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Press release from CNW Group

CIBC Announces Fourth Quarter and Fiscal 2012 Results

Thursday, December 06, 2012

CIBC Announces Fourth Quarter and Fiscal 2012 Results05:50 EST Thursday, December 06, 2012CIBC's 2012 audited annual consolidated financial statements and accompanying management's discussion & analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information report which includes fourth quarter financial information.TORONTO, Dec. 6, 2012 /CNW/ - CIBC (TSX: CM) (NYSE: CM) announced net income of $852 million for the fourth quarter ended October 31, 2012, up from $757 million for the fourth quarter of 2011. Reported diluted earnings per share (EPS) of $2.02 and adjusted diluted EPS of $2.04(1) for the fourth quarter of 2012, compared with reported diluted EPS of $1.79 and adjusted diluted EPS of $1.78(1), respectively, for the same period last year.CIBC's results for the fourth quarter of 2012 were affected by the following items of note aggregating to a negative impact of $0.02 per share:$57 million ($32 million after-tax, or $0.08 per share) loan losses in our exited U.S. leveraged finance portfolio;$51 million ($37 million after-tax, or $0.09 per share) gain from the structured credit run-off business;$33 million ($24 million after-tax, or $0.06 per share) loss relating to the change in valuation of collateralized derivatives to an overnight index swap (OIS) basis;$24 million ($19 million after-tax, or $0.05 per share) gain on sale of interests in entities in relation to the acquisition of TMX Group Inc. by Maple Group Acquisition Corporation, net of associated expenses; and$7 million ($6 million after-tax, or $0.02 per share) amortization of intangible assets.CIBC's results for the fourth quarter of 2011 included items of note aggregating to a positive impact of $0.01 per share.CIBC's net income of $852 million for the fourth quarter of 2012 compared with net income of $841 million for the third quarter ended July 31, 2012. Reported diluted EPS of $2.02 and adjusted diluted EPS of $2.04(1) for the fourth quarter of 2012 compared with reported diluted EPS of $2.00 and adjusted diluted EPS of $2.06(1) for the prior quarter.For the year ended October 31, 2012, CIBC reported net income of $3.3 billion, reported diluted EPS of $7.85 and adjusted diluted EPS of $8.07(1), which included items of note aggregating to a negative impact of $0.22 per share. These results compared with net income of $2.9 billion, reported diluted EPS of $6.71 and adjusted diluted EPS of $7.57(1) for 2011, which included items of note aggregating to a negative impact of $0.86 per share.CIBC's return on common shareholders' equity was 22.0% for the year ended October 31, 2012 and our Tier 1 capital and Tangible Common Equity ratios were 13.8% and 11.6%(1) respectively as at October 31, 2012."CIBC reported another year of solid progress in 2012," says Gerry McCaughey, CIBC President and Chief Executive Officer. "Our results reflect broad-based performance across our core businesses and the value of our strategy."(1) For additional information, see the "Non-GAAP measures" section.Performance against ObjectivesOur key measures of performanceOur Objectives2012 resultsAdjusted Earnings per share (EPS)(1) growthAdjusted EPS growth of 5%-10% per annum, onaverage, over the next 3-5 years2012: $8.07, up 6.6% from2011 Return on common shareholders' equity (ROE)Return on average common equity of 20% through thecycle 22.0%Capital strength(2)Tier 1 capital ratio target of 8.5%Total capital ratio target of 11.5%Tier 1 capital ratio:13.8%Total capital ratio: 17.3%Business mix75% retail(3)/25% wholesale (as measured byeconomic capital(1))77%/23%retail(3)/wholesaleRiskMaintain provision for credit losses as a percentage ofaverage loans and acceptances (loan loss ratio(4)) between 50 and 65 basis points through the businesscycle 53 basis pointsProductivityAchieve a median ranking within our industry group, interms of our adjusted non-interest expense to totalrevenue (adjusted efficiency ratio)(1)55.8%Adjusted Dividend payout ratio(1)40%-50% (common share dividends paid as apercentage of adjusted net income after preferredshare dividends and premium on redemptions)45.1%Total shareholder returnOutperform the S&P/TSX Composite Banks Index(dividends reinvested) on a rolling five-year basisFive years ended October31, 2012: CIBC - (0.1)%Index - 25.2%(1) For additional information, see the "Non-GAAP measures" section.(2) Going forward, our capital strength will be measured by the Basel III Common Equity Tier 1 ratio to exceed the regulatory target set by the Office of the Superintendent of Financial Institutions (OSFI).(3) For the purpose of calculating this ratio, Retail includes Retail and Business Banking, Wealth Management and International banking operations, reported as part of Corporate and Other. The ratio represents the amount of economic capital attributed to these businesses as at the end of the period.(4) Going forward, our loan loss ratio target will be between 45 and 60 basis points through the business cycle.Core business performanceRetail and Business Banking reported net income of $2.3 billion in 2012, up from $2.2 billion in 2011, as a result of volume growth across most retail products and higher fees, partially offset by narrower spreads in the low-interest environment that continues to prevail.Retail and Business Banking continued to make strategic investments throughout 2012 in areas that are enhancing the relationship we have with, and the value we provide to, our clients:Continuing our leadership in mobile innovations, we announced the first point-of-sale mobile credit card transaction in Canada in partnership with Rogers Communications. This new mobile payments functionality allows our clients to use their existing CIBC credit card through their smartphone to purchase goods.We launched the CIBC Total Banking Rebate to recognize and reward clients with fee discounts for having deeper relationships with us.We delivered CIBC Home Power Plan which combines the benefits of a traditional mortgage and a line of credit to give clients a long-term borrowing solution.  In addition, we introduced Next Best Offer to enable our frontline sales teams to better understand our clients' needs and provide them with the best offer based on their current holdings.We were named the Best Commercial Bank in Canada by World Finance magazine for our strong client focus.We continued to invest in our branch network, with 28 new, relocated or expanded branches across the country this year and expanded hours of business."As we close fiscal 2012, our business is well positioned for growth," says David Williamson, Group Head, Retail and Business Banking. "We have re-positioned our focus towards building deeper relationships with our clients, built more branches, extended our branch operating hours, launched new products and reinforced our leadership position in mobile banking with our launch of mobile payments.""To further our business in 2013 and beyond, we are continuing to invest in building deeper relationships with our clients; improving our sales and service capabilities; and acquiring and retaining clients who seek deeper and more rewarding relationships," adds Williamson.Wealth Management had net income of $339 million in 2012, up from $279 million in 2011. Net income increased as a result of higher revenue in asset management partially offset by lower revenue in retail brokerage.Wealth Management strengthened its business on many fronts in 2012 in support of our strategic priorities to attract and deepen client relationships, seek new sources of domestic assets and pursue acquisitions and investments. Key highlights included:Acquired MFS McLean Budden's private wealth management business, adding approximately $1.4 billion in client assets.Our investment in American Century Investments continues to generate solid results with positive net sales and was named Deal of the Year for its impact on the U.S. mutual fund landscape.For the 3rd consecutive year, achieved record long-term mutual funds net sales of $3.9 billion.Investment performance consistently ranked amongst the Canadian leaders, as measured against median."We will continue to invest in our Wealth Management platform, domestically and internationally, to enhance the client experience and strengthen shareholder returns," says Victor Dodig, Group Head, Wealth Management.Despite ongoing volatility and uncertainty in global equity markets, Wholesale Banking delivered strong results, reporting net income of $613 million, compared with $543 million in 2011.Wholesale Banking's objective is to be the premier client-focused wholesale bank centred in Canada, with a reputation for consistent and sustainable earnings, for risk-controlled growth, and for being a well-managed firm known for excellence in everything we do. During 2012, Wholesale Banking:Ranked among the leading foreign exchange providers globally, and was also ranked a top bank in Canadian dollar service in the FX Week Best Bank Awards 2012;Reinforced our energy advisory business with the acquisition of Griffis & Small, LLC;Ranked #1 overall in loan syndication by number of deals and #2 by volume;Received Best Bank of the Year - Project Finance and Infrastructure - Canada by Deal Makers Monthly; andLed or co-led several key transactions, most notably the Canada Housing Trust No. 1 $15 billion Canada Mortgage Bond offerings."Wholesale Banking delivered high quality, consistent and risk-controlled performance in 2012, despite continued volatile market conditions globally," says Richard Nesbitt, Group Head, Wholesale, International, and Technology and Operations.While investing in our core Wholesale Banking strategy, CIBC continued to actively manage and reduce its structured credit run-off portfolio. In 2012, notional exposures declined by $4.1 billion as a result of sales and terminations of positions, as well as normal amortization. The remaining portfolio of primarily collateralized loan obligations and corporate debt has experienced minimal defaults in the underlying collateral and continues to benefit from significant levels of subordination.Strong fundamentalsWhile investing in its core businesses, CIBC has continued to strengthen its key fundamentals. In 2012, CIBC maintained its capital strength, competitive productivity and sound risk management:CIBC's capital ratios are strong, including Tier 1 and Tangible Common Equity(1) ratios of 13.8% and 11.6% at October 31, 2012;Credit quality has remained stable, with CIBC's loan loss ratio of 53(1) basis points comparable to 51(1) basis points in 2011; andMarket risk, as measured by average Value-at-Risk, was $4.9 million in 2012 compared with $6.5 million in 2011.With a pro forma Basel III Common Equity Tier 1 ratio estimated at 9.0% on a fully phased-in basis, CIBC is well in excess of the 7% minimum requirement as proposed by the Basel Committee on Banking Supervision and the Office of the Superintendent of Financial Institutions."CIBC's first principle is to be a lower risk bank that delivers consistent and sustainable earnings over the long term," adds McCaughey. "Within an environment that is impacted by the macro trends of uncertainty, deleveraging and re-regulation, CIBC has the right strategy to continue to deliver value."(1) For additional information, see the "Non-GAAP measures" section.Fourth Quarter Financial Highlights            As at or for thethree months ended  As at or forthe twelve monthsended      2012    2012    2011    2012    2011     Oct. 31    Jul. 31    Oct. 31    Oct. 31    Oct. 31 Financial results ($ millions)                      Net interest income   $  2,016  $  1,883  $ 1,776  $7,494  $ 7,062 Non-interest income    1,143   1,266   1,419   5,055   5,373 Total revenue    3,159   3,149   3,195   12,549   12,435 Provision for credit losses    328   317   306   1,291   1,144 Non-interest expenses    1,829   1,831   1,920   7,215   7,486 Income before taxes     1,002   1,001   969   4,043   3,805 Income taxes    150   160   212   704   927 Net income   $ 852  $  841  $757  $3,339  $2,878  Net income attributable to non-controlling interests $  2   $2  $3  $8   $11   Preferred shareholders    29   29   38   158   177   Common shareholders    821   810   716   3,173   2,690 Net income attributable to equity shareholders   $850  $  839  $754  $3,331  $2,867                        Financial measures                      Reported efficiency ratio  57.9%  58.1%  60.1%  57.5%  60.2%Adjusted efficiency ratio(1)     56.5%  56.1%  58.7%  55.8%  56.4%Loan loss ratio     0.53%  0.52%  0.52%  0.53%  0.51%Return on common shareholders' equity  21.7%  21.8%  22.6%  22.0%  22.2%Net interest margin  2.00%  1.87%  1.77%  1.89%  1.79%Net interest margin on average interest-earning assets  2.33%  2.18%  2.05%  2.20%  2.03%Return on average assets  0.85%  0.84%  0.75%  0.84%  0.73%Return on average interest-earning assets  0.99%  0.98%  0.87%  0.98%  0.83%Total shareholder return    8.42%  (0.33)%  4.19%  9.82%  0.43%                       Common share information                      Per share- basic earnings $  2.02  $2.00  $1.80  $  7.86  $6.79  - reported diluted earnings  2.02   2.00   1.79   7.85   6.71  - adjusted diluted earnings (1)  2.04   2.06   1.78   8.07   7.57  - dividends  0.94   0.90   0.90   3.64   3.51   - book value  37.48   36.57   32.88   37.48   32.88 Share price- high  78.56   74.68   76.50   78.56   85.49  - low  72.97   69.70   67.84   68.43   67.84  - closing  78.56   73.35   75.10   78.56   75.10 Shares outstanding (thousands)                       - weighted-average basic  405,404   405,165   399,105   403,685   396,233  - weighted-average diluted  405,844   405,517   401,972   404,145   406,696  - end of period  404,485   405,626   400,534   404,485   400,534 Market capitalization($ millions) $  31,776  $  29,753  $30,080  $31,776  $30,080                        Value measures                      Dividend yield (based on closing share price)  4.8%  4.9%  4.8%  4.6%  4.7%Reported dividend payout ratio     46.4%  45.0%  50.1%  46.3%  51.7%Adjusted dividend payout ratio(1)    46.1%  43.7%  50.6%  45.1%  46.3%Market value to book value ratio  2.10   2.01   2.28   2.10   2.28                        On- and off-balance sheet information ($ millions)               Cash, deposits with banks and securities $  70,061  $70,776  $65,437  $70,061  $65,437 Loans and acceptances, net of allowance  252,732   253,616   248,409   252,732   248,409 Total assets    393,385   401,010   383,758   393,385   383,758 Deposits    300,344   305,096   289,220   300,344   289,220 Common shareholders' equity    15,160   14,834   13,171   15,160   13,171 Average assets    401,092   400,543   398,386   397,382   394,527 Average interest-earning assets    343,840   342,883   343,076   341,053   347,634 Average common shareholders' equity  15,077   14,760   12,599   14,442   12,145 Assets under administration       1,445,870     1,377,012     1,317,799     1,445,870     1,317,799                        Balance sheet quality measures                    Risk-weighted assets ($ billions) $115.2    $ 114.9    $ 110.0  $115.2  $110.0 Tangible common equity ratio(1)    11.6%  11.3%  11.4%  11.6%  11.4%Tier 1 capital ratio    13.8%  14.1%  14.7%  13.8%  14.7%Total capital ratio    17.3%  17.7%  18.4%  17.3%  18.4%Other information                      Retail / wholesale ratio(2)     77 % / 23%   76 % / 24%   77 % / 23%   77 % / 23%   77 % / 23%Full-time equivalent employees(3)  42,595   42,380   42,239   42,595   42,239 (1) For additional information, see the "Non-GAAP measures" section.(2) For the purpose of calculating this ratio, Retail includes Retail and Business Banking, Wealth Management, and International banking operations (reported as part of Corporate and Other).  The ratio represents the amount of economic capital attributed to these businesses as at the end of the period.(3) Full-time equivalent headcount is a measure that normalizes the number of full-time and part-time employees, base plus commissioned employees, and 100% commissioned employees into equivalent full-time units based on actual hours of paid work during a given period.Review of CIBC Fourth Quarter Results Net income was $852 million, up $95 million from the fourth quarter of 2011 and up $11 million from the prior quarter.Net interest income of $2,016 million was up $240 million from the fourth quarter of 2011, primarily due to higher trading-related net interest income and volume growth across most retail products. Net interest income was up $133 million from the prior quarter, primarily due to higher trading-related net interest income.Non-interest income of $1,143 million was down $276 million from the fourth quarter of 2011, primarily due to higher trading losses, including the loss relating to the methodology change in valuing collateralized derivatives shown as an item of note. The current quarter included a gain on sale of interests in relation to the acquisition of TMX Group by Maple, while the prior year quarter included a gain on sale of a merchant banking investment, both shown as items of note. Non-interest income was down $123 million from the prior quarter, primarily due to higher trading losses, including the loss relating to the methodology change in valuing collateralized derivatives noted above.Provision for credit losses of $328 million was up $22 million from the fourth quarter of 2011. Higher losses in the exited U.S. leveraged finance portfolio, identified as an item of note, as well as higher losses in the business lending portfolio, were partially offset by lower losses in the exited European leveraged finance portfolio, identified as an item of note in the prior year quarter, lower losses in CIBC FirstCaribbean and lower write-offs and bankruptcies in our cards portfolio. In addition, net provision reversals related to the collective allowance were lower in the current quarter. Provision for credit losses was up $11 million from the prior quarter. Higher losses in the exited U.S. leveraged finance portfolio, identified as an item of note, were partially offset by lower losses in U.S. real estate finance and lower write-offs and bankruptcies in our cards portfolio.Non-interest expenses of $1,829 million were down $91 million from the fourth quarter of 2011, primarily due to lower employee compensation and benefits. The prior year quarter included expenses relating to the sale of a merchant banking investment, which is shown as an item of note.  Non-interest expenses were comparable to the prior quarter.Income tax expense of $150 million in the fourth quarter of 2012 was down from $212 million in the fourth quarter of 2011, primarily due to higher tax-exempt income, an increase in the relative proportion of income taxed at lower income tax rates, and a lower statutory income tax rate. Income tax expense was down $10 million from the prior quarter primarily due to higher tax-exempt income.Review of Retail and Business Banking Fourth Quarter Results         2012    2012    2011 $ millions, for the three months ended   Oct. 31    Jul. 31    Oct. 31 Revenue             Personal banking $1,616  $1,595  $1,568  Business banking  378   382   358  Other  42   108   150 Total revenue   2,036   2,085   2,076 Provision for credit losses   255   273   266 Non-interest expenses   1,030   1,035   1,023 Income before taxes   751   777   787 Income taxes  182   183   190 Net income  $569  $594  $597 Net income attributable to:             Equity shareholders (a) $569  $594  $597 Efficiency ratio   50.6%  49.7%  49.3%Return on equity(1)   57.1%  60.1%  64.9%Charge for economic capital (1) (b) $(126)  $(126)  $(122) Economic profit (1) (a+b) $443  $468  $475 Full-time equivalent employees  21,857   21,588   21,658  (1)  For additional information, see the "Non-GAAP measures" section.Net income was $569 million, down $28 million from the fourth quarter of 2011.Revenue of $2,036 million was down $40 million from the fourth quarter of 2011. Revenue was impacted by lower Treasury allocations.  Excluding the impact of Treasury, revenue was up $65 million from the fourth quarter of 2011. Personal banking and business banking revenue increased primarily due to volume growth across most lines of business, partially offset by lower spreads in deposits. Other revenue was down primarily due to lower treasury allocations.Provision for credit losses of $255 million was down $11 million from the fourth quarter of 2011, primarily due to lower write-offs in cards, partially offset by higher losses in commercial banking.Non-interest expenses of $1,030 million were up $7 million from the fourth quarter of 2011, primarily as a result of higher corporate support costs and employee compensation, partially offset by cost savings from operational efficiencies.Income tax expense of $182 million was down $8 million from the fourth quarter of 2011 due to a lower pre-tax income.Review of Wealth Management Fourth Quarter Results                      2012    2012    2011 $ millions, for the three months ended   Oct. 31    Jul. 31    Oct. 31 Revenue             Retail brokerage $256  $246  $256  Asset management  138   130   115  Private wealth management  26   25   25 Total revenue   420   401   396 Non-interest expenses   308   299   299 Income before taxes   112   102   97 Income taxes  28   26   27 Net income  $84  $76  $70 Net income attributable to:             Equity shareholders (a) $84  $76  $70 Efficiency ratio   73.4%  74.6%  75.4%Return on equity(1)   18.9%  17.4%  29.9%Charge for economic capital (1) (b) $(55)  $(55)  $(31) Economic profit (1) (a+b) $29  $21  $39 Full-time equivalent employees  3,783   3,708   3,731  (1) For additional information, see the "Non-GAAP measures" section.Net Income for the quarter was $84 million, up $14 million from the fourth quarter of 2011.Revenue of $420 million was up $24 million from the fourth quarter of 2011, primarily due to higher asset management revenue from higher average client assets under management driven by record net sales of long term mutual funds and income from our proportionate share in American Century Investments (included from September 2011).Non-interest expenses of $308 million were up $9 million from the fourth quarter of 2011, primarily due to higher performance-based compensation.Review of Wholesale Banking Fourth Quarter Results                      2012    2012    2011 $ millions, for the three months ended   Oct. 31    Jul. 31    Oct. 31 Revenue              Capital markets $295  $308  $242  Corporate and investment banking  206   223   328  Other  74   (4)   (9) Total revenue(1)  575   527   561 Provision for credit losses  66   34   32 Non-interest expenses   263   284   347 Income before taxes  246   209   182 Income taxes(1)  53   53   60 Net income  $193  $156  $122 Net income attributable to:             Equity shareholders (a)  193   156   122 Efficiency ratio   45.7%  53.8%  61.9 Return on equity(2)   35.0%  27.9%  25.9%Charge for economic capital (2) (b) $(70)  $(70)  $(61) Economic profit (2) (a+b) $123  $86  $61 Full-time equivalent employees  1,268   1,274   1,206 (1) Revenue and income taxes are reported on a TEB basis, and accordingly include a TEB adjustment of $92 million (Q3/12: $71 million; Q4/11: $56 million).  The equivalent amounts are offset in Corporate and Other.(2)For additional information, see the "Non-GAAP measures" section.Net income for the quarter was $193 million, compared to net income of $156 million for the third quarter.Revenue of $575 million was up $48 million from the third quarter, primarily due to gains in the structured credit run-off business, a gain on sale of interests in entities in relation to the acquisition of TMX Group by Maple, and higher derivatives trading revenue, partially offset by a loss relating to the methodology change in valuing collateralized derivatives to an OIS basis and lower merchant banking gains.Provision for credit losses of $66 million was up $32 million from the third quarter, mainly attributable to increased losses in our U.S. Leveraged Finance portfolio, partially offset by lower losses in our U.S. Real Estate Finance and Canadian credit portfolios.Non-interest expenses of $263 million were down $21 million from the third quarter, primarily due to lower performance-based compensation.Income tax expense of $53 million was comparable to the third quarter. The impact of an increased Taxable equivalent basis (TEB) adjustment on higher tax-exempt income was offset by the impact of a decrease in the relative proportion of income earned in higher tax jurisdictions.Review of Corporate and Other Fourth Quarter Results                    2012    2012    2011$ millions, for the three months ended   Oct. 31    Jul. 31    Oct. 31Revenue            International banking $149  $146  $139 Other  (21)   (10)   23Total revenue(1)  128   136   162Provision for credit losses  7   10   8Non-interest expenses  228   213   251Loss before taxes   (107)   (87)   (97)Income taxes(1)  (113)   (102)   (65)Net income (loss) $6  $15  $(32)Net income (loss) attributable to:            Non-controlling interests $2  $2  $3 Equity shareholders  4   13   (35)Full-time equivalent employees  15,687   15,810   15,644 (1) Wholesale Banking revenue and income taxes are reported on a TEB basis with an equivalent offset in the revenue and income taxes of Corporate and Other.  Accordingly, revenue and income taxes include a TEB adjustment of $92 million (Q3/12: $71 million; Q4/11: $56 million).Net income was up $38 million from the fourth quarter of 2011 mainly due to lower expenses.Revenue was down $34 million from the fourth quarter of 2011 mainly due to a higher TEB adjustment.Provision for credit losses was comparable to the fourth quarter of 2011.Non-interest expenses were down $23 million from the fourth quarter of 2011, mainly due to lower unallocated corporate support costs.Income tax benefit was up $48 million from the fourth quarter of 2011 mainly due to a higher TEB adjustment.Making a Difference in Our CommunitiesAs a leader in community investment, CIBC is committed to supporting causes that matter to its clients, employees and communities. During the fourth quarter of 2012:CIBC continued its long term commitment to supporting breast cancer initiatives. The 2012 Canadian Breast Cancer Foundation CIBC Run for the Cure raised more than $30 million, including $3 million contributed by Team CIBC through pledges, fundraising activities and donations to the CIBC Pink Collection and more than $500,000 raised by students across Canada as part of the Post Secondary Challenge. CIBC was also proud to co-sponsor the Pink Tour, which made its final stop in October after bringing breast health education to 122 communities across Ontario over a six month period.CIBC marked its third year as title sponsor of the CIBC 401 Bike Challenge, a three-day, 576-kilometre ride from Toronto's Hospital for Sick Children to the Montreal Children's Hospital. A number of CIBC employees and their fellow riders raised more than $276,000 to support kids with cancer and their families through the Sarah Cook Fund of the Cedars Cancer Institute.CIBC employees joined Gerry McCaughey, CIBC's President and CEO and the 2012 United Way Toronto Campaign Chair, to kick off the United Way GTA campaign and demonstrate CIBC's commitment to building stronger, more vibrant communities through its work within the charitable sector.CIBC presented Hope Rising, a concert benefiting the Stephen Lewis Foundation. CIBC has been a long term supporter of the Foundation, which has raised more than $40 million since 2003 to support HIV/AIDS projects in Africa.CIBC joined the Toronto Pan Am and Parapan Am organizing committee to celebrate the ground breaking for the new Pan Am and Parapan Am Aquatics Centre and Field House presented by CIBC - the largest investment ever in Canadian amateur sport infrastructure and a lasting legacy for the University of Toronto (Scarborough) campus."Our performance in 2012 demonstrates the value of strategy and our further potential as we head into 2013," says Mr. McCaughey. "CIBC has the right strategy that will continue to deliver value to all our key stakeholders."CONSOLIDATED BALANCE SHEET               2012    2011   2010$ millions, as at   Oct 31   Oct 31    Nov 1ASSETS           Cash and non-interest-bearing deposits with banks $  2,613  $  1,481  $1,817Interest-bearing deposits with banks  2,114   3,661   9,005Securities           Trading  40,330   32,713   29,074Available-for-sale (AFS)  24,700   27,118   24,369Designated at fair value (FVO)  304   464   875   65,334   60,295   54,318Cash collateral on securities borrowed  3,311   1,838   2,401Securities purchased under resale agreements  25,163   25,641   34,722Loans           Residential mortgages  150,056   150,509   143,284Personal  35,323   34,842   34,335Credit card  15,153   15,744   15,914Business and government  43,624   39,663   37,946Allowance for credit losses  (1,860)   (1,803)   (1,886)   242,296   238,955   229,593Other           Derivative instruments  27,039   28,270   24,700Customers' liability under acceptances  10,436   9,454   7,633Land, buildings and equipment  1,683   1,580   1,568Goodwill  1,701   1,677   1,907Software and other intangible assets  656   633   579Investments in equity-accounted associates and joint ventures  1,635   1,394   495Other assets  9,404   8,879   10,570   52,554   51,887   47,452  $393,385  $383,758  $379,308LIABILITIES AND EQUITY           Deposits           Personal $118,153  $116,592  $113,294Business and government   125,055   117,143   115,841Bank  4,723   4,177   5,618Secured borrowings  52,413   51,308   43,518   300,344   289,220   278,271Obligations related to securities sold short   13,035   10,316   9,673Cash collateral on securities lent  1,593   2,850   4,306Capital Trust securities  1,678   1,594   1,600Obligations related to securities sold under repurchase agreements  6,631   8,564   20,651Other           Derivative instruments  27,091   28,792   25,363Acceptances  10,481   9,489   7,633Other liabilities  10,671   11,704   12,239   48,243   49,985   45,235Subordinated indebtedness  4,823   5,138   4,773Equity           Preferred shares  1,706   2,756   3,156Common shares  7,769   7,376   6,804Contributed surplus   85   93   98Retained earnings  7,042   5,457   4,157Accumulated other comprehensive income (AOCI)   264   245   416Total shareholders' equity  16,866   15,927   14,631Non-controlling interests  172   164   168Total equity  17,038   16,091   14,799  $393,385  $383,758  $379,308                                 CONSOLIDATED STATEMENT OF INCOME                      For the three   For the twelve      months ended   months ended    2012   2012   2011   2012   2011$ millions, except as noted   Oct. 31   Jul. 31   Oct. 31   Oct. 31   Oct. 31Interest income               Loans $  2,494 $2,532 $2,536 $10,020 $10,184Securities  545  394  350  1,690  1,421Securities borrowed or purchased under resale agreements  87  83  82  323  365Deposits with banks  11  11  15  42  63   3,137  3,020  2,983  12,075  12,033Interest expense               Deposits  895  910  960  3,630  3,843Securities sold short  84  85  89  333  388Securities lent or sold under repurchase agreements  30  33  47  156  264Subordinated indebtedness  52  52  52  208  215Capital Trust securities  36  36  36  144  142Other  24  21  23  110  119   1,121  1,137  1,207  4,581  4,971Net interest income  2,016  1,883  1,776  7,494  7,062Non-interest income               Underwriting and advisory fees  118  99  94  438  514Deposit and payment fees  194  203  192  775  756Credit fees  111  112  97  418  379Card fees  152  154  152  619  609Investment management and custodial fees  110  107  104  424  411Mutual fund fees  230  219  210  880  849Insurance fees, net of claims  92  81  86  335  320Commissions on securities transactions  98  96  109  402  496Trading income (loss)   (185)  (16)  (13)  (115)  44AFS securities gains (losses), net  61  70  236  264  397FVO gains (losses), net   (4)  (9)  (12)  (32)  (7)Foreign exchange other than trading  9  17  48  91  204Income from equity-accounted associates and joint ventures  44  30  9  160  111Other  113  103  107  396  290   1,143  1,266  1,419  5,055  5,373Total revenue  3,159  3,149  3,195  12,549  12,435Provision for credit losses   328  317  306  1,291  1,144Non-interest expenses               Employee compensation and benefits  1,001  1,036  1,054  4,044  4,052Occupancy costs  182  170  177  697  667Computer, software and office equipment  266  259  254  1,022  989Communications  74  75  76  304  296Advertising and business development  69  63  61  233  213Professional fees  45  47  58  174  178Business and capital taxes  12  15  5  50  38Other  180  166  235  691  1,053   1,829  1,831  1,920  7,215  7,486Income before income taxes  1,002  1,001  969  4,043  3,805Income taxes  150  160  212  704  927Net income  852  841  757  3,339  2,878Net income attributable to non-controlling interests  2  2  3  8  11 Preferred shareholders  29  29  38  158  177 Common shareholders  821  810  716  3,173  2,690Net income attributable to equity shareholders  850  839  754  3,331  2,867Earnings per share (in dollars)                  - Basic $  2.02 $2.00 $1.80 $7.86 $6.79  - Diluted $2.02 $2.00 $1.79 $7.85 $6.71Dividends per common share (in dollars) $0.94 $0.90 $0.90 $3.64 $3.51                                 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                    For the three       For the twelve            months ended   months ended    2012   2012   2011   2012   2011$ millions   Oct. 31   Jul. 31   Oct. 31   Oct. 31   Oct. 31Net income $  852 $841 $757 $3,339 $   2,878Other comprehensive income (OCI), net of tax                Net foreign currency translation adjustments                Net gains (losses) on investments in foreign operations  36  83  224  65  (101) Net (gains) losses on investments in foreign operations reclassified to net income  -   -  -  1  - Net gains (losses) on hedges of investments in foreign operations  (50)  (35)  (92)  (65)  13 Net (gains) losses on hedges of investments in foreign operations reclassified to net income  -   -  -  (1)  -   (14)  48  132  -   (88) Net change in AFS securities                Net  gains (losses) on AFS securities  36  89  (1)  208  182 Net (gains) losses on AFS securities reclassified to net income  (48)  (51)  (145)  (196)  (241)   (12)  38  (146)  12  (59) Net change in cash flow hedges                Net gains (losses) on derivatives designated as cash flow hedges  21  (1)  15  20  (40) Net (gains) losses on derivatives designated as cash flow hedges reclassified to net income  (15)  (2)  (8)  (13)  16   6  (3)  7  7  (24)Total OCI $  (20) $  83 $(7) $19 $  (171)Comprehensive income $  832 $  924 $750 $3,358 $2,707Comprehensive income attributable to non-controlling interests $2 $2 $3 $8 $11 Preferred shareholders  29  29  38  158  177 Common shareholders  801  893  709  3,192  2,519Comprehensive income attributable to equity shareholders $830 $922 $747 $3,350 $2,696                                                    For the three   For the twelve            months ended   months ended    2012   2012   2011   2012   2011$ millions   Oct. 31   Jul. 31   Oct. 31   Oct. 31   Oct. 31Income tax (expense) benefit                Net foreign currency translation adjustments                Net gains (losses) on investments in foreign operations $  (9) $   (3) $   (4) $  (10) $   (1) Net gains (losses) on hedges of investments in foreign operations  7  8  22  11  (2)   (2)  5  18  1  (3) Net change in AFS securities                Net gains (losses) on AFS securities  (7)  (20)  (10)  (49)  (82) Net (gains) losses on AFS securities reclassified to net income  18  7  66  65  112   11  (13)  56  16  30 Net change in cash flow hedges                Net gains (losses) on derivatives designated as cash flow hedges  (4)  (1)  (6)  (4)  14 Net (gains) losses on derivatives designated as cash flow hedges reclassified to net income  5  1  3  4  (4)   1  -  (3)  -   10  $  10 $(8) $71 $17 $37                                 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                      For the three   For the twelve        months ended   months ended    2012   2012   2011   2012   2011$ millions   Oct. 31   Jul. 31   Oct. 31   Oct. 31   Oct. 31Preferred shares               Balance at beginning of period $2,006 $  2,006 $2,756 $  2,756 $  3,156Redemption of preferred shares  (300)  -  -  (1,050)  (400)Balance at end of period $1,706 $2,006 $2,756 $1,706 $2,756Common shares               Balance at beginning of period $7,744 $7,697 $7,254 $7,376 $6,804Issue of common shares  64  49  126  430  575Purchase of common shares for cancellation  (39)  -  -  (39)  -Treasury shares  -   (2)  (4)  2  (3)Balance at end of period $7,769 $7,744 $7,376 $7,769 $7,376Contributed surplus               Balance at beginning of period $87 $86 $91 $93 $98Stock option expense  1  2  3  7  6Stock options exercised  (3)  (1)  (2)  (15)  (12)Other  -   -  1  -   1Balance at end of period $85 $87 $93 $85 $93Retained earnings               Balance at beginning of period $6,719 $6,276 $5,100 $5,457 $4,157Net income attributable to equity shareholders  850  839  754  3,331  2,867Dividends                Preferred  (29)  (29)  (38) (128)  (165) Common  (381)  (365)  (359)  (1,470)  (1,391)Premium on redemption of preferred shares  -   -  -  (30)  (12)Premium on purchase of common shares  (118)  -  -  (118)  -Other  1  (2)  - -   1Balance at end of period $7,042 $6,719 $5,457 $7,042 $5,457AOCI, net of tax                 Net foreign currency translation adjustments                 Balance at beginning of period $(74) $(122) $(220) $(88) $-  Net change in foreign currency translation  adjustments  (14)  48  132  -   (88)  Balance at end of period $(88) $(74) $(88) $(88) $(88)  Net gains (losses) on AFS securities                 Balance at beginning of period $362 $324 $484 $338 $397  Net change in AFS securities  (12)  38  (146)  12   (59)    Balance at end of period $350 $362 $338 $350 $338  Net gains (losses) on cash flow hedges                 Balance at beginning of period $(4) $(1) $(12) $(5) $19  Net change in cash flow hedges  6  (3)  7  7  (24)  Balance at end of period $2 $(4) $(5) $2 $(5)Total AOCI, net of tax $264 $284 $245 $264 $245Non-controlling interests               Balance at beginning of period $167 $163 $156 $164 $168Net income attributable to non-controlling interests  2  2  3  8  11Dividends  -   (3)  -  (5)  (8)Other  3  5  5  5  (7)Balance at end of period $172 $167 $164 $172 $164Equity at end of period  $17,038 $ 17,007 $16,091 $17,038 $16,091                                             CONSOLIDATED STATEMENT OF CASH FLOWS                           For the three    For the twelve          months ended        months ended      2012    2012    2011    2012    2011 $ millions    Oct. 31    Jul. 31    Oct. 31    Oct. 31    Oct. 31 Cash flows provided by (used in) operating activities(1)                     Net income  $  852  $  841  $757  $3,339  $  2,878                       Adjustments to reconcile net income to cash flows provided by (used in) operating activities:                      Provision for credit losses   328   317   306   1,291   1,144  Amortization(2)   83   91   90   357   556  Stock option expense   1   2   3   7   6  Deferred income taxes   15   188   34   167   518  AFS securities (gains) losses, net   (61)   (70)   (236)   (264)   (397)  Net (gains) losses on disposal of land, buildings and equipment   (14)   (3)   -   (17)   (5)  Other non-cash items, net   (102)   82   212   91   381  Net changes in operating assets and liabilities                       Interest-bearing deposits with banks   4,366   (2,523)   14,865   1,547   5,344   Loans, net of repayments   854   (1,257)   (3,132)   (5,023)   (10,279)   Deposits, net of withdrawals   (4,592)   8,156   (5,787)   11,339   11,644   Obligations related to securities sold short   1,091   2,053   (489)   2,719   643   Accrued interest receivable   (81)   96   (41)   (22)   115   Accrued interest payable   279   (212)   224   (95)   (167)   Derivative assets   1,721   (2,919)   (3,622)   146   (3,047)   Derivative liabilities   (1,986)   2,955   4,757   (54)   2,616   Trading securities   (1,183)   (1,496)   903   (7,617)   (3,639)   FVO securities    20   33   53   160   411   Other FVO assets and liabilities    (95)   (469)   (1,083)   (639)   (1,164)   Current income taxes   (22)   (225)   117   (749)   191   Cash collateral on securities lent   (691)   (757)   (2,198)   (1,257)   (1,456)                           Obligations related to securities sold under repurchase agreements   (1,896)   724   (5,949)   (1,933)   (12,087)   Cash collateral on securities borrowed   679   (874)   1,876   (1,473)   563   Securities purchased under resale agreements   3,842   (5,523)   5,681   516   9,081   Other, net   (263)   (284)   219   (916)   1,253     3,145   (1,074)   7,560   1,620   5,103 Cash provided by (used in) financing activities(1)                     Issue of subordinated indebtedness   -    -   -   -    1,500 Redemption/repurchase of subordinated indebtedness   -    (272)   (19)   (272)   (1,099) Redemption of preferred shares   (300)   -   (412)   (1,080)   (1,016) Issue of common shares for cash   61   48   124   415   563 Purchase of common shares for cancellation   (157)   -   -   (157)   - Net proceeds from treasury shares   -    (2)   (4)   2   (3) Dividends paid   (410)   (394)   (397)   (1,598)   (1,556)     (806)   (620)   (708)   (2,690)   (1,611) Cash flows provided by (used in) investing activities                     Purchase of AFS securities   (7,691)   (7,951)    (12,672)   (38,537)   (33,645) Proceeds from sale of AFS securities    3,608   7,995   2,249   23,815   13,514 Proceeds from maturity of AFS securities   2,147   2,048   3,957   17,421   17,400 Net cash used in acquisitions   (30)   (202)   (831)   (235)   (855) Net cash provided by dispositions   42   -   -   42   10 Net purchase of land, buildings and equipment   (117)   (94)   (91)   (309)   (234)     (2,041)   1,796   (7,388)   2,197   (3,810) Effect of exchange rate changes on cash and non-interest-bearing deposits with banks   (4)   17   12   5   (18) Net increase (decrease) in cash and non-interest-bearing deposits with banks during period   294   119   (524)   1,132   (336) Cash and non-interest-bearing deposits with banks at beginning of period   2,319   2,200   2,005   1,481   1,817 Cash and non-interest-bearing deposits with banks at end of period  $  2,613  $2,319  $1,481  $2,613  $  1,481 Cash interest paid  $842  $1,349  $983  $4,676  $5,138 Cash income taxes paid  $157  $197  $61  $1,286  $218 Cash interest and dividends received  $3,056  $3,116  $2,942  $12,053  $12,148 (1)Certain prior period information has been reclassified to conform to the presentation in the current period.(2)Comprises amortization of buildings, furniture, equipment, leasehold improvements, and software and other intangible assets.  In addition, third quarter of 2011 includes impairment loss on goodwill.  Non-GAAP measuresWe use a number of financial measures to assess the performance of our business lines. Some measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP), 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 useful in analyzing financial performance. For a more detailed discussion, see the "Non-GAAP measures" section of CIBC's 2012 Annual Report.The following table provides a quarterly reconciliation of non-GAAP to GAAP measures related to CIBC on a consolidated basis. For an annual reconciliation of non-GAAP to GAAP measures, see the "Non-GAAP measures" section of CIBC's 2012 Annual Report.                  2012   2012   2011 $ millions, as at or for the three months ended   Oct. 31   Jul. 31   Oct. 31 Reported and adjusted diluted EPS              Reported net income attributable to diluted              common shareholdersA  $821    $810   $718 Adjusting items:               After-tax impact of items of note    6    25   (6)   Dividends on convertible preferred shares    -    -   (2) Adjusted net income attributable to diluted              common shareholders (1)B  $827    $835   $710 Reported diluted weighted-average common shares              outstanding (thousands)C  405,844    405,517   401,972 Removal of impact of convertible preferred              shares (thousands)    -    -   (2,235) Adjusted diluted weighted-average shares              outstanding (thousands) (1)D  405,844    405,517   399,737 Reported diluted EPS ($)A/C  $2.02    $2.00   $1.79 Adjusted diluted EPS ($) (1) B/D  2.04    2.06   1.78 Reported and adjusted efficiency ratio             Reported total revenueE  $3,159    $3,149   $3,195 Adjusting items:              Pre-tax impact of items of note    (52)   24   (105)  TEB   92    71   56 Adjusted total revenue (1)F  $3,199    $3,244   $3,146 Reported non-interest expensesG  $1,829    $1,831   $1,920 Adjusting items:              Pre-tax impact of items of note    (21)   (9)   (72) Adjusted non-interest expenses (1)H  $1,808    $1,822   $1,848 Reported efficiency ratioG/E  57.9 %  58.1%  60.1%Adjusted efficiency ratio (1)H/F  56.5 %  56.1%  58.7%Reported and adjusted dividend payout ratio             Reported net income attributable to common shareholdersI  $821    $810   $716 Adjusting items:              After-tax impact of items of note    6    25   (6) Adjusted net income attributable to common shareholders (1)J  $827    $835   $710 Dividends paid to common sharesK  $381    $365   $359 Reported dividend payout ratioK/I  46.4 %  45.0%  50.1%Adjusted dividend payout ratio (1)K/J  46.1 %  43.7%  50.6%(1) Non-GAAP measure.Basis of presentation The interim consolidated financial information in this news release is prepared in accordance with IFRS and is unaudited whereas the annual consolidated financial information is derived from audited financial statements. These interim financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements for the year ended October 31, 2012.The information below forms a part of this press release.Nothing in CIBC's corporate website (www.cibc.com) should be considered incorporated herein by reference.(The board of directors of CIBC reviewed this press release prior to it being issued.)A NOTE ABOUT FORWARD-LOOKING STATEMENTSFrom time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this press release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. These statements include, but are not limited to, statements made in the "Performance against Objectives", "Core business performance", "Strong Fundamentals" and "Making a Difference in Our Communities" sections of this press release, and other statements we make about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies and outlook for 2013 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions 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, operational, reputation and legal, regulatory and environmental risk; the effectiveness and adequacy of our risk management models and processes; legislative or regulatory developments in the jurisdictions where we operate; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions; the resolution of legal proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; political conditions and developments; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; the accuracy and completeness of information provided to us by clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates; intensifying competition from established competitors and new entrants in the financial services industry; technological change; global capital market activity; changes in monetary and economic policy; currency value fluctuations; general economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations; changes in market rates and prices which may adversely affect the value of financial products; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. We do not undertake to update any forward-looking statement that is contained in this press release or in other communications except as required by law.    SOURCE: CIBCFor further information: Investor and analyst inquiries should be directed to Geoff Weiss, Senior Vice-President, Investor Relations, at 416-980-5093. Media inquiries should be directed to Kevin Dove, Senior Director, Communications and Public Affairs, at 416-980-8835, or to Mary Lou Frazer, Senior Director, Investor & Financial Communications, at 416-980-4111.