CIBC Announces Third Quarter 2014 Results

 TORONTO, Aug. 28, 2014 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its  financial results for the third quarter ended July 31, 2014.  Third quarter highlights            --  Reported net income was $921 million, compared with $878             million for the third quarter a year ago, and $306 million for             the prior quarter.         --  Adjusted net income(1) was $908 million, compared with $931             million for the third quarter a year ago, and $887 million for             the prior quarter.         --  Reported diluted earnings per share (EPS) was $2.26, compared             with $2.13 for the third quarter a year ago, and $0.73 for the             prior quarter.         --  Adjusted diluted EPS(1) was $2.23, compared with $2.26 for the             third quarter a year ago, and $2.17 for the prior quarter.         --  Reported return on common shareholders' equity (ROE) was 21.0%             and adjusted ROE(1) was 20.7%.  Results for the third quarter of 2014 were affected by the following items of  note aggregating to a positive impact of $0.03 per share:         --  $52 million ($30 million after-tax, or $0.08 per share) gain             within an equity-accounted investment in our merchant banking             portfolio;         --  $9 million ($7 million after-tax, or $0.02 per share) expenses             relating to the development of our enhanced travel rewards             program and in respect of the Aeroplan transactions with Aimia             Canada Inc. (Aimia) and The Toronto-Dominion Bank (TD);         --  $9 million ($8 million after-tax, or $0.02 per share)             amortization of intangible assets; and         --  $2 million ($2 million after-tax, or $0.01 per share) loss from             the structured credit run-off business.  CIBC's Basel III Common Equity Tier 1 ratio at July 31, 2014 was 10.1%, and  our Tier 1 and Total capital ratios were 12.2% and 14.8%, respectively, on an  all-in basis compared with Basel III Common Equity Tier 1 ratio of 10.0%, Tier  1 capital ratio of 12.1% and Total capital ratio of 14.9% in the prior quarter.  CIBC announced today the intention to seek Toronto Stock Exchange approval for  a normal course issuer bid that would permit us to purchase for cancellation  up to a maximum of 8 million, or approximately 2% of our outstanding common  shares, over the next 12 months.  "CIBC's solid results this quarter reflect the strength of our retail and  wholesale banking franchises and strong wealth management platform," says  Gerald T. McCaughey, CIBC President and Chief Executive Officer.  "As we  strive to be the leading bank for our clients, our clear focus on client  service coupled with our strategic growth initiatives underpins our ability to  deliver consistent and sustainable earnings."  Core business performance  Retail and Business Banking reported net income of $589 million for the third  quarter, down $23 million or 4% from the third quarter a year ago. Adjusting  for the items of note shown above, adjusted net income((1)) was $597 million,  down $31 million or 5% from the third quarter a year ago. Core operating  results were strong including solid volume growth across key products and  lower loan losses, which were offset by lower cards revenue due to the sale of  the Aeroplan portfolio. Ongoing investment in innovations and strategic  initiatives continue to support deeper client relationships.  During the third quarter of 2014, Retail and Business Banking continued to  make progress against our objectives of accelerating profitable revenue growth  and enhancing the client experience:         --  We launched the new CIBC Tim Hortons Double Double Visa Card in             partnership with Tim Hortons, leveraging a first-of-its-kind             two-button technology that combines a CIBC Visa credit card             with a Tim Hortons rewards card;         --  More than one million cheques were deposited using our             eDeposit™ feature available on our mobile banking app             since it was launched, giving clients the flexibility to             deposit cheques to their CIBC accounts by taking a picture of             the cheque with their mobile device - a first among the major             Canadian banks; and         --  We were awarded "Best Consumer Internet Bank - Canada" and             "Best Integrated Consumer Bank Site - North America" by Global             Finance Magazine.  Wealth Management reported net income of $121 million for the third quarter,  up $19 million or 19% from the third quarter a year ago.  Revenue of $568 million was up $110 million or 24% compared with the third  quarter of 2013. This was primarily due to higher client assets under  management driven by market appreciation and net sales of long-term mutual  funds, higher fee-based and commission revenue, and the acquisition of  Atlantic Trust.  During the third quarter of 2014, Wealth Management continued its progress in  support of our strategic priority to build our wealth management platform:         --  CIBC Asset Management achieved $100 billion in assets under             management - a significant milestone along with its 22nd             consecutive quarter of positive net sales of long-term mutual             funds which hit $4.5 billion year to date;         --  Client satisfaction, a key focus and a foundation of our growth             strategy, continues to strengthen at CIBC Wood Gundy and is             among the industry's leaders with an 11% increase over the past             six years; and         --  Atlantic Trust was recently ranked the second-highest luxury             brand among wealth management firms in the U.S. in the 2014             Luxury Brand Status Index™ (LBSI) wealth management             survey.  Wholesale Banking reported net income of $282 million for the third quarter,  up $69 million or 32% from the prior quarter. Excluding items of note,  adjusted net income((1)) was $254 million, up $26 million or 11% from the  prior quarter.  As a leading wholesale bank in Canada and active in core Canadian industries  in the rest of the world, Wholesale Banking acted as:         --  Joint bookrunner in a new $3.5 billion revolving credit             facility and joint lead agent and joint bookrunner for $1             billion of senior secured bonds for North West Redwater             Partnership;         --  Joint bookrunner on PrairieSky Royalty's $1.7 billion initial             public offering of common shares; and         --  Financial advisor to Merit Energy Company on the sale of its             oil producing properties in Wyoming to Memorial Production             Partners for $915 million and  the sale of its properties in             Colorado to Atlas Resource Partners for $420 million.  "In summary, CIBC delivered strong performance during the third quarter," says  Mr. McCaughey. "We are on track in executing our growth strategy to be the  leading bank for our clients and we are well positioned for future growth."  Making a difference in our Communities CIBC is committed to supporting causes that matter to our clients, our  employees and our communities. During the quarter we:         --  Helped raise $3.2 million in support of children with cancer             and their families through our sponsorship of the Tour CIBC             Charles Bruneau and the CIBC 401 Bike Challenge;         --  Committed $1 million to KidSport, a national program that helps             give kids greater access to organized sport, to mark the one             year countdown to the TORONTO 2015 Pan Am Games; and         --  As the Official Canadian Bank and CBC broadcast sponsor of the             FIFA World Cup™, celebrated Canadians' passion for the             beautiful game with a 12-stop cross country CIBC Soccer Nation             tour.     (1) For additional information, see the "Non-GAAP measures" section.  The information on the following pages forms a part of this news release.  (The board of directors of CIBC reviewed this news 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 third 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 third 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 and nine months ended July 31, 2014 compared with corresponding  periods. The MD&A should be read in conjunction with our 2013 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 August 27, 2014. 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  164 to 168 of our 2013 Annual Report.  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.  All such statements are made pursuant to the "safe harbour" provisions of, and  are intended to be forward-looking statements under applicable Canadian and  U.S. securities legislation, including the U.S. Private Securities Litigation  Reform Act of 1995. These statements include, but are not limited to,  statements made in the "Overview - Financial results", "Overview - Significant  events", "Overview - Outlook for calendar year 2014", "Strategic business  units overview - Business unit allocations", "Financial condition - Capital  resources", "Management of risk - Risk overview", "Management of risk - Credit  risk", "Management of risk - Market risk", "Management of risk - Liquidity  risk", "Accounting and control matters - Critical accounting policies and  estimates", and "Accounting and control matters - Regulatory developments"  sections of this report and other statements about our operations, business  lines, financial condition, risk management, priorities, targets, ongoing  objectives, strategies and outlook for calendar year 2014 and subsequent  periods. Forward-looking statements are typically identified by the words  "believe", "expect", "anticipate", "intend", "estimate", "forecast", "target",  "objective" and other similar expressions or future or conditional verbs such  as "will", "should", "would" and "could". By their nature, these statements  require us to make assumptions, including the economic assumptions set out in  the "Overview - Outlook for calendar year 2014" 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 and  valuation models and processes; legislative or regulatory developments in the  jurisdictions where we operate, including the Dodd-Frank Wall Street Reform  and Consumer Protection Act and the regulations issued and to be issued  thereunder, the U.S. Foreign Account Tax Compliance Act and regulatory reforms  in the United Kingdom and Europe, the Basel Committee on Banking Supervision's  global standards for capital and liquidity reform, and those relating to the  payments system in Canada; amendments to, and interpretations of, risk-based  capital guidelines and reporting instructions, and interest rate and liquidity  regulatory guidance; the resolution of legal and regulatory proceedings and  related matters; the effect of changes to accounting standards, rules and  interpretations; changes in our estimates of reserves and allowances; changes  in tax laws; changes to our credit ratings; political conditions and  developments; the possible effect on our business of international conflicts  and the war on terror; natural disasters, public health emergencies,  disruptions to public infrastructure and other catastrophic events; reliance  on third parties to provide components of our business infrastructure;  potential disruptions to our information technology systems and services,  including the evolving risk of cyber attack; social media risk; losses  incurred as a result of internal or external fraud; the accuracy and  completeness of information provided to us concerning clients and  counterparties; the failure of third parties to comply with their obligations  to us and our affiliates; intensifying competition from established  competitors and new entrants in the financial services industry including  through internet and mobile banking; technological change; global capital  market activity; changes in monetary and economic policy; currency value and  interest rate fluctuations; general business and economic conditions  worldwide, as well as in Canada, the U.S. and other countries where we have  operations, including increasing Canadian household debt levels and the high  U.S. fiscal deficit; 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.  External reporting changes  The following external reporting changes were made in the first quarter of  2014. Prior period amounts were restated accordingly.  Amendments to IAS 19 "Employee Benefits" We adopted amendments to IAS 19 "Employee Benefits" commencing November 1,  2011, which require us to recognize: (i) actuarial gains and losses in Other  comprehensive income (OCI) in the period in which they arise; (ii) interest  income on plan assets in net income using the same rate as that used to  discount the defined benefit obligation; and (iii) all past service costs  (gains) in net income in the period in which they arise.  Adoption of IFRS 10 "Consolidated Financial Statements" We adopted IFRS 10 "Consolidated Financial Statements" commencing November 1,  2012, which replaces IAS 27 "Consolidated and Separate Financial Statements"  and Standards Interpretation Committee (SIC) - 12 "Consolidated - Special  Purpose Entities". The adoption of IFRS 10 required us to deconsolidate CIBC  Capital Trust from the consolidated financial statements, which resulted in a  replacement of Capital Trust securities issued by CIBC Capital Trust with  Business and government deposits for the senior deposit notes issued by us to  CIBC Capital Trust.  Sale of Aeroplan portfolio On December 27, 2013, we sold approximately 50 percent of our Aerogold VISA  portfolio, consisting primarily of credit card only customers, to the  Toronto-Dominion Bank (TD). Accordingly, the revenue related to the sold  credit card portfolio was moved from Personal Banking to the Other line of  business within Retail and Business Banking.  Allocation of Treasury activities Treasury-related transfer pricing continues to be charged or credited to each  line of business within our strategic business units (SBUs). We changed our  approach to allocating the residual financial impact of Treasury activities.  Certain fees are charged directly to the lines of business, and the residual  net revenue is retained in Corporate and Other.  Income statement presentation We reclassified certain amounts associated with our self-managed credit card  portfolio from Non-interest expenses to Non-interest income. There was no  impact on consolidated net income due to this reclassification.  Third quarter financial highlights                                                     As at or for the three         As at or for the nine                                                                 months ended                  months ended                                             2014          2014          2013            2014          2013       Unaudited                          Jul. 31       Apr. 30       Jul. 31         Jul. 31       Jul. 31       Financial results($                                                                            millions)                                                                                                  Net interest income            $     1,875   $     1,798   $     1,883     $     5,578   $     5,560       Non-interest income                  1,483         1,369         1,366           4,581         3,978       Total revenue                        3,358         3,167         3,249          10,159         9,538       Provision for credit losses            195           330           320             743           850       Non-interest expenses                2,047         2,412         1,878           6,438         5,691       Income before taxes                  1,116           425         1,051           2,978         2,997       Income taxes                           195           119           173             574           472       Net income                     $       921   $       306   $       878     $     2,404   $     2,525       Net income (loss)              $             $             $                             $     attributable to     non-controlling interests                3          (11)             1     $       (5)             5          Preferred shareholders               19            25            25              69            75          Common shareholders                 899           292           852           2,340         2,445       Net income attributable to     $             $             $                             $     equity shareholders                    918           317           877     $     2,409         2,520       Financial measures                                                                                         Reported efficiency ratio             61.0 %        76.2 %        57.8 %          63.4 %        59.7 %     Adjusted efficiency ratio                                                                      (1)                                   59.5 %        59.6 %        56.0 %          58.6 %        56.4 %     Loan loss ratio                       0.33 %        0.51 %        0.45 %          0.40 %        0.45 %     Reported return on common                                                                      shareholders' equity                  21.0 %         7.0 %        22.3 %          18.5 %        21.9 %     Adjusted return on common                                                                      shareholders' equity(1)               20.7 %        20.6 %        23.7 %          21.1 %        23.3 %     Net interest margin                   1.81 %        1.81 %        1.86 %          1.82 %        1.84 %     Net interest margin on                                                                         average interest-earning     assets                                2.05 %        2.07 %        2.12 %          2.07 %        2.13 %     Return on average assets              0.89 %        0.31 %        0.86 %          0.79 %        0.84 %     Return on average                                                                              interest-earning assets               1.01 %        0.35 %        0.99 %          0.89 %        0.97 %     Total shareholder return              4.65 %       14.05 %      (2.04) %         17.74 %        2.83 %     Reported effective tax rate           17.5 %        28.1 %        16.5 %          19.3 %        15.7 %     Adjusted effective tax rate                                                                    (1)                                   16.2 %        13.5 %        17.0 %          15.5 %        16.5 %     Common share information                                                                                   Per share   - basic earnings                                                                    6.09     ($)                            $      2.26   $      0.73   $      2.13     $      5.88   $                             - reported                                                                                                 diluted earnings          2.26          0.73          2.13            5.87          6.09                 - adjusted                                                                                                 diluted earnings                 (1)                       2.23          2.17          2.26            6.70          6.46                 - dividends               1.00          0.98          0.96            2.94          2.84                   - book value             43.02         42.04         38.93           43.02         38.93       Share price - high                                                                             84.70     ($)                                 102.06         97.72         80.64          102.06                                 - low                    95.66         85.49         74.10           85.49         74.10                   - closing               101.21         97.72         77.93          101.21         77.93       Shares      -                                                                                401,237     outstanding weighted-average     (thousands) basic                  397,179       397,758       399,952         397,826                                 -                                                                                                          weighted-average                 diluted                398,022       398,519       400,258         398,584       401,621                 - end of period        396,974       397,375       399,992         396,974       399,992       Market capitalization($        $             $             $                             $     millions)                           40,178        38,832        31,171     $    40,178        31,171       Value measures                                                                                             Dividend yield (based on                                                                       closing share price)                   3.9 %         4.1 %         4.9 %           3.9 %         4.9 %     Reported dividend payout                                                                       ratio                                 44.2 %       133.5 %        45.1 %          50.0 %        46.6 %     Adjusted dividend payout                                                                       ratio(1)                              44.8 %        45.2 %        42.5 %          43.8 %        43.9 %     Market value to book value                                                                     ratio                                 2.35          2.32          2.00            2.35          2.00       On- and off-balance sheet                                                                      information($ millions)                                                                                    Cash, deposits with banks      $             $             $                             $     and securities                      80,653        77,892        76,452     $    80,653        76,452       Loans and acceptances, net                                                                     of allowance                       262,489       258,680       254,227         262,489       254,227       Total assets                       405,422       397,102       397,153         405,422       397,153       Deposits                           322,314       314,023       313,114         322,314       313,114       Common shareholders' equity         17,076        16,707        15,573          17,076        15,573       Average assets                     411,036       406,285       402,608         409,144       402,976       Average interest-earning                                                                       assets                             363,422       356,492       351,761         360,631       349,642       Average common shareholders'                                                                   equity                              16,989        17,173        15,162          16,911        14,925       Assets under administration                                                                    (2)                              1,713,076     1,663,858     1,460,311       1,713,076     1,460,311       Balance sheet quality                                                                          measures                                                                                                   All-in basis                                                                                                  Common Equity Tier 1                                                                                  (CET1) capital risk-weighted     assets                                                                                                          (RWA) ($ billions)        $     139.9   $     135.9   $     134.0     $     139.9   $     134.0          Tier 1 capital RWA                140.2         135.9         134.0           140.2         134.0          Total capital RWA                 140.6         135.9         134.0           140.6         134.0          CET1 ratio                         10.1 %        10.0 %         9.3 %          10.1 %         9.3 %        Tier 1 capital ratio               12.2 %        12.1 %        11.6 %          12.2 %        11.6 %        Total capital ratio                14.8 %        14.9 %        14.7 %          14.8 %        14.7 %     Other information                                                                                          Full-time equivalent                                                                           employees                           45,161        43,907        43,516          45,161        43,516       (1) For additional information, see the "Non-GAAP         measures" section.     (2) 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.  Overview  Financial results Reported net income for the quarter was $921 million, compared with $878  million for the same quarter last year, and $306 million for the prior  quarter. Reported net income for the nine months ended July 31, 2014 was  $2,404 million, compared with $2,525 million for the same period in 2013.  Adjusted net income((1)) for the quarter was $908 million, compared with $931  million for the same quarter last year, and $887 million for the prior  quarter. Adjusted net income((1)) for the nine months ended July 31, 2014 was  $2,746 million, compared with $2,675 million for the same period in 2013.  Reported diluted earnings per share (EPS) for the quarter was $2.26, compared  with $2.13 for the same quarter last year, and $0.73 for the prior quarter.  Reported diluted EPS for the nine months ended July 31, 2014 was $5.87,  compared with $6.09 for the same period in 2013.  Adjusted diluted EPS((1)) for the quarter was $2.23, compared with $2.26 for  the same quarter last year, and $2.17 for the prior quarter. Adjusted diluted  EPS((1)) for the nine months ended July 31, 2014 was $6.70, compared with  $6.46 for the same period in 2013.  Net income for the current quarter was affected by the following items of note:         --  $52 million ($30 million after-tax) gain within an             equity-accounted investment in our merchant banking portfolio             (Wholesale Banking);         --  $9 million ($7 million after-tax) expenses relating to the             development of our enhanced travel rewards program and in             respect of the Aeroplan transactions with Aimia Canada Inc.             (Aimia) and TD (Retail and Business Banking);         --  $9 million ($8 million after-tax) amortization of intangible             assets(2) ($1 million after-tax in Retail and Business Banking,             $3 million after-tax in Wealth Management, and $4 million             after-tax in Corporate and Other); and         --  $2 million ($2 million after-tax) loss from the structured             credit run-off business (Wholesale Banking).  The above items of note increased revenue by $49 million, non-interest  expenses by $17 million and income tax expenses by $19 million. In aggregate,  these items of note increased net income by $13 million.  Net interest income((3)) Net interest income was down $8 million from the same quarter last year,  primarily due to lower card revenue as a result of the Aeroplan transactions  with Aimia and TD in the first quarter of 2014 and lower treasury revenue,  partially offset by volume growth across retail products and higher trading  income.  Net interest income was up $77 million or 4% from the prior quarter, primarily  due to additional days in the quarter and volume growth across retail products.  Net interest income for the nine months ended July 31, 2014 was up $18 million  from the same period in 2013, primarily due to volume growth across most  retail products and higher revenue from corporate banking. These factors were  mostly offset by lower card revenue as a result of the Aeroplan transactions  noted above, and lower treasury revenue.  Non-interest income((3)) Non-interest income was up $117 million or 9% from the same quarter last year,  primarily due to higher investment management and custodial, mutual fund, and  underwriting and advisory fees, partially offset by trading losses in the  current quarter compared with trading income in the same quarter last year,  and lower card fees as a result of the Aeroplan transactions noted above. The  current quarter included a gain within an equity-accounted investment in our  merchant banking portfolio, shown as an item of note.  Non-interest income was up $114 million or 8% from the prior quarter,  primarily due to higher fee-based revenue, partially offset by lower net gains  on available-for-sale (AFS) securities. The current quarter included the gain  within an equity-accounted investment noted above.  Non-interest income for the nine months ended July 31, 2014 was up $603  million or 15% from the same period in 2013, primarily due to gains relating  to the Aeroplan transactions, the sale of an equity investment in our exited  European leveraged finance portfolio, and the gain within an equity-accounted  investment, all shown as items of note. Higher mutual fund and investment  management and custodial fees were partially offset by lower card fees as  noted above, and trading losses in the current year period compared with  trading income in the same period last year.     (1)  For additional information, see the "Non-GAAP measures" section.     (2)  Beginning in the fourth quarter of 2013, also includes          amortization of intangible assets for equity-accounted associates.     (3)  Trading activities and related risk management strategies can          periodically shift trading income between net interest income and          non-interest income. Therefore, we view total trading income as          the most appropriate measure of trading performance.  Provision for credit losses Provision for credit losses was down $125 million or 39% from the same quarter  last year. In Retail and Business Banking, the provision was down mainly due  to lower write-offs and bankruptcies in the card portfolio which reflect  credit improvements, as well as the impact of an initiative to enhance account  management practices, and the sold Aeroplan portfolio. The same quarter last  year included a charge resulting from a revision of estimated loss parameters  on our unsecured lending portfolios, shown as an item of note. In Wholesale  Banking, the provision was down as the same quarter last year included losses  in our exited European leveraged finance portfolio. In Corporate and Other,  the provision was down as the same quarter last year included estimated credit  losses related to the Alberta floods, shown as an item of note, a portion of  which was estimated to not be required and therefore reversed in the current  quarter.  Provision for credit losses was down $135 million or 41% from the prior  quarter. In Retail and Business Banking, the provision was comparable with the  prior quarter. In Wholesale Banking, the provision was down as the prior  quarter included losses in our exited U.S. leveraged finance portfolio, shown  as an item of note. In Corporate and Other, the provision was down as the  prior quarter included loan losses relating to FirstCaribbean International  Bank Limited (CIBC FirstCaribbean), shown as an item of note.  Provision for credit losses for the nine months ended July 31, 2014 was down  $107 million or 13% from the same period in 2013. In Retail and Business  Banking, the provision was down mainly due to lower write-offs and  bankruptcies in the card portfolio which reflect credit improvements, as well  as the impact of an initiative to enhance account management practices, and  the sold Aeroplan portfolio, and lower losses in the business lending  portfolio. The same period last year included a charge resulting from a  revision of estimated loss parameters on our unsecured lending portfolios, and  the current year period included a charge resulting from operational changes  in the processing of write-offs, both shown as items of note. In Wholesale  Banking, the provision was down primarily due to losses in our exited European  leveraged finance portfolio in the same period last year, partially offset by  higher losses in our exited U.S. leveraged finance portfolio. In Corporate and  Other, the provision was up primarily due to the loan losses relating to CIBC  FirstCaribbean noted above, partially offset by a decrease in the collective  allowance.  Non-interest expenses Non-interest expenses were up $169 million or 9% from the same quarter last  year, primarily due to higher employee-related compensation and computer,  software and office equipment expenses.  Non-interest expenses were down $365 million or 15% from the prior quarter, as  the prior quarter included the goodwill impairment charge relating to CIBC  FirstCaribbean, shown as an item of note, partially offset by higher  employee-related compensation in the current quarter.  Non-interest expenses for the nine months ended July 31, 2014 were up $747  million or 13% from the same period in 2013, primarily due to the goodwill  impairment charge relating to CIBC FirstCaribbean, and costs relating to the  development of our enhanced travel rewards program and to the Aeroplan  transactions, both shown as items of note, as well as higher employee-related  compensation and computer, software and office equipment expenses. The same  period last year had higher expenses in the structured credit run-off  business, which included the Lehman-related settlement charge, shown as an  item of note.  Income taxes Income tax expense was up $22 million or 13% from the same quarter last year  primarily due to higher income. Income tax expense was up $76 million or 64%  from the prior quarter, primarily due to significantly higher income and  taking into consideration that no tax recovery was booked in the prior quarter  in respect of the CIBC FirstCaribbean goodwill impairment charge and loan  losses.  Income tax expense for the nine months ended July 31, 2014 was up $102 million  or 22% from the same period in 2013, notwithstanding comparable income levels,  primarily due to no tax recovery being booked in the current year period in  respect of the CIBC FirstCaribbean goodwill impairment charge and loan losses,  partially offset by higher tax-exempt income.  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. The Tax  Court of Canada trial on the deductibility of the Enron payments is scheduled  to commence in October 2015.  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 $204 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:                                          For the three      For the nine                                            months ended      months ended                                Jul. 31,   Jul. 31, 2014     Jul. 31, 2014                                    2014                                   vs.             vs.               vs.       $ millions               Jul. 31,   Apr. 30, 2014     Jul. 31, 2013                                    2013     Estimated                                                                 increase     (decrease) in:       Total                  $     21   $        (11)     $         100         revenue       Provision                     1             (1)                15         for credit       losses       Non-interest                  9             (4)                68         expense       Income taxes                  2             (1)                 5         Net income                    9             (5)                12       Average US$                   4.0 %         (2.0) %             6.9 %     appreciation     (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:  Q2, 2014         --  $543 million ($543 million after-tax) of charges relating to             CIBC FirstCaribbean, comprising a goodwill impairment charge of             $420 million ($420 million after-tax) and loan losses of $123             million ($123 million after-tax), reflecting revised             expectations on the extent and timing of the anticipated             economic recovery in the Caribbean region (Corporate and             Other);         --  $22 million ($16 million after-tax) expenses relating to the             development of our enhanced travel rewards program and in             respect of the Aeroplan transactions with Aimia and TD (Retail             and Business Banking);         --  $22 million ($12 million after-tax) loan losses in our exited             U.S. leveraged finance portfolio (Wholesale Banking);         --  $9 million ($7 million after-tax) amortization of intangible             assets ($1 million after-tax in Retail and Business Banking, $4             million after-tax in Wealth Management, and $2 million             after-tax in Corporate and Other); and         --  $4 million ($3 million after-tax) loss from the structured             credit run-off business (Wholesale Banking).  The above items of note decreased revenue by $8 million, increased provision  for credit losses by $145 million, non-interest expense by $447 million, and  decreased income tax expenses by $19 million. In aggregate, these items of  note decreased net income by $581 million.  Q1, 2014         --  $239 million ($183 million after-tax) gain in respect of the             Aeroplan transactions with Aimia and TD, net of costs relating             to the development of our enhanced travel rewards program ($123             million after-tax in Retail and Business Banking, and $60             million after-tax in Corporate and Other);         --  $78 million ($57 million after-tax) gain, net of associated             expenses, on the sale of an equity investment in our exited             European leveraged finance portfolio (Wholesale Banking);         --  $26 million ($19 million after-tax) reduction in the portion of             the collective allowance recognized in Corporate and Other(1),             including lower estimated credit losses relating to the Alberta             floods (Corporate and Other);         --  $26 million ($19 million after-tax) charge resulting from             operational changes in the processing of write-offs in Retail             and Business Banking;         --  $11 million ($8 million after-tax) loss from the structured             credit run-off business (Wholesale Banking); and         --  $8 million ($6 million after-tax) amortization of intangible             assets ($1 million after-tax in Retail and Business Banking, $3             million after-tax in Wealth Management, and $2 million             after-tax in Corporate and Other).  The above items of note increased revenue by $353 million, non-interest  expenses by $55 million, and income tax expenses by $72 million. In aggregate,  these items of note increased net income by $226 million.  Q3, 2013         --  $38 million ($28 million after-tax) increase in the portion of             the collective allowance recognized in Corporate and Other(1),             which includes $56 million of estimated credit losses relating             to the Alberta floods;         --  $20 million ($15 million after-tax) charge resulting from a             revision of estimated loss parameters on our unsecured lending             portfolios (Retail and Business Banking);         --  $8 million ($6 million after-tax) loss from the structured             credit run-off business (Wholesale Banking); and         --  $5 million ($4 million after-tax) amortization of intangible             assets ($1 million after-tax in Retail and Business Banking, $1             million after-tax in Wealth Management, and $2 million             after-tax in Corporate and Other).  The above items of note decreased revenue by $7 million, increased provision  for credit losses by $58 million, non-interest expenses by $6 million, and  decreased income tax expenses by $18 million. In aggregate, these items of  note decreased net income by $53 million.  Q2, 2013         --  $27 million ($20 million after-tax) income from the structured             credit run-off business (Wholesale Banking);         --  $21 million ($15 million after-tax) loan losses in our exited             European leveraged finance portfolio (Wholesale Banking); and         --  $6 million ($5 million after-tax) amortization of intangible             assets ($1 million after-tax in Retail and Business Banking, $1             million after-tax in Wealth Management, and $3 million             after-tax in Corporate and Other).  The above items of note increased revenue by $29 million, provision for credit  losses by $21 million and non-interest expenses by $8 million. In aggregate,  the impact of these items of note on net income was nil.  Q1, 2013         --  $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) Relates to collective allowance, except for (i) residential         mortgages greater than 90 days delinquent; (ii) personal loans and         scored small business loans greater than 30 days delinquent, and         (iii) net write-offs for the card portfolio, which are all reported         in the respective SBUs.  Significant events  Goodwill impairment During the quarter ended April 30, 2014, we recognized a goodwill impairment  charge of $420 million relating to CIBC FirstCaribbean. This impairment  reflects revised expectations on the extent and timing of the anticipated  economic recovery in the Caribbean region. For additional information, see the  Accounting and control matters section and Note 6 to our interim consolidated  financial statements.  Aeroplan Agreements and enhancements to CIBC travel rewards program  On December 27, 2013, CIBC completed the transactions contemplated by the  tri-party agreements with Aimia and TD that were announced on September 16,  2013.  CIBC sold to TD approximately 50% of its existing Aerogold VISA credit card  portfolio, consisting primarily of credit card only customers. Consistent with  its strategy to invest in and deepen client relationships, CIBC retained the  Aerogold VISA credit card accounts held by clients with broader banking  relationships at CIBC.  The portfolio divested by CIBC consisted of $3.3 billion of credit card  receivables. Upon closing, CIBC received a cash payment from TD equal to the  credit card receivables outstanding being acquired by TD.  CIBC also received upon closing, in aggregate, $200 million in upfront  payments from TD and Aimia.  In addition to these amounts, CIBC released $81 million of allowance for  credit losses related to the sold portfolio, and incurred $3 million in direct  costs related to the transaction in the quarter ended January 31, 2014. The  net gain on sale of the sold portfolio recognized in the quarter ended January  31, 2014, which included the upfront payments, release of allowance for credit  losses and costs related to the transaction, was $278 million ($211 million  after-tax).  Under the terms of the agreements:         --  CIBC continues to have rights to market the Aeroplan program             and originate new Aerogold cardholders through its CIBC branded             channels.         --  The parties have agreed to certain provisions to compensate for             the risk of cardholder migration from one party to another.             There is potential for payments of up to $400 million by             TD/Aimia or CIBC for net cardholder migration over a period of             5 years (Migration Payments).         --  CIBC receives annual commercial subsidy payments from TD             expected to be approximately $38 million per year in each of             the three years after closing.         --  The CIBC and Aimia agreement includes an option for either             party to terminate the agreement after the third year and             provides for penalty payments due from CIBC to Aimia if holders             of Aeroplan credit cards from CIBC's retained portfolio switch             to other CIBC credit cards above certain thresholds.  In conjunction with the completion of the Aeroplan transaction, CIBC has fully  released Aimia and TD from any potential claims in connection with TD becoming  Aeroplan's primary financial credit card partner.  Separate from the tri-party agreements, CIBC continues with its plan to  provide enhancements to our proprietary travel rewards program, delivering on  our commitment to give our clients access to a market leading travel rewards  program. The enhanced program is built on extensive research and feedback from  our clients and from Canadians about what they want from their travel rewards  card.  For the quarter ended July 31, 2014, CIBC incurred incremental costs of $9  million ($7 million after-tax) relating to the development of our enhanced  travel rewards programs and in respect of supporting the tri-party agreements  ($22 million ($16 million after-tax) in the quarter ended April 30, 2014 and  $39 million ($28 million after-tax) in the quarter ended January 31, 2014).  Amounts recognized in respect of Migration Payments in the quarter and nine  months ended July 31, 2014 were not significant.  Atlantic Trust Private Wealth Management On December 31, 2013, CIBC completed the acquisition of Atlantic Trust Private  Wealth Management (Atlantic Trust) from its parent company, Invesco Ltd., for  $224 million (US$210 million) plus working capital and other adjustments.  Atlantic Trust provides integrated wealth management solutions for  high-net-worth individuals, families, foundations and endowments in the United  States. The results of the acquired business have been consolidated from the  date of close and are included in the Wealth Management SBU. For additional  information, see Note 3 to our interim consolidated financial statements.  Sale of equity investment On November 29, 2013, CIBC sold an equity investment that was previously  acquired through a loan restructuring in CIBC's exited European leveraged  finance business. The transaction resulted in an after-tax gain, net of  associated expenses, of $57 million in the quarter ended January 31, 2014.  Review of quarterly financial information     $ millions,                                                                                                 except per     share amounts,                                                                                                    for the three                                                                                               months ended                                 2014                                            2013        2012                          Jul.        Apr.        Jan.        Oct.        Jul.        Apr.        Jan.        Oct.                            31          30          31          31          31          30          31          31     Revenue                                                                                                              Retail and     $                       $           $           $                       $           $     Business     Banking             2,032     $ 1,939       2,255       2,087       2,067     $ 1,985       2,010       2,012        Wealth                                                                                                   Management            568         548         502         470         458         443         432         420        Wholesale                                                                                                Banking (1)           670         606         680         520         589         574         557         567        Corporate                                                                                                and Other (1)          88          74         197         103         135         122         166         140     Total revenue     $ 3,358     $ 3,167     $ 3,634     $ 3,180     $ 3,249     $ 3,124     $ 3,165     $ 3,139     Net interest      $                       $           $           $                       $           $     income              1,875     $ 1,798       1,905       1,893       1,883     $ 1,822       1,855       1,848     Non-interest                                                                                                income              1,483       1,369       1,729       1,287       1,366       1,302       1,310       1,291     Total revenue       3,358       3,167       3,634       3,180       3,249       3,124       3,165       3,139     Provision for                                                                                               credit losses         195         330         218         271         320         265         265         328     Non-interest                                                                                                expenses            2,047       2,412       1,979       1,930       1,878       1,825       1,988       1,823     Income before                                                                                               income taxes        1,116         425       1,437         979       1,051       1,034         912         988     Income taxes          195         119         260         154         173         172         127         145     Net income        $   921     $   306     $ 1,177     $   825     $   878     $   862     $   785     $   843     Net income                                                                                                  (loss)     attributable     to:                                                                                                                                 $                       $           $           $                       $           $     Non-controlling     interests               3     $  (11)           3         (7)           1     $     2           2           3       Equity                                                                                                    shareholders          918         317       1,174         832         877         860         783         840     EPS - basic       $  2.26     $  0.73     $  2.88     $  2.02     $  2.13     $  2.09     $  1.88     $  2.00         - diluted        2.26        0.73        2.88        2.02        2.13        2.09        1.88        2.00     (1) 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, largely offset by the impact of the sold Aeroplan  portfolio from the first quarter of 2014, the continued low interest rate  environment, and attrition in our exited FirstLine mortgage broker business.  The first quarter of 2014 also included the gain relating to the Aeroplan  transactions with Aimia and TD.  Wealth Management revenue has benefitted from higher average assets under  management (AUM), the impact of the acquisition of Atlantic Trust from the  first quarter of 2014, higher contribution from our equity-accounted  investment in American Century Investments (ACI) and strong net sales of  long-term mutual funds.  Wholesale Banking revenue is influenced, to a large extent, by capital markets  conditions and growth in the equity derivatives business which has resulted in  higher tax-exempt income. Revenue has also been impacted by the volatility in  the structured credit run-off business. The current quarter and the first  quarter of 2014 included gains within an equity-accounted investment in our  merchant banking portfolio and on the sale of an equity investment in our  exited European leveraged finance portfolio, respectively, while the fourth  quarter of 2013 included the impairment of an equity position in our exited  U.S. leveraged finance portfolio. The fourth quarter of 2012 included a gain  on sale of interests in entities in relation to the acquisition of TMX Group  Inc. and the loss relating to the change in valuation of collateralized  derivatives to an overnight index swap (OIS) basis.  Corporate and Other includes the offset related to tax-exempt income noted  above. The first quarter of 2014 included the gain relating to the Aeroplan  transactions noted above and the first quarter of 2013 included the gain on  sale of the private wealth management (Asia) business.  Provision for credit losses Provision for credit losses is dependent upon the credit cycle in general and  on the credit performance of the loan portfolios. In Retail and Business  Banking, losses in the card portfolio have been trending lower since 2012 and  have declined further in 2014 due to credit improvements, as well as the  impact of an initiative to enhance account management practices, and the sold  Aeroplan portfolio. A charge resulting from operational changes in the  processing of write-offs was included in the first quarter of 2014, and a  charge resulting from a revision of estimated loss parameters on our unsecured  lending portfolios was included in the third quarter of 2013. In Wholesale  Banking, the second quarter of 2014 and the fourth quarter of 2012 included  losses in the exited U.S. leveraged finance portfolio. The second and third  quarters of 2013 had higher losses in the exited European leveraged finance  portfolio. In Corporate and Other, the second quarter of 2014 had loan losses  relating to CIBC FirstCaribbean. The third quarter of 2013 had an increase in  the collective allowance, which included estimated credit losses relating to  the Alberta floods, while the first and third quarters of 2014 included a  decrease in collective allowance, including partial reversal of the credit  losses relating to the Alberta floods.  Non-interest expenses Non-interest expenses have fluctuated over the period largely due to changes  in employee-related compensation and benefits, including pension expense. The  second quarter of 2014 had a goodwill impairment charge and the fourth quarter  of 2013 had a restructuring charge relating to CIBC FirstCaribbean. The first  half of 2014 and the fourth quarter of 2013 had expenses relating to the  development of our enhanced travel rewards program, and to the Aeroplan  transactions with Aimia and TD. The first quarter of 2013 also 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 generally been trending higher for  the periods presented in the table above. No tax recovery was booked in the  second quarter of 2014 in respect of the CIBC FirstCaribbean goodwill  impairment charge and loan losses.  Outlook for calendar year 2014 Global growth is on a stronger track after a poor start to the year, helped by  a diminished burden from fiscal tightening in both the U.S. and Europe, and a  continuation of stimulative monetary policy. After a sharp rebound from  adverse weather in the second quarter, U.S. real gross domestic product (GDP)  is expected to advance at a more than 3% annualized pace in the final two  quarters. U.S. real GDP will benefit from a pick-up in capital spending, and  the lift to household incomes and credit quality from ongoing job creation.  European growth has stalled, and there are renewed recession risks associated  with geopolitical tensions, while emerging markets, after a slow start to the  year, should benefit from improved global trade volumes. Canada's growth rate  should average in the 2.0% to 2.5% range over the final two quarters, as  firmer global conditions support exports, offsetting slower growth in housing  construction and continued restraint in government program spending. Consumer  demand will be sustained at moderate growth rates by job creation. Both the  U.S. Federal Reserve and the Bank of Canada are likely to wait until 2015  before raising short term interest rates, although longer term rates could  increase later in the year in anticipation of that future policy turn.  Retail banking is likely to see little change from the recent modest growth  rates in demand for household and mortgage credit given existing levels of  debt and the past few years' policy changes in mortgages. Demand for business  credit should continue to grow at a healthy pace. A further drop in the  unemployment rate should support household credit quality, but there is little  room for business and household insolvency rates to drop from what are already  very low levels. Wealth management should see an improvement in demand for  equities and other higher risk assets as global growth improves. Wholesale  banking should benefit from rising capital spending and greater M&A activity  that increases the demand for corporate lending and debt financing, and  provincial governments will still have elevated borrowing needs, including  those related to infrastructure projects. A sturdier global climate has  reduced uncertainties that held back equity issuance in the prior year.  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 12 of the 2013 Annual Report. The following table  provides a reconciliation of non-GAAP to GAAP measures related to CIBC on a  consolidated basis.                                                       As at or for the          As at or for the                                                                  three                      nine                                                             months ended              months ended                                             2014        2014        2013          2014        2013       $ millions                         Jul. 31     Apr. 30     Jul. 31       Jul. 31     Jul. 31       Reported and                                                               adjusted diluted     EPS                                                                                                Reported net                                                               income     attributable to     diluted common     shareholders            A        $     899   $     292   $     852     $   2,340   $   2,445       After-tax impact                                                           of items of note     (1)                                   (13)         581          53           342         150       After-tax impact                                                           of items of note     on     non-controlling     interests                                -        (10)           -          (10)           -       Adjusted net                                                               income     attributable to     diluted common     shareholders(2)         B        $     886   $     863   $     905     $   2,672   $   2,595       Diluted                                                                    weighted-average     common shares     outstanding     (thousands)             C          398,022     398,519     400,258       398,584     401,621       Reported diluted                                                           EPS ($)                A/C       $    2.26   $    0.73   $    2.13     $    5.87   $    6.09       Adjusted diluted                                                           EPS ($)(2)             B/C            2.23        2.17        2.26          6.70        6.46       Reported and                                                               adjusted     efficiency ratio                                                                                   Reported total                                                             revenue                 D        $   3,358   $   3,167   $   3,249     $  10,159   $   9,538       Pre-tax impact                                                             of items of note     (1)                                   (49)           8           7         (394)        (50)       TEB                                    102         124          90           336         279       Adjusted total                                                             revenue(2)              E        $   3,411   $   3,299   $   3,346     $  10,101   $   9,767       Reported                                                                   non-interest     expenses                F        $   2,047   $   2,412   $   1,878     $   6,438   $   5,691       Pre-tax impact                                                             of items of note     (1)                                   (17)       (447)         (6)         (519)       (179)       Adjusted                                                                   non-interest     expenses(2)             G        $   2,030   $   1,965   $   1,872     $   5,919   $   5,512       Reported                                                                   efficiency ratio       F/D            61.0 %      76.2 %      57.8 %        63.4 %      59.7 %     Adjusted                                                                   efficiency ratio     (2)                    G/E            59.5 %      59.6 %      56.0 %        58.6 %      56.4 %     Reported and                                                               adjusted     dividend payout     ratio                                                                                              Reported net                                                               income     attributable to     common     shareholders            H        $     899   $     292   $     852     $   2,340   $   2,445       After-tax impact                                                           of items of note     attributable to     common     shareholders(1)                       (13)         571          53           332         150       Adjusted net                                                               income     attributable to     common     shareholders(2)         I        $     886   $     863   $     905     $   2,672   $   2,595       Dividends paid                                                             to common     shareholders            J        $     397   $     390   $     384     $   1,169   $   1,139       Reported                                                                   dividend payout     ratio                  J/H            44.2 %     133.5 %      45.1 %        50.0 %      46.6 %     Adjusted                                                                   dividend payout     ratio(2)               J/I            44.8 %      45.2 %      42.5 %        43.8 %      43.9 %     Reported and                                                               adjusted return     on common     shareholders'     equity                                                                                             Average common                                                             shareholders'     equity                  K        $  16,989   $  17,173   $  15,162     $  16,911   $  14,925       Reported return                                                            on common     shareholders'     equity                 H/K            21.0 %       7.0 %      22.3 %        18.5 %      21.9 %     Adjusted return                                                            on common     shareholders'     equity(2)              I/K            20.7 %      20.6 %      23.7 %        21.1 %      23.3 %     Reported and                                                               adjusted     effective tax     rate                                                                                               Reported income                                                            before income     taxes                   L        $   1,116   $     425   $   1,051     $   2,978   $   2,997       Pre-tax impact                                                             of items of note     (1)                                   (32)         600          71           270         208       Adjusted income                                                            before income     taxes(2)                M        $   1,084   $   1,025   $   1,122     $   3,248   $   3,205       Reported income                                                            taxes                   N        $     195   $     119   $     173     $     574   $     472       Tax impact of                                                              items of note(1)                      (19)          19          18          (72)          58       Adjusted income                                                            taxes(2)                O        $     176   $     138   $     191     $     502   $     530       Reported                                                                   effective tax     rate                   N/L            17.5 %      28.1 %      16.5 %        19.3 %      15.7 %     Adjusted                                                                   effective tax     rate(2)                O/M            16.2 %      13.5 %      17.0 %        15.5 %      16.5 %                                                                                                                                 Retail                                 and                                                                                   Business       Wealth     Wholesale     Corporate          CIBC     $ millions,             Banking       for the three     months ended                      Management       Banking     and Other         Total          Reported                 net          income     2014 (loss)          $      589   $      121   $       282   $      (71)   $       921          After-tax                impact of     Jul. items of     31   note(1)                  8            3          (28)             4          (13)          Adjusted                 net          income          (loss)(2)       $      597   $      124   $       254   $      (67)   $       908          Reported                 net          income     2014 (loss)          $      546   $      117   $       213   $     (570)   $       306          After-tax                impact of     Apr. items of     30   note(1)                 17            4            15           545           581          Adjusted                 net          income          (loss)(2)       $      563   $      121   $       228   $      (25)   $       887          Reported                 net          income     2013 (loss)          $      612   $      102   $       212   $      (48)   $       878          After-tax                impact of     Jul. items of     31   note(1)                 16            1             6            30            53          Adjusted                 net          income          (loss)(2)       $      628   $      103   $       218   $      (18)   $       931                                                                                          $ millions,                for the nine     months ended                                                                                    Reported                 net          income     2014 (loss)          $    1,881   $      352   $       759   $     (588)   $     2,404          After-tax                impact of     Jul. items of     31   note(1)               (78)           10          (62)           472           342          Adjusted                 net          income          (loss)(2)       $    1,803   $      362   $       697   $     (116)   $     2,746          Reported                 net          income     2013 (loss)          $    1,764   $      282   $       490   $      (11)   $     2,525          After-tax                impact of     Jul. items of     31   note(1)                 19            2           110            19           150          Adjusted                 net          income(2)       $    1,783   $      284   $       600   $         8   $     2,675     (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 expenses 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.  Business unit allocations Treasury activities impact the reported financial results of the SBUs. Each  line of business within our SBUs is charged or credited with a market-based  cost of funds on assets and liabilities, respectively, which impacts the  revenue performance of the SBUs. Once the interest and liquidity risk inherent  in our client-driven assets and liabilities is transfer priced into Treasury,  it is managed within CIBC's risk framework and limits. The residual financial  results associated with Treasury activities are reported in Corporate and  Other. Capital is attributed to the SBUs in a manner that is intended to  consistently measure and align economic costs with the underlying benefits and  risks associated with SBU activities. Earnings on unattributed capital remain  in Corporate and Other. We review our transfer pricing methodologies on an  ongoing basis to ensure they reflect changing market environments and industry  practices.  To measure and report the results of operations of the lines of business  within our Retail and Business Banking and Wealth Management SBUs, we use a  Manufacturer/Customer Segment/Distributor Management Model. The model uses  certain estimates and allocation methodologies in the preparation of segmented  financial information. Under this model, internal payments for sales and  trailer commissions and distribution service fees are made among the lines of  business and SBUs. Periodically, the sales and trailer commission rates paid  to customer segments for certain products are revised and applied  prospectively.  Non-interest expenses are attributed to the SBUs to which they relate based on  appropriate criteria. Revenue, expenses, and other balance sheet resources  related to certain activities are fully allocated to the lines of business  within the SBUs.  The individual allowances and related provisions are reported in the  respective SBUs. The collective allowances and related provisions are reported  in Corporate and Other except for: (i) residential mortgages greater than 90  days delinquent; (ii) personal loans and scored small business loans greater  than 30 days delinquent; and (iii) net write-offs for the card portfolio,  which are all reported in the respective SBUs. All allowances and related  provisions for CIBC FirstCaribbean are reported in Corporate and Other.  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, telephone banking, online and mobile banking.  Results((1))                                                For the three            For the nine                                                   months ended            months ended                                     2014       2014       2013         2014       2013       $ millions                    Jul.       Apr.       Jul.         Jul.       Jul.                                     31         30         31           31         31       Revenue                                                                                  Personal                                                                               banking                 $  1,614   $  1,539   $  1,534     $  4,729   $  4,479       Business                                                                               banking                      389        368        386        1,137      1,143       Other (2)                     29         32        147          360        440       Total revenue                2,032      1,939      2,067        6,226      6,062       Provision for                                                    credit losses                  177        173        241          560        715       Non-interest                                                     expenses                     1,067      1,040      1,011        3,162      2,996       Income before                                                    taxes                          788        726        815        2,504      2,351       Income taxes                   199        180        203          623        587       Net income                $    589   $    546   $    612     $  1,881   $  1,764       Net income                                                       attributable     to:                                                                                      Equity                                                                                 shareholders        (a)                     $    589   $    546   $    612     $  1,881   $  1,764     Efficiency                                                       ratio                         52.5 %     53.6 %     48.9 %       50.8 %     49.4 %     Return on                                                        equity (3)                    60.3 %     58.1 %     63.8 %       65.5 %     62.8 %     Charge for                                                       economic     capital (3) (b)           $  (121)   $  (117)   $  (120)     $  (357)   $  (353)       Economic profit                                                  (3) (a+b)                 $    468   $    429   $    492     $  1,524   $  1,411       Full-time                                                        equivalent     employees                   22,397     22,306     22,186       22,397     22,186       (1) For additional segmented information, see the notes to         the interim consolidated financial statements.     (2) Includes run-off portfolios relating to FirstLine         mortgage broker business, student loans and cards.     (3) For additional information, see the "Non-GAAP         measures" section.  Financial overview Net income for the quarter was $589 million, down $23 million from the same  quarter last year, primarily due to higher non-interest expenses and lower  revenue, partially offset by a lower provision for credit losses.  Net income was up $43 million from the prior quarter, mainly due to higher  revenue, partially offset by higher non-interest expenses.  Net income for the nine months ended July 31, 2014 was $1,881 million, up $117  million from the same period in 2013, primarily due to higher revenue and a  lower provision for credit losses, partially offset by higher non-interest  expenses.  Revenue Revenue was down $35 million or 2% from the same quarter last year.  Personal banking revenue was up $80 million, primarily due to volume growth.  Business banking revenue was comparable with the same quarter last year as  volume growth was largely offset by narrower spreads.  Other revenue was down $118 million, mainly due to lower cards revenue as a  result of the Aeroplan transactions with Aimia and TD.  Revenue was up $93 million or 5% from the prior quarter.  Personal banking revenue was up $75 million, primarily due to additional days  in the quarter, volume growth and higher fees.  Business banking revenue was up $21 million, primarily due to additional days  in the quarter and volume growth.  Other revenue was comparable with the prior quarter.  Revenue for the nine months ended July 31, 2014 was up $164 million or 3% from  the same period in 2013.  Personal banking revenue was up $250 million, due to volume growth across most  products, higher fees and wider spreads.  Business banking revenue was down $6 million, mainly due to narrower spreads,  partially offset by volume growth.  Other revenue was down $80 million, mainly due to lower cards revenue as a  result of the Aeroplan transactions and lower revenue from our exited  FirstLine mortgage broker business, partially offset by the gain relating to  the Aeroplan transactions in the current year period, shown as an item of note.  Provision for credit losses Provision for credit losses was down $64 million from the same quarter last  year, mainly due to lower write-offs and bankruptcies in the card portfolio  which reflect credit improvements, as well as the impact of an initiative to  enhance account management practices, and the sold Aeroplan portfolio. The  same quarter last year included a charge resulting from a revision of  estimated loss parameters on our unsecured lending portfolios, shown as an  item of note.  Provision for credit losses was comparable with the prior quarter.  Provision for credit losses for the nine months ended July 31, 2014 was down  $155 million from the same period in 2013, mainly due to lower write-offs and  bankruptcies in the card portfolio which reflect credit improvements, as well  as the impact of an initiative to enhance account management practices, and  the sold Aeroplan portfolio, and lower losses in the business lending  portfolio. The same period last year included a charge resulting from a  revision of estimated loss parameters on our unsecured lending portfolios, and  the current year period included a charge resulting from operational changes  in the processing of write-offs, both shown as items of note.  Non-interest expenses Non-interest expenses were up $56 million or 6% from the same quarter last  year, primarily due to higher spending on strategic initiatives and costs  relating to the development of our enhanced travel rewards program, shown as  an item of note.  Non-interest expenses were up $27 million or 3% from the prior quarter, mainly  due to higher employee-related compensation, including the impact of  additional days in the quarter.  Non-interest expenses for the nine months ended July 31, 2014 were up $166  million or 6% from the same period in 2013, primarily due to costs relating to  development of our enhanced travel rewards program and to the Aeroplan  transactions, shown as items of note, and higher spending on strategic  initiatives.  Income taxes Income taxes were down $4 million from the same quarter last year, primarily  due to lower income.  Income taxes were up $19 million from the prior quarter, primarily due to  higher income.  Income taxes for the nine months ended July 31, 2014 were up $36 million from  the same period in 2013, primarily due to higher income.  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 more than 1,500 advisors across Canada and  the U.S.  Results((1))                                               For the three          For the nine                                                  months ended          months ended                                      2014      2014      2013        2014      2013       $ millions                     Jul.      Apr.      Jul.        Jul.      Jul.                                      31        30        31          31        31       Revenue                                                                               Retail                                                                              brokerage                 $   307   $   292   $   267     $   883   $   788       Asset                                                                               management                    186       181       159         539       456       Private wealth                                                                      management                     75        75        32         196        89     Total revenue                   568       548       458       1,618     1,333       Provision for                                                   credit losses                     -         1         -           -         -       Non-interest                                                    expenses                        408       395       326       1,154       966       Income before                                                   taxes                           160       152       132         464       367       Income taxes                     39        35        30         112        85       Net income                  $   121   $   117   $   102     $   352   $   282       Net income                                                      attributable to:                                                                      Non-controlling                                                                     interests                 $     -   $     1   $     -     $     2   $     -       Equity                                                                              shareholders        (a)                           121       116       102         350       282     Efficiency ratio               71.9 %    72.2 %    71.2 %      71.4 %    72.4 %     Return on equity                                                (2)                            22.7 %    22.4 %    21.3 %      22.5 %    20.1 %     Charge for                                                      economic capital     (2) (b)                     $  (65)   $  (63)   $  (58)     $ (190)   $ (172)       Economic profit                                                 (2) (a+b)                   $    56   $    53   $    44     $   160   $   110       Full-time                                                       equivalent     employees                     4,176     4,108     3,837       4,176     3,837       (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 $121 million, up $19 million from the same  quarter last year, and up $4 million from the prior quarter, primarily due to  higher revenue, partially offset by higher non-interest expenses.  Net income for the nine months ended July 31, 2014 was $352 million, up $70  million from the same period in 2013, primarily due to higher revenue,  partially offset by higher non-interest expenses.  Revenue Revenue was up $110 million or 24% from the same quarter last year, and up $20  million or 4% from the prior quarter.  Retail brokerage revenue was up $40 million from the same quarter last year,  primarily due to higher fee-based and commission revenue, and up $15 million  from the prior quarter, primarily due to higher fee-based revenue.  Asset management revenue was up $27 million from the same quarter last year,  and up $5 million from the prior quarter, primarily due to higher client AUM  driven by market appreciation and net sales of long-term mutual funds.  Private wealth management revenue was up $43 million from the same quarter  last year, mainly due to the acquisition of Atlantic Trust on December 31,  2013, and higher AUM driven by client balance growth. Private wealth  management revenue was comparable with the prior quarter.  Revenue for the nine months ended July 31, 2014 was up $285 million or 21%  from the same period in 2013.  Retail brokerage revenue was up $95 million, mainly due to higher fee-based  and commission revenue.  Asset management revenue was up $83 million, primarily due to higher client  AUM driven by market appreciation and net sales of long-term mutual funds, and  higher contribution from our equity-accounted investment in ACI.  Private wealth management revenue was up $107 million, mainly due to the  acquisition noted above and higher AUM driven by client balance growth.  Non-interest expenses Non-interest expenses were up $82 million or 25% from the same quarter last  year, primarily due to the impact of the acquisition noted above and higher  performance-based compensation.  Non-interest expenses were up $13 million or 3% from the prior quarter,  primarily due to higher performance-based compensation.  Non-interest expenses for the nine months ended July 31, 2014 were up $188  million or 19% from the same period in 2013, primarily due to the impact of  the acquisition noted above and higher performance-based compensation.  Income taxes Income taxes were up $9 million from the same quarter last year, and up $4  million from the prior quarter, primarily due to higher income.  Income taxes for the nine months ended July 31, 2014 were up $27 million from  the same period in 2013, primarily due to higher income.  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))                                             For the three          For the nine                                                months ended          months ended                                    2014      2014      2013        2014      2013       $ millions                   Jul.      Apr.      Jul.        Jul.      Jul.                                    31        30        31          31        31       Revenue                                                                             Capital                                                                           markets                 $   336   $   331   $   348     $   997   $   986       Corporate and                                                                     investment       banking                     330       275       240         855       673       Other                         4         -         1         104        61       Total revenue                                                 (2)                           670       606       589       1,956     1,720       Provision for                                                 credit losses                   6        21        14          29        45       Non-interest                                                  expenses                      279       318       303         926     1,046       Income before                                                 taxes                         385       267       272       1,001       629       Income taxes                                                  (2)                           103        54        60         242       139       Net income                $   282   $   213   $   212     $   759   $   490       Net income                                                    attributable     to:                                                                                 Equity                                                                            shareholders        (a)                     $   282   $   213   $   212     $   759   $   490     Efficiency                                                    ratio (2)                    41.5 %    52.6 %    51.3 %      47.3 %    60.8 %     Return on                                                     equity (3)                   47.5 %    36.0 %    38.6 %      42.8 %    31.0 %     Charge for                                                    economic     capital (3) (b)           $  (73)   $  (73)   $  (69)     $ (219)   $ (197)       Economic profit                                               (3) (a+b)                 $   209   $   140   $   143     $   540   $   293       Full-time                                                     equivalent     employees                   1,327     1,248     1,302       1,327     1,302       (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 $102 million for the         quarter ended July 31, 2014 (April 30, 2014:         $124 million; July 31, 2013: $90 million) and $336         million for the nine months ended July 31, 2014         (July 31, 2013: $279 million). 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 $282 million, up $70 million from the same  quarter last year and up $69 million from the prior quarter, mainly due to  higher revenue and lower non-interest expenses.  Net income for the nine months ended July 31, 2014 was $759 million, up $269  million from the same period in 2013, mainly due to higher revenue and lower  non-interest expenses.  Revenue  Revenue was up $81 million or 14% from the same quarter last year.  Capital markets revenue was down $12 million, primarily due to lower revenue  from foreign exchange trading and a lower reversal of credit valuation  adjustments (CVA) against credit exposures to derivative counterparties (other  than financial guarantors), partially offset by higher equity issuance revenue.  Corporate and investment banking revenue was up $90 million, mainly due to a  gain within an equity-accounted investment in our merchant banking portfolio,  shown as an item of note, higher equity issuance revenue and higher revenue  from corporate banking and U.S. real estate finance.  Other revenue was comparable with the same quarter last year.  Revenue was up $64 million or 11% from the prior quarter.  Capital markets revenue was up $5 million, primarily due to higher equity and  debt issuance revenue, partially offset by lower revenue from equity  derivatives and fixed income trading.  Corporate and investment banking revenue was up $55 million, primarily due to  the gain noted above and higher equity issuance revenue and advisory fees,  partially offset by lower revenue from U.S. real estate finance.  Other revenue was comparable with the prior quarter.  Revenue for the nine months ended July 31, 2014 was up $236 million or 14%  from the same period in 2013.  Capital markets revenue was up $11 million, primarily due to higher revenue  from equity derivatives, fixed income and foreign exchange trading, and equity  issuances, partially offset by a lower reversal of CVA as noted above.  Corporate and investment banking revenue was up $182 million, mainly due to  higher investment portfolio gains, including the gain noted above, higher  revenue from corporate banking and U.S. real estate finance, and higher  revenue from equity issuances, partially offset by lower advisory revenue.  Other revenue was up $43 million, primarily due to a gain on the sale of an  equity investment in our exited European leveraged finance portfolio in the  current year period, shown as an item of note, partially offset by losses in  the structured credit run-off business compared with gains in the prior year  period.  Provision for credit losses Provision for credit losses was down $8 million from the same quarter last  year, primarily due to losses in our exited European leveraged finance  portfolio in the same quarter last year.  Provision for credit losses was down $15 million from the prior quarter, as  the prior quarter included losses in our exited U.S. leveraged finance  portfolio, shown as an item of note.  Provision for credit losses for the nine months ended July 31, 2014 was down  $16 million from the same period in 2013, primarily due to losses in our  exited European leveraged finance portfolio in the same period last year,  partially offset by higher losses in our exited U.S. leveraged finance  portfolio.  Non-interest expenses Non-interest expenses were down $24 million or 8% from the same quarter last  year, and down $39 million or 12% from the prior quarter, mainly due to lower  performance-based compensation.  Non-interest expenses for the nine months ended July 31, 2014 were down $120  million or 11% from the same period in 2013, as the prior year period included  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., shown as an item of  note, and lower performance-based compensation, partially offset by higher  spending on strategic initiatives.  Income taxes Income taxes for the quarter were up $43 million from the same quarter last  year, and up $49 million from the prior quarter, primarily due to higher  income.  Income taxes for the nine months ended July 31, 2014 were up $103 million from  the same period in 2013, primarily due to higher income.  Structured credit run-off business The results of the structured credit run-off business are included in the  Wholesale Banking SBU.  Results                                        For the three            For the nine                                        months ended            months ended                              2014     2014     2013        2014        2013     $ millions               Jul.     Apr.     Jul.     Jul. 31     Jul. 31                                31       30       31     Net interest           $  (3)   $ (10)   $ (15)   $    (26)   $    (38)     income     (expense)     Trading                   (3)       24       12          26          65     income     (loss)     Designated                  4     (17)      (3)        (15)         (9)     at fair     value (FVO)     gains     (losses),     net     Other income                1        -      (1)           1          10     (loss)     Total                     (1)      (3)      (7)        (14)          28     revenue     Non-interest                1        1        1           3         157     expenses     Loss before               (2)      (4)      (8)        (17)       (129)     taxes     Income taxes                -      (1)      (2)         (4)        (34)     Net loss               $  (2)   $  (3)   $  (6)   $    (13)   $    (95)  Net loss for the quarter was $2 million (US$2 million), compared with $6  million (US$6 million) for the same quarter last year and $3 million (US$3  million) for the prior quarter. The net loss for the nine months ended July  31, 2014 was $13 million (US$12 million), down $82 million (US$81 million)  from the same period in 2013.  Net loss for the quarter was mainly due to a decrease in the value of  receivables related to protection purchased from financial guarantors (on loan  assets that are carried at amortized cost), resulting from an increase in the  mark-to-market (MTM) of the underlying positions and net interest expense.  These were partially offset by gains on unhedged positions and a reduction in  CVA relating to financial guarantors.  Position summary The following table summarizes our positions within our structured credit  run-off business:                                                                     Written credit                                                                                                          derivatives,        Credit protection purchased                                                                         liquidity                   from     US$ millions, as at July 31,                            (1)        and credit        Financial              Other     2014                              Investments and loans            facilities       guarantors     counterparties                                           Fair     Carrying                                                                                  Fair value     value of     value of                  Fair                                                                    of                          trading,   securities   securities              value of             Fair               Fair                               AFS                                                            value              value                           and FVO   classified   classified               written              net             net of                                                                            credit               of               Notional securities     as loans     as loans  Notional derivatives   Notional   CVA   Notional     CVA     USRMM -   $      - $        -   $        -   $        -   $   216 $       154   $      - $   -   $    216 $   154     CDO     CLO          1,669          1        1,623        1,627     1,535          19      2,880    32         78       2     Corporate        -          -            -            -     4,085           2          -     -      4,085       4     debt     Other          592        402           28           26       407          33         18     2         12       1     Unmatched        -          -            -            -         -           -          -     -        459       -               $  2,261 $      403   $    1,651   $    1,653   $ 6,243 $       208   $  2,898 $  34   $  4,850 $   161     October   $  3,269 $      494   $    2,497   $    2,507   $ 7,543 $       269   $  4,718 $  87   $  5,145 $   188     31, 2013     (1) Excluded from the table above are equity AFS         securities that we obtained in consideration for         commutation of our U.S. residential mortgage         market (USRMM) contracts with financial         guarantors with a carrying value of US$15 million         (October 31, 2013: US$10 million).  USRMM - collateralized debt obligation (CDO) Our net USRMM position, consisting of a written credit derivative, amounted to  US$62 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 senior tranches of CLOs backed by diversified pools  of primarily U.S. (65%) and European-based (33%) senior secured leveraged  loans. As at July 31, 2014, approximately 68% of the total notional amount of  the CLO tranches was rated equivalent to AAA, 29% was rated between the  equivalent of AA+ and AA-, and the remainder was the equivalent of A or lower.  As at July 31, 2014, approximately 19% of the underlying collateral was rated  equivalent to BB- or higher, 58% was rated between the equivalent of B+ and  B-, 4% was rated equivalent to CCC+ or lower, with the remainder unrated. The  CLO positions have a weighted-average life of 2.1 years and average  subordination of 31%.  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 remaining 29-month term of the contract. On this  reference portfolio, we have sold protection to an investment dealer.  Other Our significant positions in the Investments and loans section within Other,  as at July 31, 2014, include:         --  Variable rate Class A-1/A-2 notes classified as trading             securities with a notional value of US$265 million and a fair             value of US$242 million, tracking notes classified as AFS with             a notional value of US$5 million and a fair value of US$2             million, and loans with a notional value of US$56 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;         --  US$126 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$104 million;         --  US$49 million notional value of CDO trading securities with             collateral consisting of high-yield corporate debt portfolios             with a fair value of US$48 million; and         --  US$29 million notional value of an asset-backed security (ABS)             classified as a loan, with fair value of US$28 million and             carrying value of US$26 million.  Our significant positions in the Written credit derivatives, liquidity and  credit facilities section within Other, as at July 31, 2014, include:         --  US$266 million notional value of written credit derivatives             with a fair value of US$32 million, on inflation-linked notes,             and CDO tranches with collateral consisting of non-U.S.             residential mortgage-backed securities and TruPs; and         --  US$87 million of undrawn Margin Funding Facility related to the             Montreal Accord restructuring.  Unmatched The underlying in our unmatched position is a reference portfolio of corporate  debt.  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$3 million, which are partly secured by  direct guarantees from financial guarantors or by bonds guaranteed by  financial guarantors.                                                                                              Credit protection                                                                                                  purchased                                                                                                from financial                                                                                                  guarantors                                           Notional amounts of referenced assets                   and other                                                                                                counterparties                                    Corporate   CDO -                             Total     Fair             Fair                                                                                           value            value     US$ millions,            CLO        debt   USRMM     Other   Unmatched    notional   before      CVA     net     as at July 31,                                                                          CVA               of     2014                                                                                                     CVA     Financial                                                                                                        guarantors (1)       Investment       $   1,794   $       -   $   -   $    18   $       -   $   1,812   $   31 $    (5)   $  26       grade       Unrated              1,086           -       -         -           -       1,086       12      (4)       8                            2,880           -       -        18           -       2,898       43      (9)      34     Other                                                                                                            counterparties     (1)       Investment              78          10     216        12           -         316      156        1     157       grade       Unrated                  -       4,075       -         -         459       4,534        4        -       4                               78       4,085     216        12         459       4,850      160        1     161                        $   2,958   $   4,085   $ 216   $    30   $     459   $   7,748   $  203 $    (8)   $ 195     October 31,        $   4,642   $   4,271   $ 241   $   229   $     480   $   9,863   $  312 $   (37)   $ 275     2013     (1)  In cases where more than one credit rating agency          provides ratings and those ratings differ, we use          the lowest rating.  The unrated other counterparty is a Canadian conduit. The conduit is in  compliance with collateral posting arrangements and has posted collateral  exceeding current market exposure. The fair value of the collateral as at July  31, 2014 was US$275 million relative to US$4 million of net exposure.  Lehman Brothers bankruptcy proceedings During the quarter ended January 31, 2013, 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.  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 expenses 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))                                                  For the three          For the nine                                                   months ended          months ended                                     2014       2014       2013       2014       2013     $ millions                      Jul.       Apr.       Jul.       Jul.       Jul.                                       31         30         31         31         31     Revenue                                                                                International                  151        146        142        451        445       banking                   $          $          $          $          $       Other                         (63)       (72)        (7)       (92)       (22)     Total revenue (2)                 88         74        135        359        423     Provision for                                                                 credit losses                     12        135         65        154         90     Non-interest                                                                  expenses                         293        659        238      1,196        683     Loss before taxes              (217)      (720)      (168)      (991)      (350)     Income taxes (2)               (146)      (150)      (120)      (403)      (339)     Net loss                    $   (71)   $  (570)   $   (48)   $  (588)   $   (11)     Net income (loss)                                                             attributable to:                                                                       Non-controlling                  3       (12)          1        (7)          5       interests                 $          $          $          $          $       Equity                        (74)      (558)       (49)      (581)       (16)       shareholders                                                                Full-time                                                                     equivalent     employees                     17,261     16,245     16,191     17,261     16,191     (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 loss for the quarter was $71 million, up $23 million from the same quarter  last year, primarily due to higher non-interest expenses and lower revenue,  partially offset by a lower provision for credit losses.  Net loss was down $499 million from the prior quarter, primarily due to lower  non-interest expenses and provision for credit losses.  Net loss for the nine months ended July 31, 2014 was $588 million, up $577  million from the same period last year, primarily due to higher non-interest  expenses, provision for credit losses and lower revenue.  Revenue Revenue was down $47 million or 35% from the same quarter last year.  International banking revenue was up $9 million, due to higher revenue from  CIBC FirstCaribbean, including the impact of favourable foreign exchange rates.  Other revenue was down $56 million, primarily due to lower treasury revenue.  Revenue was up $14 million or 19% from the prior quarter.  International banking revenue was up $5 million, primarily due to higher  revenue from CIBC FirstCaribbean.  Other revenue was up $9 million, primarily due to a lower TEB adjustment,  partially offset by lower treasury revenue.  Revenue for the nine months ended July 31, 2014 was down $64 million or 15%  from the same period last year.  International banking revenue was up $6 million, due to favourable foreign  exchange rates. The same period last year included a gain on the sale of our  private wealth management (Asia) business, shown as an item of note.  Other revenue was down $70 million, primarily due to lower treasury revenue  and a higher TEB adjustment, partially offset by the gain relating to the  Aeroplan transactions with Aimia and TD, shown as an item of note in the  current year period.  Provision for credit losses Provision for credit losses was down $53 million from the same quarter last  year, as the same quarter last year included estimated credit losses related  to the Alberta floods, shown as an item of note, a portion of which was  estimated to not be required and therefore reversed in the current quarter.  Provision for credit losses was down $123 million from the prior quarter, as  the prior quarter included loan losses relating to CIBC FirstCaribbean, shown  as an item of note.  Provision for credit losses for the nine months ended July 31, 2014 was up $64  million from the same period last year, primarily due to the loan losses  relating to CIBC FirstCaribbean noted above, partially offset by a decrease in  the collective allowance.  Non-interest expenses Non-interest expenses were up $55 million or 23% from the same quarter last  year, mainly due to higher unallocated corporate support costs.  Non-interest expenses were down $366 million or 56% from the prior quarter,  primarily due to the goodwill impairment charge relating to CIBC  FirstCaribbean, shown as an item of note in the prior quarter, partially  offset by higher unallocated corporate support costs.  Non-interest expenses for the nine months ended July 31, 2014 were up $513  million or 75% from the same period last year, primarily due to the charge  noted above and higher unallocated corporate support costs.  Income taxes Income tax benefit was up $26 million from the same quarter last year,  primarily due to a higher loss, including a higher TEB adjustment.  Income tax benefit was comparable with the prior quarter. No tax recovery was  booked in the prior quarter in respect of the CIBC FirstCaribbean goodwill  impairment charge and loan losses.  Income tax benefit for the nine months ended July 31, 2014 was up $64 million  from the same period in 2013, primarily due to a higher TEB adjustment. No tax  recovery was booked in the current year period in respect of the CIBC  FirstCaribbean goodwill impairment charge and loan losses.  Financial condition  Review of condensed consolidated balance sheet                                                        2014            2013     $ millions, as at                               Jul. 31         Oct. 31     Assets                                                                      Cash and deposits with banks                $    11,192     $     6,379     Securities                                       69,461          71,984     Securities borrowed or purchased                 28,343          28,728     under resale agreements     Loans and acceptances, net of                   262,489         256,380     allowance     Derivative instruments                           18,227          19,947     Other assets                                     15,710          14,588                                                 $   405,422     $   398,006     Liabilities and equity                                                      Deposits                                    $   322,314     $   315,164     Obligations related to securities                23,599          20,313     lent or sold short or under     repurchase agreements     Derivative instruments                           17,957          19,724     Other liabilities                                18,853          20,583     Subordinated indebtedness                         4,187           4,228     Equity                                           18,512          17,994                                                 $   405,422     $   398,006  Assets As at July 31, 2014, total assets were up by $7.4 billion or 2% from October  31, 2013.  Cash and deposits with banks increased by $4.8 billion or 75%, mostly due to  higher treasury deposit placements.  Securities decreased by $2.5 billion or 4%, primarily due to a decrease in AFS  securities, partially offset by an increase in trading securities. AFS  securities decreased primarily due to lower Canadian government securities and  public corporate debt, partially offset by an increase in U.S. Treasury and  agencies securities. Trading securities increased primarily due to an increase  in corporate equities.  Securities borrowed or purchased under resale agreements decreased by $385  million or 1%, primarily due to treasury investment management activities.  Net loans and acceptances increased by $6.1 billion or 2%. Business and  government loans and acceptances were up by $4.5 billion, largely due to an  increase in our domestic lending portfolio. Residential mortgages were up by  $4.0 billion, primarily due to growth in CIBC-branded mortgages, partially  offset by attrition in the exited FirstLine mortgage broker business. Personal  loans were up $642 million, due to volume growth. These increases were  partially offset by credit card loans, which were down $3.1 billion, primarily  due to the Aeroplan transactions with Aimia and TD.  Derivative instruments decreased by $1.7 billion or 9%, largely driven by the  decrease in interest rate derivatives valuation, partially offset by an  increase in foreign exchange derivatives valuation.  Other assets increased by $1.1 billion or 8%, primarily due to an increase in  collateral pledged for derivatives and assets acquired as a result of the  acquisition of Atlantic Trust, partially offset by the goodwill impairment  relating to CIBC FirstCaribbean.  Liabilities As at July 31, 2014, total liabilities were up by $6.9 billion or 2% from  October 31, 2013.  Deposits increased by $7.2 billion or 2%, primarily due to retail volume  growth, partially offset by lower outstanding secured borrowings. Further  details on the composition of deposits are provided in Note 8 to the interim  consolidated financial statements.  Obligations related to securities lent or sold short or under repurchase  agreements increased by $3.3 billion or 16%, primarily due to client-driven  activities.  Derivative instruments decreased by $1.8 billion or 9%, largely driven by a  decrease in interest rate derivatives valuation, partially offset by an  increase in foreign exchange derivatives valuation.  Other liabilities decreased by $1.7 billion or 8%, mainly due to lower  acceptances.  Subordinated indebtedness decreased by $41 million or 1%, primarily due to  redemptions during the year. See the "Significant capital management activity"  section below.  Equity As at July 31, 2014, equity increased by $518 million or 3% from October 31,  2013, primarily due to a net increase in retained earnings and issuance of  preferred shares. These were partially offset by the redemption of our  preferred shares and the repurchase and cancellation of common shares under  the normal course issuer bid, 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 29 to 36 of the 2013 Annual Report.  Regulatory capital requirements under Basel III Our regulatory capital requirements are determined in accordance with  guidelines issued by the Office of the Superintendent of Financial  Institutions (OSFI) which are based on the risk-based capital standards  developed by the Basel Committee on Banking Supervision (BCBS).  OSFI mandated all institutions to have established a target CET1 ratio of 7%,  comprised of the 2019 all-in minimum ratio plus a conservation buffer  effective the first quarter of 2013. For the Tier 1 and Total capital ratios,  the all-in targets are 8.5% and 10.5%, respectively, effective the first  quarter of 2014. "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. Certain deductions  from CET1 capital are phased in at 20% per year from 2014. Amounts not yet  deducted from capital under OSFI's transitional rules are risk weighted,  creating a difference between RWAs on a transitional and all-in basis.  A comparison of the BCBS transitional capital ratio requirements and the OSFI  all-in target capital ratio requirements is as follows.  To view "Transitional basis (BCBS)" and "All-in basis (OSFI)" chart, please  click http://files.newswire.ca/256/CIBC1.pdf  CET1 capital includes common shares, retained earnings, accumulated other  comprehensive income (AOCI) (excluding AOCI relating to cash flow hedges), and  qualifying instruments issued by a consolidated subsidiary to third parties,  less regulatory adjustments for items such as goodwill and other intangible  assets, deferred tax assets, assets related to defined benefit pension plans  as reported on our consolidated balance sheet, and certain investments.  Additional Tier 1 capital primarily includes non-viability contingent capital  (NVCC) preferred shares, qualifying instruments issued by a consolidated  subsidiary to third parties, and non-qualifying preferred shares and  innovative Tier 1 notes, which are subject to phase-out rules for capital  instruments. Tier 2 capital includes non-qualifying subordinated indebtedness  subject to phase-out rules for capital instruments, eligible collective  allowance under the standardized approach, and qualifying instruments issued  by a consolidated subsidiary to third parties.  OSFI has released its guidance on domestic systemically important banks  (D-SIBs) and the associated capital surcharge. CIBC is considered to be a  D-SIB in Canada along with the Bank of Montreal, the Bank of Nova Scotia, the  National Bank of Canada, the Royal Bank of Canada, and TD. D-SIBs will be  subject to a 1% CET1 surcharge commencing January 1, 2016.  Basel leverage ratio requirement The Basel III capital reforms included a non-risk-based capital metric, the  leverage ratio, to supplement risk-based capital requirements. On January 12,  2014, the BCBS issued the full text of its leverage ratio framework.  The leverage ratio is defined as the Capital Measure (Tier 1 capital) divided  by the Exposure Measure. The Exposure Measure includes the sum of:     (i)        On-balance sheet assets;     (ii)       Adjustments for securities financing transaction exposures                with a limited form of netting available if certain                conditions are met;     (iii)      Derivative exposures as specified under the rules; and     (iv)       Other off-balance sheet exposures, such as credit                commitments and direct credit substitutes, converted into                credit exposure equivalents using Basel Standardized                Approach credit conversion factors.  Items deducted from Tier 1 capital will be excluded from the Exposure Measure.  The BCBS requires banks to disclose their leverage ratio beginning in 2015.  The document states that the BCBS will continue to test whether a minimum  requirement of 3% for the leverage ratio is appropriate. Any final adjustments  to the rule will be made by 2017, for implementation on January 1, 2018.  On July 30, 2014, OSFI issued a draft "Leverage Requirements Guideline"  outlining the implementation of the Basel III Leverage Ratio framework in  Canada effective January 1, 2015. The Basel III Leverage Ratio will replace  the current assets-to-capital multiple (ACM) test. Federally regulated  deposit-taking institutions will be expected to have Basel III leverage ratios  in excess of 3%. Public disclosure of the Leverage Ratio is effective from the  first quarter of 2015. The reporting requirements are outlined in the draft  "Public Capital Disclosure Requirements related to Basel III Leverage Ratio"  issued by OSFI on June 27, 2014. CIBC expects to be in compliance with the new  requirements.  Continuous enhancement to risk-based capital requirements Last year the BCBS published a number of proposals for changes to the existing  risk-based capital requirements (see page 30 of the 2013 Annual Report), and  continues to do so with the objective of clarifying and increasing the capital  requirements for certain business activities. In addition to the leverage  ratio document discussed above, since the start of the fiscal year, the BCBS  has published an updated proposal: "Revisions to the securitisation framework  - consultative document", and finalized three standards for implementation in  2017 as discussed below.  "Capital requirements for banks' equity investments in funds - final standard"  was published in December 2013. The final revised framework applies to banks'  investments in the equity of funds that are held in the banking book. The  implementation date is January 1, 2017. Banks should look through to the  underlying assets of the fund in order to more properly reflect the risk of  those investments.  In addition to the above, the BCBS has also recently finalized two other  standards which will be implemented on January 1, 2017. "The standardized  approach for measuring counterparty credit risk exposures" provides a  non-modelled approach to the treatment of derivatives-related transactions,  which will replace both the existing Current Exposure and Standardized Methods.  "Capital requirements for bank exposures to central counterparties" sets out  the rules for calculating regulatory capital for bank exposures to central  counterparties, and will replace interim requirements published in July 2012.  Proposed revisions to Pillar 3 disclosure requirements On June 24, 2014, the BCBS issued a consultative document titled "Review of  the Pillar 3 disclosure requirements". The document sets out the first-phase  review findings, of a two-phase project, by the BCBS and outlines proposed  revisions to the existing Pillar 3 disclosure requirements for credit  (including counterparty credit), market, equity and securitization risks.  These disclosure requirements are proposed to be implemented in 2016. CIBC  will continue to monitor and prepare for developments in this area.  Taxpayer Protection and Bank Recapitalization Regime The Department of Finance published a consultation paper on August 1, 2014 on  the Taxpayer Protection and Bank Recapitalization (bail-in) regime. The  overarching policy objective is to preserve financial stability while  protecting taxpayers in the event of a large bank (D-SIB) failure. The bail-in  regime is designed to enable the expedient conversion of certain bank  liabilities (bail-in debt) into common equity, thus ensuring that the D-SIB  emerges from conversion as well-capitalized. Prior to conversion of the  bail-in debt, all capital instruments that meet the Basel III requirements for  absorption of loss at the point of non-viability must have been converted into  common equity.  Regulatory capital Our capital ratios and ACM are presented in the table below:                                           2014          2014          2013       $ millions,                        Jul. 31       Apr. 30       Oct. 31       as at     Transitional                                                                 basis     CET1 capital                     $  16,983     $  16,532     $  16,698       Tier 1                              18,491        18,076        17,830       capital     Total                               22,081        21,581        21,601       capital     RWA                                155,644       152,044       151,338       CET1 ratio                            10.9 %        10.9 %        11.0 %     Tier 1                                11.9 %        11.9 %        11.8 %     capital     ratio     Total                                 14.2 %        14.2 %        14.3 %     capital     ratio     ACM                                   18.2 x        18.1 x        18.0 x     All-in basis                                                                 (1)     CET1 capital                     $  14,153     $  13,641     $  12,793       Tier 1                              17,093        16,488        15,888       capital     Total                               20,784        20,206        19,961       capital     CET1 capital                       139,920       135,883       136,747       RWA     Tier 1                             140,174       135,883       136,747       capital RWA     Total                              140,556       135,883       136,747       capital RWA     CET1 ratio                            10.1 %        10.0 %         9.4 %     Tier 1                                12.2 %        12.1 %        11.6 %     capital     ratio     Total                                 14.8 %        14.9 %        14.6 %     capital     ratio     (1) Commencing the third quarter of 2014, there are different         levels of RWAs         for the calculation of the CET1, Tier 1 and total capital         ratios arising from         the option CIBC has chosen for the phase-in of the CVA         capital charge.  CET1 ratio (All-in basis) CET1 ratio increased 0.1% from April 30, 2014. During the quarter, CET1  capital after regulatory adjustments increased, largely due to internal  capital generation (net income less dividends and shares repurchased for  cancellation), while regulatory deductions declined. CET1 capital RWAs  increased by $4.0 billion from April 30, 2014, primarily due to capital model  parameter updates for our wholesale lending portfolios and business and other  asset growth.  CET1 ratio increased 0.7% from October 31, 2013. CET1 capital increased due to  internal capital generation. While the earnings were impacted by the  write-down of CIBC FirstCaribbean goodwill, its impact on capital was neutral.  CET1 capital RWAs increased $3.2 billion due to commencement of the phase-in  of the CVA capital charge in the first quarter of 2014, capital model  parameter updates, business growth and foreign exchange. These factors were  partially offset by the sale of the Aeroplan portfolio, portfolio quality  improvements, refinements to the treatment of our OTC derivatives and  reductions in our AFS portfolios.  ACM The ACM increased 0.1 times from April 30, 2014. Capital for ACM purposes  increased during the quarter due to the positive impact of internal capital  generation and the net impact of the issuance of qualifying preferred shares  and the redemption of non-qualifying preferred shares. The impact of higher  capital was offset by the impact of an increase in assets for ACM purposes.  The ACM increased 0.2 times from October 31, 2013. Total capital for ACM  purposes increased mainly due to internal capital generation and the issuance  of preferred shares, partially offset by the redemption of preferred shares  and an additional 10% phase-out of non-qualifying Tier 1 and Tier 2 capital in  2014. Assets for ACM purposes also increased during the period.  Significant capital management activity  Subordinated debt On July 25, 2014, we purchased and cancelled $11 million (US$10 million) of  our floating rate Debentures (subordinated indebtedness) due July 31, 2084,  and $9 million (US$8 million) of our floating rate Debentures (subordinated  indebtedness) due August 31, 2085.  Normal course issuer bid On September 5, 2013, we announced that the Toronto Stock Exchange had  accepted the notice of CIBC's intention to commence a normal course issuer  bid. Purchases under this bid commenced on September 18, 2013 and will  terminate upon the earlier of (i) CIBC purchasing up to a maximum of 8 million  common shares, (ii) CIBC providing a notice of termination, or (iii) September  8, 2014.  We intend to seek Toronto Stock Exchange approval for a new normal course  issuer bid that would permit us to purchase for cancellation up to a maximum  of 8 million, or approximately 2% of our outstanding common shares, over the  next 12 months.  During the quarter ended July 31, 2014, we purchased and cancelled an  additional 759,500 common shares under this bid at an average price of $97.58  for a total amount of $74 million. For the nine months ended July 31, 2014, we  purchased and cancelled 3,089,200 common shares under this bid at an average  price of $92.66 for a total amount of $286 million. Since the inception of  this bid, we have purchased and cancelled 4,013,100 common shares at an  average price of $90.52 for a total amount of $363 million.  Dividends Our quarterly common share dividend was increased from $0.98 per share to  $1.00 per share from the quarter ended July 31, 2014 and from $0.96 per share  to $0.98 per share from the quarter ended April 30, 2014.  Preferred shares On June 11, 2014, we issued 16 million Non-cumulative Rate Reset Class A  Preferred Shares Series 39 (Series 39 shares) with a par value of $25.00 per  share, for gross proceeds of $400 million. For the initial five year period to  the earliest redemption date of July 31, 2019, the Series 39 shares pay  quarterly cash dividends, if declared, at a rate of 3.90%. On July 31, 2019,  and on July 31 every five years thereafter, the dividend rate will reset to be  equal to the then current five-year Government of Canada bond yield plus 2.32%.  Holders of the Series 39 shares will have the right to convert their shares on  a one-for-one basis into non-cumulative Floating Rate Class A Preferred Shares  Series 40 (Series 40 shares), subject to certain conditions, on July 31, 2019  and on July 31 every five years thereafter. Holders of the Series 40 shares  will be entitled to receive a quarterly floating rate dividend, if declared,  equal to the three-month Government of Canada Treasury Bill yield plus 2.32%.  Holders of the Series 40 shares may convert their shares on a one-for-one  basis into Series 39 shares, subject to certain conditions, on July 31, 2024  and on July 31 every five years thereafter.  Subject to regulatory approval and certain provisions of the shares, we may  redeem all or any part of the then outstanding Series 39 shares at par on July  31, 2019, and on July 31 every five years thereafter; we may redeem all or any  part of the then outstanding Series 40 shares at par on July 31, 2024, and on  July 31 every five years thereafter.  The shares include an NVCC provision, necessary for the shares to qualify as  regulatory capital under Basel III. As such, the shares are convertible into  common shares if OSFI determines that the bank is or is about to become  non-viable or if the bank accepts a capital injection or equivalent support  from the government to avoid non-viability. In such an event, each share is  convertible into a number of common shares, determined by dividing the par  value of $ 25.00 plus declared and unpaid dividends by the average common  share price (as defined in the relevant prospectus supplement) subject to a  minimum price of $ 5.00 per share (subject to adjustment in certain events as  defined in the relevant prospectus supplement). Absent any outstanding  declared but unpaid dividends, the maximum number of shares issuable on  conversion of the Series 39 and Series 40 shares would be 80 million common  shares.  Our existing Class A Preferred Shares Series 26, 27, and 29 are also subject  to an NVCC provision through a separate undertaking to OSFI.  Similar to the  Series 39 and Series 40 shares, each such share is convertible into a number  of common shares, determined by dividing the then applicable cash redemption  price by 95% of the average common share price (as defined in the relevant  short form prospectus or prospectus supplement), subject to a minimum price of  $2.00 per share.  For these shares, absent any outstanding declared but unpaid  dividends, the maximum number of common shares issuable on conversion would be  440,404,275 shares.  On July 31, 2014, we redeemed all of our 12 million Non-cumulative Rate Reset  Class A Preferred Shares Series 33 with a par value and redemption price of  $25.00 per share for cash, and we redeemed all of our 8 million Non-cumulative  Rate Reset Class A Preferred Shares Series 37 with a par value and redemption  price of $25.00 per share for cash.  On April 30, 2014, we redeemed all of our 13 million Non-cumulative Rate Reset  Class A Preferred Shares Series 35 with a par value and redemption price of  $25.00 per share for cash.  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 a commercial mortgage securitization trust.  We utilize a single-seller conduit and several CIBC-sponsored multi-seller  conduits to fund assets for clients (collectively, the conduits) in Canada.  As at July 31, 2014, the underlying collateral for various asset types in our  non-consolidated sponsored multi-seller conduits amounted to $2.8 billion  (October 31, 2013: $2.1 billion). The estimated weighted-average life of these  assets was 1.1 years (October 31, 2013: 1.1 years). Our holding of commercial  paper issued by our non-consolidated sponsored multi-seller conduits that  offer commercial paper to external investors was $15 million (October 31,  2013: $9 million). Our committed backstop liquidity facilities to these  conduits were $4.0 billion (October 31, 2013: $3.2 billion). We also provided  credit facilities of $30 million (October 31, 2013: $30 million) to these  conduits as at July 31, 2014.  We participated in a syndicated facility for a 3-year commitment of $575  million to the single-seller conduit that provides funding to franchisees of a  major Canadian retailer. Our portion of the commitment was $105 million  (October 31, 2013: $110 million). As at July 31, 2014, we funded $80 million  (October 31, 2013: $81 million) through the issuance of bankers' acceptances.                                                          2014                                          2013         $ millions, as                                    Jul. 31                                       Oct. 31         at                                       Undrawn                                       Undrawn                                                         liquidity         Written                     liquidity         Written                         Investment     and credit          credit     Investment     and credit          credit                          and loans (1) facilities     derivatives (2)  and loans (1) facilities     derivatives (2)     Single-seller   $       95     $    2,798 (3) $         -     $       90     $    2,151 (3) $         -         and     multi-seller     conduits     CIBC-structured         61             45             123            135             43             134         CDO vehicles     Third-party                                                                                                     structured     vehicles       Structured         2,643             95           1,922          3,456            236           2,966           credit       run-off       Continuing         1,394            690               -            756            534               -         Pass-through         2,440              -               -          3,090              -               -         investment     structures     Commercial               9              -               -              5              -               -         mortgage     securitization     trust     (1) Excludes securities issued by, retained interest in,         and derivatives with 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). $2.1 billion (October 31, 2013: $3.0 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 $248 million (October         31, 2013: $368 million). Notional of $1.8 billion         (October 31, 2013: $2.7 billion) was hedged with         credit derivatives protection from third parties.         The fair value of these hedges net of CVA was $185         million (October 31, 2013: $213 million). An         additional notional of $51 million (October 31,         2013: $161 million) was hedged through a limited         recourse note. Accumulated fair value losses were $7         million (October 31, 2013: $15 million) on unhedged         written credit derivatives.     (3) Excludes an additional $1.3 billion (October 31,         2013: $1.1 billion) relating to our backstop         liquidity facilities provided to the multi-seller         conduits as part of their commitment to fund         purchases of additional assets.  Additional details of our structured entities are provided in Note 7 to the  interim consolidated financial statements. Details of our other off-balance  sheet arrangements are provided on pages 36 and 37 of the 2013 Annual Report.  Management of risk  Our approach to management of risk, and our governance structure, have not  changed significantly from that described on pages 38 to 72 of the 2013 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 Most of CIBC's business activities involve, to a varying degree, a variety of  risks, and effective management of risks is fundamental to CIBC's success. Our  objective is to balance the level of risk with our business objectives for  growth and profitability in order to achieve consistent and sustainable  performance while remaining within our risk appetite.  Our risk appetite defines tolerance levels for various risks. This is the  foundation for our risk management culture, and our risk management framework.  Our risk management framework includes:         --  The Board-approved risk appetite statement;         --  Risk policies, procedures and limits to align activities with             our risk appetite;         --  Regular risk reports to identify and communicate risk levels;         --  An independent control framework to identify and test             compliance with key controls;         --  Stress testing to consider potential impacts of changes in the             business environment on capital, liquidity and earnings;         --  Proactive consideration of risk mitigation options in order to             optimize results; and         --  Oversight through our risk-focused committees and governance             structure.  Managing risk is a shared responsibility at CIBC. Business units and risk  management professionals work in collaboration to ensure that business  strategies and activities are consistent with our risk appetite. CIBC's  approach to enterprise-wide risk management aligns with the three lines of  defence model:     (1)      CIBC's lines of business are responsible for all risks              associated with their activities - this is the first line of              defence;     (2)      As the second line of defence, CIBC's risk management,              compliance and other control functions are responsible for              independent oversight of the enterprise-wide risks inherent in              CIBC's business activities; and     (3)      As the third line of defence, CIBC's internal audit function              provides an independent assessment of the design and operating              effectiveness of risk management controls, processes and              systems.  We continuously monitor our risk profile against our defined risk appetite and  related limits, taking actions as needed to maintain an appropriate balance of  risk and return. Monitoring our risk profile includes forward-looking analysis  of sensitivity to local and global market factors, economic conditions, and  political and regulatory environments that influence our overall risk profile.  Regular and transparent risk reporting and discussion at senior management  committees facilitate communication of risks and discussion of risk management  strategies across the organization.  Additional information on our risk governance, risk management process and  risk culture are provided on pages 39 to 43 of the 2013 Annual Report.  Risk management structure The Risk Management group, led by our Chief Risk Officer, is responsible for  setting risk strategies and for providing independent oversight of the  businesses. Risk Management works to identify, assess, mitigate, monitor and  control the risks associated with business activities and strategies, and is  responsible for providing an effective challenge to the lines of businesses.  There were changes made during the year to the Risk Management structure. The  current structure is illustrated below.  To view the "Risk Management Structure" chart, please click  http://files.newswire.ca/256/CIBC2.pdf  The Risk Management group performs several important activities including:         --  Developing CIBC's risk appetite and associated management             control metrics;         --  Setting risk strategy to manage risks in alignment with our             risk appetite and business strategy;         --  Establishing and communicating risk policies, procedures and             limits to control risks in alignment with risk strategy;         --  Measuring, monitoring and reporting on risk levels;         --  Identifying and assessing emerging and potential strategic             risks; and         --  Deciding on transactions that fall outside of risk limits             delegated to business lines.  The ten key groups within Risk Management, independent of the originating  businesses, contribute to our management of risk:         --  Global Regulatory Affairs and Risk Control - This team provides             expertise in risk, controls and regulatory reporting, and             oversees regulatory interactions across CIBC to ensure             coordinated communication and the effective development of and             adherence to action plans.         --  Capital Markets Risk Management - This unit provides             independent oversight of the measurement, monitoring and             control of market risks (both trading and non-trading), and             trading credit risk across CIBC's portfolios.         --  Balance Sheet, Liquidity and Pension Risk Management - This             unit has primary global accountability for providing an             effective challenge and sound risk oversight to the             treasury/liquidity management function within CIBC.         --  Global Credit 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 in our investment portfolios, as well             as management of special loan portfolios.         --  Wealth Risk Management - This unit is responsible for the             independent governance and oversight of the wealth management             business/activities in CIBC globally.         --  Retail Lending 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.         --  Card Products Risk Management - This unit oversees the             management of credit risk in the card products portfolio,             including the optimization of credit portfolio quality.         --  Global Operational Risk Management - This team has global             accountability for the identification, measurement and             monitoring of all operational risks, including locations,             people, insurance, technology, subsidiaries/affiliates and             vendors.         --  Enterprise Risk Management - This unit is responsible for             enterprise-wide analysis, including enterprise-wide stress             testing and reporting, risk systems and models, as well as             economic capital methodologies.         --  Special Initiatives - This unit is responsible for assisting in             the design, delivery and implementation of new initiatives             aligned with Risk Management's strategic plan, while enhancing             internal client partnerships and efficiency.  Top and emerging risks We monitor and review top and emerging risks that may affect our future  results, and take action to mitigate potential risks if required. We perform  an in-depth analysis, which can include stress testing our exposures relative  to the risks, and provide updates and related developments to the Board on a  regular basis.  This section describes the main top and emerging risks that we consider with  potential negative implications, as well as regulatory and accounting  developments that are material for CIBC.  Canadian consumer debt and the housing market Canadians have been increasing debt levels over the past half decade at a pace  that has exceeded growth in their income. Most of the increase in household  debt levels is driven by higher levels of mortgage debt, which is tied to the  Canadian housing market. Concerns have been raised by both the International  Monetary Fund and the Bank of Canada regarding growth of the debt burden of  Canadian households. Due to the recession and the global financial crisis  experienced in 2008, interest rates have declined to a very low level. Based  on historical observations, the level of interest rates is not sustainable in  the long run and rates are expected to rise sometime in the future. When  interest rates start to rise, the ability of Canadians to repay their loans  may be adversely affected, which may trigger a correction in the housing  market, which in turn could result in credit losses to banks. Currently, we  qualify all variable rate mortgage borrowers using the Bank of Canada 5-year  fixed benchmark rate, which is typically higher than the variable rate by  approximately 2 percentage points. If there were an interest rate increase,  our variable rate borrowers should be able to withstand some increase in the  interest rate. We believe the risk of a severe housing crash that generates  significant losses for mortgage portfolios is unlikely, but the risk  associated with high levels of consumer debt will continue to be an ongoing  concern. For additional details on our credit risk mitigation strategies and  the latest status of our real estate secured lending, see the "Real estate  secured personal lending" section in Credit risk.  U.S. fiscal deficit risk There is tacit agreement in U.S. Congress that another costly government  shutdown must be avoided, especially during an election year. Moreover,  Moody's revised the U.S. credit rating outlook to Aaa-stable from Aaa-negative  based on the latest status of the U.S. economy. However, given the high debt  levels, an unexpected shock to the U.S. economy could lead to a Canadian  economic slowdown or recession, which affects credit demand in Canada and  typically increases credit losses.  Technology, information and cyber security risk We are also exposed to cyber threats and the associated financial, reputation  and business interruption risks. For additional information on these risks and  our mitigation strategies, see the "Other risks" section on pages 70 to 72 of  the 2013 Annual Report.  Geo-political risk The level of geo-political risk escalates at certain points in time, with the  focus changing from one region to another and within a region from country to  country. While the specific impact on the global economy would depend on the  nature of the event (e.g., a Middle Eastern conflict could lead to disruption  in global oil supplies resulting in high prices), in general, any major event  could result in instability and volatility, leading to widening spreads,  declining equity valuations, flight to safe-haven currencies and increased  purchases of gold. In the short run, market shocks could hurt the net income  of our trading and non-trading market risk positions. Although Canada is  unlikely to be directly affected, the indirect impact of reduced economic  growth has serious negative implications for general economic and banking  activities.  China economic policy risk Even though fears of a hard landing have receded substantially, the issues of  easy credit and deteriorating credit quality have not been addressed, causing  stress in the banking sector as well as in the shadow banking system. Economic  growth is expected to be modest by historical standards, with a medium-term  growth rate trend at 7.5%, notably lower than the double-digit growth of the  recent past. We have little direct exposure to China, but any negative impact  from the Chinese economic slowdown may affect our clients that export to  China, commodities in particular, and may raise the credit risk associated  with our exposure to trading counterparties.  European sovereign debt crisis While the European Central Bank's new outright monetary transactions programme  has eased pressure on peripheral bond yields and has led to a normalization of  financial conditions, thus ensuring the safety of the euro, risks to the  global financial markets from Europe's sovereign debt crisis have not  completely dissipated. Unfavourable economic or political events could bring  the debt crisis into sharper focus again, denting financial market confidence  and keeping any recovery in Eurozone growth in low gear or even returning to  recession. We have no peripheral sovereign exposure and very little peripheral  non-sovereign direct exposure. For additional details on our European  exposure, see the "Exposure to certain countries and regions" section in  Credit risk.  Regulatory developments See the "Capital resources", "Liquidity risk" and "Accounting and control  matters" sections for additional information on regulatory developments.  Accounting developments See Note 1 to the interim consolidated financial statements for additional  information on accounting developments.  Risks arising from business activities The chart below shows our business activities and related risk measures based  upon regulatory RWAs and economic capital as at July 31, 2014:  To view the chart, please click http://files.newswire.ca/256/CIBC3.pdf  Credit risk 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.  Credit risk arises mainly from our Retail and Business Banking and our  Wholesale lending businesses. Other sources of credit risk include our trading  activities, including our OTC derivatives, debt securities, and our repo-style  transaction activity. In addition to losses on the default of a borrower or  counterparty, unrealized gains or losses may occur due to changes in the  credit spread of the counterparty, which could impact the carrying or fair  value of our asset.                                                                                Exposure to credit risk                                                                                                           2014       2013     $ millions, as at                                   Jul. 31    Oct. 31     Business and government portfolios-advanced                                internal ratings-based (AIRB) approach     Drawn                                             $  87,566 $   84,016     Undrawn commitments                                  38,799     35,720     Repo-style transactions                              62,802     57,975     Other off-balance sheet                              67,438     51,885     OTC derivatives                                      12,320     13,255     Gross exposure at default (EAD) on business         268,925    242,851     and government portfolios     Less: repo collateral                                55,884     51,613     Net EAD on business and government                  213,041   191,238      portfolios     Retail portfolios-AIRB approach                                            Drawn                                               197,350    195,796     Undrawn commitments                                  64,658     65,424     Other off-balance sheet                                 299        417     Gross EAD on retail portfolios                      262,307    261,637     Standardized portfolios                              11,843     10,798     Securitization exposures                             15,084     16,799     Gross EAD                                         $ 558,159 $  532,085     Net EAD                                           $ 502,275 $  480,472  Forbearance policy We employ forbearance techniques to manage customer relationships and to  minimize credit losses due to default, foreclosure or repossession. In certain  circumstances, it may be necessary to modify a loan for economic or legal  reasons related to a borrower's financial difficulties and we may grant a  concession in the form of below-market rates or terms that would not otherwise  be considered, for the purpose of maximizing recovery of our exposure to the  loan. In circumstances where the concession is considered below market, the  modification is reported as a troubled debt restructuring (TDR). TDRs are  subject to our normal quarterly impairment review which considers, amongst  other factors, covenants and/or payment delinquencies. An appropriate level of  loan loss provision by portfolio segment is then established.  In retail lending, forbearance techniques include interest capitalization,  amortization amendments and debt consolidations. We have a set of eligibility  criteria which allow our Client Account Management team to determine suitable  remediation strategies and propose products based on each borrower's  situation. These solutions are intended to increase the ability of borrowers  to service their obligation by providing often more favourable conditions than  those originally provided.  The solutions available to corporate and commercial clients vary based on the  individual nature of the client's situation and are undertaken selectively  where it has been determined that the client has or is likely to have  repayment difficulties servicing its obligations. Covenants often reveal  changes in the client's financial situation before there is a change in  payment behaviour and typically allow for a right to reprice or accelerate  payments. Solutions may be temporary in nature or may involve other special  management options.  During the quarter and nine months ended July 31, 2014, $27 million and $95  million, respectively ($8 million and $27 million for the quarter and nine  months ended July 31, 2013, respectively) of loans have undergone TDR.  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 as 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.  The following table provides details on our Canadian and international  residential mortgage and HELOC portfolios. Our international portfolio  comprises CIBC FirstCaribbean.                      Residential mortgages         HELOC(1)                     Total            $ billions,      Insured     Uninsured        Uninsured         Insured     Uninsured        as at July                                                                      31, 2014       Ontario       $  47.9   69 % $ 21.7  31 %   $  9.5   100 %   $  47.9   61 % $ 31.2  39 %     British          18.9   63     11.0  37        3.9   100        18.9   56     14.9  44       Columbia     Alberta          17.3   75      5.9  25        2.7   100        17.3   67      8.6  33       Quebec            7.8   71      3.1  29        1.4   100         7.8   63      4.5  37       Other            11.9   77      3.6  23        1.8   100        11.9   69      5.4  31       Canadian                    portfolio(2)     (3)             103.8   70     45.3  30       19.3   100       103.8   62     64.6  38       International               portfolio(2)        -    -      2.0 100          -     -           -    -      2.0 100       Total         $ 103.8   69 % $ 47.3  31 %   $ 19.3   100 %   $ 103.8   61 % $ 66.6  39 %     portfolio     October 31,                 2013(4)       $ 102.6   71 % $ 42.9  29 %   $ 19.3   100 %   $ 102.6   62 % $ 62.2  38 %     (1) We did not have any insured HELOCs as at July         31, 2014 and October 31, 2013.     (2) Geographical allocation is based on the address         of the property managed.     (3) 90% (October 31, 2013: 94%) of insurance on         Canadian residential mortgages is provided by         CMHC and the remaining by two private Canadian         insurers, both rated at least AA (low) by DBRS.     (4) Excludes international portfolio.            The average loan-to-value (LTV) ratios((1)) for our uninsured Canadian  residential mortgages and HELOCs originated during the quarter and period  to-date are provided in the following table. The average LTV ratio((1)) of our  uninsured international residential mortgages originated during the quarter  was 78%. We did not originate HELOCs for our international portfolio during  the quarter ended July 31, 2014. We did not acquire uninsured residential  mortgages and HELOCs from a third party for the periods presented in the table  below.                                                                For the three                                  For the  nine                                                               months ended                                  months  ended                             2014                  2014                  2013                    2014                   2013                           Jul.                  Apr.                  Jul.                    Jul.                   Jul.                             31                    30                    31                      31                     31              Residential           Residential           Residential             Residential           Residential              mortgages   HELOC     mortgages   HELOC     mortgages   HELOC       mortgages   HELOC     mortgages    HELOC    Ontario           71  %   71  %         71  %   70  %         71  %   70  %           71  %   70  %         71  %    70  %  British                                                                        Columbia          67      66            67      66            67      66              67      66            67       66     Alberta           74      72            73      72            72      71              73      72            72       70     Quebec            74      72            73      72            73      72              73      72            72       71     Other             74      73            74      73            74      73              74      73            74       72           Total                                                                             Canadian     portfolio   (2)               71  %   70  %         71  %   70  %         71  %   70  %           71  %   70  %         71  %    69  %        (1)   LTV ratios for newly originated residential           mortgages and HELOCs are calculated based on           weighted average.     (2)   Geographical allocation is based on the                      address of the property managed.                    The following table provides the average LTV ratios on our total Canadian  residential mortgage portfolio:                                      Insured         Uninsured       July 31, 2014(1)                    59  %             59  %     October 31, 2013(1)                 59  %             60  %     (1)   LTV ratios for residential mortgages are calculated based on           weighted average. The house price estimates for October 31,           2013 and July 31, 2014 are based on Teranet - National Bank           National Composite House Price Index (Teranet) as of September           30, 2013 and June 30, 2014, respectively. Teranet is an           independent estimate of the rate of change of Canadian home           prices. The sale prices are based on the property records of           public land registries. The monthly indices cover eleven           Canadian metropolitan areas which are combined to form a           national composite index.              The tables below summarize the remaining amortization profile of our total  Canadian and international 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      5-10     10-15     15-20     20-25     25-30     30-35     years                           5                                                                 and                       years     years     years     years     years     years     years     above     Canadian                                                                                    portfolio                                                                                          July 31,                                                                                    2014            -  %       1  %      3  %     10  %     21  %     46  %     19  %     -  %       October 31,                                                                                 2013            1  %       1  %      3  %     12  %     19  %     39  %     25  %     -  %     International                                                                               portfolio                                                                                          July 31,                                                                                    2014            7  %      16  %     25  %     26  %     16  %      8  %      2  %     -  %                                                                                                      Current customer payment basis                                                                                                                                                                    Less                                                                    35                        than      5-10     10-15     15-20     20-25     25-30     30-35     years                           5                                                                 and                       years     years     years     years     years     years     years     above     Canadian                                                                                    portfolio                                                                                          July 31,                                                                                    2014            3  %       6  %     10  %     14  %     27  %     31  %      9  %     -  %       October 31,                                                                                 2013            3  %       6  %     11  %     15  %     24  %     28  %     12  %     1  %     International                                                                               portfolio                                                                                          July 31,                                                                                    2014            7  %      16  %     24  %     25  %     16  %      9  %      2  %     1  %  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 July 31, 2014, our Canadian condominium mortgages were $16.9 billion  (October 31, 2013: $16.6 billion) of which 72% (October 31, 2013: 74%) were  insured. Our drawn developer loans were $1,012 million (October 31, 2013: $920  million) or 2% of our business and government portfolio and our related  undrawn exposure was $1.8 billion (October 31, 2013: $2.1 billion). The  condominium developer exposure is diversified across 80 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 that are more severe than in 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 of the 2013  annual consolidated financial statements.  The following table shows the rating profile of OTC derivative MTM receivables  (after derivative master netting agreements, but before any collateral):                                            2014                     2013       $ billions, as at                  Jul. 31                  Oct. 31                                                       Exposure(1)               Investment grade        $ 4.50       84.2  %     $ 4.59       85.0  %     Non-investment                                                   grade                     0.77       14.4          0.78       14.5        Watchlist                 0.06        1.1          0.03        0.5        Unrated                   0.01        0.3             -          -                                $ 5.34      100.0  %     $ 5.40      100.0  %     (1)   MTM of the OTC derivative contracts is after the impact of           master netting agreements, but before any collateral.              The following table provides details of our impaired loans and allowances for  credit losses.                                                                                                   As at or for the  three                                                As at or for the nine                                                                                                            months  ended                                                         months ended                                              2014                               2014                                2013                             2014                                2013  $ millions                               Jul. 31                            Apr. 30                            Jul.  31                          Jul. 31                             Jul. 31                          Business                           Business                           Business                          Business                           Business                            and                                and                                and                               and                                and                                  government   Consumer              government   Consumer              government   Consumer               governmen  Consumer              government   Consumer                        loans      loans      Total        loans      loans      Total        loans      loans       Total      loans      loans      Total        loans      loans       Total        Gross                                                                                                                                                                                  impaired     loans                                                                                                                                                                                            Balance at                                                                                                                                                                             beginning of   period          $      790   $    731   $  1,521   $      841   $    746   $  1,587   $      931   $    761   $   1,692   $    843   $    704   $  1,547   $    1,128   $    739   $   1,867          Classified                                                                                                                                                                             as impaired       during the     period                53        308        361           46        291        337          114        374         488        164        951      1,115          291      1,119       1,410          Transferred                                                                                                                                                                            to not       impaired       during the     period               (2)       (33)       (35)          (2)       (31)       (33)           -        (30)        (30)        (7)       (84)       (91)          (4)       (61)        (65)          Net                                                                                                                                                                                  repayments          (23)       (60)       (83)         (50)       (54)      (104)         (68)      (119)       (187)      (158)      (174)      (332)        (256)      (298)       (554)          Amounts                                                                                                                                                                              written-off         (38)      (210)      (248)         (34)      (214)      (248)         (38)      (324)       (362)       (94)      (679)      (773)        (226)      (840)     (1,066)          Recoveries                                                                                                                                                                             of loans       and       advances       previously     written-off           -          -          -            -          -          -            -          -           -          -          -          -            -          -           -           Disposals                                                                                                                                                                            of loans            (18)         -        (18)           -          -          -            -          -           -        (18)         -        (18)           -          -           -           Foreign                                                                                                                                                                                exchange     and other            (4)        (2)        (6)         (11)        (7)       (18)           16          6         22          28         16         44           22          9          31        Balance at                                                                                                                                                                           end of period   $     758    $   734    $ 1,492    $     790    $   731    $ 1,521    $     955    $    668   $  1,623    $    758   $    734   $ 1,492    $      955   $    668   $   1,623        Allowance for                                                                                                                                                                          impairment(1)                                                                                                                                                                                    Balance at                                                                                                                                                                             beginning of   period          $      368   $    305   $    673   $      348   $    227   $    575   $      403   $    247   $     650   $    323   $    224   $    547   $      492   $    229   $     721          Amounts                                                                                                                                                                              written-off         (38)      (210)      (248)         (34)      (214)      (248)         (38)      (324)       (362)       (94)      (679)      (773)        (226)      (840)     (1,066)          Recoveries                                                                                                                                                                             of amounts       written-off       in previous     periods                2         44         46            3         47         50            2         47          49         10        136        146            8        131         139          Charge to                                                                                                                                                                              income     statement             37        177        214           59        263        322           39        248         287        132        647        779          142        701         843          Interest                                                                                                                                                                               accrued on                                                                                                                      impaired     loans                (3)        (4)        (7)          (2)        (6)        (8)          (5)        (5)        (10)       (11)       (13)       (24)         (16)       (12)        (28)          Disposals                                                                                                                                                                            of loans              -          -          -            -          -          -            -          -           -          -          -          -            -          -           -           Foreign                                                                                                                                                                                exchange     and other            (5)         -         (5)          (6)       (12)       (18)            4          4           8          1        (3)        (2)            5          8          13        Balance at                                                                                                                                                                           end of period   $     361    $   312    $    673   $     368    $   305    $   673    $     405    $    217   $    622    $    361   $    312   $    673   $      405   $    217   $     622        Net impaired                                                                                                                                                                           loans                                                                                                                                                                                            Balance at                                                                                                                                                                             beginning of   period          $      422   $    426   $    848   $      493   $    519   $  1,012   $      528   $    514   $   1,042   $    520   $    480   $  1,000   $     636    $   510    $  1,146           Net change                                                                                                                                                                             in gross     impaired            (32)          3       (29)         (51)       (15)       (66)           24       (93)        (69)       (85)         30       (55)        (173)       (71)       (244)          Net change                                                                                                                                                                             in     allowance             7         (7)         -          (20)       (78)       (98)          (2)         30          28       (38)       (88)      (126)          87         12          99         Balance at                                                                                                                                                                           end of period   $     397    $    422   $    819   $     422    $    426   $   848    $     550    $    451   $   1,001   $    397   $    422   $   819    $     550    $   451    $  1,001         Net impaired                                                                                                                                                                           loans as a     percentage of     net loans and   acceptances                                0.31%                              0.33%                               0.39%                            0.31%                               0.39%        (1)   Includes collective allowance           relating to personal, scored small           business and mortgage impaired loans           that are greater than 90 days           delinquent, and individual           allowance.              Gross impaired loans As at July 31, 2014, gross impaired loans were $1,492 million, down $131  million from the same quarter last year, primarily due to decreases in the  real estate and construction, the publishing, printing and broadcasting, and  the transportation sectors in the business and government loans, partially  offset by an increase in residential mortgages relating to CIBC FirstCaribbean.  The gross impaired loans were down $29 million from the prior quarter,  primarily due to decreases in the transportation and the real estate and  construction sectors, partially offset by an increase in the utilities sector  in the business and government loans. Consumer gross impaired loans were  comparable with the prior quarter.  After experiencing an increase during the 2009 recession, gross impaired loans  stabilized in 2011 and showed some improvements since 2012. Almost half of the  consumer gross impaired loans at the end of this quarter were from Canada, in  which insured mortgages accounted for the majority, and where losses are  expected to be minimal. The remaining consumer gross impaired loans were in  CIBC FirstCaribbean. Gross impaired loans in business and government loans  were down from both the prior quarter and the same quarter last year due to  improvements in the credit quality of the overall business and government  portfolio, as well as write-offs of U.S. real estate finance accounts  originated before 2009 and write-offs of impaired accounts across other  various sectors.  Allowance for Impairment  The allowance for impairment was $673 million, up $51 million or 8% from the  same quarter last year.  The individually assessed allowance for business and government loans  decreased by $48 million or 12%, mainly due to decreases in the publishing,  printing and broadcasting, and the real estate and construction sectors,  partially offset by an increase in the non-residential mortgages portfolio  relating to CIBC FirstCaribbean. The decrease in the publishing, printing and  broadcasting sector was attributable to the write-off of an account in the  fourth quarter of 2013. The decrease in the real estate and construction  sector was primarily in the U.S. The individually assessed allowance for  consumer loans was comparable with the same quarter last year.  The collectively assessed allowance for consumer loans was up $95 million or  46%, due to an increase in the residential mortgage portfolio relating to CIBC  FirstCaribbean, reflecting revised expectations on the extent and timing of  the anticipated economic recovery in the Caribbean region. The collectively  assessed allowance for business and government loans was comparable with the  same quarter last year.  The allowance for impairment was comparable with the prior quarter.  The individually assessed allowance for business and government loans  decreased by $9 million or 3% from the prior quarter, largely due to the sale  of an account in the transportation sector in the exited U.S. leveraged  finance portfolio, partially offset by small increases across various other  sectors. The individually assessed allowance for consumer loans was comparable  with the prior quarter.  The collectively assessed allowance for consumer loans was up $7 million or  2%, mainly due to an increase in the personal lending portfolio relating to  CIBC FirstCaribbean. The collectively assessed allowance for business and  government loans was comparable with the prior quarter.  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 material exposure to the countries in the Middle East and North  Africa that have either experienced or may be at risk of unrest.  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 (stated at fair value).  Of our total direct exposures to Europe, approximately 93% (2013: 96%) 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     $ millions,                                          Total                               Total     as at July                                          funded                            unfunded     31, 2014       Corporate   Sovereign       Bank        (A)   Corporate         Bank        (B)     Austria        $      -    $      -    $     -    $     -    $      -        $   -    $     -      Belgium               6           -         25         31           -           15         15      Finland             195           1          2        198          62            -         62      France               77           -          3         80         220            7        227      Germany              76           6        173        255          13           21         34      Greece                -           -          -          -           -            -          -      Ireland               1           -          5          6           -            7          7      Italy                 -           -          -          -           -            -          -      Luxembourg           20           -        187        207           8            -          8      Malta                 -           -          -          -           -            -          -      Netherlands          11         145         55        211         166            1        167      Portugal              -           -          -          -           -            -          -      Spain                 -           -          1          1           -            -          -      Total                                                                                     Eurozone       $    386    $    152    $   451    $   989    $    469        $  51    $   520      Czech                                                                                     Republic       $      -    $      -    $     -    $     -    $      -        $   -    $     -      Denmark               -           -          1          1           -            9          9      Norway                -          85        132        217           -            -          -      Russia                -           -          -          -           -            -          -      Sweden              178          98        347        623           7            -          7      Switzerland         221           -        162        383          26            -         26      Turkey                -           -        161        161           -            5          5      United                                                                 (1)                Kingdom             576         368        460      1,404       2,213          384      2,597      Total                                                                                     non-Eurozone   $    975    $    551    $ 1,263    $ 2,789    $  2,246        $ 398    $ 2,644      Total Europe   $  1,361    $    703    $ 1,714    $ 3,778    $  2,715        $ 449    $ 3,164      October 31,                                                                               2013           $  1,610    $    815    $ 1,548    $ 3,973    $  1,910        $ 220    $ 2,130      (1)   Includes $191 million of exposure (notional value of           $219 million and fair value of $28 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                                                                                                    direct     $ millions,                                                                            Net   exposure     as at July                                           Gross       Collateral       exposure   (A)+(B)+     31, 2014       Corporate   Sovereign       Bank   exposure (1)         held (2)        (C)        (C)     Austria        $      -    $      -    $    26    $    26        $      26        $     -    $     -      Belgium               -           1         33         34               33              1         47      Finland               3           -          3          6                -              6        266      France                4         242        786      1,032            1,024              8        315      Germany               1           -      1,966      1,967            1,804            163        452      Greece                -           -          -          -                -              -          -      Ireland               -           -        322        322              316              6         19      Italy                 -           -          8          8                -              8          8      Luxembourg            -           -         25         25                -             25        240      Malta                 -           2          -          2                -              2          2      Netherlands           8           -        117        125               99             26        404      Portugal              -           -          -          -                -              -          -      Spain                 -           -         12         12               12              -          1      Total                                                                                            Eurozone       $     16    $    245    $ 3,298    $ 3,559        $   3,314        $   245    $ 1,754      Czech                                                                                            Republic       $      -    $      -    $     -    $     -        $       -        $     -    $     -      Denmark               -           -          -          -                -              -         10      Norway                -           -          -          -                -              -        217      Russia                -           -          -          -                -              -          -      Sweden                1           -         41         42               41              1        631      Switzerland           -           -        806        806              768             38        447      Turkey                -           -          -          -                -              -        166      United                                                                                           Kingdom             243           8      3,182      3,433            3,160            273      4,274      Total                                                                                            non-Eurozone   $    244    $      8    $ 4,029    $ 4,281        $   3,969        $   312    $ 5,745      Total Europe   $    260    $    253    $ 7,327    $ 7,840        $   7,283        $   557    $ 7,499      October 31,                                                                                      2013           $    177    $    317    $ 5,336    $ 5,830        $   5,346        $   484    $ 6,587      (1)   The amounts are shown net of CVA.     (2)   Collateral on derivative MTM receivables was $1.3           billion (October 31, 2013: $1.4 billion), collateral           on repo-style transactions was $6.0 billion (October           31, 2013: $4.0 billion), and both are 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, Turkey, or Russia.                                                          Total                                                       indirect     $ millions, as at July 31, 2014                   exposure     Austria                                         $       -      Belgium                                                22      Finland                                                16      France                                                253      Germany                                               160      Greece                                                 11      Ireland                                                27      Italy                                                  47      Luxembourg                                             79      Malta                                                   -      Netherlands                                           197      Portugal                                                -      Spain                                                 104      Total Eurozone                                  $     916      Denmark                                         $      11      Norway                                                  3      Sweden                                                 24      Switzerland                                             1      United Kingdom                                        254      Total non-Eurozone                              $     293      Total exposure                                  $   1,209      October 31, 2013                                $   1,888    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 $461  million (October 31, 2013: $211 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 57 to 58 of the 2013 Annual Report.  U.S. real estate finance  The following table provides a summary of our positions in this business:      $ millions, as at July 31, 2014                Drawn       Undrawn     Construction program                      $     110      $     40      Interim program                               6,158           369      Permanent program                               282             -      Exposure, net of allowance                $   6,550      $    409      Of the above:                                                            Net impaired                            $      95      $      -        On credit watch list                          132             -      Exposure, net of allowance, as at             5,938      $    467      October 31, 2013                          $  As at July 31, 2014, the allowance for credit losses for this portfolio was  $37 million (October 31, 2013: $55 million). During the quarter and nine  months ended July 31, 2014, the provision for credit losses was $2 million and  $4 million, respectively ($1 million and $14 million provision for credit  losses for the quarter and nine months ended July 31, 2013, respectively).  The business also maintains commercial mortgage-backed securities (CMBS)  trading and distribution capabilities. As at July 31, 2014, we have no CMBS  inventory (October 31, 2013: 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 July 31, 2014                 Drawn         Undrawn     Manufacturing - capital goods               $    197        $      7      Publishing, printing and                                        broadcasting                                       5               -      Utilities                                         10               -      Transportation                                     4               4      Exposure, net of allowance                  $    216        $     11      Of the above:                                                               Net impaired                              $      5        $      -        On credit watch list                           174               7      Exposure, net of allowance, as at                               October 31, 2013(1)                         $    359        $     28      (1)   Excludes $21 million of carrying value relating to equity           received pursuant to a reorganization. We sold this equity           investment during the quarter ended January 31, 2014.  As at July 31, 2014, the allowance for credit losses for this portfolio was  $36 million (October 31, 2013: $35 million). During the quarter and nine  months ended, July 31, 2014, the net reversal of credit losses was nil and $1  million, respectively (provision for credit losses was $14 million and $35  million for the quarter and nine months ended July 31, 2013, respectively).  U.S. leveraged finance Our drawn exposure, net of allowance, as at July 31, 2014 was $7 million  (October 31, 2013: $44 million) and our undrawn exposure was nil (October 31,  2013: $4 million). Our outstanding exposure has declined over the year  primarily due to loan sales in the current quarter as well as write-downs in  the prior quarter. The remaining outstanding exposure is related to the  publishing, printing and broadcasting sector and is on our credit watch list.  As at July 31, 2014, the allowance for credit losses for this portfolio was  less than $1 million (October 31, 2013: $2 million). During the quarter ended  July 31, 2014, net reversal of credit losses was $4 million and during the  nine months ended July 31, 2014, the provision for credit losses was $19  million (net reversal of $1 million and $7 million for the quarter and nine  months ended July 31, 2013, respectively).  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.  Risk measurement The following table provides balances on the interim consolidated balance  sheet which are subject to market risk. Certain differences between accounting  and risk classifications are detailed in the footnotes below:                                                                              2014                                                     2013       $ millions, as at                                                    Jul. 31                                                  Oct. 31                                                          Subject to market risk                                  Subject to market  risk                                                                                                            Not                                                      Not    Non-traded                                                                          subject                                                  subject          risk                            Consolidated                                       to   Consolidated                                        to       primary                               balance                         Non-      market        balance                          Non-      market          risk                                sheet     Trading          trading        risk          sheet     Trading           trading        risk   sensitivity        Cash and                                                                                                                                    non-interest-bearing                                                                                                                        Foreign   deposits with banks    $     2,975    $      -        $   1,545    $  1,430    $     2,211    $      -        $    1,165    $  1,046       exchange        Interest-bearing                                                                                                                           Interest   deposits with banks          8,217          39            8,178           -          4,168         111             4,057           -           rate                                                                                                                                                    Equity,                                                                                                                                                interest   Securities                  69,461      47,107  (1)      22,354           -         71,984      43,160  (1)       28,824           -           rate        Cash collateral on                                                                                                                         Interest   securities borrowed          3,238           -            3,238           -          3,417           -             3,417           -           rate        Securities purchased                                                                                                                        under resale                                                                                                                               Interest   agreements                  25,105           -           25,105           -         25,311           -            25,311           -           rate        Loans                                                                                                                                                     Residential                                                                                                                              Interest     mortgages                155,013           -          155,013           -        150,938           -           150,938           -           rate                                                                                                                                                   Interest     Personal                  35,096           -           35,096           -         34,441           -            34,441           -           rate                                                                                                                                                   Interest     Credit card               11,577           -           11,577           -         14,772           -            14,772           -           rate          Business and                                                                                                                             Interest     government                54,232       4,680  (2)      49,552           -         48,207       2,148  (2)       46,059           -           rate          Allowance for                                                                                                                            Interest     credit losses             (1,703)          -           (1,703)          -         (1,698)          -            (1,698)          -           rate        Derivative                                                                                                                                 Interest   instruments                 18,227      15,659  (3)       2,568           -         19,947      17,626  (3)        2,321           -          rate,                                                                                                                                                    foreign                                                                                                                                                exchange     Customers' liability                                                                                                                       Interest   under acceptances            8,274           -            8,274           -          9,720           -             9,720           -           rate                                                                                                                                                   Interest                                                                                                                                                   rate,   Other assets                15,710       1,648            7,116       6,946         14,588       1,226             6,537       6,825        equity,                                                                                                                                                    foreign                                                                                                                                                exchange                          $   405,422    $ 69,133        $ 327,913    $  8,376    $   398,006    $ 64,271        $  325,864    $  7,871                                                                                                                                                                  Interest   Deposits               $   322,314    $    498  (4)   $ 287,169    $ 34,647    $   315,164    $    388  (4)   $  281,027    $ 33,749           rate        Obligations related                                                                                                                         to securities sold                                                                                                                         Interest   short                       12,803      12,372              431           -         13,327      13,144               183           -           rate        Cash collateral on                                                                                                                         Interest   securities lent              1,359           -            1,359           -          2,099           -             2,099           -           rate        Obligations related                                                                                                                         to securities sold     under repurchase                                                                                                                           Interest   agreements                   9,437           -            9,437           -          4,887           -             4,887           -           rate        Derivative                                                                                                                                 Interest   instruments                 17,957      16,267  (3)       1,690           -         19,724      18,220  (3)        1,504           -          rate,                                                                                                                                                    foreign                                                                                                                                                exchange                                                                                                                                                Interest   Acceptances                  8,274           -            8,274           -          9,721           -             9,721           -           rate                                                                                                                                                   Interest   Other liabilities           10,579         902            4,114       5,563         10,862         872             4,143       5,847           rate        Subordinated                                                                                                                               Interest   indebtedness                 4,187           -            4,187           -          4,228           -             4,228           -           rate                         $   386,910    $ 30,039        $ 316,661    $ 40,210    $   380,012    $ 32,624        $  307,792    $ 39,596                       (1)   Excludes structured credit run-off business of           $786 million (October 31, 2013: $837 million).           These are considered non-trading for market           risk purposes.     (2)   Excludes $282 million (October 31, 2013: $63           million) of loans that are warehoused for           future securitization purposes. These are           considered non-trading for market risk           purposes.     (3)   Excludes derivatives relating to the           structured credit and other run-off businesses           which are considered non-trading for market           risk purposes.     (4)   Comprises FVO deposits which are considered           trading for market risk purposes.              Trading activities During the quarter ended April 30, 2014, we implemented a full revaluation  method to compute value at risk (VaR), stressed VaR and the Incremental Risk  Charge (IRC) using the historical simulation approach, replacing the  parametric approach. In aggregate, this model change resulted in a slight  increase in the risk measures. At an individual component level, VaR remained  at the same level, stressed VaR decreased slightly and IRC increased.  The following three tables show VaR, stressed VaR and IRC for our trading  activities based on risk type under an internal models 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.  Average total VaR for the three months ended July 31, 2014 was down 9% from  the prior quarter, primarily due to decreases in our interest rate, credit  spread, equity and commodity risks.  Average total stressed VaR for the three months ended July 31, 2014 was down  14% from the prior quarter. During the current stressed VaR period from  September 8, 2008 to September 4, 2009, the market exhibited not only  increased volatility in interest rates but also increased volatility in equity  prices combined with a reduction in the level of interest rates, and an  increase in credit spreads.  Average IRC for the three months ended July 31, 2014 was up 1% from the prior  quarter, mainly due to an increase in the investment grade trading inventory.  VaR by risk type - trading portfolio                                                                                                                                                                                                                                                                                                                                                      As at or for the three   As at or  for the nine                                                                                           months ended             months ended                                                         2014                    2014                    2013      2014           2013   $ millions                                    Jul. 31 (1)             Apr. 30 (1)             Jul. 31   Jul. 31 (1)    Jul. 31                      High      Low     As at   Average         As at   Average         As at   Average   Average        Average  Interest rate                                                                                                           risk              $ 3.4    $ 1.2    $  1.2    $  2.0        $  3.8    $  2.7        $  1.7    $  2.2    $  2.0         $  3.0         Credit spread                                                                                                              risk                1.9      1.3       1.4       1.6           1.7       1.9           1.2       1.2       1.5            1.5      Equity risk         2.4      1.3       2.4       1.7           1.6       1.8           1.9       2.2       2.0            2.1      Foreign                                                                                                                    exchange risk       1.7      0.4       0.8       0.9           0.8       0.9           0.8       0.6       0.8            0.7      Commodity risk      1.4      0.6       0.9       1.0           1.1       1.3           1.0       1.5       1.1            1.2      Debt specific                                                                                                              risk                3.0      1.9       2.4       2.4           2.3       2.4           1.7       2.0       2.4            2.3      Diversification                                                                                                            effect(2)            n/m      n/m     (6.0)     (6.5)         (7.3)     (7.6)         (4.6)     (5.4)     (6.2)          (6.0)     Total VaR                                                                                                                  (one-day   measure)          $ 4.2    $ 2.2    $  3.1    $  3.1        $  4.0    $  3.4        $  3.7    $  4.3    $  3.6         $  4.8         (1)   Beginning in the quarter ended April 30,           2014, we implemented the full revaluation           method of computing VaR using the           historical simulation approach in place of           the parametric VaR approach.     (2)   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                                                                                          As at or for the three     As  at or for the nine                                                                                                        months ended               months ended                                                       2014                      2014                      2013        2014           2013  $ millions                                       Jul. 31 (1)               Apr. 30 (1)               Jul. 31     Jul. 31 (1)    Jul. 31                       High      Low      As at    Average          As at    Average          As at    Average     Average        Average        Interest rate                                                                                                                    risk              $  9.2    $ 3.5    $   5.2    $   6.1        $   7.3    $   6.7        $   4.8    $   7.4    $    6.6        $   8.6         Credit spread                                                                                                                    risk                12.2      6.4       12.2        8.2            6.8        7.6            4.4        5.1         7.5            5.0   Equity risk          7.2      1.3        2.0        2.2            1.3        1.9            4.3        3.0         3.0            2.9         Foreign                                                                                                                          exchange risk        9.1      0.2        3.5        3.0            1.0        2.6            0.8        0.9         2.2            1.2   Commodity risk      13.6      3.2       10.8        6.2           14.1        6.6            0.4        1.6         5.3            1.3         Debt specific                                                                                                                    risk                 4.9      3.2        4.4        4.1            3.2        3.2            0.9        1.1         3.2            1.3         Diversification                                                                                                                  effect (2)            n/m      n/m     (23.9)     (19.1)         (22.6)     (16.2)         (11.0)     (10.3)      (16.8)         (10.3)        Total stressed                                                                                                                     VaR (one-day   measure)          $ 21.5    $ 6.1    $  14.2    $  10.7        $  11.1    $  12.4        $   4.6    $   8.8    $   11.0        $  10.0         (1)   Beginning in the quarter ended April 30,           2014, we implemented the full revaluation           method of computing VaR using the           historical simulation approach in place of           the parametric VaR approach.     (2)   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                                                                                       As at or for the three    As at  or for the nine                                                                                               months ended              months ended                                                    2014                      2014                     2013        2014          2013  $ millions                                     Jul. 31 (1)               Apr. 30 (1)              Jul. 31    Jul.  31 (1)   Jul. 31                                                                                                                                                                High       Low      As at    Average          As at    Average          As at   Average     Average       Average        Default                                                                                                                         risk          $  98.7    $ 66.6    $  81.1    $  81.6        $  68.0    $  77.6        $  58.0    $ 60.1    $  81.9         $ 53.1      Migration                                                                                                                       risk             55.6      27.8       46.5       39.7           43.1       42.7           48.1      32.6       42.1           37.3      Incremental                                                                                                                     risk charge     (one-year     measure)      $ 145.7    $ 94.7    $ 127.6    $ 121.3        $ 111.1    $ 120.3        $ 106.1    $ 92.7    $ 124.0         $ 90.4      (1)   Beginning in the quarter ended April 30,           2014, we implemented the full revaluation           method of computing VaR using the           historical simulation approach in place of           the parametric VaR approach.              Trading revenue The trading revenue (TEB) versus VaR graph below shows the current quarter and  the three previous quarters' actual daily trading revenue (TEB) against the  previous day close of business VaR measures. Trading revenue distribution on  which VaR is calculated is not on a TEB basis.  During the quarter, trading revenue (TEB)( )was positive for 100% of the days.  During the quarter, the largest gain of $16.1 million occurred on July 22,  2014. 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 $1.6 million.  Trading revenue (TEB)((1)) versus VaR  To view the "Trading revenue (TEB)((1)) versus VaR" graph, please click  http://files.newswire.ca/256/CIBC4.pdf  (1) Certain fair value adjustments such as OIS are recorded only at month end  but are allocated throughout the month for the table above.  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., the 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)      $ millions,                            2014                          2014                          2013     as at                               Jul. 31                       Apr. 30                       Jul. 31                          C$       US$     Other        C$       US$     Other        C$       US$     Other     100 basis                                                                                           points     increase in     interest     rates                                                                                                       Increase                                                                                            (decrease) in     net income     attributable     to equity     shareholders    $  176    $  (12)   $   (5)   $  153    $   (9)   $    5    $  152    $   (4)   $    5      Increase                                                                                            (decrease) in     present value     of     shareholders'     equity              23      (114)      (46)       22      (116)      (39)       47      (182)      (42)     100 basis                                                                                           points     decrease in     interest     rates                                                                                                       Increase                                                                                            (decrease) in     net income     attributable     to equity     shareholders      (229)       15         6      (206)       11        (4)     (228)        7        (4)     Increase                                                                                            (decrease) in     present value     of     shareholders'     equity             (60)       96        47       (29)       94        41      (188)      162        43      200 basis                                                                                           points     increase in     interest     rates                                                                                                       Increase                                                                                            (decrease) in     net income     attributable     to equity     shareholders    $  334    $  (23)   $  (10)   $  294    $  (17)   $   10    $  284    $   (9)   $   11      Increase                                                                                            (decrease) in     present value     of     shareholders'     equity              40      (228)      (92)       31      (231)      (79)       48      (363)      (85)     200 basis                                                                                           points     decrease in     interest     rates                                                                                                       Increase                                                                                            (decrease) in     net income     attributable     to equity     shareholders      (453)       25        11      (424)       12        (7)     (452)       12        (9)     Increase                                                                                            (decrease) in     present value     of     shareholders'     equity            (152)      145        80      (167)      128        64      (572)      261        70   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.  Liquid and encumbered assets Our 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, high quality  marketable securities and other assets that can be readily pledged at central  banks and in repo markets or converted into cash in a timely fashion.  Encumbered assets comprise assets pledged as collateral and other assets that  we consider restricted for legal or other reasons. Unencumbered assets  comprise assets that are readily available in the normal course of business to  secure funding or meet collateral needs and other assets that are not subject  to any restrictions on their use to secure funding or as collateral.  Liquid assets net of encumbrances constitute our unencumbered pool of liquid  assets and are summarized in the following table:     $ millions, as                                                                             2014         2013     at                                                                                      Jul. 31      Oct. 31                                                                Encumbered liquid             Unencumbered liquid                               Gross liquid assets                 assets (1)                              assets                                                                 CIBC                                                          CIBC owned       Third-party           owned   Third-party                             assets            assets          assets        assets                                   Cash and                                                                                              deposits with     banks               $  11,148  (2)   $        -        $    303    $        -      $  10,845      $   5,527      Securities             68,082  (3)       57,564  (4)     18,446        34,597         72,603         77,368      NHA                                                                                                   mortgage-backed     securities             57,676  (5)            -          26,038             -         31,638         22,671      Mortgages              13,299  (6)            -          13,299             -              -              -      Credit cards            4,320  (7)            -           4,320             -              -              -      Other assets            3,766  (8)            -           3,293             -            473            334                          $ 158,291        $   57,564        $ 65,699    $   34,597      $ 115,559      $ 105,900      (1)   Excludes intraday pledges to the Bank of Canada           related to the Large Value Transfer System as these           are normally released at the end of the settlement           cycle each day.     (2)   Comprises cash, non-interest bearing deposits and           interest-bearing deposits with contractual           maturities of less than 30 days.     (3)   Comprises trading, AFS and FVO securities. Excludes           securities in our structured credit run-off           business, private debt and private equity           securities of $1,379 million (October 31, 2013:           $1,621 million).     (4)   Comprises $3,238 million (October 31, 2013: $3,417           million) of cash collateral on securities borrowed,           $25,105 million (October 31, 2013: $25,311 million)           of securities purchased under resale agreements,           $27,261 million (October 31, 2013: $24,157 million)           of securities borrowed against securities lent, and           $1,960 million (October 31, 2013: $759 million) of           securities received for derivative collateral.     (5)   Includes securitized and transferred residential           mortgages under the Canada Mortgage Bond and the           Government of Canada's Insured Mortgage Purchase           programs, and securitized mortgages that were not           transferred to external parties. These are reported           in Loans on our interim consolidated balance sheet.     (6)   Comprises mortgages included in the Covered Bond           Programme.     (7)   Comprises assets held in consolidated trusts           supporting funding liabilities.     (8)   Comprises $3,293 million (October 31, 2013: $2,727           million) of cash pledged for derivatives collateral           and $473 million (October 31, 2013: $334 million)           of gold and silver certificates.                                                  In the course of our regular business activities, a portion of our total  assets are pledged for collateral management purposes, including those  necessary for day-to-day clearing and settlement of payments and securities.  For additional details, see Note 22 to the 2013 annual consolidated financial  statements.  Our unencumbered liquid assets increased by $9.7 billion or 9% from October  31, 2013, primarily due to a decrease in encumbrances related to NHA  mortgage-backed securities, and higher interest-bearing deposits with banks,  partially offset by a decrease in unencumbered securities.  In addition to the above, we have access to the Bank of Canada Emergency  Lending Assistance (ELA) program through the pledging of non-mortgage assets.  We do not include ELA borrowing capacity as a source of available liquidity  when evaluating surplus liquidity.  The following table summarizes unencumbered liquid assets held by CIBC parent  bank and significant subsidiaries:                                                     2014             2013     $ millions, as at                           Jul. 31          Oct. 31     CIBC parent bank                         $  87,018        $  78,761      Broker/dealer (1)                           15,472           15,049      Other significant subsidiaries              13,069           12,090                                               $ 115,559        $ 105,900      (1) Relates to CIBC World Markets Inc. and CIBC World Markets Corp.                      Asset encumbrance The following table provides a summary of our total encumbered and  unencumbered assets:                                                                                  Encumbered                  Unencumbered                                                                                                       Available                                         CIBC owned   Third-party        Total   Pledged as                      as   $ millions, as at                 assets        assets       assets   collateral      Other   collateral             Other  2014    Cash and deposits                                                                                               with banks            $  11,192    $        -    $  11,192    $      12    $   291    $  10,889  (1)   $      -   Jul.                                                                                                            31      Securities               69,461             -       69,461       18,446          -       49,636             1,379                 Securities borrowed                                                                                                or purchased under           resale agreements             -        28,343       28,343       14,920          -       13,423               -           Loans, net of                                                                                                   allowance               254,215             -      254,215       43,657        241       31,638           178,679                 Other                                                                                                                             Derivative                                                                                                       instruments           18,227             -       18,227            -          -            -            18,227                    Customers'                                                                                                         liability under              acceptances            8,274             -        8,274            -          -            -             8,274              Land, buildings                                                                                                 and equipment          1,728             -        1,728            -          -            -             1,728              Goodwill               1,435             -        1,435            -          -            -             1,435                    Software and                                                                                                       other intangible              assets                   918             -          918            -          -            -               918                    Investments in                                                                                                     equity-accounted                associates and              joint ventures         1,842             -        1,842            -          -            -             1,842              Other assets           9,787             -        9,787        3,293          -          473             6,021                                 $ 377,079    $   28,343    $ 405,422    $  80,328    $   532    $ 106,059        $  218,503                 Cash and deposits                                                                                          2013    with banks            $   6,379    $         -   $   6,379    $      11    $   771    $   5,597  (1)   $         -     Oct.                                                                                                             31      Securities               71,984              -      71,984       14,103           -      56,260             1,621                 Securities borrowed                                                                                                or purchased under             resale agreements              -       28,728       28,728       17,166           -      11,562                  -             Loans, net of                                                                                                    allowance               246,660              -     246,660       50,107        422       22,671           173,460                 Other                                                                                                                             Derivative                                                                                                       instruments           19,947              -      19,947             -          -            -           19,947                    Customers'                                                                                                         liability under              acceptances            9,720              -       9,720             -          -            -            9,720              Land, buildings                                                                                                 and equipment          1,719              -       1,719             -          -            -            1,719              Goodwill               1,733              -       1,733             -          -            -            1,733                    Software and                                                                                                       other intangible              assets                   756              -         756             -          -            -              756                    Investments in                                                                                                     equity-accounted                associates and              joint ventures         1,695              -       1,695             -          -            -            1,695              Other assets           8,685              -       8,685        2,727           -         334             5,624                                 $ 369,278    $   28,728    $ 398,006    $  84,114    $ 1,193    $  96,424        $  216,275         (1)   Includes $44 million (October 31, 2013: $70           million) of interest-bearing deposits with           contractual maturities greater than 30 days.              Funding  We manage liquidity to meet both short- and long-term cash requirements.  Reliance on wholesale funding is maintained at prudent levels and within  approved limits, consistent with our desired liquidity profile.  Our funding strategy includes access to funding through retail deposits and  wholesale funding and deposits. Personal deposits are a significant source of  funding and totalled $129.2 billion as at July 31, 2014 (October 31, 2013:  $125.0 billion).  Moody's and S&P changed the outlook on our senior debt ratings to negative  from stable on June 11, 2014 and August 8, 2014, respectively, citing  regulations that seek to limit government support in the event of a bank  failure. For additional information on these regulations, see "Taxpayer  Protection and Bank Recapitalization Regime" in the Capital resources section.  We do not expect a material impact on our funding costs or ability to access  funding as a result of these rating changes.  The following table provides the contractual maturities at carrying values of  funding sourced by CIBC from the wholesale market:                                                                               Less                                                         Less                                           than     $ millions, as at         than       1 - 3      3 - 6      6 - 12      1 year       1 - 2        Over     July 31, 2014          1 month      months     months      months       total       years     2 years        Total     Deposits from                                                                                               banks                $  4,412    $  1,499    $   210    $      -    $  6,121    $      -    $      -    $   6,121      Certificates of                                                                                             deposit and     commercial paper        3,072       3,367      2,200       4,218      12,857       2,372      10,830       26,059      Bearer deposit                                                                                              notes and bankers     acceptances               832         875      1,180         467       3,354           -           -        3,354      Asset-backed                                                                                                commercial paper            -           -          -           -           -           -           -            -      Senior unsecured                                                                                            medium-term notes         309       4,183      2,278       6,693      13,463      15,443       3,418       32,324      Senior unsecured                                                                                            structured notes           27          80        132         235         474           8           -          482      Covered                                                                                                     bonds/Asset-backed     securities                                                                                                               Mortgage                                                                                                    securitization            -       3,370        371       1,781       5,522       3,386      16,644       25,552        Covered bonds             -       2,268      2,268       3,206       7,742       3,062       2,495       13,299        Cards                                                                                                       securitization            -       1,090          -           -       1,090       2,143       1,087        4,320      Subordinated                                                                                                liabilities                 -         255          -           -         255           -       3,932        4,187      Other                       -           -          -           -           -           -           -            -                           $  8,652    $ 16,987    $ 8,639    $ 16,600    $ 50,878    $ 26,414    $ 38,406    $ 115,698      Of which:                                                                                                                Secured            $      -    $  6,728    $ 2,639    $  4,987    $ 14,354    $  8,591    $ 20,226    $  43,171        Unsecured             8,652      10,259      6,000      11,613      36,524      17,823      18,180       72,527                           $  8,652    $ 16,987    $ 8,639    $ 16,600    $ 50,878    $ 26,414    $ 38,406    $ 115,698      October 31, 2013     $ 11,705    $  9,081    $ 9,316    $ 15,126    $ 45,228    $ 20,419    $ 55,271    $ 120,918   The following table provides a currency breakdown, in Canadian dollar  equivalent, of funding sourced by CIBC in the wholesale market:                                         2014                    2013       $ billions, as at               Jul. 31                 Oct. 31       Canadian dollar       $  61.4       53  %     $  69.2       57  %     US dollar                47.9       41           44.2       37        Euro                      1.2        1            1.3        1        Other                     5.2        5            6.2        5                              $ 115.7      100  %     $ 120.9      100  %  Our funding and liquidity levels remained stable and sound over the nine  months ended July 31, 2014 and we do not anticipate any events, commitments or  demands that 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:                                        2014          2013     $ billions, as at               Jul. 31       Oct. 31     One-notch downgrade           $    0.1      $    0.1      Two-notch downgrade                0.3           0.3      Three-notch downgrade              0.7           0.9   Regulatory liquidity standards In January 2014, the BCBS published the "Liquidity Coverage Ratio Disclosure  Standards". The document outlines the minimum standards applicable for public  disclosure of the Liquidity Coverage Ratio (LCR) by all internationally active  banks. Banks will be required to disclose quantitative information about the  LCR using a common template, supplemented by qualitative discussion, as  appropriate, on key elements of the liquidity metric. These standards are  effective for the first reporting period after January 1, 2015. In July 2014,  OSFI published the "Public Disclosure Requirements for Domestic Systemically  Important Banks on Liquidity Coverage Ratio" which provides additional  implementation guidance, applicable to Canadian banks.  In May 2014, OSFI published the final Liquidity Adequacy Requirements (LAR)  guideline. The document provides jurisdictional guidance on Basel III  liquidity metrics, as well as guidelines on the OSFI Net Cumulative Cash Flow  (NCCF) metric. These standards are effective for the first reporting period  after January 1, 2015.  We are currently updating processes and systems to meet the stipulated  timelines and requirements.  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. We model the  behaviour of both assets and liabilities on a net cash flow basis by applying  recommended regulatory stress assumptions, supplemented by business  experience, against contractual maturities and contingent exposures to  construct the behavioural balance sheet. The behavioural balance sheet is a  key component of our liquidity risk management framework and is the basis by  which we manage our liquidity risk profile.                                                                                                                      No                                    Less      1 - 3      3 - 6      6 - 9     9 - 12      1 - 2       2 - 5       Over    specified                                    than    $ millions,                    months     months     months     months      years       years          5     maturity       Total        as at July                                                                                         years     31, 2014           1 month       Assets                                                                                                                              Cash and                     $      -   $      -   $      -   $      -   $      -   $       -   $      -   $       -  $   2,975        non-interest     bearing     deposits with     banks             $  2,975     Interest                            -         44          -          -          -           -          -           -        8,217     bearing     deposits with     banks                8,173   Securities           2,682      3,275      2,106      1,651        943      3,757       9,118     10,120       35,809      69,461        Cash                                -          -          -          -          -           -          -           -        3,238     collateral on     securities     borrowed             3,238     Securities                      8,330      1,239        754         36          -           -          -           -       25,105     purchased     under resale     agreements          14,746     Loans                                                                                                                                   Residential          143      2,084      3,986      5,356      9,496     42,110      82,811      9,027           -      155,013       mortgages             Personal           1,446        520        815      1,096      1,142         68         187        673       29,149      35,096          Credit card          232        463        695        695        695      2,779       6,018          -           -       11,577       Business           5,626      1,717      2,036      2,310      3,109      6,083      16,941     16,410           -       54,232       and       government            Allowance              -          -          -          -          -          -           -          -      (1,703)     (1,703)          for credit       losses                Derivative                        907      1,112        569        724      2,116       4,527      7,627           -       18,227     instruments            645     Customers'                      1,654          -          -          -          -           -          -           -        8,274     liability     under     acceptances          6,620   Other assets             -          -          -          -          -          -           -          -       15,710      15,710                    $ 46,526   $ 18,950   $ 12,033   $ 12,431   $ 16,145   $ 56,913   $ 119,602   $ 43,857   $   78,965   $ 405,422  October 31,                  $ 16,420   $ 10,578   $ 14,461   $ 11,500   $ 44,524   $ 140,137   $ 44,355   $   72,994   $ 398,006        2013              $ 43,037     Liabilities                                                                                                                         Deposits(1)       $ 17,946   $ 20,747   $ 17,800   $ 16,058   $ 18,429   $ 34,776   $  39,279   $ 11,461   $  145,818   $ 322,314        Obligations                         -          -          -          -          -           -          -           -       12,803     related to     securities     sold short          12,803     Cash                                -          -          -          -          -           -          -           -        1,359     collateral on     securities     lent                 1,359     Obligations                                                                                                                           related to     securities     sold                             under              8,711        726          -          -          -          -           -          -           -        9,437       repurchase       agreements            Derivative                        808        831        703        920      2,159       4,700      7,406           -       17,957     instruments            430     Acceptances          6,620      1,654          -          -          -          -           -          -           -        8,274   Other                               -          -          -          -          -           -          -       10,579      10,579        liabilities              -     Subordinated                      255          -          -          -          -          34      3,898           -        4,187     indebtedness             -                     $ 47,869   $ 24,190   $ 18,631   $ 16,761   $ 19,349   $ 36,935   $  44,013   $ 22,765   $  156,397   $ 386,910  October 31,                  $ 15,659   $ 19,347   $ 13,414   $ 18,836   $ 31,600   $  55,290   $ 28,371   $  147,001   $ 380,012        2013              $ 50,494     (1) Comprises $129.2 billion (October 31, 2013: $125.0         billion) of personal deposits of which $124.2         billion (October 31, 2013: $120.4 billion) are in         Canada and         $5.0 billion (October 31, 2013: $4.6 billion) in         other countries; $185.4 billion (October 31, 2013:         $182.9 billion) of business and government         deposits and secured         borrowings of which $147.5 billion (October 31,         2013: $149.0 billion) are in Canada and $37.9         billion (October 31, 2013: $33.9 billion) in other         countries; and         $7.7 billion (October 31, 2013: $5.6 billion) of         bank deposits of which $3.3 billion (October 31,         2013: $2.0 billion) are in Canada and $4.4 billion         (October 31, 2013:         $3.6 billion) in other countries.  The changes in the contractual maturity profile from October 31, 2013 were  primarily due to the natural migration of maturities and also reflect the  impact of our regular business activities.  Credit-related commitments The following table provides the contractual maturity of notional amounts of  credit-related commitments. Since a significant portion of commitments are  expected to expire without being drawn upon, the total of the contractual  amounts is not representative of future liquidity requirements.                                                                                                                      No                                       Less      1 - 3      3 - 6      6 - 9     9 - 12       1 - 2      2 - 5      Over    specified                                             than     $ millions,     as at July                                                                                             5   31, 2014            1 month     months     months     months     months       years      years     years     maturity (1)     Total        Securities     lending(2)         $ 27,261   $      -   $      -   $      -   $      -   $       -   $      -   $     -   $       -      $  27,261   Unutilized              505      5,079        895      1,261      1,645       6,165     27,169     2,021      113,696       158,436        credit     commitments     Backstop                  -        106      4,034          -          -           -          -         -           -          4,140     liquidity     facilities     Standby and             640        775      2,443      1,862      2,023         412        861       331           -          9,347     performance     letters of     credit     Documentary              57        122         15          -         22           -         16         -           -            232     and     commercial     letters of     credit     Underwriting            263          -          -          -          -           -          -         -           -            263     commitments     Other                   268          -          -          -          -           -          -         -           -            268                      $ 28,994   $  6,082   $  7,387   $  3,123   $  3,690   $   6,577   $ 28,046   $ 2,352   $  113,696     $ 199,947  October 31,        $ 26,147   $  9,615   $  3,343   $  3,035   $  2,528   $   5,435   $ 25,942   $ 2,051   $  116,487     $ 194,583        2013     (1) Includes $90.8 billion (October 31, 2013: $94.7         billion) of personal, home equity and credit card         lines which are unconditionally cancellable at         our discretion.      (2) Excludes securities lending of $1.4 billion         (October 31, 2013: $2.1 billion) for cash because         it is reported on the interim consolidated         balance sheet.  Other contractual obligations The following table provides the contractual maturities of other contractual  obligations affecting our funding needs:                             Less      1 - 3      3 - 6      6 - 9     9 - 12       1 - 2       2 - 5      Over                                         than   $ millions,               1     months     months     months     months       years       years         5        Total        as at July            month                                                                         years     31, 2014   Operating             $  33   $     67   $    100   $    100   $    100   $     379   $     931   $ 1,185   $    2,895        leases     Purchase     obligations   (1)                      15        116        198        161        165         511         982       420        2,568        Pension     contributions   (2)                       5         10          -          -          -           -           -         -           15                        $  53   $    193   $    298   $    261   $    265   $     890   $   1,913   $ 1,605   $    5,478  October 31,           $  68   $    221   $    341   $    357   $    274   $     809   $   1,716   $ 1,599   $    5,385        2013     (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) 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 2014 are excluded due to the significant         variability in the assumptions         required to project the timing of cash flows.  Other risks We also have policies and processes to measure, monitor and control other  risks, including strategic, insurance, operational, technology, reputation and  legal, regulatory, and environmental risks. These risks and related policies  and processes have not changed significantly from those described on pages 70  to 72 of the 2013 Annual Report.  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 2013 Annual Report. The interim  consolidated financial statements have been prepared using the same accounting  policies as CIBC's consolidated financial statements for the year ended  October 31, 2013, except as described in Note 1 to the interim consolidated  financial statements. Certain accounting policies require us to make judgments  and estimates, some of which may relate to matters that are uncertain.  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 deposits and  business and government deposits. Retail mortgage interest rate commitments  are also designated as FVO financial instruments.  Effective November 1, 2013, CIBC adopted IFRS 13 "Fair Value Measurement".  Adoption of this standard did not result in changes to how we measure fair  value. 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 market participants in the principal market  at the measurement date under current market conditions (i.e., the exit  price). 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 for the  same instrument, where available (Level 1). If active market prices or quotes  are not available for an instrument, fair value is then based on valuation  models using only significant inputs that are observable (Level 2) or one or  more significant non-observable 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. Valuation inputs 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 one or  more significant 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 2 to the interim consolidated financial statements.                                                         2014                                           2013       $ millions,                                         Jul.                                           Oct.     as at                                                 31                                             31                         Structured           Total       Total         Structured           Total       Total                           credit                                         credit                                                        run-off                                        run-off                         business            CIBC        CIBC (1)       business            CIBC        CIBC (1)     Financial                                                                                                   assets                                                                                                        Trading                          $       786         1.5         $      837     $       837         1.8     securities     and loans         $      786                             %                                              %     AFS                                      735         3.5                 13             913         3.3     securities                19                                                                                  FVO                                      113        43.3                147             147        51.2     securities               113                                                                                  Derivative                               233         1.3                295             341         1.7     instruments              213                                                                                                    $    1,131     $     1,867         2.0 %       $    1,292     $     2,238         2.4 %     Financial                                                                                                   liabilities                                                                                                   Deposits     and other     liabilities     (2)               $      464     $       746        27.2 %       $      510     $       737        29.9 %     Derivative                               315         1.8                413             474         2.4     instruments              279                                                                                                    $      743     $     1,061         3.2 %       $      923     $     1,211         3.4 %     (1) Represents percentage of Level 3 assets and         liabilities in each reported category that are carried         at fair value on the interim         consolidated financial statements.     (2) 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 of financial  instruments that are carried at fair value on the consolidated balance sheet.  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.  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 change as  events warrant and may not reflect ultimate realizable amounts.  The following table summarizes our valuation adjustments:                                                      2014              2013     $ millions, as                                   Jul.           Oct. 31     at                                                 31     Securities                                                                  Market risk                                  $      2       $         5     Derivatives                                                                 Market risk                                        49                57     Credit risk                                         7                42     Administration                                      5                 5     costs     Total                                        $     63       $       109     valuation     adjustments  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. For residential  mortgages, personal loans and certain small business loans, this historical  loss experience enables CIBC to determine appropriate probability of default  (PD) and loss given default (LGD) parameters, which are used in the  calculation of the portion of the collective allowance for current accounts.  The PDs determined by this process that correspond to the risk levels in our  retail portfolios are disclosed on page 48 of the 2013 Annual Report. For  credit card loans, non-current residential mortgages, personal loans and  certain small business loans, the historical loss experience enables CIBC to  calculate flows to write-off in our models that determine the collective  allowance that pertain to these loans.  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, evidence of credit quality improvements or  deterioration, and events such as the 2013 Alberta floods. 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 PD factors associated with each risk rating, as  well as estimates of LGD. The PD factors reflect our historical loss  experience and are supplemented by data derived from defaults in the public  debt markets. Our risk-rating method and categories are disclosed on page 47  of the 2013 Annual Report. Historical loss experience is adjusted based on  observable data to reflect the effects of current conditions. LGD estimates  are based on our experience over past years.  For further details on the allowance for credit losses, see Note 5 to the  interim consolidated financial statements.  Securitizations and structured entities  Securitization of our own assets Effective November 1, 2013, with retrospective application to November 1,  2012, CIBC adopted IFRS 10 "Consolidated Financial Statements" which replaced  IAS 27 "Consolidated and Separate Financial Statements" and SIC 12  "Consolidation - Special Purpose Entities". Under IFRS 10, judgment is  exercised in determining whether an investor controls an investee including  assessing whether the investor has: (i) power over the investee; (ii)  exposure, or rights, to variable returns from its involvement with the  investee; and (iii) the ability to affect those returns through its power over  the investee.  We sponsor several structured entities that purchase and securitize our own  assets including the Cards II Trust, Broadway Trust and Crisp Trust, which we  continue to consolidate under IFRS 10.  We also securitize our own mortgage assets through a government-sponsored  securitization program. We sell these securitized assets to a  government-sponsored securitization vehicle that we do not consolidate, as  well as to other third parties. IAS 39 "Financial Instruments - Recognition  and Measurement" provides guidance on when to derecognize financial assets. A  financial asset is derecognized when the contractual rights to receive cash  flows from the asset have expired, or when we have transferred the rights to  receive cash flows from the asset such that:         --  We have transferred substantially all the risks and rewards of             the asset; or         --  We have neither transferred nor retained substantially all the             risks and rewards of the asset, but have transferred control of             the asset.  We have determined that our securitization activities related to residential  mortgages and cards receivables are accounted for as secured borrowing  transactions because we have not met the aforementioned criteria.  In addition, we sell and derecognize commercial mortgages through a  pass-through arrangement with a trust that securitizes these mortgages into  ownership certificates held by various external investors. We continue to  perform special servicing of the mortgages in exchange for a market-based fee  and do not consolidate the trust. We also sell certain U.S. commercial  mortgages to third-parties that qualify for derecognition because we have  transferred substantially all the risks and rewards of the mortgages and have  no continuous involvement after the transfer.  Securitization of third-party assets We also sponsor several structured entities that purchase pools of third-party  assets. We consider a number of factors in determining whether CIBC controls  these structured entities. We monitor the extent to which we support these  structured entities, through direct investment in the debt issued by the  structured entities and through the provision of liquidity protection to the  other debtholders, to assess whether we should consolidate these entities.  Where we consider that CIBC should consolidate a structured entity, IFRS 10  requires that we reconsider this assessment if facts and circumstances  indicate that there are changes to one or more of the three elements of  control described above, for example, when any of the parties gains or loses  power to direct relevant activities of the investee, or when there is a change  in the parties' exposure or rights to variable returns from its involvement  with the investee. Specifically, in relation to our multi-seller conduits, we  reconsider our consolidation assessment whenever our level of interest in the  ABCP issued by the conduits changes significantly, or in the rare event that  the liquidity facility we provide to the conduits is drawn or amended.  A significant increase in our holdings of the outstanding commercial paper  issued by the conduits would become more likely in a scenario in which the  market for bank-sponsored ABCP suffered a significant deterioration such that  the conduits were unable to roll their ABCP.  For additional information on the securitizations of our own assets and  third-party assets, see the "Off-balance sheet arrangements" section and Note  7 to the interim consolidated financial statements.  Asset impairment  Goodwill, other intangible assets and long-lived assets As at July 31, 2014, we had goodwill of $1,435 million (October 31, 2013:  $1,733 million) and other intangible assets with an indefinite life of $137  million (October 31, 2013: $136 million). Goodwill is not amortized, but is  tested, at least annually, 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. Any deficiency is  recognized as impairment of 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. Goodwill is also required to be tested for impairment whenever there  are indicators that it may be impaired.  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 and  value in use. In calculating the recoverable amount 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 of goodwill and indefinite life  intangible assets in the fourth quarter of 2013 and did not record any  impairment at that time. During the second quarter of 2014, we identified  indicators that goodwill relating to the CIBC FirstCaribbean CGU may be  impaired.  We performed an impairment test and determined that the carrying  amount of the CIBC FirstCaribbean CGU exceeded its recoverable amount.  As a  result, we recognized a goodwill impairment charge of $420 million during the  three months ended April 30, 2014, which reduced the carrying amount of the  goodwill relating to CIBC FirstCaribbean to $344 million as at April 30, 2014.  The recoverable amount of our CIBC FirstCaribbean CGU determined as at April  30, 2014 was based on a value in use calculation that was estimated using a  five year cash flow projection and an estimate of the capital required to be  maintained in the region to support ongoing operations. The five year cash  flow projection was consistent with CIBC FirstCaribbean's three year internal  plan that was previously reviewed by its Board of Directors, adjusted to  reflect management's belief that the economic recovery expected in the  Caribbean region would occur over a longer period of time than originally  forecasted and that estimated realizable values of underlying collateral for  non-performing loans would be lower than previously expected. A terminal  growth rate of 2.5% (2.5% as at August 1, 2013) was applied to the years after  the five year forecast. All of the forecast cash flows were discounted at an  after-tax rate of 13% (13.62% pre-tax) which we believe to be a risk-adjusted  interest rate appropriate to CIBC FirstCaribbean (we used an identical  after-tax rate of 13% as at August 1, 2013). The determination of a discount  rate and a terminal growth rate require the exercise of judgment. The discount  rate was determined based on the following primary factors: i) the risk-free  rate, ii) an equity risk premium, iii) beta adjustment to the equity risk  premium based on a review of betas of comparable publicly traded financial  institutions in the region, and iv) a country risk premium. The terminal  growth rate was based on the forecast inflation rates and management's  expectations of real growth.  Estimation of the recoverable amount is an area of significant judgment.  Reductions in the estimated recoverable amount could arise from various  factors, such as, reductions in forecasted cash flows, an increase in the  assumed level of required capital, and any adverse changes to the discount  rate or the terminal growth rate either in isolation or in any combination  thereof. We estimated that a 10% decrease in each of the terminal year's and  subsequent years' forecasted cash flows would result in a reduction in the  estimated recoverable amount of the CIBC FirstCaribbean CGU by approximately  $115 million as at April 30, 2014. We also estimated that a 50 basis point  increase in the after-tax discount rate would result in a reduction in the  estimated recoverable amount of the CIBC FirstCaribbean CGU by approximately  $65 million as at April 30, 2014. These sensitivities are indicative only and  should be considered with caution, as the effect of the variation in each  assumption on the estimated recoverable amount is calculated in isolation  without changing any other assumptions. In practice, changes in one factor may  result in changes in another, which may magnify or counteract the disclosed  sensitivities. For additional details, see Note 6 to our interim consolidated  financial statements.  Economic conditions in the Caribbean region remain challenging and we continue  to monitor our investment. Reductions in the estimated recoverable amount of  our CIBC FirstCaribbean CGU could result in additional goodwill impairment  charges in future periods. We will complete our annual impairment testing in  the fourth quarter of 2014.  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.  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.  Income tax accounting impacts all our reporting segments. For further details  of our income taxes, see Note 12 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.  Legal provisions are established 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.  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 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. We regularly assess the adequacy of CIBC's litigation accruals and  make the necessary adjustments to incorporate new information as it becomes  available.  The provisions disclosed in Note 23 to the 2013 annual consolidated financial  statements included all of CIBC's accruals for legal matters as at that date,  including amounts related to the significant legal proceedings described in  that note and to other legal matters.  CIBC considers losses to be reasonably possible when they are neither probable  nor remote. It is reasonably possible that CIBC may incur losses in addition  to the amounts recorded when the loss accrued is the mid-point of a range of  reasonably possible losses, or the potential loss pertains to a matter in  which an unfavourable outcome is reasonably possible but not probable.  CIBC believes the estimate of the aggregate range of reasonably possible  losses, in excess of the amounts accrued, for its significant legal  proceedings, where it is possible to make such an estimate, is from nil to  approximately $240 million as at July 31, 2014. This estimated aggregate range  of reasonably possible losses is based upon currently available information  for those significant proceedings in which CIBC is involved, taking into  account CIBC's best estimate of such losses for those cases for which an  estimate can be made. CIBC's estimate involves significant judgment, given the  varying stages of the proceedings and the existence of multiple defendants in  many of such proceedings whose share of the liability has yet to be  determined. The range does not include potential punitive damages and  interest. The matters underlying the estimated range as at July 31, 2014,  consist of the significant legal matters disclosed in Note 23 to the 2013  annual consolidated financial statements as updated below. The matters  underlying the estimated range will change from time to time, and actual  losses may vary significantly from the current estimate.  For certain matters,  CIBC does not believe that an estimate can currently be made as many of them  are in preliminary stages and certain matters have no specific amount claimed.  Consequently, these matters are not included in the range.  The following developments related to our significant legal matters occurred  since the issuance of our 2013 annual consolidated financial statements:         --  Marcotte Visa Class Action: The appeal was heard by the Supreme             Court of Canada in February 2014. The court reserved its             decision.         --  Green Secondary Market Class Action: In February 2014 the             Ontario Court of Appeal released its decision overturning the             lower court and allowing the matter to proceed as a certified             class action. CIBC and the individual defendants sought leave             to appeal to the Supreme Court of Canada. On August 7, 2014,             CIBC and the individual defendants were granted leave to appeal             to the Supreme Court of Canada.         --  Brown Overtime Class Action: The plaintiffs' appeal to the             Ontario Court of Appeal was heard in May 2014. The court             reserved its decision.         --  Watson Credit Card Class Action: On March 27, 2014, the court             released its decision granting class certification. The             plaintiffs and defendants have filed Notices of Appeal.         --  Mortgage Prepayment Class Actions: On June 30, 2014, the court             granted class certification in Sherry conditional on the             plaintiffs framing a workable class definition. CIBC has filed             a Notice of Appeal.         --  Sino-Forest Class Actions: The motion for class certification             in the Labourers' action has been adjourned to January 2015.  Other than the items described above, there are no significant developments in  the matters identified in Note 23 to our 2013 annual consolidated financial  statements, and no significant new matters have arisen since the issuance of  our 2013 annual consolidated financial statements.  Post-employment and other long-term benefit plan assumptions We sponsor a number of benefit plans to eligible employees, including  registered and supplemental pension plans, and post-retirement medical and  dental plans (other post-employment benefit plans). We also continue to  sponsor a long-term disability income replacement plan and associated medical  and dental benefits (collectively, other long-term benefit plans). The  long-term disability plan was closed to new claims effective June 1, 2004.  Effective November 1, 2013, with retrospective application to November 1,  2011, CIBC adopted amendments to IAS 19 "Employee Benefits". The amendments  require the following: (i) recognition of actuarial gains and losses in OCI in  the period in which they arise; (ii) recognition of interest income on plan  assets in net income using the same rate as that used to discount the defined  benefit obligation; and (iii) recognition of all past service costs (gains) in  net income in the period in which they arise. See Note 1 to the interim  consolidated financial statements for further details on the impact of the  adoption of the amendments to IAS 19 on prior periods.  The calculation of net defined benefit plan expense and obligations depends on  various actuarial assumptions such as discount rates, health-care cost trend  rates, turnover of employees, projected salary increases, retirement age, and  mortality rates. The actuarial assumptions used for determining the net  defined benefit expense for a fiscal year are set at the beginning of the  annual reporting period, are reviewed in accordance with accepted actuarial  practice and are approved by management.  The discount rate assumption used in measuring the net defined benefit expense  and defined benefit obligations 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 pension, other 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.  As a result of adopting the amendments to IAS 19, commencing in the first  quarter of 2014, with retrospective application for fiscal 2013 and 2012, we  remeasure our Canadian post-employment benefit plans on a quarterly basis for  changes in the discount rate and for actual assets returns, with the actuarial  gains and losses recognized in OCI (see Note 1 to the interim consolidated  financial statements for further details).  For further details of our annual pension and other post-employment expense  and obligations, see Note 19 to the 2013 annual consolidated financial  statements and Note 1 to the interim consolidated financial statements.  Regulatory developments  Dodd-Frank Wall Street Reform and Consumer Protection Act The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank  Act") was enacted in the U.S. in July 2010. The Dodd-Frank Act contains many  broad reforms impacting the financial services industry, including, among  other things, increased consumer protection, regulation of the OTC derivative  markets, heightened capital, liquidity and prudential standards, and  restrictions on proprietary trading by banks. The Dodd-Frank Act will affect  every financial institution in the U.S. and many financial institutions that  operate outside the U.S. As many aspects of the Dodd-Frank Act are subject to  rulemaking that U.S. regulators have not finalized, the full impact on CIBC is  difficult to anticipate until all the regulations are finalized and released.  CIBC continually monitors developments to prepare for rulemakings that have  the potential to impact our operations in the U.S. and elsewhere.  In December 2012, CIBC registered as a swap dealer with the U.S. Commodity  Futures Trading Commission (CFTC) and adopted processes and procedures  necessary to comply with newly-promulgated U.S. regulations in trading swaps  with U.S. persons. The CFTC has issued final rules on most areas relating to  swaps, including cross-border guidance that impacts CIBC's swap trading with  non-U.S. counterparties. The CFTC has not yet issued final rules on clearing,  capital and margin, and the CFTC has not issued a determination of the extent  to which it will rely on substituted compliance with Canadian swap trading  regulations. CIBC will continue to monitor and prepare for developments by the  CFTC in this area. Additionally, the SEC is expected to implement parallel  reforms applying to the securities-based swaps markets. While these  far-reaching reforms have increased our cost of regulatory compliance and may  restrict our ability to continue to engage in certain types of trading  activity, we do not expect them to have a significant impact on our results.  On February 18, 2014, the Federal Reserve Board released final enhanced  prudential standards for large U.S. bank holding companies and foreign banking  organizations (FBOs) with total consolidated assets of $50 billion or more.  The new enhanced prudential standards include six primary requirements:  risk-based capital and leverage requirements; liquidity requirements; single  counterparty exposure limits; internal risk management standards;  debt-to-equity limits; and annual stress testing. The new rules also require  FBOs to maintain liquidity buffers in their U.S. branches and agencies and, if  certain asset thresholds are met, to create a U.S. intermediate holding  company which will also be subject to enhanced prudential standards. CIBC  believes the new rules will not have a material impact on our operations.  The Dodd-Frank Act also mandates the so-called Volcker Rule, which restricts  certain proprietary trading and private equity fund activities of banking  entities operating in the U.S. In December 2013, five U.S. regulatory agencies  jointly published final regulations implementing the Volcker rule.  The final  regulations and the accompanying materials are complex and will require CIBC  to implement new controls and to develop new systems to ensure compliance with  the rule's reporting obligations and restrictions.  Banking entities must  engage in good-faith efforts that will result in conformance with the rule by  July 21, 2015. CIBC is actively assessing the impact of the Volcker rule on  our operations and developing a conformance plan for full implementation. The  new regulations also contain various provisions that enable banks to seek  extensions in certain circumstances and CIBC may seek such extensions where  necessary or appropriate.  The Foreign Account Tax Compliance Act The Foreign Account Tax Compliance Act (FATCA) is U.S. legislation, the intent  of which is to discourage tax evasion by U.S. taxpayers who have placed assets  in financial accounts outside of the U.S. - either directly or indirectly  through foreign entities such as trusts and corporations.  Under the FATCA regulations, non-U.S. financial institutions will be required  to identify and report accounts owned or controlled by U.S. taxpayers,  including citizens of the U.S. worldwide (U.S. Accounts). In addition,  identification and reporting will also be required on accounts of financial  institutions that do not comply with FATCA regulations. The Government of  Canada has signed an Intergovernmental Agreement (IGA) with the U.S., to  facilitate FATCA information reporting by Canadian financial institutions.  Under the provisions of the Canada-United States Enhanced Tax Information  Exchange Agreement Implementation Act, Canadian financial institutions must  report information on certain U.S. Accounts directly to the Canada Revenue  Agency. The provisions of FATCA and the related Canadian legislation came into  effect on July 1, 2014. Other countries in which CIBC operates have signed, or  are in the process of negotiating and signing, IGAs with the U.S. CIBC will  meet all FATCA obligations, in accordance with local law.  Principles for Effective Risk Data Aggregation and Risk Reporting  In January 2013, the BCBS published "Principles for Effective Risk Data  Aggregation and Risk Reporting". The Principles outline BCBS's expectations to  enhance risk data governance oversight and to improve risk data aggregation  and reporting practices, thereby facilitating timely, consistent, and accurate  decision making. It is expected that we will be subject to greater reporting  scrutiny and may incur increased operating costs as a result of the  Principles. We have begun an enterprise-wide Risk Data Aggregation initiative  to be compliant with the Principles.  Global systemically important banks - public disclosure requirements The BCBS paper "Global systemically important banks: updated assessment  methodology and the higher loss absorbency requirement" dated July 3, 2013  describes the annual assessment methodology and the 12 indicators used to  identify global systemically important banks (G-SIBs). The document also  provides annual public disclosure requirements applicable to large  globally-active banks.  In March 2014, OSFI published an Advisory on the implementation of the G-SIB  public disclosure requirements in Canada. Federally-regulated banks which have  not been identified as G-SIBs, and which have Basel III leverage ratio  exposure measures greater than the equivalent of €200 billion at year-end,  are required to publicly disclose at a minimum the 12 indicators (in Canadian  equivalent values) annually. Such banks must publicly disclose both year-end  2014 and comparative 2013 data by the time the first quarterly financial  report of 2015 is released.  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 of  CIBC's disclosure controls and procedures as at July 31, 2014 (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 and nine months ended July 31, 2014, 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                                                                                                                                                                                 2014            2013     Unaudited, $ millions, as at                    Jul. 31         Oct. 31     ASSETS                                                                      Cash and non-interest-bearing               $     2,975     $     2,211     deposits with banks     Interest-bearing deposits with                    8,217           4,168     banks     Securities                                                                  Trading                                          48,095          44,070     Available-for-sale (AFS) (Note 4)                21,105          27,627     Designated at fair value (FVO)                      261             287                                                      69,461          71,984     Cash collateral on securities                     3,238           3,417     borrowed     Securities purchased under resale                25,105          25,311     agreements     Loans                                                                       Residential mortgages                           155,013         150,938     Personal                                         35,096          34,441     Credit card                                      11,577          14,772     Business and government                          54,232          48,207     Allowance for credit losses (Note               (1,703)         (1,698)     5)                                                     254,215         246,660     Other                                                                       Derivative instruments                           18,227          19,947     Customers' liability under                        8,274           9,720     acceptances     Land, buildings and equipment                     1,728           1,719     Goodwill (Note 6)                                 1,435           1,733     Software and other intangible                       918             756     assets     Investments in equity-accounted                   1,842           1,695     associates and joint ventures     Deferred tax asset                                  505             526     Other assets                                      9,282           8,159                                                      42,211          44,255                                                 $   405,422     $   398,006     LIABILITIES AND EQUITY                                                      Deposits (Note 8)                                                           Personal                                    $   129,198     $   125,034     Business and government                         142,245         134,736     Bank                                              7,700           5,592     Secured borrowings                               43,171          49,802                                                     322,314         315,164     Obligations related to securities                12,803          13,327     sold short     Cash collateral on securities                     1,359           2,099     lent     Obligations related to securities                 9,437           4,887     sold under repurchase agreements     Other                                                                       Derivative instruments                           17,957          19,724     Acceptances                                       8,274           9,721     Deferred tax liability                               29              33     Other liabilities                                10,550          10,829                                                      36,810          40,307     Subordinated indebtedness                         4,187           4,228     Equity                                                                      Preferred shares                                  1,281           1,706     Common shares (Note 10)                           7,758           7,753     Contributed surplus                                  78              82     Retained earnings                                 9,258           8,318     Accumulated other comprehensive                    (18)            (40)     income (AOCI)     Total shareholders' equity                       18,357          17,819     Non-controlling interests                           155             175     Total equity                                     18,512          17,994                                                 $   405,422     $   398,006  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                                                                                                                                        For the three           For the nine                                                   months ended           months ended                                   2014        2014        2013       2014        2013     Unaudited, $                  Jul.        Apr.        Jul.       Jul.        Jul.     millions, except                31          30          31         31          31     as noted     Interest income                                                                       Loans                      $ 2,389     $ 2,282     $ 2,479   $  7,094     $ 7,342     Securities                     397         399         412      1,225       1,224     Securities                      82          74          82        238         256     borrowed or     purchased under     resale     agreements     Deposits with                    5           8           9         21          30     banks                                  2,873       2,763       2,982      8,578       8,852     Interest expense                                                                      Deposits                       821         801         935      2,495       2,776     Securities sold                 81          78          85        241         250     short     Securities lent                 36          28          20         92          77     or sold under     repurchase     agreements     Subordinated                    44          45          46        133         148     indebtedness     Other                           16          13          13         39          41                                    998         965       1,099      3,000       3,292     Net interest                 1,875       1,798       1,883      5,578       5,560     income     Non-interest                                                                          income     Underwriting and               150          88          98        316         301     advisory fees     Deposit and                    221         205         223        638         609     payment fees     Credit fees                    124         114         118        355         345     Card fees                      108          87         137        308         402     Investment                     181         168         119        491         348     management and     custodial fees     Mutual fund fees               317         300         258        899         747     Insurance fees,                 85          95          94        277         265     net of claims     Commissions on                  99         108         106        310         314     securities     transactions     Trading income                (42)        (12)          21       (53)          36     (loss)     AFS securities                  24          76          48        157         203     gains, net     FVO gains                        2        (21)           2       (14)         (1)     (losses), net     Foreign exchange                10          12          18         43          39     other than     trading     Income from                     98          52          40        191          95     equity-accounted     associates and     joint ventures     Other                          106          97          84        663         275                                  1,483       1,369       1,366      4,581       3,978     Total revenue                3,358       3,167       3,249     10,159       9,538     Provision for                  195         330         320        743         850     credit losses     (Note 5)     Non-interest                                                                          expenses     Employee                     1,176       1,133       1,098      3,469       3,254     compensation and     benefits     Occupancy costs                187         190         171        556         519     Computer,                      304         294         269        881         767     software and     office equipment     Communications                  78          79          75        232         232     Advertising and                 70          72          59        207         157     business     development     Professional                    43          52          45        140         120     fees     Business and                    17          12          15         44          46     capital taxes     Other(1)                       172         580         146        909         596                                  2,047       2,412       1,878      6,438       5,691     Income before                1,116         425       1,051      2,978       2,997     income taxes     Income taxes                   195         119         173        574         472     Net income                 $   921     $   306     $   878   $  2,404     $ 2,525     Net income                 $     3     $  (11)     $     1   $    (5)     $     5     (loss)     attributable to     non-controlling     interests       Preferred                $    19     $    25     $    25   $     69     $    75       shareholders       Common                       899         292         852      2,340       2,445       shareholders     Net income                 $   918     $   317     $   877   $  2,409     $ 2,520     attributable to     equity     shareholders     Earnings per                                                                          share (in     dollars) (Note     13)       Basic                    $  2.26     $  0.73     $  2.13   $   5.88     $  6.09       Diluted                     2.26        0.73        2.13       5.87        6.09     Dividends per                 1.00        0.98        0.96       2.94        2.84     common share (in     dollars)     (1) Includes the goodwill impairment charge recognized during the               quarter ended April 30, 2014. See Note 6 for additional                                                          information.  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                                                                                                                               For the three          For the nine                                               months ended          months ended                               2014        2014        2013      2014        2013     Unaudited, $              Jul.        Apr.        Jul.      Jul.        Jul.     millions                    31          30          31        31          31     Net income              $  921     $   306     $   878   $ 2,404     $ 2,525     Other                                                                            comprehensive     income (OCI), net     of tax, that is     subject to     subsequent     reclassification       to net income                                                                    Net foreign                                                                      currency       translation       adjustments       Net gains               (48)       (153)         165       398         226       (losses) on       investments in       foreign       operations       Net gains                 26          82       (102)     (260)       (144)       (losses) on       hedges of       investments in       foreign       operations                               (22)        (71)          63       138          82       Net change in                                                                    AFS securities       Net gains                 47          24       (114)       116        (17)       (losses) on AFS       securities       Net (gains)             (15)        (56)        (36)     (109)       (148)       losses on AFS       securities       reclassified to       net income                                 32        (32)       (150)         7       (165)       Net change in                                                                    cash flow       hedges       Net gains                 20          66           7        81           2       (losses) on       derivatives       designated as       cash flow       hedges       Net (gains)             (21)        (50)        (11)      (68)         (4)       losses on       derivatives       designated as       cash flow       hedges       reclassified to       net income                                (1)          16         (4)        13         (2)     OCI, net of tax,                                                                 that is not     subject to     subsequent     reclassification     to net income       Net gains               (87)           9         353     (136)         230       (losses) on       post-employment       defined benefit       plans     Total OCI(1)              (78)        (78)         262        22         145     Comprehensive           $  843     $   228     $ 1,140   $ 2,426     $ 2,670     income     Comprehensive           $    3     $  (11)     $     1   $   (5)     $     5     income (loss)     attributable to     non-controlling     interests       Preferred             $   19     $    25     $    25   $    69     $    75       shareholders       Common                   821         214       1,114     2,362       2,590       shareholders     Comprehensive           $  840     $   239     $ 1,139   $ 2,431     $ 2,665     income     attributable to     equity     shareholders     (1) Includes $1 million of losses for the quarter ended         July 31, 2014 (April 30, 2014: $4 million of gains;         July 31, 2013: $21 million of losses) and $12 million         of gains for the nine months ended July 31, 2014 (July         31, 2013: $17 million of losses) relating to our         investments in equity-accounted associates         and joint ventures.                                                                                      For the three        For the nine                                              months ended        months ended                               2014       2014        2013     2014       2013     Unaudited, $              Jul.       Apr.        Jul.     Jul.       Jul.     millions                    31         30          31       31         31     Income tax                                                                    (expense) benefit     Subject to                                                                    subsequent     reclassification     to net income       Net foreign                                                                   currency       translation       adjustments       Net gains             $    3     $   11     $  (12)   $ (29)     $ (17)       (losses) on       investments in       foreign       operations       Net gains                (4)       (13)          17       38         25       (losses) on       hedges of       investments in       foreign       operations                                (1)        (2)           5        9          8       Net change in                                                                 AFS securities       Net gains               (37)        (7)         (6)     (74)       (37)       (losses) on AFS       securities       Net (gains)                9         20          13       50         55       losses on AFS       securities       reclassified to       net income                               (28)         13           7     (24)         18       Net change in                                                                 cash flow       hedges       Net gains                (7)       (24)         (2)     (29)          -       (losses) on       derivatives       designated as       cash flow       hedges       Net (gains)                                                                   losses on       derivatives       designated as       cash flow       hedges       reclassified to         net income               7         18           4       24          1                                  -        (6)           2      (5)          1     Not subject to                                                                subsequent     reclassification     to net income       Net gains                 32        (3)       (126)       49       (82)       (losses) on       post-employment       defined benefit       plans                             $    3     $    2     $ (112)   $   29     $ (55)  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                                                                                                                                           For the three              For the nine                                                   months ended              months ended                                 2014         2014         2013        2014          2013     Unaudited, $                Jul.         Apr.         Jul.     Jul. 31       Jul. 31     millions                      31           30           31     Preferred shares                                                                         Balance at              $  1,381     $  1,706     $  1,706   $   1,706     $   1,706     beginning of     period     Issue of                     400            -            -         400             -     preferred shares     Redemption of              (500)        (325)            -       (825)             -     preferred shares     Balance at end of       $  1,281     $  1,381     $  1,706   $   1,281     $   1,706     period     Common shares                                                                            Balance at              $  7,745     $  7,750     $  7,743   $   7,753     $   7,769     beginning of     period     Issue of common               33           12           15          69           100     shares     Purchase of                 (15)         (18)            -        (60)         (112)     common shares for     cancellation     Treasury shares              (5)            1          (1)         (4)             -     Balance at end of       $  7,758     $  7,745     $  7,757   $   7,758     $   7,757     period     Contributed                                                                              surplus     Balance at              $     82     $     82     $     80   $      82     $      85     beginning of     period     Stock option                   1            2            2           6             4     expense     Stock options                (5)          (2)            -        (10)           (7)     exercised     Balance at end of       $     78     $     82     $     82   $      78     $      82     period     Retained earnings                                                                        Balance at              $  8,820     $  8,985     $  7,486   $   8,318     $   7,009     beginning of     period     Net income                   918          317          877       2,409         2,520     attributable to     equity     shareholders     Dividends                                                                                  Preferred                 (19)         (25)         (25)        (69)          (75)       Common                   (397)        (390)        (384)     (1,169)       (1,139)     Premium on                  (59)         (67)            -       (226)         (363)     purchase of     common shares for     cancellation     Other                        (5)            -            -         (5)             2     Balance at end of       $  9,258     $  8,820     $  7,954   $   9,258     $   7,954     period     AOCI, net of tax                                                                         AOCI, net of tax,                                                                        that is subject     to subsequent     reclassification     to net income       Net foreign                                                                              currency       translation       adjustments       Balance at            $    204     $    275     $   (69)   $      44     $    (88)       beginning of       period       Net change in             (22)         (71)           63         138            82       foreign       currency       translation       adjustments       Balance at end        $    182     $    204     $    (6)   $     182     $     (6)       of period       Net gains                                                                                (losses) on AFS       securities       Balance at            $    227     $    259     $    335   $     252     $     350       beginning of       period       Net change in               32         (32)        (150)           7         (165)       AFS securities       Balance at end        $    259     $    227     $    185   $     259     $     185       of period       Net gains                                                                                (losses) on       cash flow       hedges       Balance at            $     27     $     11     $      4   $      13     $       2       beginning of       period       Net change in              (1)           16          (4)          13           (2)       cash flow       hedges       Balance at end        $     26     $     27     $      -   $      26     $       -       of period     AOCI, net of tax,                                                                        that is not     subject to     subsequent     reclassification     to net income       Net gains                                                                                (losses) on       post-employment       defined benefit       plans       Balance at            $  (398)     $  (407)     $  (752)   $   (349)     $   (629)       beginning of       period       Net change in             (87)            9          353       (136)           230       post-employment       defined benefit       plans       Balance at end        $  (485)     $  (398)     $  (399)   $   (485)     $   (399)       of period     Total AOCI, net         $   (18)     $     60     $  (220)   $    (18)     $   (220)     of tax     Non-controlling                                                                          interests     Balance at              $    156     $    226     $    166   $     175     $     170     beginning of     period     Net income (loss)              3         (11)            1         (5)             5     attributable to     non-controlling     interests     Dividends                    (2)            -          (2)         (4)           (4)     Other                        (2)         (59) (1)        1        (11) (1)       (5)     Balance at end of       $    155     $    156     $    166   $     155     $     166     period     Equity at end of        $ 18,512     $ 18,244     $ 17,445   $  18,512     $  17,445     period     (1) The quarter ended January 31, 2014 had an increase in         non-controlling interests of $40 million relating to certain mutual         funds that were         launched and consolidated. These funds were deconsolidated in the         quarter ended April 30, 2014 due to a reduction in our ownership,         resulting in a decrease in non-controlling interests of $56         million.  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                                                                                                                                                           For the three                For the nine                                                          months ended                months ended                                      2014          2014          2013         2014           2013     Unaudited, $ millions         Jul. 31       Apr. 30       Jul. 31      Jul. 31        Jul. 31     Cash flows provided                                                                               by (used in)     operating activities     Net income                  $     921     $     306     $     878   $    2,404     $    2,525     Adjustments to                                                                                    reconcile net income     to cash flows     provided by (used in)     operating       activities:                                                                                       Provision for                   195           330           320          743            850       credit losses       Amortization and       impairment (1)                  101           521            91          717            259       Stock option                      1             2             2            6              4       expense       Deferred income                  52            11           (2)           54             70       taxes       AFS securities                 (24)          (76)          (48)        (157)          (203)       gains, net       Net losses (gains)                -             1             -            1            (3)       on disposal of       land, buildings and       equipment       Other non-cash                 (96)          (51)          (94)        (615)          (210)       items, net       Net changes in                                                                                    operating assets       and liabilities         Interest-bearing            (402)       (3,781)       (1,538)      (4,049)        (3,788)         deposits with         banks         Loans, net of             (5,033)       (3,509)       (1,399)     (11,526)        (2,493)         repayments         Deposits, net of            8,169           121         4,631        7,062         11,572         withdrawals         Obligations                   540         (951)         (311)        (524)            220         related to         securities sold         short         Accrued interest                8          (11)            58          104             95         receivable         Accrued interest            (174)           181         (276)        (273)          (407)         payable         Derivative assets           1,218         5,089         4,701        1,772          6,273         Derivative                  (894)       (3,484)       (4,570)      (1,863)        (6,605)         liabilities         Trading                   (2,947)           169         2,921      (4,025)        (2,547)         securities         FVO securities                 26             7            22           26             18         Other FVO assets               95         (253)            66           93            280         and liabilities         Current income                 79         (106)          (24)            1          (561)         taxes         Cash collateral               123            60           119        (740)            107         on securities         lent         Obligations                 1,026         2,015           646        4,550          (283)         related to         securities sold         under repurchase         agreements         Cash collateral             (347)           159         (711)          179        (1,107)         on securities         borrowed         Securities                  (671)         (289)       (4,338)          206        (1,954)         purchased under         resale agreements         Other, net                (1,923)         1,338         (591)      (1,500)            131                                        43       (2,201)           553      (7,354)          2,243     Cash flows provided                                                                               by (used in)     financing activities     Redemption/repurchase            (14)             -         (550)         (14)          (561)     of subordinated     indebtedness     Issue of preferred                400             -             -          400              -     shares     Redemption of                   (500)         (325)             -        (825)              -     preferred shares     Issue of common                    28            10            15           59             93     shares for cash     Purchase of common               (74)          (85)             -        (286)          (475)     shares for     cancellation     Net proceeds from                 (5)             1           (1)          (4)              -     treasury shares     Dividends paid                  (416)         (415)         (409)      (1,238)        (1,214)     Share issuance costs              (5)             -             -          (5)              -                                     (586)         (814)         (945)      (1,913)        (2,157)     Cash flows provided                                                                               by (used in)     investing activities     Purchase of AFS               (6,222)       (5,697)       (6,894)     (20,883)       (19,630)     securities     Proceeds from sale of           2,030         6,203         4,408       17,355         11,420     AFS securities     Proceeds from                   4,942         3,157         2,780       10,241          8,034     maturity of AFS     securities     Net cash used in                 (46)             3             -        (190)              -     acquisitions     Net cash provided by                -            24             5        3,611             46     dispositions     Net purchase of land,            (51)          (15)          (52)        (151)          (138)     buildings and     equipment                                       653         3,675           247        9,983          (268)     Effect of exchange                (8)          (26)            21           48             31     rate changes on cash     and     non-interest-bearing     deposits with banks     Net increase                                                                                      (decrease) in cash     and     non-interest-bearing     deposits with banks       during the period               102           634         (124)          764          (151)     Cash and                        2,873         2,239         2,586        2,211          2,613     non-interest-bearing     deposits with banks     at beginning of     period     Cash and     non-interest-bearing     deposits with banks     at end of period(2)         $   2,975     $   2,873     $   2,462   $    2,975     $    2,462     Cash interest paid          $   1,172     $     784     $   1,376   $    3,273     $    3,699     Cash income taxes                  64           214           199          519            963     paid     Cash interest and               2,881         2,752         3,040        8,682          8,947     dividends received     (1) Comprises amortization and impairment of buildings, furniture,         equipment, leasehold improvements, and software and other         intangible assets.         In addition, the quarter ended April 30, 2014 included the goodwill         impairment charge.     (2) Includes restricted balances of $282 million (April 30, 2014: $286         million; July 31, 2013: $264 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 (IASB). There are no accounting  requirements of OSFI that are exceptions to IFRS.  These interim consolidated financial statements have been prepared in  accordance with International Accounting Standard (IAS) 34 "Interim Financial  Reporting" and do not include all of the information required for full annual  consolidated financial statements. These interim consolidated financial  statements follow the same accounting policies and methods of application as  CIBC's consolidated financial statements for the year ended October 31, 2013,  except as noted.  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  August 27, 2014.  1. Changes in accounting policies  Effective November 1, 2013, CIBC adopted several new and amended accounting  pronouncements as described below.  (a)     Retrospective application of new and amended standards The amendments to IAS 19 "Employee Benefits" and IFRS 10 "Consolidated  Financial Statements" were adopted retrospectively as described below.  IAS 19 "Employee Benefits" - In June 2011, the IASB published an amended  version of IAS 19. The amendments require the following: (i) recognition of  actuarial gains and losses in OCI in the period in which they arise; (ii)  recognition of interest income on plan assets in net income using the same  rate as that used to discount the defined benefit obligation; and (iii)  recognition of all past service costs (gains) in net income in the period in  which they arise. We adopted the amendments to IAS 19 on a retrospective basis  effective November 1, 2011.  Consistent accounting policies are applied for the purposes of applying the  equity method for our investments in equity-associates and joint ventures, and  therefore the retrospective application of the amendments also impacted the  accounting for certain of our equity-accounted investments in associates.  IFRS 10 "Consolidated Financial Statements", issued in May 2011, replaces the  consolidation guidance in IAS 27 "Consolidated and Separate Financial  Statements" and Standards Interpretation Committee (SIC) - 12 "Consolidation -  Special Purpose Entities". IFRS 10 introduces a single consolidation model for  all entities based on control, irrespective of the nature of the investee.  Under IFRS 10, an investor controls an investee when an investor has: (i)  power over the investee; (ii) exposure, or rights, to variable returns from  its involvement with the investee; and (iii) the ability to use its power over  the investee to affect the amount of the investor's returns. We adopted IFRS  10 on a retrospective basis effective November 1, 2012.  The adoption of IFRS 10 required us to deconsolidate CIBC Capital Trust from  our consolidated financial statements. Although we have the ability to direct  the relevant activities of CIBC Capital Trust, we do not have exposure to  variable returns from our involvement in CIBC Capital Trust as we pass our  credit risk into the Trust by issuing senior deposit notes to CIBC Capital  Trust.  The deconsolidation of CIBC Capital Trust resulted in us removing Capital  Trust securities issued by CIBC Capital Trust from our consolidated balance  sheet effective November 1, 2012, and instead recognizing the senior deposit  notes issued by CIBC to CIBC Capital Trust in Business and government  deposits. We recognized an increase in shareholders' equity as at November 1,  2012 and October 31, 2013 due to the reversal of losses previously recognized  on Capital Trust securities repurchased by CIBC.  The impact on the consolidated balance sheets as a result of the retrospective  application of the amendments to IAS 19 and IFRS 10 was as follows:                                Reported       Post-employment       Restated as                                   as at                              at opening     $ millions                  October              benefits          November                                31, 2011                                 1, 2011     ASSETS                                                                          Deferred tax              $     270       $            51         $     321     asset     Other assets                  8,609                 (234)             8,375     Asset line                  374,879                     -           374,879     items not     impacted by     accounting     changes                               $ 383,758       $         (183)         $ 383,575     LIABILITIES AND                                                                 EQUITY     Deferred tax              $      51       $           (2)         $      49     liability     Other                        11,653                   (1)            11,652     liabilities     Liability line              355,963                     -           355,963     items not     impacted by     accounting     changes     Equity                                                                          Preferred                    10,225                     -            10,225     shares, common     shares and     contributed     surplus     Retained                      5,457                   (3)             5,454     earnings     AOCI                            245                 (175)                70     Total                        15,927                 (178)            15,749     shareholders'     equity     Non-controlling                 164                   (2)               162     interests     Total equity                 16,091                 (180)            15,911                               $ 383,758       $         (183)         $ 383,575                                                                                                       Reported     Post-employment      Restated          CIBC     Restated as                                as at                             as at                    at opening     $ millions               October            benefits       October       Capital     November 1,                             31, 2012                          31, 2012         Trust            2012     ASSETS                                                                                               Securities -           $  40,330     $             -     $  40,330     $      10       $  40,340     Trading     Loans - Business          43,624                   -        43,624             9          43,633     and government     Investments in             1,635                (17)         1,618           (1)           1,617     equity-accounted     associates and     joint ventures     Deferred tax                 457                 226           683           (3)             680     asset     Other assets               8,947               (475)         8,472             -           8,472     Asset line items         298,392                   -       298,392             -         298,392     not impacted by     accounting     changes                            $ 393,385     $         (266)     $ 393,119     $      15       $ 393,134     LIABILITIES AND                                                                                      EQUITY     Deposits -             $ 125,055     $             -     $ 125,055     $   1,685       $ 126,740     Business and     government     Capital Trust              1,678                   -         1,678       (1,678)               -     securities     Deferred tax                  37                 (2)            35             -              35     liability     Other                     10,634                 407        11,041             1          11,042     liabilities     Liability line           238,943                   -       238,943             -         238,943     items not     impacted by     accounting     changes     Equity                                                                                               Preferred                  9,560                   -         9,560             -           9,560     shares, common     shares and     contributed     surplus     Retained                   7,042                (40)         7,002             7           7,009     earnings     AOCI                         264               (629)         (365)             -           (365)     Total                     16,866               (669)        16,197             7          16,204     shareholders'     equity     Non-controlling              172                 (2)           170             -             170     interests     Total equity              17,038               (671)        16,367             7          16,374                            $ 393,385     $         (266)     $ 393,119     $      15       $ 393,134                                                                                                                              Reported     Post-employment          CIBC     Restated as                                  as at                                                at     $ millions                 October            benefits       Capital     October 31,                               31, 2013                             Trust            2013     ASSETS                                                                                   Securities -             $  44,068     $             -     $       2       $  44,070     Trading     Loans - Business            48,201                   -             6          48,207     and government     Investments in               1,713                (19)             1           1,695     equity-accounted     associates and     joint ventures     Deferred tax                   383                 146           (3)             526     asset     Other assets                 8,675               (516)             -           8,159     Asset line items           295,349                   -             -         295,349     not impacted by     accounting     changes                              $ 398,389     $         (389)     $       6       $ 398,006     LIABILITIES AND                                                                          EQUITY     Deposits -               $ 133,100     $             -     $   1,636       $ 134,736     Business and     government     Capital Trust                1,638                   -       (1,638)               -     securities     Deferred tax                    34                 (1)             -              33     liability     Other                       10,774                  54             1          10,829     liabilities     Liability line             234,414                   -             -         234,414     items not     impacted by     accounting     changes     Equity                                                                                   Preferred                    9,541                   -             -           9,541     shares, common     shares and     contributed     surplus     Retained                     8,402                (91)             7           8,318     earnings     AOCI                           309               (349)             -            (40)     Total                       18,252               (440)             7          17,819     shareholders'     equity     Non-controlling                177                 (2)             -             175     interests     Total equity                18,429               (442)             7          17,994                              $ 398,389     $         (389)     $       6       $ 398,006  The increase (decrease) on the consolidated statements of income and  consolidated statements of comprehensive income as a result of the  retrospective application of the amendments to IAS 19 and IFRS 10 was as  follows:     For the three                                                                                                   months ended     July 31, 2013                            Previously     Post-employment            CIBC                                                                          as                             Capital     $ millions               reported            benefits (1)       Trust     Reclassification (2)     Restated     Interest income        $    2,982     $             -         $     -     $              -       $    2,982     Interest expense            1,099                   -               -                    -            1,099     Net interest                1,883                   -               -                    -            1,883     income     Non-interest                1,380                   -               1                 (15)            1,366     income     Provision for                 320                   -               -                    -              320     credit losses     Non-interest                1,874                  19               -                 (15)            1,878     expenses     Income before               1,069                (19)               1                    -            1,051     taxes     Income taxes                  179                 (6)               -                    -              173     Net income                    890                (13)               1                    -              878     Net income                      -                   1               -                    -                1     attributable to     non-controlling     interests     Net income                    890                (14)               1                    -              877     attributable to     equity     shareholders     Net income                    890                (13)               1                    -              878     OCI, net of tax,             (91)                   -               -                    -             (91)     that is subject     to subsequent     reclassification     to net income     OCI, net of tax,                -                 353               -                    -              353     that is not     subject to     subsequent     reclassification     to net income     Comprehensive          $      799     $           340         $     1     $              -       $    1,140     income     (1) Represents an increase in Non-interest expenses - Employee         compensation and benefits of $19 million.     (2) Certain amounts associated with our self-managed credit         card portfolio have been reclassified from Non-interest         expenses - Other to Non-interest income - Card fees.                                                                                                              For the nine                                                                                                    months ended     July 31, 2013                            Previously     Post-employment            CIBC                                                                          as                             Capital     $ millions               reported            benefits (1)       Trust     Reclassification (2)     Restated     Interest income        $    8,852     $             -         $     -     $              -       $    8,852     Interest expense            3,291                   -               1                    -            3,292     Net interest                5,561                   -             (1)                    -            5,560     income     Non-interest                4,022                   -               3                 (47)            3,978     income     Provision for                 850                   -               -                    -              850     credit losses     Non-interest                5,682                  56               -                 (47)            5,691     expenses     Income before               3,051                (56)               2                    -            2,997     taxes     Income taxes                  487                (15)               -                    -              472     Net income                  2,564                (41)               2                    -            2,525     Net income                      4                   1               -                    -                5     attributable to     non-controlling     interests     Net income                  2,560                (42)               2                    -            2,520     attributable to     equity     shareholders     Net income                  2,564                (41)               2                    -            2,525     OCI, net of tax,             (85)                   -               -                    -             (85)     that is subject     to subsequent     reclassification     to net income     OCI, net of tax,                -                 230               -                    -              230     that is not     subject to     subsequent     reclassification     to net income     Comprehensive          $    2,479     $           189         $     2     $              -       $    2,670     income     (1) Represents an increase in Non-interest expenses - Employee         compensation and benefits of $56 million.     (2) Certain amounts associated with our self-managed credit         card portfolio have been reclassified from Non-interest         expenses - Other to Non-interest income - Card fees.                                                                                                              For the year                                                                                                    ended October     31, 2013                            Previously     Post-employment            CIBC                                                                          as                             Capital     $ millions               reported            benefits (1)       Trust     Reclassification (2)     Restated     Interest income        $   11,811     $             -         $     -     $              -       $   11,811     Interest expense            4,356                   -               2                    -            4,358     Net interest                7,455                   -             (2)                    -            7,453     income     Non-interest                5,328                 (1)               2                 (64)            5,265     income     Provision for               1,121                   -               -                    -            1,121     credit losses     Non-interest                7,614                  71               -                 (64)            7,621     expenses     Income before               4,048                (72)               -                    -            3,976     taxes     Income taxes                  648                (22)               -                    -              626     Net income                  3,400                (50)               -                    -            3,350     Net loss                      (3)                   1               -                    -              (2)     attributable to     non-controlling     interests     Net income                  3,403                (51)               -                    -            3,352     attributable to     equity     shareholders     Net income                  3,400                (50)               -                    -            3,350     OCI, net of tax,               45                   -               -                    -               45     that is subject     to subsequent     reclassification     to net income     OCI, net of tax,                -                 280               -                    -              280     that is not     subject to     subsequent     reclassification     to net income     Comprehensive          $    3,445     $           230         $     -     $              -       $    3,675     income     (1) Represents a decrease in Non-interest income - Income from         equity-accounted associates and joint ventures of $1         million and an increase in Non-interest expenses         - Employee compensation and benefits of $71 million.     (2) Certain amounts associated with our self-managed credit         card portfolio have been reclassified from Non-interest         expenses - Other to Non-interest income - Card fees.                                                                                                      For the year                                                                                            ended October     31, 2012                              Previously     Post-employment                                                                                  as     $ millions                 reported            benefits (1)     Reclassification (2)       Restated     Interest income        $     11,907     $             -         $              -       $     11,907     Interest expense              4,581                   -                        -              4,581     Net interest                  7,326                   -                        -              7,326     income     Non-interest                  5,223                 (5)                     (59)              5,159     income     Provision for                 1,291                   -                        -              1,291     credit losses     Non-interest                  7,215                  46                     (59)              7,202     expenses     Income before                 4,043                (51)                        -              3,992     taxes     Income taxes                    704                (15)                        -                689     Net income                    3,339                (36)                        -              3,303     Net income                        8                   1                        -                  9     attributable to     non-controlling     interests     Net income                    3,331                (37)                        -              3,294     attributable to     equity     shareholders     Net income                    3,339                (36)                        -              3,303     OCI, net of tax,                 19                   -                        -                 19     that is subject     to subsequent     reclassification     to net income     OCI, net of tax,                  -               (454)                        -              (454)     that is not     subject to     subsequent     reclassification     to net income     Comprehensive          $      3,358     $         (490)         $              -       $      2,868     income     (1) Represents a decrease in Non-interest income - Income from         equity-accounted associates and joint ventures of $5 million         and an increase in Non-interest         expenses - Employee compensation and benefits of $46         million.     (2) Certain amounts associated with our self-managed credit card         portfolio have been reclassified from Non-interest expenses         - Other to Non-interest         income - Card fees.  (b)     Other changes in accounting standards The following standards and amendments to standards were also adopted  effective November 1, 2013.  IFRS 11 "Joint Arrangements", issued in May 2011, requires entities which had  previously accounted for joint ventures using proportionate consolidation to  collapse the proportionately consolidated net asset value (including any  allocation of goodwill) into a single investment balance at the beginning of  the earliest period presented using the equity method. As we presently apply  the equity method for our joint arrangements under IFRS, the adoption of IFRS  11 did not impact our consolidated financial statements.  IFRS 12 "Disclosure of Interests in Other Entities", issued in May 2011,  requires enhanced disclosures about both consolidated entities and  unconsolidated entities in which an entity has involvement. The objective of  IFRS 12 is to provide information to enable users to evaluate the nature of,  and risks associated with, its interest in other entities, including  subsidiaries, joint arrangements, associates and unconsolidated structured  entities, and the effects of those interests on our consolidated financial  statements. IFRS 12 did not impact our consolidated financial statements;  however, additional disclosures will be provided in our annual consolidated  financial statements.  As a result of the issuance of IFRS 10, IFRS 11 and IFRS 12, the IASB issued  amended and renamed IAS 27 "Separate Financial Statements" and IAS 28  "Investments in Associates and Joint Ventures". The amended IAS 27 removes its  existing consolidation model and requirements related to consolidated  financial statements as they are now addressed in IFRS 10. The amended IAS 27  prescribes the accounting for investments in subsidiaries, jointly controlled  entities and associates in separate financial statements. Amended IAS 28  outlines how to apply the equity method to investments in associates and joint  ventures. The adoption of amended IAS 27 and IAS 28 did not impact our  consolidated financial statements.  IFRS 13 "Fair Value Measurement", issued in May 2011, replaces the fair value  measurement guidance contained in individual IFRSs with a single standard for  measuring fair value. IFRS 13 provides expanded disclosure about fair value  measurements for both financial and non-financial assets and liabilities  measured at fair value on a recurring or non-recurring basis and for items not  measured at fair value but for which fair value is disclosed. Adoption of this  standard did not result in changes to how we measure fair value. However,  additional disclosures related to the type and range of inputs used in the  estimation of the fair value of financial instruments measured at fair value  on the balance sheet that are considered to be in Level 3 of the fair value  hierarchy have been included in Note 2 of our interim consolidated financial  statements. In addition, we will be required to provide additional disclosures  related to the fair value of financial instruments measured at amortized cost  on our balance sheet, such as loans and deposits, including how the disclosed  fair values fit into the fair value hierarchy in our annual consolidated  financial statements.  IFRS 7 "Disclosures - Offsetting Financial Assets and Financial Liabilities",  issued in December 2011, contains amendments to IFRS 7 and requires new  disclosure for financial assets and liabilities that are offset in the balance  sheet or are subject to master netting arrangements or similar arrangements.  The amendments did not impact our consolidated financial statements; however,  additional disclosures will be provided in our annual consolidated financial  statements.  (c)     Future accounting policies changes We are currently evaluating the impact of adopting the standards listed below  that are not effective for us until fiscal 2015 or later:  Amendments to IAS 32 "Offsetting Financial Assets and Financial Liabilities" -  Issued in December 2011, the effective date for the amendments to IAS 32 for  us is November 1, 2014. The amendments to IAS 32 clarify that an entity  currently has a legally enforceable right to set-off if that right is: (i) not  contingent on a future event; and (ii) enforceable both in the normal course  of business and in the event of default, insolvency or bankruptcy of the  entity and all counterparties. The amendments are required to be adopted  retrospectively.  IFRIC 21 "Levies" - Issued in May, 2013, the effective date for the  interpretation for us is November 1, 2014. The interpretation clarifies the  timing of the recognition of the liability to pay a levy, which is an outflow  of resources embodying economic benefits (other than income taxes, fines and  penalties) that are imposed by governments on entities in accordance with  legislation. The interpretation concludes that if the occurrence of the  obligating event, as identified by the legislation, is at a point in time,  then the recognition of the liability shall be at that point in time.  Otherwise, if the obligating event occurs over a period of time, the liability  shall be recognized progressively over that period of time.  IFRS 15 "Revenue from Contracts with Customers" - Issued May 2014, IFRS 15  replaces prior guidance, including IAS 18 "Revenue" and IFRIC 13 "Customer  Loyalty Programmes". The effective date for us is November 1, 2017. The new  guidance includes a five-step recognition and measurement approach,  requirements for accounting of contract costs, and enhanced quantitative and  qualitative disclosure requirements.  IFRS 9 "Financial Instruments" - Issued July 2014, IFRS 9 replaces IAS 39  "Financial Instruments: Recognition and Measurement". IFRS 9 is mandatorily  effective for us on November 1, 2018 although early application is permitted  if an entity applies all the requirements of the standard early. IFRS 9  provides a new approach for the classification of financial assets, which  shall be based on the cash flow characteristics of the asset and the business  model of the portfolio in which the asset is held. IFRS 9 also introduces an  expected-loss impairment model that shall be applied to all financial  instruments held at amortized cost or fair value through OCI, and requires  entities to account for 12-month expected credit losses from the date  financial instruments are first recognized and to recognize full lifetime  expected credit losses in the event of a significant increase in credit risk.  Hedge accounting guidance has been changed to better align the accounting with  risk management activities.  For financial liabilities designated at fair  value through profit and loss, IFRS 9 requires the presentation of the effects  of changes in the liability's credit risk in OCI instead of net income and  amounts presented in OCI shall not be reclassified subsequently to net income.  We can elect to early apply only this presentation requirement without  applying the other requirements in IFRS 9.  2. Fair value measurement  Fair value is defined as the price that would be received to sell an asset, or  paid to transfer a liability, between market participants in an orderly  transaction in the principal market at the measurement date under current  market conditions (i.e., the exit price). The determination of fair value  requires judgment and is based on market information, where available and  appropriate. Fair value measurements are categorized into three levels within  a fair value hierarchy (Level 1, 2 or 3) based on the valuation inputs used in  measuring the fair value, as outlined below.         --  Level 1 - Unadjusted quoted market prices in active markets for             identical assets or liabilities we can access at the             measurement date. Bid prices, ask prices or prices within the             bid and ask, which are the most representative of the fair             value, are used as appropriate to measure fair value. Fair             value is best evidenced by an independent quoted market price             for the same instrument in an active market. An active market             is one where transactions are occurring with sufficient             frequency and volume to provide quoted prices on an ongoing             basis.         --  Level 2 - Quoted prices for identical assets or liabilities in             markets that are inactive or observable market quotes for             similar instruments, or use of valuation technique where all             significant inputs are observable. Inactive markets may be             characterized by a significant decline in the volume and level             of observed trading activity or through large or erratic             bid/offer spreads. In instances where traded markets do not             exist or are not considered sufficiently active, we measure             fair value using valuation models.         --  Level 3 - Non-observable or indicative prices or use of             valuation technique where one or more significant inputs are             non-observable.  For a significant portion of our financial instruments, quoted market prices  are not available because of the lack of traded markets, and even where such  markets do exist, they may not be considered sufficiently active to be used as  a final determinant of fair value.  When quoted market prices in active  markets are not available, we would consider using valuation models. The  valuation model and technique we select maximizes the use of observable market  inputs to the extent possible and appropriate in order to estimate the price  at which an orderly transaction would take place at the measurement date. In  an inactive market, we consider all reasonably available information including  any available pricing for similar instruments, recent arm's-length market  transactions, any relevant observable market inputs, indicative dealer or  broker quotations, and our own internal model-based estimates.  Valuation adjustments are an integral component of our fair valuation process.  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, parameter uncertainty and other market risk, model risk and  credit risk. For derivatives, we have credit valuation adjustments (CVA) that  factor in counterparty, as well as our own credit risk, and a valuation  adjustment for administration costs.  Generally, the unit of account for a financial instrument is the individual  instrument, and valuation adjustments are applied at an individual instrument  level, consistent with that unit of account. In cases where we manage a group  of financial assets and liabilities that consist of substantially similar and  offsetting risk exposures, the valuation adjustments for financial assets and  liabilities are measured on the basis of the net open risks.  We apply judgment in determining the most appropriate inputs and the weighting  we ascribe to each such input as well as in our selection of valuation  methodologies. Regardless of the valuation technique we use, we incorporate  assumptions that we believe market participants would make for credit,  funding, and liquidity considerations. When the fair value of a financial  instrument at inception is determined using a valuation technique that  incorporates significant non-observable market inputs, no inception profit or  loss (the difference between the determined fair value and the transaction  price) is recognized at the time the asset or liability is first recorded. Any  gains or losses at inception are deferred and recognized only in future  periods over the term of the instruments or when market quotes or data become  observable.  We have an ongoing process for evaluating and enhancing our valuation  techniques and models. Where enhancements are made, they are applied  prospectively, so that fair values reported in prior periods are not  recalculated on the new basis. Valuation models used, including analytics for  the construction of yield curves and volatility surfaces, are vetted and  approved, consistent with our model risk policy.  To ensure that valuations are appropriate, we have established internal  guidance on fair value measurement, which is reviewed periodically in  recognition of the dynamic nature of markets and the constantly evolving  pricing practices in the market. A number of policies and controls are put in  place to ensure the internal guidance on fair value measurement is being  applied consistently and appropriately. Fair value of publicly issued  securities and derivatives is independently validated at least once a month.  Valuations are verified to external sources such as exchange quotes, broker  quotes or other management-approved independent pricing sources. Key model  inputs, such as yield curves and volatilities, are independently verified. The  results from the independent price validation and any valuation adjustments  are reviewed by the Independent Price Verification Committee on a monthly  basis. This includes, but is not limited to, reviewing fair value adjustments  and methodologies, independent price verification results, limits and  valuation uncertainty. Fair value of privately issued securities is reviewed  on a quarterly basis.  Due to the judgment used in applying a wide variety of acceptable valuation  techniques and models, as well as the use of estimates inherent in this  process, estimates of fair value for the same or similar assets may differ  among financial institutions. The calculation of fair value is based on market  conditions as at each balance sheet date, and may not be reflective of  ultimate realizable value.  Details on fair value methods and assumptions used for determining fair value  of our financial instruments are disclosed in pages 105 to 107 of the 2013  Annual Report.  The table below presents 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        non-observable        Total        Total                                                               inputs         market inputs                           2014        2013         2014         2013        2014      2013         2014         2013     $ millions, as     Jul. 31     Oct. 31      Jul. 31      Oct. 31     Jul. 31   Oct. 31      Jul. 31      Oct. 31     at     Financial                                                                                                            assets     Deposits with    $       -   $       -   $       39   $      111   $       - $       -   $       39   $      111     banks     Trading                                                                                                              securities       Government     $   1,866   $   2,053   $    6,588   $    7,378   $       - $       -   $    8,454   $    9,431       issued or       guaranteed       Corporate         32,035      27,169        3,147        3,707           -         -       35,182       30,876       equity       Corporate              -           -        2,757        2,362           -         -        2,757        2,362       debt       Mortgage-              -           -          916          564         786       837        1,702        1,401       and       asset-backed                      $  33,901   $  29,222   $   13,408   $   14,011   $     786 $     837   $   48,095   $   44,070     Trading loans                                                                                                          Business and   $       -   $       -   $    4,963   $    2,211   $       - $       -   $    4,963   $    2,211       government     AFS securities                                                                                                         Government     $   4,237   $   1,162   $    8,860   $   14,625   $       - $       -   $   13,097   $   15,787       issued or       guaranteed       Corporate             34          29            -            9         593       618          627          656       equity       Corporate              -           -        5,299        7,967           8         9        5,307        7,976       debt       Mortgage-              -           -        1,940        2,922         134       286        2,074        3,208       and       asset-backed                      $   4,271   $   1,191   $   16,099   $   25,523   $     735 $     913   $   21,105   $   27,627     FVO securities                                                                                                         Government     $       -   $       -   $       48   $       44   $       - $       -   $       48   $       44       issued or       guaranteed       Corporate              -           -          100           96           -         -          100           96       debt       Asset-backed           -           -            -            -         113       147          113          147                      $       -   $       -   $      148   $      140   $     113 $     147   $      261   $      287     Derivative                                                                                                           instruments       Interest       $       2   $       -   $   10,775   $   13,718   $      19 $      46   $   10,796   $   13,764       rate       Foreign                -           -        5,584        4,812           -         -        5,584        4,812       exchange       Credit                 -           -           64            -         213       294          277          294       Equity               209         129          391          342           1         1          601          472       Precious             155           -           13           28           -         -          168           28       metal       Other                 90         117          711          460           -         -          801          577       commodity                      $     456   $     246   $   17,538   $   19,360   $     233 $     341   $   18,227   $   19,947     Total            $  38,628   $  30,659   $   52,195   $   61,356   $   1,867 $   2,238   $   92,690   $   94,253     financial     assets     Financial                                                                                                            liabilities     Deposits and     other     liabilities(1)   $       -   $       -   $  (1,993)   $  (1,729)   $   (746) $   (737)   $  (2,739)   $  (2,466)     Obligations        (6,262)     (9,099)      (6,541)      (4,228)           -         -     (12,803)     (13,327)     related to     securities     sold short                      $ (6,262)   $ (9,099)   $  (8,534)   $  (5,957)   $   (746) $   (737)   $ (15,542)   $ (15,793)     Derivative                                                                                                           instruments       Interest       $     (1)   $       -   $ (10,308)   $ (12,820)   $    (23) $    (48)   $ (10,332)   $ (12,868)       rate       Foreign                -           -      (5,229)      (4,166)           -         -      (5,229)      (4,166)       exchange       Credit                 -           -         (76)            -       (279)     (413)        (355)        (413)       Equity             (178)       (120)      (1,336)      (1,650)        (13)      (13)      (1,527)      (1,783)       Precious           (102)         (8)         (11)         (22)           -         -        (113)         (30)       metal       Other              (114)       (126)        (287)        (338)           -         -        (401)        (464)       commodity                      $   (395)   $   (254)   $ (17,247)   $ (18,996)   $   (315) $   (474)   $ (17,957)   $ (19,724)     Total            $ (6,657)   $ (9,353)   $ (25,781)   $ (24,953)   $ (1,061) $ (1,211)   $ (33,499)   $ (35,517)     financial     liabilities     (1) Comprises FVO deposits of $2,161 million (October         31, 2013: $1,764 million), FVO secured borrowings of         nil (October 31, 2013: $352 million),         bifurcated embedded derivatives of $572 million         (October 31, 2013: $348 million), and FVO other         liabilities of $6 million (October 31, 2013:         $2 million). Changes in our own credit risk had an         insignificant impact on the determination of the         fair value of our FVO deposits.  Transfers between levels in the fair value hierarchy are deemed to have  occurred at the beginning of the reporting period. Transfers between levels  can occur as a result of additional or new information regarding valuation  inputs and changes in their observability. During the quarter, we transferred  $29 million of trading securities and $160 million of securities sold short  from Level 1 to Level 2 due to reduced observability in the inputs used to  value these securities. In addition, the following transfers were made during  the quarter as the non-observable inputs no longer have a significant impact  on the fair value of these instruments or there has been a change in the  observability of one or more inputs that significantly impact their fair value:         --  $3 million of certain bifurcated embedded derivatives were             transferred from Level 2 to Level 3 and $45 million of certain             bifurcated embedded derivatives were transferred from Level 3             to Level 2 (October 31, 2013: $6 million of certain bifurcated             embedded derivatives were transferred from Level 2 to Level 3).         --  $27 million of derivative assets and $31 million of derivative             liabilities were transferred from Level 3 to Level 2 (October             31, 2013: nil of derivative assets and $1 million of derivative             liabilities were transferred from Level 2 to Level 3).  For the quarter and nine months ended July 31, 2014, net gains of $12 million  and $54 million were recognized, respectively, in the interim consolidated  statement of income on the financial instruments, for which fair value was  estimated using valuation techniques requiring non-observable inputs (net  gains of $43 million and $173 million for the quarter and nine months ended  July 31, 2013, 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 Transfer Transfer                                                                                                               unrealized                      Opening                                 gains     in to   out of                                              Closing                                                            (losses)        $ millions,      for the three                                   (1)   included     months ended   balance Realized (1) Unrealized (2)     in OCI  Level 3  Level 3 Purchases Issuances   Sales    Settlements   balance        Jul. 31, 2014                                                                                                                              Trading                                                                                                                                    securities     Mortgage-    $     827 $     20     $       22     $        - $      - $      - $       - $       - $  (50)   $     (33) $     786          and       asset-backed     AFS securities                                                                                                                               Corporate          625       13              -             64        -        -         7         -   (116)              -       593       equity       Corporate           16        4              -            (3)        -        -         -         -     (9)              -         8       debt     Mortgage-          185        -              -              -        -        -         -         -       -         (51)       134          and       asset-backed     FVO securities                                                                                                                             Asset-backed       136        3              1              -        -        -         -         -       -         (27)       113        Derivative                                                                                                                                 instruments       Interest            43        1            (2)              -        -     (22)         -         -       -            (1)        19       rate       Credit             242      (9)           (14)              -        -        -         -         -       -            (6)       213       Equity               6        -              -              -        -      (5)         -         -       -              -         1   Total assets   $   2,080 $     32     $        7     $       61 $      - $   (27) $       7 $       - $ (175)   $      (118) $   1,867        Deposits and     other     liabilities(3) $   (834) $     24     $     (64)     $        - $    (3) $     45 $       - $    (15) $     -   $        101 $   (746)     Derivative                                                                                                                                 instruments       Interest          (47)      (1)              2              -        -       22         -         -       -              1      (23)       rate       Credit           (350)        2             10              -        -        -         -         -       -             59     (279)       Equity            (22)        -              -              -        -        9         -         -       -              -      (13)     Total          $ (1,253) $     25     $     (52)     $        - $    (3) $     76 $       - $    (15) $     -   $        161 $ (1,061)     liabilities     Oct. 31, 2013                                                                                                                              Trading                                                                                                                                    securities     Mortgage-    $     839 $     46     $       21     $        - $      - $      - $       - $       - $     -   $     (69) $     837          and       asset-backed     Trading loans                                                                                                                                Business and         8        8              -              -        -        -         -         -    (16)              -         -       government     AFS securities                                                                                                                               Corporate          639       27           (36)             21        -        -         8         -    (41)              -       618       equity       Corporate           23       15              1            (7)        -        -         -         -    (23)              -         9       debt     Mortgage-          347        -              -              -        -        -         -         -       -         (61)       286          and       asset-backed     FVO securities                                                                                                                               Asset-backed       150        4            (2)              -        -        -         -         -       -            (5)       147     Derivative                                                                                                                                 instruments       Interest            43        2              2              -        -        -         -         -       -            (1)        46       rate       Credit             342     (16)           (23)              -        -        -         -         -       -            (9)       294       Equity               1        -              -              -        -        -         -         -       -              -         1   Total assets   $   2,392 $     86     $     (37)     $       14 $      - $      - $       8 $       - $  (80)   $      (145) $   2,238        Deposits and     other     liabilities(3) $   (692) $   (20)     $     (40)     $        - $    (6) $      - $       3 $       5 $   (5)   $         18 $   (737)     Derivative                                                                                                                                 instruments       Interest          (49)      (4)              2              -        -        -         -         -       -              3      (48)       rate       Credit           (473)       15             21              -        -        -         -         -       -             24     (413)       Equity             (4)        -              -              -      (1)        -         -       (8)       -              -      (13)     Total          $ (1,218) $    (9)     $     (17)     $        - $    (7) $      - $       3 $     (3) $   (5)   $         45 $ (1,211)     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 $515 million (October         31, 2013: $557 million) and bifurcated         embedded derivatives of $231 million (October         31, 2013: $180 million).  Quantitative information about significant non-observable inputs Valuation techniques using one or more non-observable inputs are used for a  number of financial instruments. The following table discloses the valuation  techniques and quantitative information about the significant non-observable  inputs used in Level 3 financial instruments:                            2014                                              Range of inputs     $ millions, as     Jul. 31         Valuation                  Key        Low      High       at                                techniques       non-observable                                                                inputs     Trading                                                                                      securities       Mortgage- and  $     786            Market         Market proxy          0 %    97.5 %       asset-backed                      proxy or            or direct                                           direct         broker quote                                           broker                                            quote     AFS securities                                                                                 Corporate                                                                                    equity                                         Adjusted         Limited                        net asset            Net asset         partnerships       289             value (1)            value        n/a       n/a           Private            304         Valuation             Earnings        6.1      14.6           companies                       multiple             multiple         and         restricted         stock                                                               Revenue        3.4       3.6                                                                multiple                                       Discounted        Discount rate        8.3 %    20.0 %                                        cash flow                                           Option               Market       60.5 %    85.0 %                                            model           volatility       Corporate debt         8        Discounted        Discount rate       30.0 %    30.0 %                                        cash flow       Mortgage- and        134        Discounted        Credit spread        0.6 %     0.6 %       asset-backed                     cash flow                                                            Prepayment       13.8 %    28.9 %                                                                  rate     FVO securities                                                                                 Asset-backed         113            Market         Market proxy       78.0 %    85.5 %                                         proxy or            or direct                                           direct         broker quote                                           broker                                            quote     Derivative                                                                                   instruments                                      Proprietary       Interest rate         19             model (2)              n/a        n/a       n/a                                             Market                                         proxy or                                           direct         Market proxy                                           broker            or direct       Credit               213 (3)         quote         broker quote       28.7 %   100.0 %                                       Discounted         Default rate        4.0 %     4.0 %                                        cash flow                                                         Recovery rate       50.0 %    70.0 %                                                            Prepayment       20.0 %    20.0 %                                                                  rate                                                         Credit spread (4)      0 %     1.1 %       Equity                 1            Option               Market       13.4 %    13.4 %                                            model           volatility     Total assets     $   1,867                                                                   Deposits and     $   (746)            Market         Market proxy          0 %    85.5 %     other                               proxy or            or direct     liabilities                           direct         broker quote                                           broker                                            quote                                           Option               Market        7.6 %    24.0 %                                            model           volatility                                                                Market     (55.4) %   100.0 %                                                           correlation     Derivative                                                                                   instruments                                      Proprietary       Interest rate       (23)             model (2)              n/a        n/a       n/a         Credit             (279)            Market         Market proxy          0 %     100 %                                         proxy or            or direct                                           direct         broker quote                                           broker                                            quote                                       Discounted         Default rate        4.0 %     4.0 %                                        cash flow                                                         Recovery rate       50.0 %    70.0 %                                                            Prepayment       20.0 %    20.0 %                                                                  rate                                                         Credit spread          0 %     1.1 %       Equity              (13)            Option               Market       28.1 %    30.5 %                                            model           volatility     Total            $ (1,061)                                                                   liabilities     (1) Adjusted net asset value is determined using reported net         asset values obtained from the fund manager or general         partner of the limited partnership         and may be adjusted for current market levels where         appropriate.     (2) Using valuation techniques which we consider to be         non-observable.     (3) Net of CVA reserves related to financial guarantors         calculated based on reserve rates (as a percentage of fair         value) ranging from 16% to 69%.     (4) Excludes financial guarantors.     n/a Not applicable.  Sensitivity of Level 3 financial assets and liabilities The following section describes the significant non-observable inputs  identified in the table above, the inter-relationships between those inputs  and the sensitivity of fair value to changes in those inputs. We performed our  Level 3 sensitivity analysis on an individual instrument basis, except for  instruments managed within our structured credit run-off business for which we  performed the sensitivity analysis on a portfolio basis to reflect the manner  in which those financial instruments are managed.  Within our structured credit run-off business our primary sources of exposure,  which are derived either through direct holdings or derivatives, are U.S.  residential mortgage market contracts, collateralized loan obligations (CLOs),  corporate debt and other securities and loans. Structured credit positions  classified as loans and receivables are carried at amortized cost and are  excluded from this sensitivity analysis. The structured credit positions  carried on the consolidated balance sheet at fair value are within trading  securities, FVO securities, FVO structured note liability within deposits and  derivatives. These fair values are generally derived from and are sensitive to  non-observable inputs, including indicative broker quotes and internal models  that utilize default rates, recovery rates, prepayment rates and credit  spreads. Indicative broker quotes are derived from proxy pricing in an  inactive market or from the brokers' internal valuation models. These quotes  are used to value our trading and FVO securities, FVO structured note  liability and derivative positions. A significant increase in the indicative  broker prices or quotes would result in an increase in the fair value of our  Level 3 securities and note liability but a decrease in the fair value of our  credit derivatives. The fair value of our credit derivatives referencing CLO  assets are also impacted by other key non-observable inputs, including:         --  Prepayment rates - which are a measure of the future expected             repayment of a loan by a borrower in advance of the scheduled             due date. Prepayment rates are driven by consumer behaviour,             economic conditions and other factors. A significant increase             in prepayment rates of the underlying loan collateral of the             referenced CLO assets would result in an increase in the fair             value of the referenced CLO assets and a decrease in our Level             3 credit derivatives.         --  Recovery rates - which are an estimate of the amount that will             be recovered following a default by a borrower. Recovery rates             are expressed as one minus a loss given default rate. Hence, a             significant increase in the recovery rate of the underlying             defaulted loan collateral of the referenced CLO assets would             result in an increase in the fair value of the referenced CLO             assets and a decrease in the fair value of our Level 3 credit             derivatives.         --  Credit spreads - which are the premium over a benchmark             interest rate in the market to reflect a lower credit quality             of a financial instrument and forms part of the discount rate             used in a discounted cash flow model. A significant increase in             the credit spread, which raises the discount rate applied to             future cash flows of the referenced CLO assets, would result in             a decrease in the fair value of referenced CLO assets and an             increase in the fair value of our Level 3 credit derivatives.         --  Default rates or probabilities of default - which are the             likelihood of a borrower's inability to repay its obligations             as they become contractually due. A significant increase in the             default rate of the underlying loan collateral of the             referenced CLO assets up to a certain reasonably possible level             would result in an increase in the fair value of the referenced             CLO assets and a decrease in the fair value of our Level 3             credit derivatives. This impact is due to accelerated principal             repayments from the defaulted underlying loan collateral and             the subordination structure of the referenced CLO assets. In             general, higher default rates have a positive correlation with             credit spreads, but a negative correlation with recovery rates             and prepayment rates, with the respective impact on fair value             as described above.  The fair value of the credit derivatives is also sensitive to CVA for  counterparty risk on both the credit derivative counterparty and on CIBC.  The impact of adjusting the indicative broker quotes, default rates, recovery  rates, prepayment rates and credit spreads noted above to reasonably possible  alternatives would increase the net fair value by up to $34 million or  decrease the net fair value by up to $33 million in respect of financial  instruments carried at fair value in our structured credit run-off business.  Changes in fair value of a Level 3 FVO structured note liability and the Level  3 positions that the note hedges have no impact on this sensitivity analysis  because reasonably possible changes in fair value are expected to be largely  offsetting.  The fair value of our investments in private companies is derived from  applying applicable valuation multiples to financial indicators such as  revenue or earnings. Earnings multiples or revenue multiples represent the  ratios of earnings or revenue to enterprise value and are often used as  non-observable inputs in the fair value measurement of our investments in  private companies. We apply professional judgment in our selection of the  multiple from comparable listed companies, which is then further adjusted for  company-specific factors. The fair value of private companies is sensitive to  changes in the multiple we apply. A significant increase in earnings multiples  or revenue multiples generally results in an increase in the fair value of our  investments in private companies. The fair value of the restricted stock takes  into account the valuation reserves pertaining to security-specific  restrictions. The security-specific restrictions are determined based on the  Black-Scholes option model which incorporates implied volatility as a key  non-observable input. A significant increase in implied volatility generally  results in an increase in the valuation reserve and therefore a decrease in  the fair value of the restricted stock. By adjusting the multiple and implied  volatility within a reasonably possible range, the aggregate fair value for  our investments in private companies and restricted stock would increase by  $50 million or decrease by $26 million.  The fair value of our limited partnerships (LPs) is determined based on the  net asset value (NAV) provided by the fund managers, adjusted as appropriate.  The fair value of LPs is sensitive to changes in the NAV and by adjusting the  NAV within a reasonably possible range, the aggregate fair value of our LPs  would increase or decrease by $26 million.  The fair value of our asset-backed securities (ABS) is determined based on  non-observable credit spreads and assumptions concerning the repayment of  receivables underlying these ABS. The fair value of our ABS is sensitive to  changes in the credit spreads and prepayment assumptions. A significant  increase in credit spreads generally results in a decrease in the fair value  of our Level 3 ABS and a significant increase in prepayment rates would result  in a decrease in the fair value of our Level 3 ABS. As these ABS are  approaching maturity, the impact of adjusting the non-observable inputs within  a reasonable possible range would be insignificant.  Our bifurcated embedded derivatives are recorded within deposits and other  liabilities. The determination of the fair value of certain bifurcated  embedded derivatives requires significant assumptions and judgment to be  applied to both the inputs and the valuation techniques employed. These  embedded derivatives are sensitive to long-dated market volatility and  correlation inputs, which we consider to be non-observable. Market volatility  is a measure of the anticipated future variability of a market price and is an  important input for pricing options which are inherent in many of our embedded  derivatives. A higher market volatility generally results in a higher option  price, with all else held constant, due to the higher probability of obtaining  a greater return from the option, and results in an increase in the fair value  of our Level 3 embedded derivative liabilities. Correlation inputs are used to  value those embedded derivatives where the payout is dependent upon more than  one market price. For example, the payout of an equity basket option is based  upon the performance of a basket of stocks, and the inter-relationships  between the price movements of those stocks. A positive correlation implies  that two inputs tend to change the fair value in the same direction, while a  negative correlation implies that two inputs tend to change the fair value in  the opposite direction. Changes in market correlation could result in an  increase or a decrease in the fair value of our Level 3 embedded derivative  liabilities. By adjusting the non-observable inputs by reasonably alternative  amounts, the fair value of our embedded derivative liabilities would increase  or decrease by $8 million.  3. Significant acquisition and dispositions  Aeroplan Agreements On December 27, 2013, CIBC completed the transactions contemplated by the  tri-party agreements with Aimia Canada Inc. (Aimia) and The Toronto-Dominion  Bank (TD) that were announced on September 16, 2013.  CIBC sold to TD approximately 50% of its existing Aerogold VISA credit card  portfolio, consisting primarily of credit card only customers, while CIBC  retained the Aerogold VISA credit card accounts held by clients with broader  banking relationships at CIBC.  The portfolio divested by CIBC consisted of $3.3 billion of credit card  receivables. Upon closing, CIBC received a cash payment from TD equal to the  credit card receivables outstanding acquired by TD.  CIBC also received upon closing, in aggregate, $200 million in upfront  payments from TD and Aimia.  Under the terms of the agreements:         --  CIBC continues to have rights to market the Aeroplan program             and originate new Aerogold cardholders through its CIBC branded             channels.         --  The parties have agreed to certain provisions to compensate for             the risk of cardholder migration from one party to another.             There is potential for payments of up to $400 million by             TD/Aimia or CIBC for net cardholder migration over a period of             5 years.         --  CIBC receives annual commercial subsidy payments from TD             expected to be approximately $38 million per year in each of             the three years after closing.         --  The CIBC and Aimia agreement includes an option for either             party to terminate the agreement after the third year and             provides for penalty payments due from CIBC to Aimia if holders             of Aeroplan credit cards from CIBC's retained portfolio switch             to other CIBC credit cards above certain thresholds.  In conjunction with the completion of the Aeroplan transaction, CIBC has fully  released Aimia and TD from any potential claims in connection with TD becoming  Aeroplan's primary financial credit card partner.  Acquisition of Atlantic Trust Private Wealth Management On December 31, 2013, CIBC completed the acquisition of Atlantic Trust Private  Wealth Management (Atlantic Trust) from its parent company, Invesco Ltd., for  $224 million (US$210 million) plus working capital and other adjustments.  Atlantic Trust provides integrated wealth management solutions for  high-net-worth individuals, families, foundations and endowments in the United  States.  The following summarizes the consideration transferred and the amounts of  assets acquired and liabilities assumed at the acquisition date.  Consideration transferred The consideration transferred was as follows:      $ millions, as at December                                                  31, 2013     Upfront cash payment                                        $       179     Contingent consideration, at                                         45     fair value (deferred payment)     Working capital and other                                            12     adjustments     Total consideration                                         $       236     transferred  The deferred payment is based on acquired assets under management (AUM) at the  measurement date of April 30, 2014. The estimated fair value of the deferred  payment of $45 million (US$42 million) as at the acquisition date was included  in the consideration transferred. The deferred payment was settled in May 2014  for $46 million (US $42 million).  Assets acquired and liabilities assumed The fair values of identifiable assets acquired and liabilities assumed were  as follows:     $ millions, as at                                                           December 31, 2013     Cash                                                       $         47     AFS securities                                                        4     Land, buildings                                                      10     and equipment     Other assets                                                         30     Software and other                                                   91     intangible assets     Other liabilities                                                  (30)     Net identifiable                                                    152     assets acquired     Goodwill arising                                                     84     on acquisition     Total                                                      $        236     consideration     transferred  Intangible assets and goodwill The acquired intangible assets include a customer relationship intangible  asset of $89 million that arises from the acquired investment management  contracts. The fair value of the customer relationship intangible asset was  estimated using a discounted cash flow method based on estimated future cash  flows arising from fees earned from the acquired AUM, which took into account  expected net redemptions and market appreciation from existing clients, net of  operating expenses and other cash outflows. The goodwill arising on  acquisition of $84 million mainly comprised the value of expected synergies  and the value of new business growth arising from the acquisition.  Acquisition-related costs Acquisition-related costs of $5 million were included in Non-interest expenses.  Sale of equity investment On November 29, 2013, CIBC sold an equity investment that was previously  acquired through a loan restructuring in CIBC's exited European leveraged  finance business. The transaction resulted in an after-tax gain, net of  associated expenses, of $57 million in the quarter ended January 31, 2014.  4. Securities  Fair value of AFS securities                                                                   2014                                              2013  $ millions, as                                                  Jul.                                              Oct.  at                                                                31                                                31                                         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            $   2,604   $       27   $        -   $  2,631   $   6,770   $       34   $      (1)   $   6,803          federal       government     Other                   2,505           20            -      2,525       3,925           34          (1)       3,958          Canadian       governments     U.S. Treasury           5,687            4         (30)      5,661       2,856            5         (27)       2,834    and agencies    Other foreign           2,279           12         (11)      2,280       2,193           17         (18)       2,192    governments  Mortgage-backed           1,677            8          (1)      1,684       2,894           12          (2)       2,904  securities  Asset-backed                387            3            -        390         299            5            -         304  securities  Corporate                 5,266           41          (8)      5,299       7,927           57         (17)       7,967  public debt  Corporate                     6            2            -          8           5            4            -           9        private debt     Corporate     public equity   (1)                          18          147            -        165          12           18            -          30  Corporate                   261          201            -        462         363          263            -         626  private equity                        $  20,690   $      465   $     (50)   $ 21,105   $  27,244   $      449   $     (66)   $  27,627        (1) Includes restricted stock.  As at July 31, 2014, the amortized cost of 146 AFS securities that are in a  gross unrealized loss position (October 31, 2013: 148 securities) exceeded  their fair value by $50 million (October 31, 2013: $66 million). The  securities that have been in a gross unrealized loss position for more than a  year include 51 AFS securities (October 31, 2013: 24 securities) with a gross  unrealized loss of $46 million (October 31, 2013: $40 million). We have  determined that these AFS securities were not impaired.  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 and nine months ended July 31, 2014, we  have not reclassified any securities.  The following tables show the carrying values, fair values, and income or loss  impact of the assets reclassified:                                                2014                           2013     $ millions,                             Jul. 31                        Oct. 31     as at                                 Fair       Carrying            Fair       Carrying                                value          value           value          value     Trading                $   1,854     $    1,864     $     2,746     $    2,781     assets     previously     reclassified     to loans and     receivables     Trading                        6              6               7              7     assets     previously     reclassified     to AFS     Total                  $   1,860     $    1,870     $     2,753     $    2,788     financial     assets     reclassified                                                                                                                             For the three        For the nine                                                  months ended        months ended                                    2014       2014       2013     2014       2013     $ millions                     Jul.       Apr.       Jul.     Jul.       Jul.                                      31         30         31       31         31     Net income (before                                                                taxes) recognized     on assets     reclassified       Interest income            $   14     $   16     $   16   $   48     $   52       Impairment                      -          -          -        -       (14)       write-downs                                  $   14     $   16     $   16   $   48     $   38     Change in fair                                                                    value recognized     in net income     (before taxes) on     assets if       reclassification                                                                  had not been       made       On trading                 $    5     $  (6)     $  (9)   $   20     $    4       assets       previously       reclassified to       loans and       receivables       On trading                      -          -          -        -          -       assets       previously       reclassified to       AFS                                  $    5     $  (6)     $  (9)   $   20     $    4  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.  5. Loans  Allowance for credit losses                                                                      As at or for the     As at or for the nine                                                                                three                                                                         months ended              months ended                                                         2014        2014        2013        2014          2013     $ millions                                       Jul. 31     Apr. 30     Jul. 31     Jul. 31       Jul. 31                          Individual   Collective       Total       Total       Total       Total         Total                           allowance    allowance   allowance   allowance   allowance   allowance     allowance     Balance at           $      370   $    1,419   $   1,789   $   1,685   $   1,817   $   1,758     $   1,916     beginning of     period       Provision                  27          168         195         330         320         743           850       for credit       losses       Write-offs               (30)        (218)       (248)       (248)       (362)       (773)       (1,066)       Recoveries                  1           45          46          50          49         146           139       Interest                  (3)          (4)         (7)         (8)        (10)        (24)          (28)       income on       impaired       loans       Other                     (4)          (2)         (6)        (20)           9        (81) (1)        12     Balance at           $      361   $    1,408   $   1,769   $   1,789   $   1,823   $   1,769     $   1,823     end of     period     Comprises:                                                                                                       Loans              $      361   $    1,342   $   1,703   $   1,726   $   1,759   $   1,703     $   1,759       Undrawn       credit       facilities       (2)                         -           66          66          63          64          66            64     (1) Includes a release of $81 million of collective         allowance for credit losses resulting from the         sale of approximately 50% of our         Aerogold VISA portfolio to TD which was recognized         as part of the net gain on sale.     (2) Included in Other liabilities on the interim         consolidated balance sheet.  Impaired loans                                                                                  2014         2013     $ millions,                                                                  Jul.         Oct.     as at                                                                          31           31                                    Gross     Individual     Collective            Net          Net                                 impaired      allowance      allowance (1)   impaired     impaired     Residential                 $    518     $        1     $      163       $    354     $    394     mortgages     Personal                         216              9            139             68           86     Business                         758            351             10            397          520     and     government     Total                     impaired     loans(2)                    $  1,492     $      361     $      312       $    819     $  1,000     (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 a collective allowance of         $1,096 million (October 31, 2013: $1,211 million) on         balances and commitments which are         not impaired.     (2) Average balance of gross impaired loans for the quarter         ended July 31, 2014 totalled $1,482 million         (for the quarter ended October 31, 2013: $1,655 million).  Contractually past due loans but not impaired This is comprised of loans where repayment of principal or payment of interest  is contractually in arrears. The following table provides an aging analysis of  the contractually past due loans.                                                                        2014        2013     $ millions,                                                       Jul.        Oct.     as at                                                               31          31                                    Less       31 to       Over                                                            than                                 31 days          90         90       Total       Total                                                days       days     Residential                 $ 1,716     $   665     $  218     $ 2,599     $ 2,509     mortgages     Personal                        517         103         24         644         567     Credit card                     540         143         80         763         955     Business                        142         132         27         301         258     and     government                                 $ 2,915     $ 1,043     $  349     $ 4,307     $ 4,289  6. Goodwill                                                       Cash-generating units (CGUs)                                                                  CIBC       Wealth       Capital                                 $ millions, for the           FirstCaribbean   Management       markets         Other         Total     three months ended     2014 Balance at               $          344   $      970   $        40   $        84   $     1,438          beginning of          period     Jul.   Acquisitions                        -            -             -             -             -     31            Impairment                          -            -             -             -             -            Adjustments            (1)                               (2)            -             -           (1)           (3)          Balance at end           $          342   $      970   $        40   $        83   $     1,435          of period     2014 Balance at               $          776   $      970   $        40   $        84   $     1,870          beginning of          period     Apr.   Acquisitions                        -            1             -             -             1     30            Impairment                      (420)            -             -             -         (420)            Adjustments            (1)                              (12)          (1)             -             -          (13)          Balance at end           $          344   $      970   $        40   $        84   $     1,438          of period     2013 Balance at               $          702   $      884   $        40   $        82   $     1,708          beginning of          period     Jul.   Acquisitions                        -            -             -             -             -     31            Impairment                          -            -             -             -             -            Adjustments            (1)                                14            -             -             -            14          Balance at end           $          716   $      884   $        40   $        82   $     1,722          of period                                                                                                         $ millions, for the                                                                                     nine months ended     2014 Balance at               $          727   $      884   $        40   $        82   $     1,733          beginning of          period     Jul.   Acquisitions                        -           84             -             -            84     31            Impairment                      (420)            -             -             -         (420)            Adjustments            (1)                                35            2             -             1            38          Balance at end           $          342   $      970   $        40   $        83   $     1,435          of period     2013 Balance at               $          696   $      884   $        40   $        81   $     1,701          beginning of          period     Jul.   Acquisitions                        -            -             -             -             -     31            Impairment                          -            -             -             -             -            Adjustments            (1)                                20            -             -             1            21          Balance at end           $          716   $      884   $        40   $        82   $     1,722          of period     (1) Includes foreign currency translation adjustments.  Impairment testing of goodwill and key assumptions  CIBC FirstCaribbean For the impairment test performed as at August 1, 2013, we determined that the  recoverable amount of the FirstCaribbean International Bank Limited (CIBC  FirstCaribbean) CGU approximated its carrying value. As a result, no  impairment was recognized. During the quarter ended April 30, 2014, we revised  our expectations concerning the extent and timing of the recovery of economic  conditions in the Caribbean region. We identified this change in expectation  as an indicator of impairment and therefore estimated the recoverable amount  of CIBC FirstCaribbean as at April 30, 2014 to determine whether an impairment  loss existed.  The recoverable amount of the CIBC FirstCaribbean CGU was based on a value in  use calculation that was estimated using a five year cash flow projection and  an estimate of the capital required to be maintained in the region to support  ongoing operations. The five year cash flow projection was consistent with  CIBC FirstCaribbean's three year internal plan that was previously reviewed by  its Board of Directors adjusted to reflect management's belief that the  economic recovery expected in the Caribbean region would occur over a longer  period of time than originally forecasted and that estimated realizable values  of underlying collateral for non-performing loans would be lower than  previously expected. A terminal growth rate of 2.5% (2.5% as at August 1,  2013) was applied to the years after the five year forecast. All of the  forecast cash flows were discounted at an after-tax rate of 13% (13.62%  pre-tax) which we believe to be a risk-adjusted interest rate appropriate to  CIBC FirstCaribbean (we used an identical after-tax rate of 13% as at August  1, 2013). The determination of a discount rate and a terminal growth rate  require the exercise of judgment. The discount rate was determined based on  the following primary factors: i) the risk-free rate, ii) an equity risk  premium, iii) beta adjustment to the equity risk premium based on a review of  betas of comparable publicly traded financial institutions in the region, and  iv) a country risk premium. The terminal growth rate was based on the forecast  inflation rates and management's expectations of real growth.  We determined that the carrying amount of the CIBC FirstCaribbean CGU exceeded  our estimate of its recoverable amount as at April 30, 2014. As a result, we  recorded an impairment charge of $420 million during the quarter ended April  30, 2014 in respect of goodwill held by Corporate and Other for CIBC  FirstCaribbean.  Estimation of the recoverable amount is an area of significant judgment.  Reductions in the estimated recoverable amount could arise from various  factors, such as, reductions in forecasted cash flows, an increase in the  assumed level of required capital, and any adverse changes to the discount  rate or the terminal growth rate either in isolation or in any combination  thereof. We estimated that a 10% decrease in each of the terminal year's and  subsequent years' forecasted cash flows would result in a reduction in the  estimated recoverable amount of the CIBC FirstCaribbean CGU by approximately  $115 million as at April 30, 2014. We also estimated that a 50 basis point  increase in the after-tax discount rate would result in a reduction in the  estimated recoverable amount of the CIBC FirstCaribbean CGU by approximately  $65 million as at April 30, 2014. These sensitivities are indicative only and  should be considered with caution, as the effect of the variation in each  assumption on the estimated recoverable amount is calculated in isolation  without changing any other assumptions. In practice, changes in one factor may  result in changes in another, which may magnify or counteract the disclosed  sensitivities. We will complete our annual impairment testing in the fourth  quarter of 2014.  7. 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 118 and 119 of the 2013 Annual Report, except for CIBC  Capital Trust, which is no longer consolidated effective November 1, 2013. See  Note 1 to the interim consolidated financial statements for additional details.  We have two covered bond programs, structured and legislative. Covered bonds  are full recourse on-balance sheet obligations that are also fully  collateralized by assets over which bondholders enjoy a priority claim in the  event of CIBC's insolvency. Under the structured program we transfer a pool of  insured mortgages to the CIBC Covered Bond Guarantor Limited Partnership that  warehouses these mortgages and serves as a guarantor to bondholders for  payment of interest and principal. Under the legislative program, we transfer  a pool of conventional uninsured mortgages to the CIBC Covered Bond  (Legislative) Guarantor Limited Partnership that warehouses these mortgages  and serves as a guarantor to bondholders for payment of interest and  principal. For both covered bond programs, the assets are owned by the  guarantor and not CIBC. As at July 31, 2014, our structured program had issued  covered bond liabilities of $11.3 billion with a fair value of $11.4 billion  (October 31, 2013: $11.7 billion with a fair value of $11.8 billion) and our  legislative program had issued covered bond liabilities of $2.0 billion with a  fair value of $2.0 billion (October 31, 2013: $2.0 billion with a fair value  of $2.0 billion). The covered bond liabilities are supported by a  contractually-determined portion of the assets transferred to the guarantor  and certain contractual arrangements designed to protect the bondholders from  adverse events, including foreign currency fluctuations.  With respect to Cards II Trust as at July 31, 2014, $4.3 billion of credit  card receivable assets with a fair value of $4.4 billion (October 31, 2013:   $4.6 billion with a fair value of $4.7 billion) supported associated funding  liabilities of $4.3 billion with a fair value of $4.4 billion (October 31,  2013: $4.6 billion with a fair value of $4.7 billion).  As at July 31, 2014, there were $2.8 billion (October 31, 2013: $2.1 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.                              Single               CIBC                                               Commercial                              seller         structured                                 and     collateralized           Third-party      Pass-through         mortgage                        multi-seller               debt     structured vehicles      investment   securitization                                             obligation     $ millions, as         conduits           vehicles     Run-off   Continuing     structures            trust     at July 31,     2014     On-balance                                                                                                      sheet assets     at carrying     value(1)       Trading          $         15     $            7   $     779   $      290   $      2,440   $            9       securities       AFS                         -                  2           -          572              -                -       securities       FVO                                            -         113            -              -                -       securities       Loans                      80                 52       1,751          532              -                -       Derivatives       (2)                         -                  -           -            -            105                -                        $         95     $           61   $   2,643   $    1,394   $      2,545   $            9     October 31,        $         90     $          135   $   3,456   $      756   $      3,135   $            5     2013     On-balance                                                                                                      sheet     liabilities at     carrying value     (1)       Derivatives       (2)              $          -     $            6   $     242   $        -   $        161   $            -     October 31,        $          -     $           13   $     355   $        -   $        209   $            -     2013     Maximum                                                                                                         exposure to     loss, net of     hedges       Investment       $         95     $           61   $   2,643   $    1,394   $      2,440   $            9       and loans       Notional of                 -                117       1,680            -              -                -       written       derivatives,       less fair       value losses       Liquidity       and credit       facilities              2,798 (3)             45          95          690              -                -       Less: hedges                                                                                                    of       investments,       loans and       written                                   -               (96)     (3,650)            -        (2,440)                -       derivatives       exposure                        $      2,893     $          127   $     768   $    2,084   $          -   $            9     October 31,        $      2,241     $           97   $     970   $    1,290   $          -   $            5     2013     (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.     (3) Excludes an additional $1.3 billion (October 31,         2013: $1.1 billion) relating to our backstop         liquidity facilities provided to the multi-seller         conduits         as part of their commitment to fund purchases of         additional assets.  Derecognition of financial assets Details of the financial assets that did not qualify for derecognition are  provided on page 119 of the 2013 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:                                                     2014                          2013     $ millions, as                                 Jul.                          Oct.     at                                               31                            31                                 Carrying           Fair       Carrying           Fair                                   amount          value         amount          value     Residential                                                                    mortgages     securitizations     (1)                       $   24,521     $   24,557     $   30,508     $   30,538     Securities held                                                                by     counterparties     as collateral     under     repurchase     agreements(2)     (3)                            2,503          2,503          1,159          1,159     Securities lent                                                                for securities     collateral (2)     (3)                           15,152         15,152         11,793         11,793                               $   42,176     $   42,212     $   43,460     $   43,490     Carrying amount                                                                of associated     liabilities (4)           $   43,207     $   43,503     $   44,586     $   44,538     (1) Includes $3.7 billion (October 31, 2013: $7.2 billion) of mortgages         underlying mortgage-backed securities held by CMHC counterparties         as collateral under repurchase agreements. Government of Canada         bonds have also been pledged as collateral to CMHC counterparties.         Certain cash in transit balances related to the securitization         process amounting to $1,213 million (October 31, 2013: $1,126         million) have         been applied to reduce these balances.     (2) Does not include over-collateralization of assets pledged.     (3) Excludes third-party pledged assets.     (4) Includes the obligation to return off-balance sheet securities         collateral on securities lent.  Additionally, we securitized $32.1 billion with a fair value of $32.1 billion  (October 31, 2013: $25.2 billion with a fair value of $25.2 billion) of  mortgages that were not transferred to external parties.  8. Deposits((1)(2))                                                                                         2014            2013     $ millions, as at                                                                Jul. 31         Oct. 31                                       Payable        Payable         Payable                                                                            on                           on a                                                        after           fixed                                        demand (3)     notice (4)        date (5)       Total           Total     Personal                         $  9,359       $ 76,460       $  43,379       $ 129,198       $ 125,034     Business and     government                         35,065         22,819          84,361         142,245 (6)     134,736     Bank                                2,098             17           5,585           7,700           5,592     Secured borrowings(7)                   -              -          43,171          43,171          49,802                                      $ 46,522       $ 99,296       $ 176,496       $ 322,314       $ 315,164     Comprised of:                                                                                                  Held at amortized                                                            $ 320,153       $ 313,048       cost       Designated at fair                                                               2,161           2,116       value                                                                                    $ 322,314       $ 315,164     Total deposits                                                                                               include:       Non-interest-bearing                                                                                         deposits         In domestic                                                                $  37,042       $  35,670         offices         In foreign offices                                                             2,730           2,421       Interest-bearing                                                                                             deposits         In domestic                                                                  237,978         237,400         offices         In foreign offices                                                            44,128          39,673       U.S. federal funds                                                                 436               -       purchased                                                                                    $ 322,314       $ 315,164     (1) Includes deposits of $77.3 billion (October 31, 2013: $68.2         billion) denominated in U.S. dollars and deposits of         $7.8 billion (October 31, 2013: $9.0 billion) denominated in other         foreign currencies.     (2) Net of purchased notes of $1,860 million (October 31, 2013: $1,131         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) Includes $1.6 billion (October 31, 2013: $1.6 billion) of Notes         purchased by CIBC Capital Trust.     (7) Comprises liabilities issued by or as a result of activities         associated with the securitization of residential mortgages,         Covered Bond Programme, and consolidated securitization vehicles.  9. Subordinated indebtedness  On July 25, 2014, we purchased and cancelled $11 million (US$10 million) of  our floating rate Debentures (subordinated indebtedness) due July 31, 2084,  and $9 million (US$8 million) of our floating rate Debentures (subordinated  indebtedness) due August 31, 2085.  10. Share capital  Common shares                                                                     For the three                                For  the nine                                                                           months ended                                 months ended                                       2014                  2014                  2013                    2014               2013        $ millions, except number   Jul. 31               Apr. 30               Jul. 31                 Jul. 31              Jul. 31              of shares                          Number                Number                Number                  Number              Number                                    of shares  Amount     of shares  Amount     of shares  Amount       of shares  Amount   of shares   Amount        Balance at      397,375,316 $ 7,745   398,136,283 $ 7,750   399,811,338 $ 7,743     399,249,736 $ 7,753 404,484,938  $ 7,769              beginning of     period     Issuance                                                                                                                               pursuant to:       Stock option      407,845      33       146,941      12        12,922       1         856,625      69     602,115       43             plans       Shareholder       investment       plan(1)                 -       -             -       -             -       -               -       -       7,672        1             Employee       share       purchase       plan(2)                 -       -             -       -       174,495      14               -       -     696,219       56                        397,783,161  $ 7,778   398,283,224 $ 7,762   399,998,755 $ 7,758     400,106,361 $ 7,822 405,790,944  $ 7,869              Purchase of                                                                                                                            common shares     for     cancellation    (759,500)    (15)     (914,600)    (18)             -       -     (3,089,200)    (60) (5,808,331)    (112)              Treasury           (50,000)     (5)         6,692       1       (6,500)     (1)        (43,500)     (4)       9,642        - (3)       shares   Balance at end  396,973,661 $ 7,758   397,375,316 $ 7,745   399,992,255 $ 7,757     396,973,661 $ 7,758 399,992,255  $ 7,757              of period     (1) Commencing with the January 28, 2013 dividend         payment, shares distributed under the Shareholder         Investment Plan were acquired in the open market.         Previously these shares were issued from         treasury.     (2) Commencing June 14, 2013, employee contributions         to our Canadian employee share purchase plan were         acquired in the open market. Previously these         shares were issued from treasury.     (3) Due to rounding.            Normal course issuer bid On September 5, 2013, we announced that the Toronto Stock Exchange had  accepted the notice of CIBC's intention to commence a normal course issuer  bid. Purchases under this bid commenced on September 18, 2013 and will  terminate upon the earlier of (i) CIBC purchasing up to a maximum of 8 million  common shares, (ii) CIBC providing a notice of termination, or (iii) September  8, 2014.  We intend to seek Toronto Stock Exchange approval for a new normal course  issuer bid that would permit us to purchase for cancellation up to a maximum  of 8 million, or approximately 2% of our outstanding common shares, over the  next 12 months.  During the quarter ended July 31, 2014, we purchased and cancelled an  additional 759,500 common shares under this bid at an average price of $97.58  for a total amount of $74 million. For the nine months ended July 31, 2014, we  purchased and cancelled 3,089,200 common shares under this bid at an average  price of $92.66 for a total amount of $286 million. Since the inception of  this bid, we have purchased and cancelled 4,013,100 common shares at an  average price of $90.52 for a total amount of $363 million.  Preferred shares On June 11, 2014, we issued 16 million Non-cumulative Rate Reset Class A  Preferred Shares Series 39 (Series 39 shares) with a par value of $25.00 per  share, for gross proceeds of $400 million. For the initial five year period to  the earliest redemption date of July 31, 2019, the Series 39 shares pay  quarterly cash dividends, if declared, at a rate of 3.90%. On July 31, 2019,  and on July 31 every five years thereafter, the dividend rate will reset to be  equal to the then current five-year Government of Canada bond yield plus 2.32%.  Holders of the Series 39 shares will have the right to convert their shares on  a one-for-one basis into non-cumulative Floating Rate Class A Preferred Shares  Series 40 (Series 40 shares), subject to certain conditions, on July 31, 2019  and on July 31 every five years thereafter. Holders of the Series 40 shares  will be entitled to receive a quarterly floating rate dividend, if declared,  equal to the three-month Government of Canada Treasury Bill yield plus 2.32%.  Holders of the Series 40 shares may convert their shares on a one-for-one  basis into Series 39 shares, subject to certain conditions, on July 31, 2024  and on July 31 every five years thereafter.  Subject to regulatory approval and certain provisions of the shares, we may  redeem all or any part of the then outstanding Series 39 shares at par on July  31, 2019, and on July 31 every five years thereafter; we may redeem all or any  part of the then outstanding Series 40 shares at par on July 31, 2024, and on  July 31 every five years thereafter.  The shares include a non-viability contingent capital provision, necessary for  the shares to qualify as regulatory capital under Basel III. As such, the  shares are convertible into common shares if OSFI determines that the bank is  or is about to become non-viable or if the bank accepts a capital injection or  equivalent support from the government to avoid non-viability. In such an  event, each share is convertible into a number of common shares, determined by  dividing the par value of $25.00 plus declared and unpaid dividends by the  average common share price (as defined in the relevant prospectus supplement)  subject to a minimum price of $5.00 per share (subject to adjustment in  certain events as defined in the relevant prospectus supplement). We have  recorded the Series 39 shares as equity.  On July 31, 2014, we redeemed all of our 12 million Non-cumulative Rate Reset  Class A Preferred Shares Series 33 with a par value and redemption price of  $25.00 per share for cash, and we redeemed all of our 8 million Non-cumulative  Rate Reset Class A Preferred Shares Series 37 with a par value and redemption  price of $25.00 per share for cash.  On April 30, 2014, we redeemed all of our 13 million Non-cumulative Rate Reset  Class A Preferred Shares Series 35 with a par value and redemption price of  $25.00 per share for cash.     Regulatory capital                                                    Our capital ratios and assets-to-capital                              multiple (ACM) are presented in the table     below:                                                    2014        2013       $ millions, as at                           Jul. 31     Oct. 31       Transitional basis                                                    Common Equity Tier 1 (CET1) capital       $  16,983   $  16,698       Tier 1 capital                               18,491      17,830       Total capital                                22,081      21,601       Risk-weighted assets (RWA)                  155,644     151,338       CET1 ratio                                     10.9 %      11.0 %     Tier 1 capital ratio                           11.9 %      11.8 %     Total capital ratio                            14.2 %      14.3 %     ACM                                            18.2 x      18.0 x     All-in basis(1)                                                       CET1 capital                              $  14,153   $  12,793       Tier 1 capital                               17,093      15,888       Total capital                                20,784      19,961       CET1 capital RWA                            139,920     136,747       Tier 1 capital RWA                          140,174     136,747       Total capital RWA                           140,556     136,747       CET1 ratio                                     10.1 %       9.4 %     Tier 1 capital ratio                           12.2 %      11.6 %     Total capital ratio                            14.8 %      14.6 %     (1) Commencing the third quarter of 2014, there are different         levels of RWAs for the calculation of the CET1, Tier 1 and         total capital ratios arising from the option CIBC has chosen         for the phase-in of the CVA capital charge.  During the quarter and nine months ended July 31, 2014, we have complied with  all of our regulatory capital requirements.  11. Post-employment benefit expense     The following table provides details on the post-employment benefit     expenses recognized in the interim consolidated statement of income:                                                                                                                   For the                 For the                                             three                    nine                                          months                  months                                             ended                   ended                         2014   2014        2013          2014      2013       $ millions          Jul.   Apr.     Jul. 31       Jul. 31   Jul. 31                             31     30     Defined benefit                                                           plans     Pension plans     $   45 $   45   $      49     $     136 $     151       Other                 10     11          10            31        30       post-employment     plans     Total net         $   55 $   56   $      59     $     167 $     181       defined benefit     expense     Defined                                                                   contribution     plans     CIBC's pension    $    3 $    7   $       3     $      13 $       9       plans     Government     pension plans     (1)                   23     23          21            68        63       Total defined     $   26 $   30   $      24     $      81 $      72       contribution     expense     (1) Includes Canada Pension Plan, Quebec Pension Plan, and         U.S. Federal Insurance Contributions Act.            12. Income taxes  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. The Tax  Court of Canada trial on the deductibility of the Enron payments is scheduled  to commence in October 2015.  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 $204 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.  13. Earnings per share                                                    For the              For the nine                                                        three                                                     months              months ended                                                        ended                               2014        2014        2013          2014        2013       $ millions,            Jul. 31     Apr. 30     Jul. 31       Jul. 31     Jul. 31       except number of     shares and per     share amounts     Basic earnings                                                                         per share     Net income           $     918   $     317   $     877     $   2,409   $   2,520       attributable to     equity     shareholders     Less: Preferred             19          25          25            69          75       share dividends     and premiums     Net income           $     899   $     292   $     852     $   2,340   $   2,445       attributable to     common     shareholders     Weighted-average       397,179     397,758     399,952       397,826     401,237       common shares     outstanding     (thousands)     Basic earnings       $    2.26   $    0.73   $   2.13      $    5.88   $    6.09       per share     Diluted earnings                                                                       per share     Net income           $     899   $     292   $     852     $   2,340   $   2,445       attributable to     diluted common     shareholders     Weighted-average       397,179     397,758     399,952       397,826     401,237       common shares     outstanding     (thousands)     Add: Stock                           options     potentially     exercisable (1)     (thousands)                843         761         306           758         384       Weighted-average       398,022     398,519     400,258       398,584     401,621       diluted common     shares     outstanding     (thousands)     Diluted earnings     $   2.26    $    0.73   $    2.13     $    5.87   $    6.09       per share     (1) Excludes average options outstanding of 8,827 (April         30, 2014: 311,840; July 31, 2013: 2,002,167) with a         weighted-average exercise price of $100.04 (April 30,         2014: $96.34; July 31, 2013: $82.27) for the quarter         ended July 31, 2014 and average options of 312,476 with         a weighted-average price of $96.33 for the nine months         ended July 31, 2014 (average options of 1,007,914 with         a weighted-average price of $85.02 for the nine months         ended July 31, 2013), as the options' exercise prices         were greater than the average market price of CIBC's         common shares.            14. 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.  Legal provisions are established 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.  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 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. We regularly assess the adequacy of CIBC's litigation accruals and  make the necessary adjustments to incorporate new information as it becomes  available.  The provisions disclosed in Note 23 to the 2013 annual consolidated financial  statements included all of CIBC's accruals for legal matters as at that date,  including amounts related to the significant legal proceedings described in  that note and to other legal matters.  CIBC considers losses to be reasonably possible when they are neither probable  nor remote. It is reasonably possible that CIBC may incur losses in addition  to the amounts recorded when the loss accrued is the mid-point of a range of  reasonably possible losses, or the potential loss pertains to a matter in  which an unfavourable outcome is reasonably possible but not probable.  CIBC believes the estimate of the aggregate range of reasonably possible  losses, in excess of the amounts accrued, for its significant legal  proceedings, where it is possible to make such an estimate, is from nil to  approximately $240 million as at July 31, 2014. This estimated aggregate range  of reasonably possible losses is based upon currently available information  for those significant proceedings in which CIBC is involved, taking into  account CIBC's best estimate of such losses for those cases for which an  estimate can be made. CIBC's estimate involves significant judgment, given the  varying stages of the proceedings and the existence of multiple defendants in  many of such proceedings whose share of the liability has yet to be  determined. The range does not include potential punitive damages and  interest. The matters underlying the estimated range as at July 31, 2014,  consist of the significant legal matters disclosed in Note 23 to the 2013  annual consolidated financial statements as updated below. The matters  underlying the estimated range will change from time to time, and actual  losses may vary significantly from the current estimate.  For certain matters,  CIBC does not believe that an estimate can currently be made as many of them  are in preliminary stages and certain matters have no specific amount claimed.  Consequently, these matters are not included in the range.  The following developments related to our significant legal matters occurred  since the issuance of our 2013 annual consolidated financial statements:         --  Marcotte Visa Class Action: The appeal was heard by the Supreme             Court of Canada in February 2014. The court reserved its             decision.         --  Green Secondary Market Class Action: In February 2014 the             Ontario Court of Appeal released its decision overturning the             lower court and allowing the matter to proceed as a certified             class action. CIBC and the individual defendants sought leave             to appeal to the Supreme Court of Canada. On August 7, 2014,             CIBC and the individual defendants were granted leave to appeal             to the Supreme Court of Canada.         --  Brown Overtime Class Action: The plaintiffs' appeal to the             Ontario Court of Appeal was heard in May 2014. The court             reserved its decision.         --  Watson Credit Card Class Action: On March 27, 2014, the court             released its decision granting class certification. The             plaintiffs and defendants have filed Notices of Appeal.         --  Mortgage Prepayment Class Actions: On June 30, 2014, the court             granted class certification in Sherry conditional on the             plaintiffs framing a workable class definition. CIBC has filed             a Notice of Appeal.         --  Sino-Forest Class Actions: The motion for class certification             in the Labourers' action has been adjourned to January 2015.  Other than the items described above, there are no significant developments in  the matters identified in Note 23 to our 2013 annual consolidated financial  statements, and no significant new matters have arisen since the issuance of  our 2013 annual consolidated financial statements.  15. Segmented information  CIBC has three strategic business units (SBUs): Retail and Business Banking,  Wealth Management and Wholesale Banking. These SBUs are supported by Corporate  and Other.  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, telephone banking, online and mobile banking.  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 more than 1,500 advisors across Canada and  the U.S.  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.  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 expenses 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.  Segment reporting changes The following segment reporting changes were made in the first quarter of  2014. Prior period amounts were restated accordingly.  Sale of Aeroplan portfolio On December 27, 2013, we sold approximately 50 percent of our Aerogold VISA  portfolio, consisting primarily of credit card only customers, to TD.  Accordingly, the revenue related to the sold credit card portfolio was moved  from Personal Banking to the Other line of business within Retail and Business  Banking.  Allocation of Treasury activities Treasury-related transfer pricing continues to be charged or credited to each  line of business within our SBUs. We changed our approach to allocating the  residual financial impact of Treasury activities. Certain fees are charged  directly to the lines of business, and the residual net revenue is retained in  Corporate and Other.  Business unit allocations Treasury activities impact the reported financial results of the SBUs. Each  line of business within our SBUs is charged or credited with a market-based  cost of funds on assets and liabilities, respectively, which impacts the  revenue performance of the SBUs. Once the interest and liquidity risk inherent  in our client-driven assets and liabilities is transfer priced into Treasury,  it is managed within CIBC's risk framework and limits. The residual financial  results associated with Treasury activities are reported in Corporate and  Other. Capital is attributed to the SBUs in a manner that is intended to  consistently measure and align economic costs with the underlying benefits and  risks associated with SBU activities. Earnings on unattributed capital remain  in Corporate and Other. We review our transfer pricing methodologies on an  ongoing basis to ensure they reflect changing market environments and industry  practices.  To measure and report the results of operations of the lines of business  within our Retail and Business Banking and Wealth Management SBUs, we use a  Manufacturer/Customer Segment/Distributor Management Model. The model uses  certain estimates and allocation methodologies in the preparation of segmented  financial information. Under this model, internal payments for sales and  trailer commissions and distribution service fees are made among the lines of  business and SBUs. Periodically, the sales and trailer commission rates paid  to customer segments for certain products are revised and applied  prospectively.  Non-interest expenses are attributed to the SBUs to which they relate based on  appropriate criteria. Revenue, expenses, and other balance sheet resources  related to certain activities are fully allocated to the lines of business  within the SBUs.  The individual allowances and related provisions are reported in the  respective SBUs. The collective allowances and related provisions are reported  in Corporate and Other except for: (i) residential mortgages greater than 90  days delinquent; (ii) personal loans and scored small business loans greater  than 30 days delinquent; and (iii) net write-offs for the card portfolio,  which are all reported in the respective SBUs. All allowances and related  provisions for CIBC FirstCaribbean are reported in Corporate and Other.                               Retail                                  and                                                                              Business       Wealth   Wholesale   Corporate        CIBC     $ millions, for the     three months ended       Banking   Management     Banking   and Other       Total          Net interest     2014 income(1)         $   1,411   $       50   $     400   $      14   $   1,875     Jul. Non-interest     31   income                  518          623         268          74       1,483          Intersegment          revenue          (2)                     103        (105)           2           -           -          Total revenue(1)      2,032          568         670          88       3,358          Provision for          credit losses           177            -           6          12         195          Amortization and          impairment          (3)                      23            6           2          70         101          Other          non-interest          expenses              1,044          402         277         223       1,946          Income (loss)          before income          taxes                   788          160         385       (217)       1,116          Income taxes(1)         199           39         103       (146)         195          Net income (loss) $     589   $      121   $     282   $    (71)   $     921          Net income (loss)          attributable to:                                                                        Non-controlling                                                          3            interests       $       -   $        -   $       -   $       3   $            Equity                                                                 918            shareholders          589          121         282        (74)              Average assets(4) $ 230,346   $    4,398   $ 122,143   $  54,149   $ 411,036          Net interest     2014 income (1)        $   1,357   $       48   $     398   $     (5)   $   1,798     Apr. Non-interest     30   income                  486          598         206          79       1,369          Intersegment          revenue(2)               96         (98)           2           -           -          Total revenue (1)     1,939          548         606          74       3,167          Provision for          credit losses           173            1          21         135         330          Amortization and          impairment(3)            25            6           1         489         521          Other          non-interest          expenses              1,015          389         317         170       1,891          Income (loss)          before income          taxes                   726          152         267       (720)         425          Income taxes (1)        180           35          54       (150)         119          Net income (loss) $     546   $      117   $     213   $   (570)   $     306          Net income (loss)          attributable to:                                                                        Non-controlling                                                       (11)            interests       $       -   $        1   $       -   $    (12)   $            Equity                                                                 317            shareholders          546          116         213       (558)              Average assets          (4)               $ 227,362   $    4,372   $ 121,105   $ 53,446    $ 406,285          Net interest     2013 income (1)        $   1,421   $       46   $     357   $      59   $   1,883     Jul. Non-interest     31   income                  559          500         231          76       1,366          Intersegment          revenue(2)               87         (88)           1           -           -          Total revenue (1)     2,067          458         589         135       3,249          Provision for          credit losses           241           -           14          65         320          Amortization and          impairment(3)            23           5            2          61          91          Other          non-interest          expenses                988         321          301        177       1,787           Income (loss)          before income          taxes                   815          132         272       (168)      1,051           Income taxes (1)        203           30          60       (120)        173           Net income (loss) $     612   $      102   $     212   $    (48)   $    878           Net income (loss)          attributable to:                                                                        Non-controlling                                                         1             interests       $       -   $        -   $       -   $       1   $            Equity                                                                 877            shareholders          612          102         212        (49)              Average assets          (4)               $ 226,786   $    3,960   $ 120,026   $  51,836   $ 402,608     (1) Wholesale Banking net interest income and income tax         expense includes a taxable equivalent basis (TEB)         adjustment of $102 million for the three months ended July         31, 2014 ($124 million and $90 million for the three         months ended April 30, 2014 and July 31, 2013,         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 and impairment of buildings,         furniture, equipment, leasehold improvements, and software         and other intangible assets. In addition, the quarter         ended April 30, 2014 included the goodwill impairment         charge for CIBC FirstCaribbean.     (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.                                      Retail and                                                                                 Business       Wealth    Wholesale   Corporate         CIBC     $ millions, for the       Banking     nine months ended                   Management      Banking   and Other        Total          Net interest     2014 income(1)         $   4,205    $     148    $   1,187    $     38    $   5,578      Jul. Non-interest     31   income                1,729        1,767          764         321        4,581           Intersegment          revenue          (2)                     292         (297)           5           -            -           Total revenue(1)      6,226        1,618        1,956         359       10,159           Provision for          credit losses           560            -           29         154          743           Amortization and          impairment(3)            72           16            4         625          717           Other          non-interest          expenses              3,090        1,138          922         571        5,721               Income (loss)              before income                      taxes     2,504          464        1,001        (991)       2,978           Income taxes(1)         623          112          242        (403)         574           Net income (loss) $   1,881    $     352    $     759    $   (588)   $   2,404           Net income (loss)          attributable to:                                                                           Non-controlling                                                           (5)            interests       $       -    $       2    $       -    $     (7)   $            Equity                                                                 2,409             shareholders        1,881          350          759        (581)              Average assets(4) $ 228,527    $   4,307    $ 121,740    $ 54,570    $ 409,144           Net interest     2013 income (1)        $   4,211    $     139    $   1,054    $    156    $   5,560      Jul. Non-interest     31   income                1,602        1,446          663         267        3,978           Intersegment          revenue(2)              249         (252)           3           -            -           Total revenue (1)     6,062        1,333        1,720         423        9,538           Provision for          credit losses           715            -           45          90          850           Amortization and          impairment (3)           67           11            4         177          259           Other          non-interest          expenses              2,929          955        1,042         506        5,432           Income (loss)          before income          taxes                 2,351          367          629        (350)       2,997           Income taxes (1)        587           85          139        (339)         472           Net income (loss) $   1,764    $     282    $     490    $    (11)   $   2,525           Net income (loss)          attributable to:                                                                           Non-controlling                                                            5             interests       $       -    $       -    $       -    $      5    $            Equity                                                                 2,520             shareholders        1,764          282          490         (16)              Average assets          (4)               $ 226,429    $   3,965    $ 121,956    $ 50,626    $ 402,976      (1) Wholesale Banking net interest income and income tax         expense includes a TEB adjustment of $336 million for the         nine months ended July 31, 2014 ($279 million for the nine         months ended July 31, 2013) 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 and impairment of buildings,         furniture, equipment, leasehold improvements, and software         and other intangible assets. In addition, the current         period includes the goodwill impairment charge for CIBC         FirstCaribbean.     (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.            16. Financial instruments - disclosures  We have provided quantitative disclosures related to credit risk consistent  with Basel guidelines in the "Credit risk" section of management's discussion  and analysis in our 2013 Annual Report and interim report to shareholders,  which require entities to disclose their exposures based on how they manage  their business and risks. The table below sets out the categories of the  on-balance sheet exposure to credit risk under different Basel approaches,  displayed in both accounting categories and Basel portfolios.       Accounting categories                                                                         Basel portfolios                                                                                                                                                                                                 AIRB and standardized approaches                                                                                                                          Real                                                    Not        Total                                                              estate                                                             secured Qualifying                              Total    subject consolidated                                                            personal  revolving    Other          Asset subject to to  credit      balance  $ millions, as at         Corporate Sovereign      Bank    lending     retail   retail securitization     credit       risk        sheet                                                                                                              risk  2014  Cash and deposits   $      -  $  7,441  $  2,260  $       -  $       -  $     -  $           -  $   9,701  $   1,491  $    11,192         with banks  Jul.  Securities             1,896    14,164     4,515          -          -        -          1,290     21,865     47,596       69,461         31           Cash collateral on     1,525         -     1,713          -          -        -              -      3,238          -        3,238            securities borrowed           Securities             8,476     4,078    12,551          -          -        -              -     25,105          -       25,105            purchased under           resale agreements         Loans                 46,390     4,601     1,452    171,388     19,309    9,367          2,596    255,103        815      255,918         Allowance for              -         -         -          -          -        -              -          -     (1,703)      (1,703)              credit losses           Derivative             2,812     3,975    11,440          -          -        -              -     18,227          -       18,227            instruments           Customers'             6,910     1,053       311          -          -        -              -      8,274          -        8,274            liability under           acceptances         Other assets             322     1,486     3,100        164         23       31              2      5,128     10,582       15,710         Total credit        $ 68,331  $ 36,798  $ 37,342  $ 171,552  $  19,332  $ 9,398  $       3,888  $ 346,641  $  58,781  $   405,422               exposure     2013                                                                                                                                       Oct.  Total credit        $ 65,215  $ 29,707  $ 44,909  $ 167,488  $  22,749  $ 8,457  $       5,148  $ 343,673  $  54,333  $   398,006   31    exposure    SOURCE  CIBC - Investor Relations  Investor Relations: Geoff Weiss 416-980-5093 geoffrey.weiss@cibc.com  Jason Patchett 416-980-8691 jason.patchett@cibc.com  Alice Dunning 416-861-8870 alice.dunning@cibc.com  Media Inquiries: Kevin Dove 416-980-8835 kevin.dove@cibc.com  Erica Belling 416-594-7251 erica.belling@cibc.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/August2014/28/c7635.html  CO: Canadian Imperial Bank of Commerce ST: Ontario NI: FIN ERN  
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