for the periods presented in the table below.

 

For the three months ended January   Residential mortgages     HELOC  
31, 2013

Ontario                                                67  %   66    %

British Columbia                                       63      60     

Alberta                                                68      66     

Quebec                                                 69      67     

Other                                                  70      66     

Total Canadian portfolio                               67  %   64    %

October 31, 2012                                       64  %   61    %

January 31, 2012                                       62  %   59    %

(1)    Based on house price at origination.

 

The following table provides details on the average LTV ratio on our total 
Canadian residential mortgage portfolio:
                       Insured    Uninsured   

January 31, 2013( (1))      48  %        51  %

October 31, 2012( (2))      48  %        50  %

(1)   Based on latest available industry house price estimates from
      Teranet (December 31, 2012). 

(2)   Based on industry house price estimates from Teranet (September
      30, 2012).

The tables below summarize the remaining amortization profile of our Canadian 
residential mortgages. The first table provides the remaining amortization 
periods based on the minimum contractual payment amounts. The second table 
provides the remaining amortization periods based upon current customer 
payment amounts, which incorporate payments larger than the minimum 
contractual amount and/or higher frequency of payments. 

Contractual payment basis
                       Less                                                             35   
                       than                                                          years
                          5     5-10    10-15    15-20    20-25    25-30    30-35      and   
                      years    years    years    years    years    years    years    above

January 31, 2013          1  %     1  %     3  %    13  %    20  %    29  %    30  %     3  %

October 31, 2012          1  %     1  %     3  %    13  %    21  %    27  %    31  %     3  %

Current customer payment basis
         Less                                                       35  
         than                                                    years
            5     5-10   10-15   15-20   20-25   25-30   30-35     and  
        years    years   years   years   years   years   years   above

January
31,         3  %    7  %   12  %   16  %   20  %   25  %   15  %    2  %
2013

October
31,         3  %    7  %   12  %   16  %   20  %   26  %   14  %    2  %
2012

 

We have two types of condominium exposures in Canada: mortgages and developer 
loans. Both are primarily concentrated in the Toronto and Vancouver areas. As 
at January 31, 2013, our Canadian condominium mortgages were $16.8 billion 
(October 31, 2012: $17.0 billion) of which 77% (October 31, 2012: 77%) were 
insured. Our drawn developer loans were $789 million (October 31, 2012: $701 
million) or 1% of our business and government portfolio and our related 
undrawn exposure was $2.0 billion (October 31, 2012: $2.0 billion). The 
condominium developer exposure is diversified across 73 projects.

We stress test our mortgage and HELOC portfolio to determine the potential 
impact of different economic events. Our stress tests can use variables such 
as GDP, unemployment, bankruptcy rates, debt service ratios and delinquency 
trends, which are reflective of potential ranges of housing price declines, to 
model potential outcomes for a given set of circumstances. The stress testing 
involves variables that could behave differently in certain situations. Our 
main tests use economic variables in a similar range to the early 1980s and 
early 1990s when Canada experienced economic downturns. Our results show that 
in an economic downturn, our strong capital position should be sufficient to 
absorb mortgage and HELOC losses.

Counterparty credit exposure

We have counterparty credit exposure that arises from our interest rate, 
foreign exchange, equity, commodity, and credit derivatives trading, hedging, 
and portfolio management activities, as explained in Note 12 to the 
consolidated financial statements in our 2012 Annual Report.

We establish a CVA for expected future credit losses from each of our 
derivative counterparties. As at January 31, 2013, the CVA for all derivative 
counterparties was $97 million (October 31, 2012: $137 million).

The following table shows the rating profile of OTC derivative MTM receivables 
(after CVA and derivative master netting agreements but before any collateral).
                                      2013                2012  

$ billions, as at                  Jan. 31             Oct. 31  

S&P rating equivalent                           Exposure

  AAA to BBB-         $    4.21      83.6  % $ 5.46      81.4  %

  BB+ to B-                0.82      16.3      1.22      18.2   

  CCC+ to CCC-                -         -      0.02       0.2   

  Below CCC-                  -         -      0.01       0.1   

  Unrated                  0.01       0.1      0.01       0.1   
                      $    5.04     100.0  % $ 6.72     100.0  %
                                                                

The following table provides the details of our impaired loans and allowances 
for credit losses:
                                             2013      2012

$ millions, as at                      Jan. 31   Oct. 31

Gross impaired loans                                    

Consumer                             $    757  $    739 

Business and government                   992     1,128 

Total gross impaired loans           $  1,749  $  1,867 

Allowance for credit losses                             

Consumer                             $  1,121  $  1,121 

Business and government                   699       739 

Total allowance for credit losses    $  1,820  $  1,860 

Comprises:                                              

Individual allowance for loans       $    446  $    475 

Collective allowance for loans( (1))    1,374     1,385 

Total allowance for credit losses    $  1,820  $  1,860 
    (1)   Excludes allowance on undrawn credit facilities of $61      
                    million (October 31, 2012: $56 million).

Gross impaired loans (GIL) were down $118 million or 6% from October 31, 2012. 
Consumer GIL was up $18 million or 2%, mainly driven by residential mortgages 
and personal lending. Business and government GIL was down $136 million or 
12%, attributable to decreases in the publishing, printing and broadcasting, 
and oil and gas sectors.

The total allowance for credit losses was down $40 million or 2% from October 
31, 2012. Canadian and U.S. allowances for credit losses comprise 71% and 12%, 
respectively, of the total allowance. The individually assessed allowance was 
down $29 million or 6% from October 31, 2012, mainly driven by the oil and gas 
sector. The collectively assessed allowance was down $11 million or 1% from 
October 31, 2012, largely driven by an improvement in the cards portfolio.

For details on the provision for credit losses, see the "Overview" section.

Exposure to certain countries and regions

Several European countries, especially Greece, Ireland, Italy, Portugal, and 
Spain, have continued to experience credit concerns. The following tables 
provide our exposure to these and other European countries, both within and 
outside the Eurozone. Except as noted in our indirect exposures section below, 
we do not have any other exposure through our special purpose entities (SPEs) 
to the countries included in the tables below.

We do not have a material exposure to the countries in the Middle East and 
North Africa that have either experienced or may be at risk of unrest. These 
countries include Algeria, Bahrain, Egypt, Jordan, Lebanon, Libya, Morocco, 
Oman, Saudi Arabia, Syria, Tunisia, and Yemen.

Direct exposures to certain countries and regions

Our direct exposures presented in the tables below comprise (A) funded - 
on-balance sheet loans (stated at amortized cost net of allowances, if any), 
deposits with banks (stated at amortized cost net of allowances, if any) and 
securities (stated at fair value); (B) unfunded - unutilized credit 
commitments, letters of credit, and guarantees (stated at notional amount net 
of allowances, if any) and sold credit default swap (CDS) contracts where we 
do not benefit from subordination (stated at notional amount less fair value); 
and (C) derivative MTM receivables (stated at fair value) and repo-style 
transactions ((1)) (stated at fair value). Of our total direct exposures to 
Europe, approximately 97% (October 31, 2012: 98%) is to entities in countries 
with Aaa/AAA ratings from at least one of Moody's or S&P.

The following tables provide a summary of our positions in this business:
                                                      Direct exposures 
                                    Funded                            Unfunded 
                                                                                     
                                             Total                              Total
                                            funded                           unfunded

$ millions,  Corporate Sovereign     Bank      (A)   Corporate                    (B)
as at                                                                 Bank
January 31,
2013

Austria      $      -  $     75  $     -  $    75    $      -       $   -  $       - 

Belgium             4         -       30       34           -           -          - 

Finland             1         -        2        3           -           -          - 

France             48         -        5       53          11           6         17 

Germany           220        42       12      274          69           -         69 

Greece              2         -        -        2           -           -          - 

Ireland             -         -        -        -           -           -          - 

Italy               -         -        -        -           -           1          1 

Luxembourg          1         -       51       52           -           -          - 

Malta               -         -        -        -           -           -          - 

Netherlands         9       219       65      293           -          10         10 

Portugal            -         -        -        -           -           -          - 

Spain               -         -        1        1           -           -          - 

Total        $    285  $    336  $   166  $   787    $     80       $  17  $      97 
Eurozone

Denmark             -         3       26       29           -          13         13 

Guernsey            -         -        -        -           -           -          - 

Norway              -        96      116      212           -           -          - 

Russia              -         -        -        -           -           -          - 

Sweden            160        93      259      512          43           -         43 

Switzerland       248         -      124      372         303           -        303 

Turkey              -         -       15       15           -           2          2 

United            617       269      645    1,531       1,202     (    65      1,267 
Kingdom                                                        (2))

Total        $  1,025  $    461  $ 1,185  $ 2,671    $  1,548       $  80  $   1,628 
non-Eurozone

Total Europe $  1,310  $    797  $ 1,351  $ 3,458    $  1,628       $  97  $   1,725 

October 31,  $  1,141  $    863  $ 1,287  $ 3,291    $  1,397       $ 190  $   1,587 
2012

(1) Comprises securities purchased and sold under
    repurchase agreements for cash collateral; securities
    borrowed and lent for cash collateral; and securities
    borrowed and lent for securities collateral.

(2) Includes $144 million of exposure (notional value of
    $181 million and fair value of $37 million) on a CDS
    sold on a bond issue of a U.K. corporate entity, which
    is guaranteed by a financial guarantor. We currently
    hold the CDS sold as part of our structured credit
    run-off business. A payout on the CDS sold would be
    triggered by the bankruptcy of the reference entity, or
    a failure of the entity to make a principal or interest
    payment as it is due; as well as failure of the
    financial guarantor to meet its obligation under the
    guarantee.
                                                             Direct exposures (continued)
                             Derivative MTM receivables and repo-style transactions             Total
                                                                                       Net     direct
                                                   Gross        Collateral        exposure   exposure

$ millions,
as at          Corporate   Sovereign     Bank   exposure    (         held    (        (C)   (A)+(B)+
January 31,                                              (1))              (2))                   (C)
2013

Austria      $        -  $        -  $    32  $      32       $        32       $       -  $      75 

Belgium               -           1       43         44                43               1         35 

Finland               -           -        7          7                 -               7         10 

France                -         298      641        939               931               8         78 

Germany               -           -    1,384      1,384             1,179             205        548 

Greece                -           -        -          -                 -               -          2 

Ireland               -           -      231        231               221              10         10 

Italy                 -           -       28         28                24               4          5 

Luxembourg            -           -        1          1                 -               1         53 

Malta                 -           -        1          1                 -               1          1 

Netherlands           -           -      227        227               213              14        317 

Portugal              -           -        -          -                 -               -          - 

Spain                 -           -        4          4                 4               -          1 

Total        $        -  $      299  $ 2,599  $   2,898       $     2,647       $     251  $   1,135 
Eurozone

Denmark               -           -       17         17                14               3         45 

Guernsey              -           -        -          -                 -               -          - 

Norway                -         591        -        591               591               -        212 

Russia                -           -        6          6                 -               6          6 

Sweden                1           -        1          2                 1               1        556 

Switzerland           -           -    1,127      1,127             1,118               9        684 

Turkey                -           -        -          -                 -               -         17 

United               96           -    3,234      3,330             3,222             108      2,906 
Kingdom

Total        $       97  $      591  $ 4,385  $   5,073       $     4,946       $     127  $   4,426 
non-Eurozone

Total Europe $       97  $      890  $ 6,984  $   7,971       $     7,593       $     378  $   5,561 

October 31,  $       73  $        -  $ 6,078  $   6,151       $     5,790       $     361  $   5,239 
2012

(1) The amounts are shown net of CVA. 

(2) Collateral on derivative MTM receivables was $2.3
    billion (October 31, 2012: $2.3 billion), and was all
    in the form of cash. Collateral on repo-style
    transactions was $5.3 billion (October 31, 2012: $3.5
    billion), and is comprised of cash and investment-grade
    debt securities.

 

Indirect exposures to certain countries and regions

Our indirect exposures comprise securities (primarily CLOs classified as loans 
on our consolidated balance sheet), and written credit protection on 
securities in our structured credit run-off business where we benefit from 
subordination to our position. Our gross exposure before subordination is 
stated at carrying value for securities and notional less fair value for 
derivatives where we have written protection. We have no indirect exposures to 
Portugal, Slovenia, Guernsey, Turkey, and Russia.
                                          Total
                                       indirect

$ millions, as at January 31, 2013     exposure

Austria                              $       1 

Belgium                                     40 

Finland                                     13 

France                                     551 

Germany                                    402 

Greece                                      10 

Ireland                                     50 

Italy                                       68 

Luxembourg                                  52 

Netherlands                                301 

Spain                                      153 

Total Eurozone                       $   1,641 

Denmark                              $      38 

Norway                                      14 

Sweden                                      78 

Switzerland                                  4 

United Kingdom                             624 

Total non-Eurozone                   $     758 

Total exposure                       $   2,399 

October 31, 2012                     $   2,452 
                                      

In addition to the indirect exposures above, we have indirect exposures to 
European counterparties when we have taken debt or equity securities issued by 
European entities as collateral for our securities lending and borrowing 
activity, from entities that are not in Europe. Our indirect exposure was $407 
million (October 31, 2012: $846 million).

Selected exposures in certain selected activities

In response to the recommendations of the Financial Stability Board, this 
section provides information on our other selected activities within our 
continuing and exited businesses that may be of particular interest to 
investors based on their risk characteristics and the current market 
environment. For additional information on these selected exposures, refer to 
pages 56 to 57 of the 2012 Annual Report.

U.S. real estate finance  
The following table provides a summary of our positions in this business:
 

$ millions, as at January 31, 2013                    Drawn   Undrawn 

Construction program                               $   162  $      89 

Interim program                                      3,804        304 

Permanent program                                      106          - 

Exposure, net of allowance                         $ 4,072  $     393 

Of the above:                                                         

  Net impaired                                     $   109  $       - 

  On credit watch list                                 260          2 

Exposure, net of allowance, as at October 31, 2012 $ 4,177  $     445 

As at January 31, 2013, the allowance for credit losses for this portfolio was 
$109 million (October 31, 2012: $118 million). During the quarter ended 
January 31, 2013, we recorded provision for credit losses of $9 million ($26 
million for the quarter ended January 31, 2012).

The business also maintains commercial mortgage-backed securities (CMBS) 
trading and distribution capabilities. As at January 31, 2013, we had CMBS 
inventory with a notional amount of $9 million and a fair value of less than 
$1 million (October 31, 2012: notional of $9 million and fair value of less 
than $1 million).

Leveraged finance 
The exposures in our leveraged finance activities in Europe and U.S. are 
discussed below.  

European leveraged finance

The following table provides a summary of our positions in this exited 
business:

$ millions, as at January 31, 2013                 Drawn  Undrawn 

Manufacturing                                      $ 334  $    62 

Publishing and printing                               40        1 

Utilities                                              9        - 

Business services                                      6        - 

Transportation                                         7       10 

Exposure, net of allowance                         $ 396  $    73 

Of the above:                                                     

  Net impaired                                     $   -  $     - 

  On credit watch list                               199        8 

Exposure, net of allowance, as at October 31, 2012 $ 404  $    60 

As at January 31, 2013, the allowance for credit losses for this portfolio was 
$41 million (October 31, 2012: $41 million). The net provision for credit 
losses was nil for the quarters ended January 31, 2013 and January 31, 2012.

U.S. leveraged finance

The following table provides a summary of our positions in this business:

$ millions, as at January 31, 2013                 Drawn Undrawn 

Transportation                                     $ 65  $    16 

Media and advertising                                 9        - 

Manufacturing                                         3        3 

Exposure, net of allowance                         $ 77  $    19 

Of the above:                                                    

  Net impaired                                     $ 36  $     - 

  On credit watch list                               38       13 

Exposure, net of allowance, as at October 31, 2012 $ 91  $    19 

As at January 31, 2013, the allowance for credit losses for this portfolio was 
$65 million (October 31, 2012: $67 million). During the quarter, the net 
reversal of credit losses was $1 million (nil for the quarter ended January 
31, 2012).

Market risk

Market risk arises from positions in currencies, securities and derivatives 
held in our trading portfolios, and from our retail banking business, 
investment portfolios, and other non-trading activities. Market risk is 
defined as the potential for financial loss from adverse changes in underlying 
market factors, including interest and foreign exchange rates, credit spreads, 
and equity and commodity prices.

Trading activities

The following three tables show VaR, stressed VaR and Incremental risk charge 
for our trading activities based on risk type under an internal models-based 
approach.

Trading revenue (TEB) comprises both trading net interest income and 
non-interest income and excludes underwriting fees and commissions. Trading 
revenue (TEB) for the purposes of these tables excludes positions described in 
the "Structured credit run-off business" section of the MD&A and certain other 
exited portfolios.

Total average VaR for the three months ended January 31, 2013 was down 9% from 
the last quarter, driven mainly by a decrease in our equity risk, offset by an 
increase in interest rate risk.

Average stressed VaR for the three months ended January 31, 2013 was up 71% 
from the last quarter. During the current stressed VaR period from March 6, 
2008 to March 5, 2009, the market exhibited increased interest rate volatility 
combined with a reduction in the level of interest rates, and an increase in 
credit spreads.

Average incremental risk charge for the three months ended January 31, 2013 
was up 35% from the last quarter, mainly due to increased trading inventory in 
the high-yield fixed income business.

VaR by risk type - trading portfolio
                                           2013              2012              2012

$ millions, as                          Jan. 31           Oct. 31           Jan. 31
at or for the
three months
ended
                  High    Low   As at   Average   As at   Average      As   Average
                                                                       at          

Interest rate   $ 5.2  $ 1.0  $  3.7  $    3.0  $  2.1  $    1.8  $  1.9  $    1.9 
risk

Credit spread     2.6    1.2     1.8       1.7     1.4       1.6     0.9       1.1 
risk

Equity risk       2.4    2.0     2.2       2.2     2.0       3.8     1.8       1.8 

Foreign           1.3    0.2     1.3       0.5     0.7       0.6     0.5       0.7 
exchange risk

Commodity risk    1.5    0.7     0.8       1.0     1.0       1.1     1.4       1.0 

Debt specific     3.6    1.9     2.4       2.6     2.1       2.6     2.0       2.5 
risk

Diversification    n/m    n/m   (7.3)     (6.0)   (5.2)     (6.0)   (5.0)     (5.0)
effect ((1))

Total VaR       $ 6.1  $ 4.0  $  4.9  $    5.0  $  4.1  $    5.5  $  3.5  $     4.0
(one-day
measure)

(1)               Total VaR is less than the sum of the VaR of the
                  different market risk types due to risk offsets
                  resulting from portfolio diversification effect.

n/m               Not meaningful. It is not meaningful to compute a
                  diversification effect because the high and low may
                  occur on different days for different risk types.

 

Stressed VaR by risk type - trading portfolio
                                            2013              2012              2012

$ millions, as
at or for the                               Jan.           Oct. 31           Jan. 31
three months                                  31
ended
                   High    Low   As at   Average      As   Average      As   Average
                                                      at                at          

Interest rate   $ 21.1  $ 4.9  $  8.9  $    9.5  $  8.3  $    7.2  $  4.7  $    6.8 
risk

Credit spread      6.3    3.9     6.0       5.1     3.8       3.4     1.7       2.5 
risk

Equity risk       12.7    1.0     1.3       3.1     1.2       2.5     1.4       1.9 

Foreign            5.6    0.3     1.9       1.7     0.6       1.5     2.1       1.8 
exchange risk

Commodity risk     4.0    0.4     0.4       1.3     1.3       0.8     0.9       1.1 

Debt specific      2.1    0.7     1.4       1.5     0.9       1.0     1.0       1.1 
risk

Diversification     n/m    n/m   (9.4)    (10.4)   (6.5)     (9.5)   (7.7)     (9.1)
effect ((1))

Total stressed  $ 21.3  $ 6.3  $ 10.5  $   11.8  $  9.6  $    6.9  $  4.1  $     6.1
VaR (one-day
measure)

(1)               Total stressed VaR is less than the sum of the VaR of
                  the different market risk types due to risk offsets
                  resulting from portfolio diversification effect.

n/m               Not meaningful. It is not meaningful to compute a
                  diversification effect because the high and low may
                  occur on different days for different risk types.

Incremental risk charge - trading portfolio
                                          2013              2012              2012

$ millions,                            Jan. 31           Oct. 31           Jan. 31
as at or
for the
three
months
ended
                High     Low   As at   Average   As at   Average   As at   Average
                                              

Default     $  77.8  $ 33.7  $ 36.0  $   51.7  $ 28.8  $   31.6  $ 28.6  $   27.8 
risk

Migration      51.6    35.6    40.4      41.9    42.1      37.8    26.9      44.4 
risk

Incremental $ 115.2  $ 76.3  $ 76.4  $   93.6  $ 70.9  $   69.4  $ 55.5  $   72.2 
risk charge
(one-year
measure)

 

Trading revenue

The trading revenue (TEB) and VaR graph below compares the current quarter and 
the three previous quarters' actual daily trading revenue (TEB) with the 
previous day's VaR measures.

During the quarter, trading revenue (TEB)( )was positive each day. The largest 
gain of $14.6 million occurred on January 22, 2013. It was attributable to the 
normal course of business within our capital markets group, notably in the 
equity derivatives business. Average daily trading revenue (TEB) was $3.4 
million during the quarter and the average daily TEB was $1.5 million.

Trading revenue (TEB) versus VaR

http://files.newswire.ca/256/TEBvVarCIBC2013.JPG

Non-trading activities

Interest rate risk

Non-trading interest rate risk consists primarily of risk inherent in 
asset/liability management activities and the activities of domestic and 
foreign subsidiaries. Interest rate risk results from differences in the 
maturities or repricing dates of assets and liabilities, both on- and 
off-balance sheet, as well as from embedded optionality in retail products. 
This optionality arises predominantly from the prepayment exposures of 
mortgage products, mortgage commitments and some GIC products with early 
redemption features; this optionality is measured consistent with our actual 
experience. A variety of cash instruments and derivatives, principally 
interest rate swaps, futures and options, are used to manage and control these 
risks.

The following table shows the potential impact over the next 12 months, 
adjusted for structural assumptions (excluding shareholders' equity), 
estimated prepayments and early withdrawals, of an immediate 100 and 200 basis 
point increase or decrease in interest rates. In addition, we have a floor in 
place in the downward shock to accommodate for the current low interest rate 
environment (i.e. analysis uses the floor to stop interest rates from going 
into a negative position in the lower rate scenarios).

Interest rate sensitivity - non-trading (after-tax)
                                 2013                    2012                    2012
                                                                                     

$ millions,                      Jan.                    Oct.                    Jan.
as at                              31                      31                    31  
                   C$     US$   Other      C$     US$   Other      C$     US$   Other
                                                                                     

100 basis
points
increase in                                                                          
interest
rates

Increase      $  109  $  (14) $    3  $  101  $  (21) $    1  $  145  $  (11) $    2 
(decrease) in
net income
attributable
to equity
shareholders

Decrease in      (35)   (145)    (42)    (99)   (170)    (43)    (47)    (63)    (38)
present value
of
shareholders'
equity

100 basis                                                                            
points
decrease in
interest
rates

Increase        (169)      7      (2)   (180)      7       -    (209)      6      (2)
(decrease) in
net income
attributable
to equity
shareholders

Decrease         (58)    110      43       3     115      44     (53)     41      38 
(increase) in
present value
of
shareholders'
equity

200 basis                                                                            
points
increase in
interest
rates

Increase      $  202  $  (28) $    7  $  206  $  (43) $    2  $  308  $  (22) $    5 
(decrease) in
net income
attributable
to equity
shareholders

Decrease in     (122)   (290)    (84)   (252)   (339)    (85)   (132)   (127)    (75)
present value
of
shareholders'
equity

200 basis                                                                            
points
decrease in
interest
rates

Increase        (330)      1      (5)   (358)     (1)     (1)   (324)      5      (5)
(decrease) in
net income
attributable
to equity
shareholders

Decrease        (268)    137      68    (181)    127      69    (213)     38      56 
(increase) in
present value
of
shareholders'
equity

Liquidity risk

Liquidity risk is the risk of having insufficient cash resources to meet 
financial obligations as they fall due, in their full amount and stipulated 
currencies, without raising funds at adverse rates or selling assets on a 
forced basis.

Our liquidity risk management strategies seek to maintain sufficient liquid 
financial resources and diversified funding sources to continually fund our 
balance sheet and contingent obligations under both normal and stressed market 
environments.

Liquidity risk governance and management

The liquidity risk governance and management structure at CIBC comprises the 
Risk Management Committee of the Board (RMC), ALCO and the Office of the 
Treasurer.

The ongoing management of liquidity risk is the responsibility of the 
Treasurer, supported by guidance from ALCO. The RMC provides governance 
through approval of CIBC's liquidity risk framework that includes the 
policies, procedures, limits and independent monitoring structures. RMC's 
responsibilities include:
    --  Defining CIBC's liquidity risk tolerance through the Risk
        Appetite Statement;
    --  Establishing limits for the primary liquidity risk metric, the
        Liquidity Horizon, and unsecured wholesale funding;
    --  Reviewing and approving the Liquidity Policy and the
        Contingency Funding Plan (CFP);
    --  Reviewing and approving CIBC's liquidity profile; and
    --  Reviewing and approving the liquidity stress scenario.

ALCO's responsibilities include:
    --  Ensuring that CIBC's liquidity profile is managed consistent
        with the strategic, stated risk appetite and regulatory
        requirements;
    --  Monitoring reporting and metrics relating to liquidity risk
        exposure, such as, Liquidity Horizon, funding profile and
        liquid asset portfolio;
    --  Reviewing and setting the Liquidity Horizon management limit;
    --  Reviewing, on a periodic basis, the liquidity stress scenario
        used to measure liquidity risk exposure; and
    --  Reviewing and approving the funding plan.

The Treasurer is responsible for managing the activities and processes 
required for measurement, reporting and monitoring of CIBC's liquidity risk 
position and ensuring compliance within RMC, ALCO and regulatory constraints.

Policies

CIBC's liquidity policy and framework ensures a sufficient amount of 
unencumbered liquid assets are available to meet anticipated liquidity needs 
in both stable and stressed conditions for a minimum period of time as 
determined by the RMC.

Alongside the liquidity risk management framework, our enterprise-wide 
pledging policy sets out consolidated aggregate net maximum pledge limits for 
financial and non-financial assets. Pledged assets are considered encumbered 
and therefore unavailable for liquidity purposes.

CIBC maintains and periodically updates a detailed CFP for responding to 
liquidity stress events. The plan is presented annually to the RMC.

Process and control

CIBC manages liquidity risk in a manner that enables it to withstand a 
liquidity crisis without an adverse impact on the viability of its operations. 
Actual and anticipated inflows and outflows of funds generated from on- and 
off-balance sheet exposures are measured and monitored on a daily basis to 
ensure compliance with the established limits. Short-term asset and liability 
mismatch limits are set by geographic location and consolidated for overall 
global exposure. Contractual and behavioural on-balance sheet and off-balance 
sheet cash flows under normal and stressed conditions are modeled and used to 
determine liquidity levels to be maintained for a minimum time horizon.

The RMC is regularly informed of current and prospective liquidity conditions, 
ongoing monitoring measures and the implementation of enhanced measurement 
tools.

Risk measurement

CIBC's policy is to maintain a sound and prudent approach to managing its 
potential exposure to liquidity risk. CIBC's liquidity risk tolerance is 
defined by its Risk Appetite Statement, approved annually by the Board of 
Directors, which forms the basis for the delegation of liquidity risk 
authority to senior management. The primary liquidity risk metric used to 
measure and monitor CIBC's liquidity position is the Liquidity Horizon, the 
future point in time when projected cumulative cash outflows exceed cash 
inflows under a predefined liquidity stress scenario, without any reliance on 
the CFP. Our liquidity measurement system provides daily liquidity risk 
exposure reports that include the calculation of the Liquidity Horizon against 
the prescribed management target for review by senior management.  CIBC's 
liquidity risk framework also incorporates the monitoring of the unsecured 
wholesale funding position and funding capacity, as well as regulatory 
mandated metrics such as the Liquidity Coverage Ratio (LCR) and the Net 
Cumulative Cash Flow (NCCF). ALCO monitors CIBC's current and prospective 
liquidity position in relation to risk appetite and limits.

A key component of the liquidity risk framework at CIBC is the liquidity risk 
stress testing regime. Liquidity risk stress testing is conducted daily and 
involves the application of a severe, name-specific and market-wide stress 
scenario to determine the amount of liquidity required to satisfy anticipated 
obligations as they come due. The scenario models potential liquidity and 
funding requirements in the event of unsecured wholesale funding and deposit 
runoff, expected contingent liquidity utilization, as well as liquid asset 
marketability. In addition to this CIBC-specific event, the stress scenario 
incorporates the impact of market-wide liquidity stress that results in 
significant reduction in access to both short and long-term funding and a 
decrease in marketability and price of assets.

Stress scenario assumptions are subject to periodic review and approval, at 
least annually, by the RMC.

Liquid assets

CIBC's policy is to hold a pool of high quality unencumbered liquid assets 
that will be immediately available to meet outflows determined under the 
stress scenario. Liquid assets are cash, short-term bank deposits and 
high-quality marketable securities that can be readily pledged at central 
banks and in repo markets or converted into cash in a timely fashion. 
Encumbered assets include those liquid assets that have been pledged for 
collateral management purposes as well as restricted cash and deposits with 
banks.

Liquid assets net of encumbrances constitute our unencumbered pool of liquid 
assets, and are summarized in the following table:
                                          Jan. 31    Oct. 31      

$ millions, as at                            2013       2012 ((1))

Cash and deposits with banks ((2))     $   1,631  $   1,507       

Securities ((3))                          65,351     63,882       

NHA mortgage-backed securities ((4))      20,583     19,187       

Securities purchased under resale         25,581     25,163       
agreements

Cash collateral on securities borrowed     3,477      3,311       

Total liquid assets                      116,623    113,050       

Encumbered liquid assets((5))             20,515     22,977       

Unencumbered liquid assets             $  96,108  $  90,073       

(1)    Certain information has been reclassified to conform to the
       presentation adopted in the current period. 

(2)    Includes cash, non-interest bearing deposits and
       interest-bearing deposits with contractual maturities of less
       than 30 days. 

(3)    Includes all trading, AFS and FVO securities other than the
       securities in our structured credit run-off business and
       private equity securities. 

(4)    Reported in loans on our interim consolidated balance sheet. 

(5)    Excludes interday pledges to the Bank of Canada related to
       the Large Value Transfer System as these are normally
       released to us at the end of the settlement cycle each day.

CIBC's unencumbered liquid asset position increased by $6.0 billion or 7% from 
October 31, 2012. The change was primarily due to increases in AFS, trading 
and NHA mortgage-backed securities, and a decrease in our obligations related 
to securities sold under repurchase agreements (included in encumbered liquid 
assets).

CIBC's total pledged assets, which include encumbered liquid assets presented 
in the table above, totalled $66.6 billion as at January 31, 2013 (October 31, 
2012: $64.9 billion). These pledged assets are used primarily for securities 
lending and borrowing activities, secured borrowings, derivative transactions, 
and other clearing and settlement of payments and securities.

The following table summarizes unencumbered liquid assets held by CIBC parent 
bank and significant subsidiaries:
                                 Jan. 31   Oct. 31

$ millions, as at                   2013      2012

CIBC parent bank               $ 67,788  $ 63,800 

Broker/dealer                    18,561    15,940 

Other significant subsidiaries    9,759    10,333 
                               $ 96,108  $ 90,073 

Restrictions on the flow of funds

CIBC has certain subsidiaries that have separate regulatory capital and 
liquidity requirements, as established by banking and securities regulators. 
Requirements of these entities are subject to regulatory change and can 
fluctuate depending on activity.

CIBC monitors and manages its capital and liquidity requirements across these 
entities to ensure that capital is used efficiently and that each entity is in 
compliance with local regulations.

Funding

CIBC manages liquidity to meet both short and long-term cash requirements. 
Reliance on short-term wholesale funding is maintained at prudent levels, 
consistent with CIBC's desired liquidity profile.

CIBC's funding strategy includes access to funding through retail deposits and 
wholesale funding and deposits.  Personal deposits are a significant source 
of funding and totalled $119.1 billion as at January 31, 2013 (October 31, 
2012: $118.2 billion). Our liquidity management framework applies deposit 
run-off assumptions, under a severe combined stress scenario, to determine 
core deposits.

CIBC's wholesale funding strategy is to develop and maintain a sustainable 
funding base through which CIBC can access funding across many different 
depositors and investors, geographies, maturities, and funding instruments.  
The diversity of our funding profile across all of these variables is an 
important part of our funding strategy.  CIBC maintains access to term 
wholesale funding through many channels such as wholesale deposits in Canada 
and the U.S., medium-term note programs in Canada, the U.S. and Europe, 
through our covered bond programme, through credit card securitization in 
Canada and the U.S., and through a number of mortgage securitization programs, 
as outlined in the tables below.

The following table provides the contractual maturities at carrying values of 
funding sourced by CIBC from the wholesale market:
                    Less    1 - 3     3 - 6    6 - 12     1 - 2      Over           
                    than

$ millions, as         1   months    months    months     years   2 years      Total
at January 31,     month
2013

Deposits from   $ 1,568  $ 1,243  $    271  $      -  $      -  $      -  $   3,082 
banks

Bearer deposit    4,520    3,099     1,663       956       833     5,566     16,637 
notes,
certificates
of deposit and
bankers'
acceptances

Deposit and         680    3,835     4,878    12,095     6,319    15,227     43,034 
medium-term
notes

Subordinated          -        -         -         -       285     4,506      4,791 
indebtedness

Mortgage              -        -     1,620     8,739     5,947    16,828     33,134 
securitization

Covered bonds     2,453        -         -       754     5,154     5,467     13,828 

Cards                 -      103       926       837     1,491     2,597      5,954 
securitization
                  9,221  $ 8,280  $  9,358  $ 23,381  $ 20,029  $ 50,191  $ 120,460 
                 
                $

  Comprises:                                                                        
    Unsecured   $ 6,768  $ 8,177  $  6,812  $ 13,051  $  7,437  $ 25,299  $  67,544 
    Secured       2,453      103     2,546    10,330    12,592    24,892     52,916 
                  9,221  $ 8,280  $  9,358  $ 23,381  $ 20,029  $ 50,191  $ 120,460 
                 
                $

October 31,     $ 6,608  $ 8,117  $ 10,346  $ 17,121  $ 22,182  $ 51,526  $ 115,900 
2012((1))

(1)              Certain information has been reclassified to conform
                   to the presentation adopted in the current period.

 

The following table provides a currency breakdown, in Canadian dollar 
equivalent, of funding sourced by CIBC in the wholesale market:
                           Jan. 31            Oct. 31  

$ billions, as at             2013               2012  

CAD               $  69.0      57  % $  67.3      58  %

USD                  45.8      38       41.2      36   

EUR                   0.1        -       0.1        -  

Other                 5.6       5        7.3       6   
                  $ 120.5     100  % $ 115.9     100  %

Funding plan

CIBC's funding plan horizon is three years and is updated at least quarterly, 
or in response to material changes in underlying assumptions. The plan 
incorporates projected assets and liability growth from CIBC's planning 
process, as well as expected funding maturities and inputs from the liquidity 
stress testing model. The funding plan is reviewed and approved by the ALCO.

Credit ratings

Access to wholesale funding sources and the cost of funds are dependent on 
various factors including credit ratings. On October 26, 2012, Moody's placed 
on review for downgrade the long-term debt and deposit ratings of six Canadian 
financial institutions including CIBC. Moody's cited as their principal 
concerns: (i) high consumer debt levels and elevated housing prices; (ii) 
system-wide downside risks to the economic environment; and (iii) their 
assessment of the risks inherent in the banks' capital markets activities. 
Subsequently, on January 28, 2013, Moody's downgraded the long-term credit 
ratings of six Canadian financial institutions, including CIBC, by one notch. 
CIBC's long-term rating was adjusted from Aa2 to Aa3 and has had no material 
impact on funding costs or our ability to access funding.

CIBC's funding and liquidity levels remained stable and sound over the quarter 
and we do not anticipate any events, commitments or demands which will 
materially impact our liquidity risk position.

Impact on collateral if there is a downgrade of CIBC's credit rating

We are required to deliver collateral to certain derivative counterparties in 
the event of a downgrade to our current credit risk rating. The collateral 
requirement is based on MTM exposure, collateral valuations, and collateral 
arrangement thresholds as applicable. The following table presents the 
additional collateral requirements (cumulative) for rating downgrades:
                          Jan. 31   Oct. 31

$ billions, as at            2013      2012

One-notch downgrade   $      0.1  $    0.1 

Two-notch downgrade          1.2       1.5 

Three-notch downgrade        2.3       2.6 

Regulatory developments

There is ongoing cooperation between banks and regulators to implement BCBS 
liquidity standards, i.e., the LCR and the Net Stable Funding Ratio (NSFR), 
which are scheduled for implementation in January 2015 and January 2018, 
respectively, in addition to other supplemental reporting metrics.  In 
January 2013, BCBS released revisions to the LCR metric. We currently monitor 
the LCR for regulatory and internal reporting purposes and NSFR reporting is 
provided quarterly to OSFI. Our liquidity management framework integrates 
liquidity management principles and guidelines recommended by BCBS. OSFI sets 
out prudential considerations relating to the liquidity risk management 
programs of Canadian federally regulated deposit-taking institutions in its 
Guideline B-6, "Liquidity Principles". Significant revisions to the guideline 
went into effect in February 2012. BCBS guidelines are incorporated into this 
regulation, and in addition, the regulation requires us to measure liquidity 
risk using the NCCF test, and report compliance with NCCF requirements to our 
regulator.

Contractual obligations

Contractual obligations give rise to commitments of future payments affecting 
our short- and long-term liquidity and capital resource needs. These 
obligations include financial liabilities, credit and liquidity commitments, 
and other contractual obligations.

Assets and liabilities

The following table provides the contractual maturity profile of our 
on-balance sheet assets and liabilities at their carrying values. CIBC models 
the behaviour of both assets and liabilities on a net cash flow basis by 
applying recommended regulatory stress assumptions against contractual 
maturities and contingent liability utilization, supplemented by business 
experience, to construct its behavioural balance sheet, which constitutes a 
key component of CIBC's liquidity risk management framework.
                     Less      1 - 3     3 - 5      Over          No            
                     than                                  specified

$ millions,        1 year      years     years   5 years    maturity    Total  
as at January
31, 2013

Assets                                                                          

Cash and      $    2,302   $      -  $      -  $      -  $        -  $   2,302 
non-interest
bearing
deposits with
banks

Interest           3,334          -         -         -           -      3,334 
bearing
deposits with
banks

Securities         5,586      9,164     8,955    13,802      29,513     67,020 

Cash               3,477          -         -         -           -      3,477 
collateral on
securities
borrowed

Securities        25,581          -         -         -           -     25,581 
purchased
under resale
agreements

Loans                                                                          

  Residential     21,029     55,219    63,413     9,347           -    149,008 
  mortgages

  Personal         4,886        258         -       708      28,933     34,785 

  Credit card      3,826      7,652     3,320         -           -     14,798 

  Business        10,377     14,201     4,815    15,226           -     44,619 
  and
  government

  Allowance            -          -         -         -      (1,820)    (1,820)
  for credit
  losses

Derivative         4,021      4,878     3,580    12,606           -     25,085 
instruments

Customers'         9,749          -         -         -           -      9,749 
liability
under
acceptances

Other assets           -          -         -         -      14,845     14,845 
               $  94,168   $ 91,372  $ 84,083  $ 51,689  $   71,471  $ 392,783 

October 31,   $   89,615   $ 89,763  $ 91,134  $ 52,405  $   70,468  $ 393,385 
2012

Liabilities                                                                    

Deposits( (1) $   94,222   $ 52,960  $ 19,346  $ 12,885  $  126,891  $ 306,304 
(2))

Obligations       12,313          -         -         -           -     12,313 
related to
securities
sold short

Cash               1,460          -         -         -           -      1,460 
collateral on
securities
lent

Capital Trust          -          -         -     1,669           -      1,669 
securities

Obligations        4,516          -         -         -           -      4,516 
related to
securities
sold under
repurchase
agreements

Derivative         4,198      5,008     3,423    11,922           -     24,551 
instruments

Acceptances        9,797          -         -         -           -      9,797 

Other                  -          -         -         -      10,207     10,207 
liabilities

Subordinated           -        285         -     4,506           -      4,791 
indebtedness
              $  126,506   $ 58,253  $ 22,769  $ 30,982  $  137,098  $ 375,608 

October 31,   $  120,621   $ 61,823  $ 26,898  $ 32,189  $  134,816  $ 376,347 
2012((3))

(1) Deposits less than one year comprise: $24.0 billion
    (October 31, 2012: 22.4 billion) with contractual
    maturities less than three months; $24.7 billion (October
    31, 2012: $18.7 billion) with contractual maturities within
    three to six months; and $45.5 billion (October 31, 2012:
    $43.7 billion) with contractual maturities within six to
    twelve months.

(2) Comprises $119.1 billion (October 31, 2012: $118.2 billion)
    of personal deposits of which $114.9 billion (October 31,
    2012: $113.6 billion)  are in Canada and $4.2 billion
    (October 31, 2012: $4.6 billion) in other countries; $182.0
    billion (October 31, 2012: $177.4 billion) of business and
    government deposits of which $147.2 billion (October 31,
    2012: $143.4 billion) are in Canada and $34.8 billion
    (October 31, 2012: $34.0 billion) in other countries; and
    $5.2 billion (October 31, 2012: $4.7 billion) of bank
    deposits of which $1.8 billion (October 31, 2012: $1.5
    billion) are in Canada and $3.4 billion (October 31, 2012:
    $3.2 billion) in other countries.

(3) Certain information has been reclassified to conform to the
    presentation adopted in the current period.

CIBC's net asset position remained unchanged relative to October 31, 2012. The 
changes in the contractual maturity profile were primarily due to the natural 
migration of maturities and also reflect the impact of our regular business 
activities.

Credit and liquidity commitments

The following table provides the contractual maturity of notional amounts of 
credit, guarantee, and liquidity commitments should contracts be fully drawn 
upon and clients default. Since a significant portion of guarantees and 
commitments are expected to expire without being drawn upon, the total of the 
contractual amounts is not representative of future liquidity requirements.
                     Less than     1 - 3     3 - 5     Over           

$ millions, as at       1 year     years     years  5 years      Total
January 31, 2013

Unutilized credit   $ 125,932  $  6,814  $ 16,484  $   441  $ 149,671 
commitments

Backstop liquidity      3,207         -         -        -      3,207 
facilities

Standby and             6,342       679       602      381      8,004 
performance letters
of credit

Documentary and           300         -         -        -        300 
commercial letters
of credit
                    $ 135,781  $  7,493  $ 17,086  $   822  $ 161,182 

October 31, 2012    $ 129,991  $ 10,988  $ 17,640  $ 1,480  $ 160,099 

Other contractual obligations

The following table provides the contractual maturities of other contractual 
obligations affecting our funding needs:
                                                                       
                        Less than    1 - 3    3 - 5      Over          

$ millions, as at          1 year    years    years   5 years   Total  
January 31, 2013

Operating leases      $      375  $   677  $   566  $  1,370  $  2,988 

Purchase obligations         631      813      490       203     2,137 
((1))

Investment                   159        -        -         -       159 
commitments ((2))

Pension contributions        182        -        -         -       182 
((3))

Underwriting                 200        -        -         -       200 
commitments
                      $    1,547  $ 1,490  $ 1,056  $  1,573  $  5,666 

October 31, 2012      $    1,626  $ 1,518  $ 1,051  $  1,646  $   5,841

(1)          Obligations that are legally binding agreements whereby we
             agree to purchase products or services with specific
             minimum or baseline quantities defined at fixed, minimum
             or variable prices over a specified period of time are
             defined as purchase obligations. Purchase obligations are
             included through to the termination date specified in the
             respective agreements, even if the contract is renewable.
             Many of the purchase agreements for goods and services
             include clauses that would allow us to cancel the
             agreement prior to expiration of the contract within a
             specific notice period. However, the amount above includes
             our obligations without regard to such termination clauses
             (unless actual notice of our intention to terminate the
             agreement has been communicated to the counterparty). The
             table excludes purchases of debt and equity instruments
             that settle within standard market timeframes.

(2)          As an investor in merchant banking activities, we enter
             into commitments to fund external private equity funds and
             investments in equity and debt securities at market value
             at the time the commitments are drawn. As the timing of
             future investment commitments is non-specific and callable
             by the counterparty, obligations have been included as
             less than one year.

(3)          Includes estimated minimum pension contributions, and
             expected benefit payments for post-retirement medical and
             dental plans, the long-term disability plan, and related
             medical and dental benefits for disabled employees.
             Subject to change as contribution decisions are affected
             by various factors, such as market performance, regulatory
             requirements, and management's ability to change funding
             policy. Also, funding requirements after 2013 are excluded
             due to the significant variability in the assumptions
             required to project the timing of future cash flows.

Strategic risk

Strategic risk arises from ineffective business strategies or the failure to 
effectively execute strategies. It includes, but is not limited to, potential 
financial loss due to the failure of acquisitions or organic growth 
initiatives.

Oversight of strategic risk is the responsibility of the SET and the Board. At 
least annually, the CEO presents CIBC's strategic planning process and CIBC's 
annual strategic business plan to the Board for review and approval. The Board 
reviews the plan in light of management's assessment of emerging market 
trends, the competitive environment, potential risks and other key issues.

One of the tools for measuring, monitoring and controlling strategic risk is 
attribution of economic capital against this risk. Our economic capital models 
include a strategic risk component for those businesses utilizing capital to 
fund an acquisition or a significant organic growth strategy.

Insurance risk

Insurance risk is the risk of a potential loss due to actual experience being 
different from that assumed in the design and pricing of an insurance product. 
Unfavourable actual experience could emerge due to adverse fluctuations in 
timing, size and frequency of actual claims (e.g. mortality, morbidity), 
policyholder behaviour (e.g. cancellation of coverage), or associated expenses.

Insurance contracts provide financial compensation to the beneficiary in the 
event of insured risk in exchange for premiums. We are exposed to insurance 
risk in our life insurance business and in our life reinsurance business 
within the respective subsidiaries.

Senior management of the insurance and reinsurance subsidiaries has primary 
responsibility for managing insurance risk with oversight by Risk Management. 
The insurance and reinsurance subsidiaries also have their own boards of 
directors, as well as independent Appointed Actuaries who provide additional 
input to risk management oversight. Processes and oversight are in place to 
manage the risk to our insurance business. Underwriting risk on business 
assumed is managed through risk policies that limit exposure to an individual 
life, to certain types of business and to countries.

CIBC's risk governance practices ensure strong independent oversight and 
control of risk within the insurance businesses. The subsidiaries' boards 
outline the internal risk and control structure to manage insurance risk which 
includes risk, capital and control policies, processes as well as limits and 
governance. Senior management of the insurance and reinsurance subsidiaries 
and Risk Management attend the subsidiaries' board meetings.

Operational risk

Operational risk is the risk of loss resulting from inadequate or failed 
internal processes, systems, human error or external events.

Operational risks driven by people and processes are mitigated through human 
resources policies and practices, and operational procedural controls, 
respectively. Operational risks driven by systems are managed through controls 
over technology development and change management.

The Governance and Control Committee (GCC) provides oversight on operational 
risk matters and our internal control framework within the parameters and 
strategic objectives established by the SET. The SET is accountable to the 
Board and its Audit Committee and the RMC for maintaining a strong risk 
culture and internal control environment.

Operational risk management approach

We have developed a comprehensive framework supporting and governing the 
processes of identifying, assessing, managing, measuring, monitoring and 
reporting operational risks. Our approach to operational risk management 
focuses on mitigating operational losses by consistently applying and 
utilizing control-based approaches as well as risk-specific assessment tools. 
The transparency of information, timely escalation of key risk issues and 
clear accountability for issue resolution are major pillars of our approach. 
We also regularly review our risk governance structure to ensure that there is 
clarity and ownership of key risk areas.

We use a three lines of defence model to manage operational risk. Business 
lines are our first line of defence and have primary responsibility for the 
day-to-day management of operational risk inherent in their products and 
activities. Functionally independent governance groups, representing our 
second line of defence, are responsible for maintaining a robust operational 
risk management framework and providing operational risk oversight. Our third 
line of defence is Internal Audit who independently opines on the design and 
operating effectiveness of the controls that support our operational risk 
management program.

Managing operational risk

To identify and assess our operational risk exposures, we utilize numerous 
risk assessment tools, including risk and control self-assessments, scenario 
analyses, audit findings, internal and external loss event analyses, key risk 
indicators, change management approval processes (including approval of new 
initiatives and products) as well as comparative analyses.

In conducting risk assessments, we bring together subject matter experts from 
across the organization to share expertise and to identify improvements to 
risk identification, measurement, and control processes. Our operational risk 
management framework also requires risk assessments to undergo rigorous 
independent reviews and challenges from governance groups in their respective 
areas of expertise.

We continuously monitor our operational risk profile to ensure that any 
adverse changes are addressed in a timely manner. Tools such as key risk 
indicators are used to identify changes in our risk profile before the risks 
become acute. Our risk monitoring processes support a comprehensive risk 
reporting program to both senior management and the Board.

Our primary tool for mitigating our operational risk exposure is a robust 
internal control environment. Our internal control framework highlights 
critical internal controls across the bank which are subjected to ongoing 
testing and review to ensure that they are effective in mitigating our 
operational risk exposures. In addition, we maintain a corporate insurance 
program to provide additional protection from loss and a global business 
continuity management program to mitigate business continuity risks in the 
event of a disaster.

Risk measurement

We use the Advanced Measurement Approach (AMA), a risk-sensitive method 
prescribed by BCBS, to quantify our operational risk exposure in the form of 
operational risk regulatory capital. We determine operational risk capital 
using a loss distribution approach that uses outputs from our risk assessment 
tools, including actual internal loss experiences, loss scenarios based on 
internal/external loss data and management expertise, audit findings and the 
results of risk and control self-assessments.

Under AMA, we are permitted to recognize the risk mitigating impact of 
insurance in the measures of operational risk used for regulatory minimum 
capital requirements. Although our current insurance policies are tailored to 
provide earnings protection from potential high-severity losses, we do not 
reflect mitigation through insurance or any other risk transfer mechanism in 
our AMA model.

We attribute operational risk capital at the line of business level. Capital 
represents the "worst-case loss" within a 99.9% confidence level and is 
determined for each loss event type and production/infrastructure/corporate 
governance line of business. The aggregate risk of CIBC is less than the sum 
of the individual parts, as the likelihood that all business groups across all 
regions will experience a worst-case loss in every loss category in the same 
year is extremely low. To adjust for the fact that all risks are not 100% 
correlated, we incorporate a portfolio effect to ensure that the aggregated 
risk is representative of the total bank-wide risk. The process for 
determining correlations considers both internal and external historical 
correlations and takes into account the uncertainty surrounding correlation 
estimates.

The results of the capital calculations are internally backtested each 
quarter, and the overall methodology is independently validated by the Risk 
Management Validation group to ensure that the assumptions applied are 
reasonable and conservative.

For regulated subsidiaries, the basic indicator or standardized approaches are 
adopted as agreed with local regulators.

Reputation and legal risk

Our reputation and financial soundness are of fundamental importance to us and 
to our customers, shareholders and employees.

Reputation risk is the potential for negative publicity regarding our business 
conduct or practices which, whether true or not, could significantly harm our 
reputation as a leading financial institution, or could materially and 
adversely affect our business, operations or financial condition.

Legal risk is the potential for civil litigation or criminal or regulatory 
proceedings being commenced against CIBC that, once decided, could materially 
and adversely affect our business, operations or financial condition.

The RMC provides oversight of the management of reputation and legal risks. 
The identification, consideration and prudent, proactive management of 
potential reputation and legal risks is a key responsibility of CIBC and all 
of our employees.

Our Global Reputation and Legal Risks Policy sets standards for safeguarding 
our reputation and minimizing exposure to reputation and legal risks. The 
policy is supplemented by business procedures for identifying and escalating 
transactions to the Reputation and Legal Risk Committee that could pose 
material reputation risk and/or legal risk.

Regulatory risk

Regulatory risk is the risk of non-compliance with regulatory requirements. 
Non-compliance with these requirements may lead to regulatory sanctions and 
harm to our reputation.

Our regulatory compliance philosophy is to manage regulatory risk through the 
promotion of a strong compliance culture, and the integration of sound 
controls within the business and infrastructure groups. The foundation of this 
approach is a comprehensive Legislative Compliance Management (LCM) framework. 
The LCM framework maps regulatory requirements to internal policies, 
procedures and controls that govern regulatory compliance.

Our Compliance department is responsible for the development and maintenance 
of a comprehensive regulatory compliance program, including oversight of the 
LCM framework. The department is independent of business management and 
reports regularly to the Audit Committee.

Primary responsibility for compliance with all applicable regulatory 
requirements rests with senior management of the business and infrastructure 
groups, and extends to all employees. The Compliance department's activities 
support those groups, with particular emphasis on regulatory requirements that 
govern the relationship between CIBC and its clients that help protect the 
integrity of the capital markets.

Environmental risk

Environmental risk is the risk of financial loss or damage to reputation 
associated with environmental issues, whether arising from our credit and 
investment activities or related to our own operations. Our corporate 
environmental policy, originally approved by the Board in 1993 and most 
recently updated and approved by the RMC in 2011, commits CIBC to responsible 
conduct in all activities to protect and conserve the environment; safeguard 
the interests of all stakeholders from unacceptable levels of environmental 
risk; and support the principles of sustainable development.

The policy is addressed by an integrated Corporate Environmental Management 
Program which is under the overall management of the Environmental Risk 
Management (ERM) group in Risk Management. Environmental evaluations are 
integrated into our credit and investment risk assessment processes, with 
environmental risk management standards and procedures in place for all 
sectors. In addition, environmental and social risk assessments in project 
finance are required in accordance with our commitment to the Equator 
Principles, a voluntary set of guidelines for financial institutions based on 
the screening criteria of the International Finance Corporation, which we 
adopted in 2003. We also conduct ongoing research and benchmarking on 
environmental issues such as climate change and biodiversity protection as 
they may pertain to responsible lending practices. We are also a signatory to 
and participant in the Carbon Disclosure Project, which promotes corporate 
disclosure to the investment community on greenhouse gas emissions and climate 
change management.

The ERM group works closely with Corporate Services, Marketing, Communications 
and Public Affairs, and other business and functional groups in ensuring that 
high standards of environmental due diligence and responsibility are applied 
in our facilities management, purchasing and other operations. An 
Environmental Management Committee is in place to provide oversight and to 
support these activities.

Accounting and control matters

Critical accounting policies and estimates

A summary of significant accounting policies is presented in Note 1 to the 
consolidated financial statements of the 2012 Annual Report. Certain 
accounting policies require us to make judgments and estimates, some of which 
may relate to matters that are uncertain. The key management judgments and 
estimates remain substantially unchanged from those described on pages 69 to 
74 of the 2012 Annual Report.

Valuation of financial instruments

Debt and equity trading securities, trading business and government loans, 
obligations related to securities sold short, derivative contracts, AFS 
securities and FVO financial instruments are carried at fair value. FVO 
financial instruments include certain debt securities, structured retail 
deposits and business and government deposits. Retail mortgage interest rate 
commitments are also designated as FVO financial instruments.

Fair value is defined as the price that would be received to sell an asset or 
paid to transfer a liability at the measurement date in an orderly arm's 
length transaction between knowledgeable and willing market participants 
motivated by normal business considerations. Fair value measurements are 
categorized into levels within a fair value hierarchy based on the nature of 
the valuation inputs (Level 1, 2 or 3). We have an established and 
well-documented process for determining fair value. Fair value is based on 
unadjusted quoted prices in an active market, where available (Level 1). If 
active market prices or quotes are not available for an instrument, fair value 
is then based on valuation models that utilize predominantly observable market 
inputs (Level 2) or one or more significant non-observable market inputs 
(Level 3). Estimating fair value requires the application of judgment. The 
type and level of judgment required is largely dependent on the amount of 
observable market information available. For instruments valued using 
internally developed models that use significant non-observable market inputs 
and are therefore classified within Level 3 of the hierarchy, the judgment 
used to estimate fair value is more significant than when estimating the fair 
value of instruments classified within Levels 1 and 2. To ensure that 
valuations are appropriate, a number of policies and controls are put in 
place. Independent validation of fair value is performed at least on a monthly 
basis. Valuations are verified to external sources such as exchange quotes, 
broker quotes or other management-approved independent pricing sources.

The following table presents amounts, in each category of financial 
instruments, which are fair valued using valuation techniques based on 
predominantly non-observable market inputs (Level 3), for the structured 
credit run-off business and total consolidated CIBC. For further details of 
the valuation of and sensitivity associated with Level 3 financial assets and 
liabilities, see Note 1 to the interim consolidated financial statements.
                                   2013                                    2012     
                                   Jan.                                    Oct.     
                                     31                                      31
            Structured    Total   Total        Structured         Total   Total     
                credit                             credit

$ millions,    run-off     CIBC    CIBC    (      run-off          CIBC    CIBC    (
as at         business                  (1))     business                       (1))

Financial                                                                           
assets

Trading     $     838  $   846     2.0     %   $     628       $   640     1.6     %
securities
and loans

AFS                22    1,225     4.7                22     (   1,370     5.5      
securities                                                (2))

FVO               167      167    55.1               170           170    55.9      
securities

Derivative        514      585     2.3               591           683     2.5      
instruments
            $   1,541  $ 2,823     3.0     %       1,411         2,863     3.1     %

Financial                                                                           
liabilities

Deposits    $     485  $   656    30.0     %   $     428       $   597    28.7     %
and other
liabilities
( (3))

Derivative        568      648     2.6             1,315         1,402     5.2      
instruments
            $   1,053  $ 1,304     3.3     %       1,743         1,999     4.7     %

(1) Represents percentage of Level 3 financial assets and liabilities
    to the total financial assets and liabilities in each reported
    category in Note 1 of our interim consolidated financial
    statements.

(2) Restated.

(3) Includes FVO deposits and bifurcated embedded derivatives.

 

Fair value adjustments

We apply judgment in establishing valuation adjustments that take into account 
various factors that may have an impact on the valuation. Such factors 
include, but are not limited to, the bid-offer spread, illiquidity due to lack 
of market depth and other market risks, parameter uncertainty, model risk, 
credit risk, and future administration costs. During the fourth quarter of 
2012, in order to reflect the observed market practice of pricing 
collateralized derivatives using the OIS curve, we amended our valuation 
approach to use OIS curves as the discount rate in place of LIBOR. Market 
practices continue to evolve concerning the use and construction of OIS curves 
that best reflect the nature of the underlying collateral.

The establishment of fair value adjustments and the determination of the 
amount of write-downs involve estimates that are based on accounting processes 
and judgments by management. We evaluate the adequacy of the fair value 
adjustments and the amount of write-downs on an ongoing basis. The levels of 
fair value adjustments and the amount of the write-downs could be changed as 
events warrant and may not reflect ultimate realizable amounts.

The following table summarizes our valuation adjustments:
                                 2013      2012  

$ millions, as at             Jan. 31   Oct. 31  

Securities                                       

Market risk                 $      2  $        3 

Derivatives                                      

Market risk                       54          53 

Credit risk                       97         137 

Administration costs               5           5 

Total valuation adjustments $    158  $      198 


Allowance for credit losses

We establish and maintain an allowance for credit losses that is considered 
the best estimate of probable credit-related losses existing in our portfolio 
of on- and off-balance sheet financial instruments, giving due regard to 
current conditions.

The allowance for credit losses consists of individual and collective 
components.

Individual allowances

The majority of our business and government loan portfolios are assessed on an 
individual loan basis. Individual allowances are established when impaired 
loans are identified within the individually assessed portfolios. A loan is 
classified as impaired when we are of the opinion that there is no longer a 
reasonable assurance of the full and timely collection of principal and 
interest. The individual allowance is the amount required to reduce the 
carrying value of an impaired loan to its estimated realizable amount. This is 
determined by discounting the expected future cash flows at the effective 
interest rate inherent in the loan.

Individual allowances are not established for portfolios that are collectively 
assessed, including most retail portfolios.

Collective allowances

Consumer and certain small business allowances

Residential mortgages, credit card loans, personal loans, and certain small 
business loan portfolios consist of large numbers of homogeneous balances of 
relatively small amounts, for which we take a portfolio approach to establish 
the collective allowance. As it is not practical to review each individual 
loan, we utilize a formula basis, by reference to historical ratios of 
write-offs to current accounts and balances in arrears. We also consider 
estimates of the time periods over which losses that are present would be 
identified and a provision taken, our view of current economic and portfolio 
trends, and evidence of credit quality improvements or deterioration. On a 
regular basis, the parameters that affect the allowance calculation are 
updated, based on our experience and the economic environment.

Business and government allowances

For groups of individually assessed loans for which no objective evidence of 
impairment has been identified on an individual basis, a collective allowance 
is provided for losses which we estimate are inherent in the portfolio at the 
reporting date, but not yet specifically identified from an individual 
assessment of the loan.

The methodology for determining the appropriate level of the collective 
allowance incorporates a number of factors, including the size of the 
portfolios, expected loss rates, and relative risk profiles. We also consider 
estimates of the time periods over which losses that are present would be 
identified and a provision taken, our view of current economic and portfolio 
trends, and evidence of credit quality improvements or deterioration. On a 
regular basis, the parameters that affect the collective allowance calculation 
are updated, based on our experience and the economic environment. Expected 
loss rates for business loan portfolios are based on the risk rating of each 
credit facility and on the probability of default (PD) factors associated with 
each risk rating, as well as estimates of loss given default (LGD). The PD 
factors reflect our historical loss experience and are supplemented by data 
derived from defaults in the public debt markets. Historical loss experience 
is adjusted based on current observable data to reflect the effects of current 
conditions. LGD estimates are based on our experience over past years.

For further details on allowance for credit losses, see Note 4 to the interim 
consolidated financial statements.

Contingent liabilities and provision

In the ordinary course of its business, CIBC is a party to a number of legal 
proceedings, including regulatory investigations, in which claims for 
substantial monetary damages are asserted against CIBC and its subsidiaries. 
While there is inherent difficulty in predicting the outcome of legal 
proceedings, based on current knowledge and in consultation with legal 
counsel, we do not expect that the outcome of these matters, individually or 
in aggregate, to have a material adverse effect on our consolidated financial 
statements. However, the outcome of these matters, individually or in 
aggregate, may be material to our operating results for a particular reporting 
period.

Amounts are accrued if, in the opinion of management, it is both probable that 
an outflow of economic benefits will be required to resolve the matter, and a 
reliable estimate can be made of the amount of the obligation. If the reliable 
estimate of probable loss involves a range of potential outcomes within which 
a specific amount within the range appears to be a better estimate, that 
amount is accrued. If no specific amount within the range of potential 
outcomes appears to be a better estimate than any other amount, the mid-point 
in the range is accrued. In some instances, however, it is not possible either 
to determine whether an obligation is probable or to reliably estimate the 
amount of loss, in which case no accrual can be made.

We regularly assess the adequacy of CIBC's litigation accruals and make the 
necessary adjustments to incorporate new information as it becomes available. 
The following developments occurred during the quarter:
    --  We recognized a US$150 million charge (US$110 million
        after-tax) in respect of the full settlement of the U.S.
        Bankruptcy Court adversary proceeding brought by the Estate of
        Lehman Brothers Holdings, Inc. challenging the reduction to
        zero of our unfunded commitment on a variable funding note. In
        2008, we recognized a US$841 million gain on the variable
        funding note.
    --  In Green v. Canadian Imperial Bank of Commerce, et al., the
        plaintiffs filed an appeal to the Ontario Court of Appeal which
        will be heard in May 2013.
    --  In Brown v. Canadian Imperial Bank of Commerce and CIBC World
        Markets Inc., the plaintiffs filed an appeal to the Ontario
        Divisional Court, which will be heard in February 2013.
    --  In the mortgage prepayment class actions, the motion for class
        certification in Sherry v. CIBC Mortgages Inc. is scheduled to
        be heard in August 2013.
    --  Four additional proposed class actions (Fuze Salon v. BofA
        Canada Bank, et al., 1023926 Alberta Ltd. v. Bank of America
        Corporation, et al., The Crown & Hand Pub Ltd. v. Bank of
        America Corporation, et al., Hello Baby Equipment Inc. v. BofA
        Canada Bank, et al.) were commenced in western Canada against
        VISA Canada Corporation (Visa), MasterCard International
        Incorporated (MasterCard), CIBC and numerous other financial
        institutions. The actions, brought on behalf of merchants who
        accepted payment by Visa or MasterCard from 2001 to present,
        allege two "separate, but interrelated" conspiracies; one in
        respect of Visa and one in respect of MasterCard. The claims
        allege that Visa and MasterCard conspired with their issuing
        banks to set default interchange rate and merchant discount
        fees and that certain rules (Honour All Cards and No Surcharge)
        have the effect of increasing the merchant discount fees. The
        claims allege civil conspiracy, violation of the Competition
        Act, interference with economic interests and unjust
        enrichment. The claims seek unspecified general and punitive
        damages. These matters are similar to previously filed and
        disclosed proposed class actions relating to default
        interchange rates and merchant discount fees.

Other than the items described above, there are no significant developments in 
the matters identified in Note 23 to our 2012 annual consolidated financial 
statements, and no significant new matters have arisen during the quarter 
ended January 31, 2013.

Asset impairment

As at January 31, 2013, we had goodwill of $1,700 million (October 31, 2012: 
$1,701 million) and other intangible assets with an indefinite life of $136 
million (October 31, 2012: $136 million). Goodwill is not amortized, but is 
assessed, at least annually and when there are events or changes in 
circumstances to indicate that the carrying amount may not be recoverable, for 
impairment by comparing the recoverable amount of the cash-generating unit 
(CGU) to which goodwill has been allocated, with the carrying amount of the 
CGU including goodwill, with any deficiency recognized as impairment to 
goodwill. The recoverable amount of a CGU is defined as the higher of its 
estimated fair value less cost to sell or value in use.

Acquired intangible assets are separately recognized if the benefits of the 
intangible assets are obtained through contractual or other legal rights, or 
if the intangible assets can be sold, transferred, licensed, rented, or 
exchanged. Determining the useful lives of intangible assets requires judgment 
and fact-based analysis. Intangibles with an indefinite life are not amortized 
but are assessed for impairment by comparing the recoverable amount to the 
carrying amount.

Long-lived assets and other identifiable intangibles with a definite life are 
amortized over their estimated useful lives. These assets are tested for 
impairment whenever events or changes in circumstances indicate that the 
carrying amount is higher than the recoverable amount. The recoverable amount 
is defined as the higher of its estimated fair value less cost to sell or 
value in use. In performing the review for recoverability, we estimate the 
future cash flows expected to result from the use of the asset and its 
eventual disposition.

We performed our annual impairment testing in the fourth quarter of 2012 and 
did not record any impairment at that time. During the quarter, there were no 
events or changes in circumstances to indicate that the carrying amounts may 
not be recoverable and hence no further testing was conducted.

Income taxes

We are subject to income tax laws in the various jurisdictions where we 
operate, and the tax laws in those jurisdictions are potentially subject to 
different interpretations by us and the relevant taxation authority. We use 
judgment in the estimation of income taxes and deferred income tax assets and 
liabilities.  As a result, management judgment is applied in the 
interpretation of the relevant tax laws and in estimating the provision for 
current and deferred income taxes. A deferred tax asset or liability is 
determined for each temporary difference based on the tax rates that are 
expected to be in effect in the period that the asset is realized or the 
liability is settled. Where the temporary differences will not reverse in the 
foreseeable future, no deferred tax amount is recognized.

As at January 31, 2013, we had a deferred income tax asset of $467 million 
(October 31, 2012: $457 million) and a deferred income tax liability of $36 
million (October 31, 2012: $37 million). We are required to assess whether it 
is probable that our deferred income tax asset will be realized prior to its 
expiration and, based on all the available evidence, determine if any portion 
of our deferred income tax asset should not be recognized. The factors used to 
assess the probability of realization are our past experience of income and 
capital gains, forecast of future net income before taxes, available tax 
planning strategies that could be implemented to realize the deferred income 
tax asset, and the remaining expiration period of tax loss carryforwards. 
Although realization is not assured, we believe, based on all the available 
evidence, it is probable that the remaining deferred income tax asset will be 
realized.

For further details on our income taxes, see Note 9 to the interim 
consolidated financial statements.

Post-employment and other long-term benefit plans

We sponsor a number of benefit plans to eligible employees, including 
registered pension plans, supplemental pension plans, and health, dental, 
disability and life insurance plans. The pension plans provide benefits based 
on years of service, contributions and average earnings at retirement.

The calculation of net defined benefit plan expense and obligations depends on 
various actuarial assumptions such as discount rates, expected rates of
return on assets, health-care cost trend rates, turnover of employees, 
projected salary increases, retirement age, and mortality rates. These 
assumptions are reviewed annually in accordance with accepted actuarial 
practice and are approved by management.  The actuarial assumptions used for 
determining net defined benefit expense for a fiscal year are set at the 
beginning of the annual reporting period.

The discount rate assumption used in determining net defined benefit expense 
reflects market yields, as of the measurement date, on high-quality debt 
instruments with a currency and term to maturity that match the currency and 
expected timing of benefit payments. Our discount rate is estimated by 
developing a yield curve based on high-quality corporate bonds. While there is 
a deep market of high-quality corporate bonds denominated in Canadian dollars 
with short and medium terms to maturity, there is not a deep market in bonds 
with terms to maturity that match the timing of all the expected benefit 
payments for all of our Canadian plans. As a result, for our Canadian 
post-employment and other long-term benefit plans, we estimate the yields of 
high-quality corporate bonds with longer term maturities by extrapolating 
current yields on bonds with short and medium-term durations along the yield 
curve. Judgment is required in constructing the yield curve, and, as a result, 
different methodologies applied in constructing the yield curve can give rise 
to different discount rates.

For further details on post-employment benefit plan expense, see Note 8 to the 
interim consolidated financial statements.

Controls and procedures

Disclosure controls and procedures

CIBC's management, with the participation of the President and Chief Executive 
Officer and the Chief Financial Officer, has evaluated the effectiveness, as 
at January 31, 2013, of CIBC's disclosure controls and procedures (as defined 
in the rules of the SEC and the Canadian Securities Administrators) and has 
concluded that such disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There have been no changes in CIBC's internal control over financial reporting 
during the quarter ended January 31, 2013, that have materially affected, or 
are reasonably likely to materially affect, its internal control over 
financial reporting.  
Interim consolidated financial statements
(Unaudited)

Consolidated balance sheet 
                                                     2013         2012

Unaudited, $ millions, as at                      Jan. 31      Oct. 31

ASSETS                                                                

Cash and non-interest-bearing deposits with    $   2,302    $   2,613 
banks

Interest-bearing deposits with banks               3,334        2,114 

Securities                                                            

Trading                                           40,839       40,330 

Available-for-sale (AFS) (Note 3)                 25,878       24,700 

Designated at fair value (FVO)                       303          304 
                                                  67,020       65,334 

Cash collateral on securities borrowed             3,477        3,311 

Securities purchased under resale agreements      25,581       25,163 

Loans                                                                 

Residential mortgages                            149,008      150,056 

Personal                                          34,785       35,323 

Credit card                                       14,798       15,153 

Business and government                           44,619       43,624 

Allowance for credit losses (Note 4)              (1,820)      (1,860)
                                                 241,390      242,296 

Other                                                                 

Derivative instruments                            25,085       27,039 

Customers' liability under acceptances             9,749       10,436 

Land, buildings and equipment                      1,665        1,683 

Goodwill                                           1,700        1,701 

Software and other intangible assets                 673          656 

Investments in equity-accounted associates and     1,589        1,635 
joint ventures

Other assets                                       9,218        9,404 
                                                  49,679       52,554 
                                               $ 392,783    $ 393,385 

LIABILITIES AND EQUITY                                                

Deposits (Note 6)                                                     

Personal                                       $ 119,148    $ 118,153 

Business and government                          129,022      125,055 

Bank                                               5,218        4,723 

Secured borrowings                                52,916       52,413 
                                                 306,304      300,344 

Obligations related to securities sold short      12,313       13,035 

Cash collateral on securities lent                 1,460        1,593 

Capital Trust securities                           1,669        1,678 

Obligations related to securities sold under       4,516        6,631 
repurchase agreements

Other                                                                 

Derivative instruments                            24,551       27,091 

Acceptances                                        9,797       10,481 

Other liabilities                                 10,207       10,671 
                                                  44,555       48,243 

Subordinated indebtedness                          4,791        4,823 

Equity                                                                

Preferred shares                                   1,706        1,706 

Common shares (Note 7)                             7,765        7,769 

Contributed surplus                                   79           85 

Retained earnings                                  7,229        7,042 

Accumulated other comprehensive income (AOCI)        230          264 

Total shareholders' equity                        17,009       16,866 

Non-controlling interests                            166          172 

Total equity                                      17,175       17,038 
                                               $ 392,783    $  393,385

The accompanying notes and shaded sections in "MD&A - Management of risk" are 
an integral part of these interim consolidated financial statements.

Consolidated statement of income
                                         2013      2012 ((1))      2012

Unaudited, $ millions, except as      Jan. 31   Oct. 31         Jan. 31
noted, for the three months ended

Interest income                                                        

Loans                               $  2,474  $  2,494        $  2,540 

Securities                               403       377             388 

Securities borrowed or purchased          88        87              76 
under resale agreements

Deposits with banks                       11        11              11 
                                       2,976     2,969           3,015 

Interest expense                                                       

Deposits                                 904       895             915 

Securities sold short                     83        84              87 

Securities lent or sold under             30        30              52 
repurchase agreements

Subordinated indebtedness                 52        52              52 

Capital Trust securities                  34        36              36 

Other                                     18        24              31 
                                       1,121     1,121           1,173 

Net interest income                    1,855     1,848           1,842 

Non-interest income                                                    

Underwriting and advisory fees           106       118             107 

Deposit and payment fees                 191       194             190 

Credit fees                              118       111              97 

Card fees                                156       152             164 

Investment management and custodial      112       110             102 
fees

Mutual fund fees                         240       230             212 

Insurance fees, net of claims             85        92              82 

Commissions on securities                101        98             101 
transactions

Trading income (loss)                     14       (17)             45 

AFS securities gains, net                 72        61              52 

FVO losses, net                           (3)       (4)             (8)

Foreign exchange other than trading        4         9              30 

Income from equity-accounted              25        44              62 
associates and joint ventures

Other                                    105       113              79 
                                       1,326     1,311           1,315 

Total revenue                          3,181     3,159           3,157 

Provision for credit losses (Note        265       328             338 
4)

Non-interest expenses                                                  

Employee compensation and benefits     1,082     1,001           1,013 

Occupancy costs                          168       182             173 

Computer, software and office            247       266             241 
equipment

Communications                            77        74              79 

Advertising and business                  47        69              49 
development

Professional fees                         36        45              39 

Business and capital taxes                17        12              13 

Other                                    313       180             184 
                                       1,987     1,829           1,791 

Income before income taxes               929     1,002           1,028 

Income taxes                             131       150             193 

Net income                          $    798  $    852        $    835 

Net income attributable to          $      2  $      2        $      3 
non-controlling interests

  Preferred shareholders            $     25  $     29        $     56 

  Common shareholders                    771       821             776 

Net income attributable to equity   $    796  $    850        $    832 
shareholders

Earnings per share (in dollars)                                        
(Note 10)

  - Basic                           $   1.91  $   2.02        $   1.94 

  - Diluted                             1.91      2.02            1.93 

Dividends per common share (in          0.94      0.94             0.90
dollars)

(1)      Certain amounts have been reclassified to conform to the
                      presentation adopted in the current period.

 

The accompanying notes and shaded sections in "MD&A - Management of risk" are 
an integral part of these interim consolidated financial statements.

Consolidated statement of comprehensive income
                                             2013      2012        2012

Unaudited, $ millions, for the three      Jan. 31   Oct. 31     Jan. 31
months ended

Net income                              $    798  $    852  $      835 

Other comprehensive income (OCI), net                                  
of tax, that may be recycled to
profit or loss
    Net foreign currency translation                                   
    adjustments
    Net gains (losses) on investments        (21)       36          41 
    in foreign operations
    Net (gains) losses on investments          -         -           1 
    in foreign operations
    reclassified to net income
    Net gains (losses) on hedges of           11       (50)        (19)
    investments in foreign operations
    Net (gains) losses on hedges of            -         -          (1)
    investments in foreign operations
    reclassified to net income
                                             (10)      (14)         22 
    Net change in AFS securities                                       
    Net gains (losses) on AFS                 20        36          85 
    securities
    Net (gains) losses on AFS                (52)      (48)        (40)
    securities reclassified to net
    income
                                             (32)      (12)         45 
    Net change in cash flow hedges                                     
    Net gains (losses) on derivatives         28        21           3 
    designated as cash flow hedges
    Net (gains) losses on derivatives        (20)      (15)          5 
    designated as cash flow hedges
    reclassified to net income
                                               8         6           8 

Total OCI( (1))                              (34)      (20)         75 

Comprehensive income                    $    764  $    832  $      910 

Comprehensive income attributable to    $      2  $      2  $        3 
non-controlling interests
    Preferred shareholders              $     25  $     29  $       56 
    Common shareholders                      737       801         851 

Comprehensive income attributable to    $    762  $    830  $      907 
equity shareholders

(1) Includes $1 million of gains for the quarter ended January 31, 2013
    (October 31, 2012: $5 million of gains; January 31, 2012: $3
    million of gains) relating to our investments in equity-accounted
    associates and joint ventures.
                                                             
                                             2013      2012      2012  

Unaudited, $ millions, for the three      Jan. 31   Oct. 31   Jan. 31  
months ended

Income tax (expense) benefit                                           
    Net foreign currency translation                                   
    adjustments
    Net gains (losses) on investments   $      1  $     (9) $       (1)
    in foreign operations
    Net gains (losses) on hedges of           (2)        7           5 
    investments in foreign operations
                                              (1)       (2)          4 
    Net change in AFS securities                                       
    Net gains (losses) on AFS                (12)       (7)        (34)
    securities
    Net (gains) losses on AFS                 20        18          15 
    securities reclassified to net
    income
                                               8        11         (19)
    Net change in cash flow hedges                                     
    Net gains (losses) on derivatives        (10)       (4)         (2)
    designated as cash flow hedges
    Net (gains) losses on derivatives          7         5          (1)
    designated as cash flow hedges
    reclassified to net income
                                              (3)        1          (3)
                                        $      4  $     10  $      (18)

The accompanying notes and shaded sections in "MD&A - Management of risk" are 
an integral part of these interim consolidated financial statements.

Consolidated statement of changes in equity
                                               2013      2012      2012

Unaudited, $ millions, for the three        Jan. 31   Oct. 31   Jan. 31
months ended

Preferred shares                                                       

Balance at beginning of period            $  1,706  $  2,006  $  2,756 

Redemption of preferred shares                   -      (300)     (450)

Balance at end of period                  $  1,706  $  1,706  $  2,306 

Common shares                                                          

Balance at beginning of period            $  7,769  $  7,744  $  7,376 

Issue of common shares                          59        64       161 

Purchase of common shares for                  (64)      (39)        - 
cancellation

Treasury shares                                  1         -         - 

Balance at end of period                  $  7,765  $  7,769  $  7,537 

Contributed surplus                                                    

Balance at beginning of period            $     85  $     87  $     93 

Stock option expense                             1         1         3 

Stock options exercised                         (6)       (3)       (9)

Other                                           (1)        -         - 

Balance at end of period                  $     79  $     85  $     87 

Retained earnings                                                      

Balance at beginning of period            $  7,042  $  6,719  $  5,457 

Net income attributable to equity              796       850       832 
shareholders

Dividends                                                              

  Preferred                                    (25)      (29)      (38)

  Common                                      (379)     (381)     (360)

Premium on redemption of preferred shares        -         -       (18)

Premium on purchase of common shares for      (205)     (118)        - 
cancellation

Other                                            -         1         - 

Balance at end of period                  $  7,229  $  7,042  $  5,873 

AOCI, net of tax                                                       

  Net foreign currency translation                                     
  adjustments

  Balance at beginning of period          $    (88) $    (74) $    (88)

  Net change in foreign currency               (10)      (14)       22 
  translation adjustments

  Balance at end of period                $    (98) $    (88) $    (66)

  Net gains (losses) on AFS securities                                 

  Balance at beginning of period          $    350  $    362  $    338 

  Net change in AFS securities                 (32)      (12)       45 

  Balance at end of period                $    318  $    350  $    383 

  Net gains (losses) on cash flow hedges                               

  Balance at beginning of period          $      2  $     (4) $     (5)

  Net change in cash flow hedges                 8         6         8 

  Balance at end of period                $     10  $      2  $      3 

Total AOCI, net of tax                    $    230  $    264  $    320 

Non-controlling interests                                              

Balance at beginning of period            $    172  $    167  $    164 

Net income attributable to                       2         2         3 
non-controlling interests

Dividends                                       (2)        -        (2)

Other                                           (6)        3        (2)

Balance at end of period                  $    166  $    172  $    163 

Equity at end of period                   $ 17,175  $ 17,038  $  16,286

The accompanying notes and shaded sections in "MD&A - Management of risk" are 
an integral part of these interim consolidated financial statements.

Consolidated statement of cash flows
                                              2013      2012       2012

Unaudited, $ millions, for the three       Jan. 31   Oct. 31    Jan. 31
months ended

Cash flows provided by (used in)                                       
operating activities

Net income                               $    798  $    852  $     835 

Adjustments to reconcile net income to                                 
cash flows provided by (used in)
operating activities:

  Provision for credit losses                 265       328        338 

  Amortization ((1))                           82        83         91 

  Stock option expense                          1         1          3 

  Deferred income taxes                       (14)       15         15 

  AFS securities gains, net                   (72)      (61)       (52)

  Net gains on disposal of land,               (2)      (14)         - 
  buildings and equipment

  Other non-cash items, net                   (71)     (102)       131 

  Net changes in operating assets and                                  
  liabilities 
    Interest-bearing deposits with         (1,220)    4,366     (1,084)
    banks
    Loans, net of repayments                  446       854     (2,951)
    Deposits, net of withdrawals            6,189    (4,592)     6,036 
    Obligations related to securities        (722)    1,091     (1,957)
    sold short
    Accrued interest receivable                67       (81)         5 
    Accrued interest payable                 (296)      279       (368)
    Derivative assets                       1,927     1,721     (3,095)
    Derivative liabilities                 (2,536)   (1,986)     3,616 
    Trading securities                       (509)   (1,183)    (2,869)
    FVO securities                              1        20         67 
    Other FVO assets and liabilities           54       (95)       125 
    Current income taxes                     (415)      (22)      (555)
    Cash collateral on securities lent       (133)     (691)      (649)
    Obligations related to securities      (2,115)   (1,896)     2,282 
    sold under repurchase agreements
    Cash collateral on securities            (166)      679        (28)
    borrowed
    Securities purchased under resale        (418)    3,842      2,806 
    agreements
    Other, net                                314      (263)      (354)
                                            1,455     3,145      2,388 

Cash flows provided by (used in)                                       
financing activities

Redemption of preferred shares                  -      (300)      (468)

Issue of common shares for cash                53        61        152 

Purchase of common shares for                (269)     (157)         - 
cancellation

Net proceeds from treasury shares               1         -          - 

Dividends paid                               (404)     (410)      (398)
                                             (619)     (806)      (714)

Cash flows provided by (used in)                                       
investing activities

Purchase of AFS securities                 (6,642)   (7,691)   (14,408)

Proceeds from sale of AFS securities        2,702     3,608      6,727 

Proceeds from maturity of AFS               2,793     2,147      6,087 
securities

Net cash used in acquisitions                   -       (30)        (3)

Net cash provided by dispositions              41        42          - 

Net purchase of land, buildings and           (39)     (117)       (45)
equipment
                                           (1,145)   (2,041)    (1,642)

Effect of exchange rate changes on             (2)       (4)         2 
cash and non-interest-bearing deposits
with banks

Net increase (decrease) in cash and          (311)      294         34 
non-interest-bearing deposits with
banks during period

Cash and non-interest-bearing deposits      2,613     2,319      1,481 
with banks at beginning of period

Cash and non-interest-bearing deposits   $  2,302  $  2,613  $   1,515 
with banks at end of period ((2))

Cash interest paid                       $  1,417  $    842  $   1,541 

Cash income taxes paid                        560       157        733 

Cash interest and dividends received        3,043     3,056       3,020

(1)       Comprises amortization of buildings, furniture, equipment,
          leasehold improvements, and software and other intangible
          assets. 

(2)       Includes restricted balance of $269 million (October 31,
          2012: $270 million; January 31, 2012: $252 million).

The accompanying notes and shaded sections in "MD&A - Management of risk" are 
an integral part of these interim consolidated financial statements.

Notes to the interim consolidated financial statements 
(Unaudited)

The interim consolidated financial statements of CIBC are prepared in 
accordance with Section 308(4) of the Bank Act which states that, except as 
otherwise specified by the Office of the Superintendent of Financial 
Institutions (OSFI), the financial statements are to be prepared in accordance 
with International Financial Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board. There are no accounting requirements 
of OSFI that are exceptions to IFRS. These interim consolidated financial 
statements have been prepared in accordance with IAS 34 "Interim Financial 
Statements". These interim consolidated financial statements do not include 
all of the information required for full annual consolidated financial 
statements and, accordingly, should be read in conjunction with the 
consolidated financial statements for the year ended October 31, 2012, as set 
out on pages 84 to 176 of the 2012 Annual Report. All amounts in these interim 
consolidated financial statements are presented in Canadian dollars, unless 
otherwise indicated. These interim consolidated financial statements were 
authorized for issue by the Board of Directors on February 27, 2013.

1. Fair value of financial instruments

The tables below present the level in the fair value hierarchy into which the 
fair values of financial instruments that are carried at fair value on the 
interim consolidated balance sheet are categorized:
                      Level 1                Level 2                Level 3                    
                                   Valuation technique -   Valuation technique
             Quoted market price       observable market                     -        Total      Total
                                                  inputs        non-observable
                                                                 market inputs
                  2013      2012         2013       2012        2013      2012         2013       2012

$ millions,    Jan. 31   Oct. 31      Jan. 31    Oct. 31     Jan. 31   Oct. 31      Jan. 31    Oct. 31
as at

Financial                                                                                             
assets

Trading                                                                                               
securities

Government   $  1,662  $  2,052    $   7,291  $   8,468    $      -  $      -    $   8,953  $  10,520 
issued or
guaranteed

Corporate      24,660    23,693        4,182      3,600           -         -       28,842     27,293 
equity

Corporate           -         -        1,670      1,351           -         -        1,670      1,351 
debt

Mortgage-           -         -          536        538         838       628        1,374      1,166 
and
asset-backed
               26,322    25,745       13,679     13,957         838       628       40,839     40,330 

Trading                                                                                               
loans

Business and $  1,409  $    866    $     103  $      27    $      8  $     12    $   1,520  $     905 
government
              

AFS                                                                                                   
securities

Government   $  1,357  $  1,889    $  16,908  $  15,389    $      -  $      -    $  18,265  $  17,278 
issued or
guaranteed

Corporate          21        14            -          1         650       639          671        654 
equity

Corporate           -         -        5,218      4,977          21        21        5,239      4,998 
debt

Mortgage-           -         -        1,149      1,060         554       710        1,703      1,770 
and
asset-backed
             $  1,378  $  1,903    $  23,275  $  21,427    $  1,225  $  1,370    $  25,878  $  24,700 

FVO                                                                                                   
securities

Government   $      -  $      -    $      46  $      47    $      -  $      -    $      46  $      47 
issued or
guaranteed

Corporate           -         -           90         87           -         -           90         87 
debt

Asset-backed        -         -            -          -         167       170          167        170 
                    -         -          136        134         167       170          303        304 

FVO          $      -  $      -    $      38  $      38    $      -  $      -    $      38  $      38 
securities
purchased
under resale
agreements

Derivative                                                                                            
instruments

Interest     $      3  $     12    $  17,781  $  20,166    $     71  $     80    $  17,855  $  20,258 
rate

Foreign             -         -        5,850      5,386           -         -        5,850      5,386 
exchange

Credit              -         -            -          -         514       591          514        591 

Equity             39        33          278        209           -        12          317        254 

Precious            6         7           11         15           -         -           17         22 
metal

Other              89       193          443        335           -         -          532        528 
commodity
             $    137  $    245    $  24,363  $  26,111    $    585  $    683    $  25,085  $  27,039 

Total        $ 29,246  $ 28,759    $  61,594  $  61,694    $  2,823  $  2,863    $  93,663  $  93,316 
financial
assets

Financial                                                                                             
liabilities

Deposits and $      -  $      -    $  (1,533) $  (1,483)   $   (656) $   (597)   $  (2,189) $  (2,080)
other
liabilities
( (1))

Obligations    (7,668)   (6,805)      (4,645)    (6,230)          -         -      (12,313)   (13,035)
related to
securities
sold short
             $ (7,668) $ (6,805)   $  (6,178) $  (7,713)   $   (656) $   (597)   $ (14,502) $ (15,115)

Derivative                                                                                            
instruments

Interest     $     (2) $      -    $ (17,068) $ (19,540)   $    (76) $    (85)   $ (17,146) $ (19,625)
rate

Foreign             -         -       (5,182)    (4,556)          -         -       (5,182)    (4,556)
exchange

Credit              -         -            -          -        (568)   (1,315)        (568)    (1,315)

Equity            (41)      (18)      (1,109)      (936)         (4)       (2)      (1,154)      (956)

Precious           (9)      (18)          (6)       (13)          -         -          (15)       (31)
metal

Other            (112)     (101)        (374)      (507)          -         -         (486)      (608)
commodity
             $   (164) $   (137)   $ (23,739) $ (25,552)   $   (648) $ (1,402)   $ (24,551) $ (27,091)

Total        $ (7,832) $ (6,942)   $ (29,917) $ (33,265)   $ (1,304) $ (1,999)   $ (39,053) $ (42,206)
financial
liabilities

(1) Comprises FVO deposits of $1,518 million (October 31, 2012: $1,488
    million), FVO secured borrowings of $362 million (October 31, 2012:
    $365 million), bifurcated embedded derivatives of $252 million
    (October 31, 2012: $184 million), FVO other liabilities of $7
    million (October 31, 2012: $3 million), and other financial
    liabilities measured at fair value of $50 million (October 31,
    2012: $40 million).

 

During the quarter, we transferred $12 million of certain bifurcated embedded 
derivatives from Level 3 to Level 2 due to availability of market observable 
inputs.

The net gain recognized in the interim consolidated statement of income on the 
financial instruments, for which fair value was estimated using valuation 
techniques requiring non-observable market parameters, for the quarter ended 
January 31, 2013 was $47 million (a net gain of $74 million and $23 million 
for the quarters ended October 31, 2012 and January 31, 2012, respectively.)

The following table presents the changes in fair value of financial assets and 
liabilities in Level 3. These instruments are measured at fair value utilizing 
non-observable market inputs. We often hedge positions with offsetting 
positions that may be classified in a different level. As a result, the gains 
and losses for assets and liabilities in the Level 3 category presented in the 
table below do not reflect the effect of offsetting gains and losses on the 
related hedging instruments that are classified in Level 1 and Level 2.

 
                              Net gains (losses)                                                                        
                               
                              included in income
                                                                       Net

unrealized $ millions, gains for the ( (losses) Transfer Transfer three months Opening ( (1) included in to out of

Closing ended balance Realized (1)) Unrealized (2)) in OCI Level 3 Level 3 Purchases Issuances Sales Settlements balance

Jan. 31,

2013

Trading

securities

Mortgage- $ 628 $ 47 $ 87 $ - $ - $ - $ 162 $ - $ - $ (86) $ 838 and asset-backed

Trading

loans

Business and 12 - - - - - - -

(4) - 8 government

AFS

securities

Corporate 639 14 - 4 - - 24 - (31) - 650 equity

Corporate 21 - - - - - - -

- - 21 debt

Mortgage- 710 4 - (3) - - - -

- (157) 554 and asset-backed

FVO

securities

Asset-backed 170 4 10 - - - - -

- (17) 167

Derivative

instruments

Interest 80 5 (9) - - - - -

- (5) 71 rate

Credit 591 (6) (49) - - - - -

- (22) 514

Equity 12 - - - - - - -

- (12) -

Total assets $ 2,863 $ 68 $ 39 $ 1 $ - $ - $ 186 $ - $ (35) $ (299) $ 2,823

Deposits and $ (597) $ (12) $ (108) $ - $ - $ 12 $ - $ (32) $ - $ 81 $ (656) other liabilities ( (3))

Derivative

instruments

Interest (85) (5) 9 - - - - -

- 5 (76) rate

Credit (1,315) 22 36 - - - - -

- 689 (568)

Equity (2) - (2) - - - - -

- - (4)

Total $ (1,999) $ 5 $ (65) $ - $ - $ 12 $ - $ (32) $ - $ 775 $ (1,304) liabilities

Oct. 31,

2012

Trading

securities

Mortgage- $ 611 $ 11 $ 25 $ - $ - $ - $ 1 $ - $ - $ (20) $ 628 and asset-backed

Trading

loans

Business and 16 - (4) - - - - -

- - 12 government

AFS

securities

Corporate 668 14 (10) (17) - - 8 - (24) - 639 equity

Corporate 65 44 (2) (31) - - - - (51) (4) 21 debt

Mortgage- 863 - - 4 - - - -

- (157) 710 and asset-backed

FVO

securities

Asset-backed 195 16 18 - - - - - (18) (41) 170

Derivative

instruments

Interest 82 2 (2) - - - - -

- (2) 80 rate

Credit 758 (4) (142) - - - - -

- (21) 591

Equity 9 - 3 - - - - -

- - 12

Total assets $ 3,267 $ 83 $ (114) $ (44) $ - $ - $ 9 $ - $ (93) $ (245) $ 2,863

Deposits and $ (582) $ (1) $ (24) $ - $ - $ 27 $ (3) $ (6) $ (20) $ 12 $ (597) other liabilities ( (3))

Derivative

instruments

Interest (89) (11) 2 - - - - -

- 13 (85) rate

Credit (1,494) 11 126 - - - - -

- 42 (1,315)

Equity (3) 1 1 - - - - -

- (1) (2)

Total $ (2,168) $ - $ 105 $ - $ - $ 27 $ (3) $ (6) $ (20) $ 66 $ (1,999) liabilities

(1) Includes foreign currency


    gains and losses.

(2) Comprises unrealized gains                                         
    and losses relating to these
    assets and liabilities held
    at the end of the reporting
    period.

(3) Includes FVO deposits of
    $530 million (October 31,
    2012: $472 million) and
    bifurcated embedded
    derivatives of $123 million
    (October 31, 2012: $122
    million).

Sensitivity of Level 3 financial assets and liabilities

Valuation techniques using predominantly non-observable market inputs are used 
for a number of financial instruments including our structured credit run-off 
business.

Asset-backed securities (ABS) are sensitive to credit spreads, which we 
consider to be a non-observable market input.

AFS privately issued equity and debt securities are sensitive to 
non-observable assumptions and inputs such as projected cash flow and earnings 
multiples.

FVO deposits that are not managed as part of our structured credit run-off 
business are sensitive to non-observable credit spreads, which are derived 
using extrapolation and correlation assumptions.

Certain bifurcated embedded derivatives, due to the complexity and unique 
structure of the instruments, require significant assumptions and judgment to 
be applied to both the inputs and valuation techniques, which we consider to 
be non-observable.

The effect of changing one or more of the assumptions used to fair value these 
instruments to reasonably possible alternatives would impact net income or OCI 
as described below.

Our unhedged non-U.S. residential mortgage market (USRMM) structured credit 
positions are sensitive to changes in mark-to-market (MTM), generally as 
derived from indicative broker quotes and internal models. A 10% adverse 
change in MTM of the underlyings would result in losses of approximately $72 
million, excluding unhedged non-USRMM positions classified as loans which are 
carried at amortized cost.

For our hedged positions, there are two categories of sensitivities; the first 
relates to our hedged loan portfolio and the second relates to our hedged fair 
valued exposures. Since on-balance sheet hedged loans are carried at amortized 
cost whereas the related credit derivatives are fair valued, a 10% increase in 
the MTM of credit derivatives in our hedged structured credit positions would 
result in a net gain of approximately $5 million, assuming current credit 
valuation adjustment (CVA) ratios remain unchanged. A 10% reduction in the MTM 
of our on-balance sheet fair valued exposures and a 10% increase in the MTM of 
all credit derivatives in our hedged structured credit positions would result 
in a net loss of approximately $19 million, assuming current CVA ratios remain 
unchanged.

The impact of a 10% increase in the MTM of unmatched credit derivatives, where 
we have purchased protection but do not have exposure to the underlying, would 
result in no significant gain or loss, assuming current CVA ratios remain 
unchanged.

The impact of a 10% reduction in receivables, net of CVA from financial 
guarantors, would result in a net loss of approximately $23 million.

A 10% reduction in the MTM of our on-balance sheet ABS that are valued using 
non-observable credit and liquidity spreads would result in a decrease in OCI 
of approximately $55 million.

A 10% reduction in the MTM of our AFS privately issued equity and debt 
securities that are valued using non-observable inputs such as projected cash 
flows and earnings multiples, would result in a decrease in OCI of 
approximately $66 million.

A 10% reduction in the MTM of certain FVO deposits which are not managed as 
part of our structured credit run-off business and are valued using 
non-observable inputs, including correlation assumptions and extrapolated 
credit spreads, would result in a gain of approximately $5 million.

A 10% reduction in the MTM of certain bifurcated embedded derivatives, valued 
using internally vetted valuation techniques and correlation assumptions, 
would result in a gain of approximately $12 million.

FVO liabilities

The impacts of changes in CIBC's own credit risk on our outstanding FVO 
liabilities were gains of $1 million for the quarter ended January 31, 2013 
and less than $1 million cumulatively (losses of less than $1 million for the 
quarter ended January 31, 2012 and cumulatively).

As at January 31, 2013, the total contractual settlement amount of the FVO 
deposits was $12 million lower (October 31, 2012: $5 million lower) than its 
fair value.

2. Significant disposition

Private wealth management (Asia)

On January 25, 2013, CIBC sold its stand-alone Hong Kong and Singapore-based 
private wealth management business. This niche advisory and brokerage 
business, which was included in International banking within Corporate and 
Other, provided private banking services to a small number of high-net-worth 
individuals in the Asia-Pacific region and had assets under management of 
approximately $2 billion. As a result, CIBC recognized a gain, net of 
associated expenses, of $16 million ($16 million after-tax) during the 
quarter. CIBC's other businesses in Asia are unaffected by this transaction.

3. Securities

Fair value of AFS securities
                                                           2013                                            2012

$ millions, as                                          Jan. 31                                         Oct. 31
at
                                   Gross        Gross                              Gross        Gross           
                  Amortized   unrealized   unrealized      Fair   Amortized   unrealized   unrealized    Fair  
                       cost        gains       losses     value        cost        gains       losses   value  

Securities                                                                                                     
issued or
guaranteed by:

  Canadian      $    7,468  $        45  $        (2) $  7,511  $    6,683  $        84  $        (2) $  6,765 
  federal
  government

  Other              4,595           30            -     4,625       4,197           28           (2)    4,223 
  Canadian
  governments

  U.S. Treasury      4,070           15          (19)    4,066       4,393           14           (8)    4,399 
  and agencies

  Other foreign      2,055           25          (17)    2,063       1,885           24          (18)    1,891 
  governments

Mortgage-backed      1,117            7           (1)    1,123       1,004           19            -     1,023 
securities

Asset-backed           572            8            -       580         736           11            -       747 
securities

Corporate            5,167           75          (12)    5,230       4,938           69          (18)    4,989 
public debt

Corporate                5            4            -         9           5            4            -         9 
private debt

Corporate                9           13            -        22           5           11            -        16 
public equity

Corporate              385          264            -       649         378          260            -       638 
private equity
                $   25,443  $       486  $       (51) $ 25,878  $   24,224  $       524  $       (48) $ 24,700 

As at January 31, 2013, the amortized cost of 117 AFS securities that are in a 
gross unrealized loss position (October 31, 2012: 100 securities) exceeded 
their fair value by $51 million (October 31, 2012: $48 million). The 
securities that have been in a gross unrealized loss position for more than a 
year include 3 AFS securities (October 31, 2012: 6 securities), with a gross 
unrealized loss of less than $1 million (October 31, 2012: less than $1 
million).

Reclassification of financial instruments

In October 2008, amendments made to IAS 39 "Financial Instruments - 
Recognition and Measurement" and IFRS 7 "Financial Instruments - Disclosures" 
permitted certain trading financial assets to be reclassified to loans and 
receivables and AFS in rare circumstances. As a result of these amendments, we 
reclassified certain securities to loans and receivables and AFS with effect 
from July 1, 2008. During the quarter ended January 31, 2013, we have not 
reclassified any securities.

The following tables show the carrying values, fair values, and income or loss 
impact of the assets reclassified:
                                            2013                   2012

$ millions, as at                        Jan. 31                Oct. 31
                                 Fair   Carrying      Fair   Carrying  
                                value      value     value      value  

Trading assets previously   $  3,812  $   3,839  $  3,864  $     3,940 
reclassified to loans and
receivables

Trading assets previously         12         12        14           14 
reclassified to AFS

Total financial assets      $  3,824  $   3,851  $  3,878  $     3,954 
reclassified
                                                              
                                            2013      2012       2012  

$ millions, for the three                Jan. 31   Oct. 31    Jan. 31  
months ended

Net income (before taxes)                                              
recognized on assets
reclassified  

  Interest income                     $      16  $     19  $        27 

  Impairment write-downs                      -       (34)           - 
                                      $      16  $    (15) $        27 

Change in fair value                                                   
recognized in net income
(before taxes) on assets if
reclassification had not
been made  

  On trading assets                   $      24  $     22  $        24 
  previously reclassified
  to loans and receivables

  On trading assets                           -         1            - 
  previously reclassified
  to AFS
                                      $      24  $     23  $        24 

The effective interest rates on trading securities previously reclassified to 
AFS ranged from 3% to 13% with expected recoverable cash flows of $1.2 billion 
as of their reclassification date. The effective interest rates on trading 
assets previously reclassified to loans and receivables ranged from 4% to 10% 
with expected recoverable cash flows of $7.9 billion as of their 
reclassification date.

4. Loans

Allowance for credit losses 
                                                                  
                                              2013        2012        2012

$ millions,                                Jan. 31     Oct. 31     Jan. 31
for the
three months
ended
                            Collective       Total       Total       Total
               Individual
                             allowance   allowance   allowance   allowance
                allowance

Balance at   $       475  $     1,441  $    1,916  $    1,936  $    1,851 
beginning of
period

  Provision           30          235         265         328         338 
  for credit
  losses

  Write-offs         (54)        (282)       (336)       (380)       (322)

  Recoveries           -           44          44          43          40 

  Interest            (6)          (3)         (9)        (10)        (16)
  income on
  impaired
  loans

  Other                1            -           1          (1)          4 

Balance at   $       446  $     1,435  $    1,881  $    1,916  $    1,895 
end of
period

Comprises:                                                                

  Loans      $       446  $     1,374  $    1,820  $    1,860  $    1,849 

  Undrawn              -           61          61          56           46
  credit
  facilities
  ((1))

(1) Included in Other liabilities on the interim consolidated balance
    sheet.

 

Impaired loans
                                                                           
                                                            2013     2012  

$ millions,                                              Jan. 31    Oct. 31
as at                                                                      
                 Gross   Individual   Collective             Net      Net  
              impaired    allowance    allowance    (   impaired   impaired
                                                 (1))                      

Residential $     481  $         1  $        50       $     430  $     427 
mortgages

Personal          276            8          174              94         83 

Business          992          437           21             534        636 
and
government

Total       $   1,749  $       446  $       245       $   1,058  $    1,146
impaired
loans( (2))

(1) Includes collective allowance relating to                         
    personal, scored small business and mortgage
    impaired loans that are greater than 90 days
    delinquent. In addition, we have collective
    allowance of $1,190 million (October 31, 2012:
    $1,195 million) on balances which are not
    impaired. 

(2) Average balance of gross impaired loans for the
    quarter ended January 31, 2013 totalled $1,794
    million (for the quarter ended October 31, 2012:
    $1,872 million).

 

Contractually past due loans but not impaired
                                                         2013      2012

$ millions, as at                                     Jan. 31   Oct. 31
                      Less than     31 to      Over                    
                        31 days   90 days   90 days     Total    Total 

Residential         $    1,801  $    679  $    255  $  2,735  $  2,732 
mortgages

Personal                   459       107        25       591       564 

Credit card                700       205       133     1,038     1,060 

Business and               124        99        19       242       284 
government
                    $    3,084  $  1,090  $    432  $  4,606  $  4,640 

5. Structured entities and derecognition of financial assets

Structured entities

Structured entities are entities that have been designed so that voting or 
similar rights are not the dominant factor in deciding who controls the 
entity, such as when any voting rights relate to administrative tasks only and 
the relevant activities are directed by means of contractual arrangements. 
Structured entities include special purpose entities which are entities that 
are created to accomplish a narrow and well-defined objective.

We consolidate a structured entity when the substance of the relationship 
indicates that we control the structured entity.

Details of our consolidated and non-consolidated structured entities are 
provided on pages 117 and 118 of the 2012 Annual Report.

With respect to our Covered Bond Programme as at January 31, 2013, $14.6 
billion of mortgages with a fair value of $14.7 billion (October 31, 2012: 
$14.6 billion with a fair value of $14.7 billion) supported associated covered 
bond liabilities of $13.8 billion with a fair value of $13.9 billion (October 
31, 2012: $13.9 billion with a fair value of $14.0 billion).

With respect to Cards II Trust and Broadway Trust entities as at January 31, 
2013, $6.0 billion of credit card receivable assets with a fair value of $6.0 
billion (October 31, 2012:  $5.0 billion with a fair value of $5.0 billion) 
supported associated funding liabilities of $6.0 billion with a fair value of 
$6.0 billion (October 31, 2012: $4.9 billion with a fair value of $5.0 
billion).

As at January 31, 2013, there were $1.5 billion (October 31, 2012: $1.6 
billion) of total assets in our non-consolidated multi-seller conduits. Our 
on-balance sheet amounts and maximum exposure to loss related to structured 
entities that are not consolidated are set out in the table below. The maximum 
exposure comprises the carrying value of unhedged investments, the notional 
amounts for liquidity and credit facilities, and the notional amounts less 
accumulated fair value losses for unhedged written credit derivatives on 
structured entity reference assets. The impact of CVA is not considered in the 
table below.
                                       CIBC                                                         
                                                                                          Commercial
                                 structured
                      CIBC   collateralized          Third-party       Pass-through         mortgage
                 sponsored             debt    structured vehicles       investment   securitization
                                 obligation

$ millions, as    conduits         vehicles    Run-off   Continuing      structures           trust 
at January 31,
2013

On-balance                                                                                          
sheet assets
at carrying
value ((1))

  Trading      $       15  $             7  $     831  $       158  $        2,716  $             2 
  securities

  AFS                   -                -          2          582               -                - 
  securities

  FVO                   -                -        167            -               -                - 
  securities

  Loans                81              222      3,449           25               -                - 

  Derivatives           -                -          -            -              12                - 
  ((2))
               $       96  $           229  $   4,449  $       765  $        2,728  $             2 

October 31,    $      103  $           232  $   4,313  $     1,004  $        2,259  $             1 
2012

On-balance                                                                                          
sheet
liabilities at
carrying value
((1))

  Derivatives  $        -  $            20  $     466  $         -  $          197  $             - 
  ((2))

October. 31,   $        -  $            23  $   1,198  $         -  $          151  $             - 
2012

Maximum                                                                                             
exposure to
loss, net of
hedges

  Investment   $       96  $           229  $   4,449  $       765  $        2,716  $             2 
  and loans

  Notional of           -              190      3,043            -               -                - 
  written
  derivatives,
  less fair
  value losses

  Liquidity         1,464               42        370           25               -                - 
  and credit
  facilities

  Less: hedges          -             (295)    (6,551)           -          (2,716)               - 
  of
  investments,
  loans and
  written
  derivatives
  exposure
               $    1,560  $           166  $   1,311  $       790  $            -  $             2 

October 31,    $    1,657  $           100  $   1,360  $     1,027  $            -  $             1 
2012

(1)  Excludes structured entities established                         
     by Canada Mortgage and Housing
     Corporation (CMHC), Federal National
     Mortgage Association (Fannie Mae),
     Federal Home Loan Mortgage Corporation
     (Freddie Mac), Government National
     Mortgage Association (Ginnie Mae),
     Federal Home Loan Banks, Federal Farm
     Credit Bank, and Student Loan Marketing
     Association (Sallie Mae).

(2)  Comprises written credit default swaps
     and total return swaps under which we
     assume exposures and excludes all other
     derivatives.

Derecognition of financial assets 
Details of the financial assets that did not qualify for derecognition are 
provided on page 120 of the 2012 Annual Report.  
The following table provides the carrying amount and fair value of transferred 
financial assets that did not qualify for derecognition and the associated 
financial liabilities:
 
                                              2013                 2012

$ millions, as at                          Jan. 31              Oct. 31
                                Carrying      Fair   Carrying      Fair
                                  amount     value     amount     value

Residential mortgages         $  32,373  $ 32,437  $  32,409  $ 32,528 
securitizations ((1))

Securities held by                  712       712      1,795     1,795 
counterparties as collateral
under repurchase agreements(
(2)(3))

Securities lent for               8,058     8,058      5,324     5,324 
securities collateral ((2)
(3))
                              $  41,143  $ 41,207  $  39,528  $ 39,647 

Carrying amount of associated $  41,905  $ 41,891  $  40,762  $ 40,830 
liabilities

(1)       Includes $4.3 billion (October 31, 2012: $4.0 billion) of
          mortgages underlying mortgage-backed securities held by CMHC
          counterparties as collateral under repurchase agreements.
          Certain cash in transit balances related to the
          securitization process amounting to $976 million (October 31,
          2012: $1,196 million) have been applied to reduce these
          balances.

(2)       Does not include over-collateralization of assets pledged. 

(3)       Excludes third-party pledged assets.

Additionally, we securitized $23.8 billion with a fair value of $23.9 billion 
(October 31, 2012: $22.7 billion with a fair value of $22.8 billion) of 
mortgages that were not transferred to external parties. 

6. Deposits( (1)(2))
                                                                         2013       2012

$                                                                     Jan. 31    Oct. 31
millions,
as at
                       Payable        Payable         Payable                           
                            on                           on a
                        demand    (     after    (      fixed    (      Total    Total  
                               (3))    notice (4))       date (5))

Personal             $  8,440       $ 69,105       $  41,603       $ 119,148  $ 118,153 

Business and           29,279         18,392          81,351         129,022    125,055 
government

Bank                    1,668              7           3,543           5,218      4,723 

Secured borrowings(         -              -          52,916          52,916     52,413 
(6))
                     $ 39,387       $ 87,504       $ 179,413       $ 306,304  $ 300,344 

Comprised of:                                                                           

  Held at amortized                                                $ 304,424  $ 298,491 
  cost

  Designated at fair                                                   1,880      1,853 
  value
                                                                   $ 306,304  $ 300,344 

Total deposits                                                                          
include:

  Non-interest-bearin                                                                   
  deposits
          In                                                       $  30,248  $  29,717 
          domestic
          offices
          In foreign                                                   2,476      2,592 
          offices

  Interest-bearing                                                                      
  deposits
          In                                                                    228,790 
          domestic                                                   233,649 
          offices
          In foreign                                                                    
          offices

  U.S. federal funds                                                                437 
  purchased                                                              499 
                                                                   $ 306,304  $ 300,344 

(1) Includes deposits of $67.5 billion (October 31, 2012:
    $66.8 billion) denominated in U.S. dollars and deposits of
    $7.7 billion (October 31, 2012: $6.5 billion) denominated
    in other foreign currencies.

(2) Net of purchased notes of $1,174 million (October 31,
    2012: $1,127 million). 

(3) Includes all deposits for which we do not have the right
    to require notice of withdrawal. These deposits are
    generally chequing accounts. 

(4) Includes all deposits for which we can legally require
    notice of withdrawal. These deposits are generally savings
    accounts. 

(5) Includes all deposits that mature on a specified date.
    These deposits are generally term deposits, guaranteed
    investment certificates, and similar instruments.  

(6) Comprises liabilities issued by or as a result of
    activities associated with the securitization of
    residential mortgages, Covered Bond Programme, and
    consolidated securitization vehicles.

7. Share capital

Common shares 

 
                                 2013                    2012                       2012     

$ millions,                      Jan.                    Oct.                       Jan.     
except number                      31                      31                         31
of shares,
for the three
months ended
                      Number                  Number                     Number              
                   of shares   Amount      of shares   Amount         of shares   Amount     

Balance at      404,484,938  $ 7,769    405,626,082  $ 7,744       400,534,211  $ 7,376      
beginning of
period

Issuance                                                                                     
pursuant to:

  Stock             535,386       38        276,397       17           573,490        39     
  option
  plans

  Shareholder         7,672        1        291,216       23         1,319,517        99     
  investment
  plan ((1))

  Employee          253,964       20        316,286       24           309,221        23     
  share
  purchase
  plan
                             $ 7,828    406,509,981  $ 7,808       402,736,439  $ 7,537      
                405,281,960 

Purchase of      (3,337,300)     (64)    (2,025,000)     (39)                -        -      
common shares
for
cancellation

Treasury             15,142        1            (43)       -     (      (8,050)       -     (
shares                                                        (2))                       (2))

Balance at      401,959,802  $ 7,765    404,484,938  $ 7,769       402,728,389  $ 7,537      
end of period
                                                      

(1) Commencing with the January 28, 2013 dividend                      
    payment, shares distributed under the Shareholder
    Investment Plan were acquired in the open market.

(2) Due to rounding.

 

Regulatory capital and ratios

Our capital ratios and assets-to-capital multiple (ACM) are
presented in the following table:
                                                                    
                                       2013 ((1))         2012 ((1))

$ millions, as at                   Jan. 31            Oct. 31      

Basel III - Transitional basis                                      

Common Equity Tier 1 capital     $  15,556                 n/a      

Tier 1 capital                      16,718                 n/a      

Total capital                       20,689                 n/a      

Risk-weighted assets (RWA)         134,821                 n/a      

Common Equity Tier 1 ratio            11.5      %          n/a      

Tier 1 capital ratio                  12.4      %          n/a      

Total capital ratio                   15.3      %          n/a      

ACM                                   17.9      x          n/a      

Basel III - All-in-basis                                            

Common Equity Tier 1 capital     $  12,077                 n/a      

Tier 1 capital                      15,179                 n/a      

Total capital                       19,352                 n/a      

RWA                                126,366                 n/a      

Common Equity Tier 1 ratio             9.6      %          n/a      

Tier 1 capital ratio                  12.0      %          n/a      

Total capital ratio                   15.3      %          n/a      

Basel II                                                            

Tier 1 capital                          n/a         $  15,940  ((2))

Total capital                           n/a            19,924  ((2))

RWA                                     n/a           115,229       

Tier 1 capital ratio                    n/a              13.8      %

Total capital ratio                     n/a              17.3      %

ACM                                     n/a              17.4      x
                                                                     

(1)     Capital measures for fiscal year 2013 are based on
        Basel III and prior period are based on Basel II.      
                 

(2)     The Tier 1 capital and Total capital incorporate OSFI's
        IFRS transitional relief election.               

n/a     Not applicable.

During the quarter we have complied with all of our regulatory capital 
requirements.

8. Post-employment benefit expense
                                                                    
                                            2013      2012      2012

$ millions, for the three months ended   Jan. 31   Oct. 31   Jan. 31

Defined benefit plans( )                                            

  Pension plans                        $      35 $      30 $      33

  Other post-employment plans                  9         9         8

Total net defined benefit expense      $      44 $      39 $      41

Defined contribution plans                                          

  CIBC's pension plans                 $       3 $       2 $       3

  Government pension plans ((1))              21        20        20

Total defined contribution expense     $      24 $      22 $      23
                                                                    

(1)     Includes Canada Pension Plan, Quebec Pension Plan, and U.S.
                     Federal Insurance Contributions Act.          

 

9. Income taxes

Deferred income tax assets and liabilities
As at January 31, 2013, we had available gross deferred income tax assets of 
$467 million (October 31, 2012: $457 million) and gross deferred income tax 
liabilities of $36 million (October 31, 2012: $37 million).

Enron
In prior years, the Canada Revenue Agency issued reassessments disallowing the 
deduction of approximately $3 billion of the 2005 Enron settlement payments 
and related legal expenses. The matter is currently in litigation and on 
December 21, 2011 (and reconfirmed on July 5, 2012), in connection with a 
motion by CIBC to strike the Crown's replies, the Tax Court of Canada struck 
certain portions of the replies and directed the Crown to submit amended 
replies. Both the Crown and CIBC appealed the ruling to the Federal Court of 
Appeal, and the appeal was heard on November 21, 2012. A decision has not yet 
been rendered.

Should we successfully defend our tax filing position in its entirety, we 
would recognize an additional accounting tax benefit of $214 million and 
taxable refund interest of approximately $187 million. Should we fail to 
defend our position in its entirety, we would incur an additional tax expense 
of approximately $866 million and non-deductible interest of approximately 
$124 million.

10. Earnings per share
                                                                          
                                             2013       2012       2012

$ millions, except number of              Jan. 31    Oct. 31    Jan. 31
shares and per share amounts, for
the three months ended

Basic EPS                                                              

Net income attributable to equity      $     796  $     850  $     832 
shareholders

Less: Preferred share dividends               25         29         56 
and premiums

Net income attributable to common      $     771  $     821  $     776 
shareholders

Weighted-average common shares           403,332    405,404    401,099 
outstanding (thousands)

Basic EPS                              $    1.91  $    2.02  $    1.94 

Diluted EPS                                                            

Net income attributable to diluted     $     771  $     821  $     776 
common shareholders

Weighted-average common shares           403,332    405,404    401,099 
outstanding (thousands)

Add: Stock options potentially               438        440        514 
exercisable ((1)) (thousands)

Weighted-average diluted common          403,770    405,844    401,613 
shares outstanding (thousands)

Diluted EPS                            $    1.91  $    2.02  $    1.93 
    (1)      Excludes average options outstanding of 346,801 (October 31,
         2012: 1,251,523; January 31, 2012: 1,537,948) with a
         weighted-average exercise price of $95.62 (October 31, 2012:
         $83.73; January 31, 2012: $82.33) for the quarter ended
         January 31, 2013, as the options' exercise prices were greater
         than the average market price of CIBC's common shares.        
            

 

11. Contingent liabilities and provision

In the ordinary course of its business, CIBC is a party to a number of legal 
proceedings, including regulatory investigations, in which claims for 
substantial monetary damages are asserted against CIBC and its subsidiaries. 
While there is inherent difficulty in predicting the outcome of legal 
proceedings, based on current knowledge and in consultation with legal 
counsel, we do not expect that the outcome of these matters, individually or 
in aggregate, to have a material adverse effect on our consolidated financial 
statements. However, the outcome of these matters, individually or in 
aggregate, may be material to our operating results for a particular reporting 
period.

Amounts are accrued if, in the opinion of management, it is both probable that 
an outflow of economic benefits will be required to resolve the matter, and a 
reliable estimate can be made of the amount of the obligation. If the reliable 
estimate of probable loss involves a range of potential outcomes within which 
a specific amount within the range appears to be a better estimate, that 
amount is accrued. If no specific amount within the range of potential 
outcomes appears to be a better estimate than any other amount, the mid-point 
in the range is accrued. In some instances, however, it is not possible either 
to determine whether an obligation is probable or to reliably estimate the 
amount of loss, in which case no accrual can be made.

We regularly assess the adequacy of CIBC's litigation accruals and make the 
necessary adjustments to incorporate new information as it becomes available.

The following developments occurred during the quarter:
    --  We recognized a US$150 million charge (US$110 million
        after-tax) in respect of the full settlement of the U.S.
        Bankruptcy Court adversary proceeding brought by the Estate of
        Lehman Brothers Holdings, Inc. challenging the reduction to
        zero of our unfunded commitment on a variable funding note. In
        2008, we recognized a US$841 million gain on the variable
        funding note.
    --  In Green v. Canadian Imperial Bank of Commerce, et al., the
        plaintiffs filed an appeal to the Ontario Court of Appeal which
        will be heard in May 2013.
    --  In Brown v. Canadian Imperial Bank of Commerce and CIBC World
        Markets Inc., the plaintiffs filed an appeal to the Ontario
        Divisional Court, which will be heard in February 2013.
    --  In the mortgage prepayment class actions, the motion for class
        certification in Sherry v. CIBC Mortgages Inc. is scheduled to
        be heard in August 2013.
    --  Four additional proposed class actions (Fuze Salon v. BofA
        Canada Bank, et al., 1023926 Alberta Ltd. v. Bank of America
        Corporation, et al., The Crown & Hand Pub Ltd. v. Bank of
        America Corporation, et al., Hello Baby Equipment Inc. v. BofA
        Canada Bank, et al.) were commenced in western Canada against
        VISA Canada Corporation (Visa), MasterCard International
        Incorporated (MasterCard), CIBC and numerous other financial
        institutions. The actions, brought on behalf of merchants who
        accepted payment by Visa or MasterCard from 2001 to present,
        allege two "separate, but interrelated" conspiracies; one in
        respect of Visa and one in respect of MasterCard. The claims
        allege that Visa and MasterCard conspired with their issuing
        banks to set default interchange rate and merchant discount
        fees and that certain rules (Honour All Cards and No Surcharge)
        have the effect of increasing the merchant discount fees. The
        claims allege civil conspiracy, violation of the Competition
        Act, interference with economic interests and unjust
        enrichment. The claims seek unspecified general and punitive
        damages. These matters are similar to previously filed and
        disclosed proposed class actions relating to default
        interchange rates and merchant discount fees.

Other than the items described above, there are no significant developments in 
the matters identified in Note 23 to our 2012 annual consolidated financial 
statements, and no significant new matters have arisen during the quarter 
ended January 31, 2013.

12. Segmented information

CIBC has three strategic business units (SBUs) - Retail and Business Banking, 
Wealth Management and Wholesale Banking. These SBUs are supported by six 
functional groups - Technology and Operations, Corporate Development, Finance, 
Treasury, Administration, and Risk Management, which form part of Corporate 
and Other. The revenue, expenses and balance sheet resources of these 
functional groups are generally allocated to the business lines within the 
SBUs. Corporate and Other also includes our International banking operations 
comprising mainly FirstCaribbean International Bank Limited, strategic 
investments in the CIBC Mellon joint ventures and The Bank of N.T. Butterfield 
& Son Limited, and other income statement and balance sheet items not directly 
attributable to the business lines.
                             Retail                                             
                                and                                                       
                           Business         Wealth     Wholesale     Corporate        CIBC

$ millions, for the                                                               
three months ended          Banking     Management       Banking     and Other       Total

Jan. Net interest                                                               
31   income ((1))        $    1,461   $         47   $       343   $         4   $   1,855

2013 Non-interest                                                               
     income                     525            465           219           117       1,326
     Intersegment                                                               
     revenue( )((2))             79           (80)             1             -           -
     Total revenue (                                                            
     (1))                     2,065            432           563           121       3,181
     Provision for                                                              
     credit losses              241              -            10            14         265
     Amortization( )(                                                           
     (3))                        22              3             1            56          82
     Other                                                                      
     non-interest
     expenses                   999            312           444           150       1,905
     Income (loss)                                                              
     before income
     taxes                      803            117           108          (99)         929
     Income taxes (                                                             
     (1))                       192             27            17         (105)         131
     Net income          $      611   $         90   $        91   $         6   $     798
     Net income                                                                 
     attributable to:                                                                     
       Non-controlling            -              -             -             2
       interests         $            $              $             $           $         2
       Equity                   611                                 
       shareholders                             90            91             4         796
     Average assets (                                                           
     (4))                $  251,786   $      4,015   $   125,734   $    20,778   $ 402,313

Oct. Net interest                                                               
31(  income ((1))
(5))                     $    1,462   $         46   $       321   $        19   $   1,848

2012 Non-interest                                                               
     income                     498            451           253           109       1,311
     Intersegment                                                               
     revenue( (2))               76           (77)             1             -           -
     Total revenue (                                                            
     (1))                     2,036            420           575           128       3,159
     Provision for                                                              
     credit losses              255              -            66             7         328
     Amortization(                                                              
     (3))                        22              2             1            58          83
     Other                                                                      
     non-interest
     expenses                 1,008            306           262           170       1,746
     Income (loss)                                                              
     before income
     taxes                      751            112           246         (107)       1,002
     Income taxes (                                                             
     (1))                       182             28            53         (113)         150
     Net income          $      569   $         84   $       193   $         6   $     852
     Net income                                                                 
     attributable to:                                                                     
       Non-controlling            -              -            -              2
       interests         $            $              $             $             $       2
       Equity                   569                                 
       shareholders                             84           193             4         850
     Average assets (                                                           
     (4))                $  251,939   $      3,960   $   125,467   $    19,726   $ 401,092

Jan. Net interest                                                               
31   income ((1))        $    1,445   $         48   $       262   $        87   $   1,842

2012 Non-interest                                                               
     income                     513            458           233           111       1,315
     Intersegment                                                               
     revenue( (2))               71           (71)             -             -           -
     Total revenue (                                                            
     (1))                     2,029            435           495           198       3,157
     Provision for                                                              
     credit losses              281              -            26            31         338
     Amortization (                                                             
     (3))                        22              2             1            66          91
     Other                                                                      
     non-interest
     expenses                   974            310           288           128       1,700
     Income (loss)                                                              
     before income
     taxes                      752            123           180          (27)       1,028
     Income taxes (                                                             
     (1))                       185             23            47          (62)         193
     Net income          $      567   $        100   $       133   $        35   $     835
     Net income                                                                 
     attributable to:                                                                     
       Non-controlling            -              -             -             3
       interests         $            $              $             $             $       3
       Equity                   567                                 
       shareholders                            100           133            32         832
     Average assets (                                                           
     (4))                $  255,441   $      4,058   $   111,209   $    25,414   $ 396,122

(1) Wholesale Banking net interest income and income tax
    expense includes a TEB adjustment of $92 million for
    the three months ended January 31, 2013 ($92 million
    and $57 million for the three months ended October
    31, 2012 and January 31, 2012, respectively) with an
    equivalent offset in Corporate and Other.

(2) Intersegment revenue represents internal sales
    commissions and revenue allocations under the
    Manufacturer / Customer Segment / Distributor
    Management Model.  

(3) Comprises amortization of buildings, furniture,
    equipment, leasehold improvements, and software and
    other intangible assets.  

(4) Assets are disclosed on an average basis as this
    measure is most relevant to a financial institution
    and is the measure reviewed by management.

(5) Certain amounts have been reclassified to conform to
    the presentation adopted in the current period.  
     

 

Investor and analyst inquiries should be directed to Geoff Weiss, Senior  
Vice-President, Planning, Analysis and Investor Relations, at  416-980-5093. 
Media inquiries should be directed to Mary Lou Frazer,  Senior Director, 
Investor & Financial Communications, at 416-980-4111.

SOURCE: CIBC

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/28/c7165.html

CO: CIBC - Investor Relations
ST: Ontario
NI: FIN ERN 

-0- Feb/28/2013 10:20 GMT

Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement