PR Newswire | Dec 3, 2020 05:55AM EST

12/03 04:54 CST

CIBC Announces Fourth Quarter and Fiscal 2020 Results TORONTO, Dec. 3, 2020

CIBC's 2020 audited annual consolidated financial statements and accompanyingmanagement's discussion and analysis (MD&A) will be available today at www.cibc.com, along with the supplementary financial information and supplementary regulatory capital reports which include fourth quarter financial information. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Dec. 3, 2020 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2020.

"We delivered resilient financial performance in fiscal 2020 against the backdrop of a global pandemic and an evolving geopolitical environment. Throughout this period, our team was guided by our purpose as we responded, ensuring that we supported our clients, team members and communities through a uniquely challenging time," said Victor G. Dodig, CIBC President and Chief Executive Officer. "At the same time, we took steps to position our bank for the future, including making strategic investments in our people, processes and platforms, and taking steps to enhance our efficiency. As we enter fiscal 2021, our strong financial position will enable us to continue executing our client-focused strategy to deliver growth and generate value for all our stakeholders."

Fourth quarter highlights

Q4/20 Q4/19 Q3/20 YoY QoQ VarianceVariance

Reported Net Income $1,016 million$1,193 million$1,172 million-15% -13%

Adjusted Net Income ^(1) $1,280 million$1,309 million$1,243 million-2% +3%

Reported Diluted Earnings Per Share (EPS) $2.20 $2.58 $2.55 -15% -14%

Adjusted Diluted EPS ^(1) $2.79 $2.84 $2.71 -2% +3%

Reported Return on Common Shareholders' Equity (ROE)10.7% 12.9% 12.1% Adjusted ROE ^(1) 13.5% 14.2% 12.9% Common Equity Tier 1 (CET1) Ratio 12.1% 11.6% 11.8%

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

CIBC's results for the fourth quarter of 2020 were affected by the following items of note aggregating to a negative impact of $0.59 per share:

* $220 million ($220 million after-tax) goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean; * $114 million ($84 million after-tax) charge related to the consolidation of our real estate portfolio; * $79 million ($58 million after-tax) gain as a result of plan amendments related to pension and other post-employment plans; and * $23 million ($18 million after-tax) amortization of acquisition-related intangible assets.

For the year ended October 31, 2020, CIBC reported net income of $3.8 billion and adjusted net income(1) of $4.4 billion, compared with reported net income of $5.1 billion and adjusted net income(1) of $5.4 billion for 2019.

The following table summarizes our performance in 2020 against our key financial measures and targets:

Financial Measure Target 2020 Reported Results 2020 Adjusted Results ^(1)

Diluted EPS growth ^(2) 5% to 10% annually $8.22, down 27% from 2019 $9.69, down 19% from 2019

ROE ^(2) 15% + 10.0% 11.7%

60.6%, an increase of 230 basis55.8%, a decline of 30 basis pointsEfficiency ratio 52% run rate in 2022 points from 2019 from 2019

Strong buffer to regulatory CET1 ratio 12.1% minimum

Dividend payout ratio ^(2)40% to 50% 70.7% 60.0%

Outperform the S&P/TSX CIBC - 27.7% Total shareholder return Composite Banks Index over a S&P/TSX Composite Banks Index - 35.3% rolling five-year period

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

(2) Through the cycle.

Core business performance(1)F2020 Financial Highlights

(C$ million) F2020 F2019 YoY Variance

Canadian Personal and Business Banking

Reported Net Income $1,962$2,289down 14%

Adjusted Net Income ^(2) $1,968$2,463down 20%



Canadian Commercial Banking and Wealth Management

Reported Net Income $1,202$1,287down 7%

Adjusted Net Income ^(2) $1,203$1,288down 7%



U.S. Commercial Banking and Wealth Management

Reported Net Income $380 $682 down 44%

Adjusted Net Income ^(2) $441 $722 down 39%



Capital Markets

Reported Net Income $1,131$954 up 19%

Adjusted Net Income ^(2) $1,131$954 up 19%

Certain prior period information has been revised due to enhancements made(1) to our transfer pricing methodology. See the "External reporting changes" section of our 2020 Annual Report to Shareholders for additional details.

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

Strong fundamentalsWhile investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2020, CIBC maintained its capital strength and sound risk management practices:

* Capital ratios were strong, with a Basel III CET1 ratio of 12.1% as noted above, and Tier 1 and Total capital ratios of 13.6% and 16.1%, respectively, at October 31, 2020; * Market risk, as measured by average Value-at-Risk, was $8.5 million in 2020 compared with $5.7 million in 2019; * We continued to have solid credit performance, with a loan loss ratio of 26 basis points compared with 29 basis points in 2019; * Average Liquidity Coverage Ratio was 145% for the three months ended October 31, 2020; and * Leverage Ratio was 4.7% at October 31, 2020.

Credit qualityProvision for credit losses was $291 million for the fourth quarter, down $111 million or 28% from the same quarter last year. Provision for credit losses on performing loans was up $41 million, primarily due to an unfavourable impact of model parameter updates in Canadian Personal and Business Banking and negative credit migration in U.S. Commercial Banking and Wealth Management. Provision for credit losses on impaired loans was down $152 million, due to lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Making a difference in our CommunitiesPart of being a genuinely caring bank means supporting the organizations and charities that keep our communities strong. In aggregate, we invested $75 million in community organizations across Canada and the U.S. during 2020. In the fourth quarter:

* Team CIBC rallied around a reimagined Canadian Cancer Society CIBC Run for the Cure, raising $2 million to help change the future of breast cancer, bringing our total funds raised in support of this cause to a total of $56 million over the past 24 years. * We announced several key donations to community organizations, including a commitment of $750,000 to Ronald McDonald House Canada over the next three years as part of its National Mission Partnership and $500,000 over three years to support educational and employment opportunities for persons with disabilities at Holland Bloorview. * Towards an inclusive future, we committed an additional $275,000 for youth-focused organizations in Canada and the U.S. that support the Black community; sponsored the second annual Startup & Slay digital series, hosted by How She Hustles, a network for diverse women entrepreneurs and leaders; and supported Actua, an organization that engages young Indigenous peoples for the future of work through transformational STEM programming as we recognized Orange Shirt Day honouring the First Nations, Inuit and Mtis children who were forcibly removed from their communities and sent to Residential Schools.

Fourth quarter financial highlights

As at or for the As at or for the

three months ended twelve months ended

2020 2020 2019 2020 2019

Unaudited Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Financial results ($ millions)

Net interest income $ 2,792 $ 2,729 $ 2,801 $ 11,044 $ 10,551

Non-interest income 1,808 1,979 1,971 7,697 8,060

Total revenue 4,600 4,708 4,772 18,741 18,611

Provision for credit losses 291 525 402 2,489 1,286

Non-interest expenses 2,891 2,702 2,838 11,362 10,856

Income before income taxes 1,418 1,481 1,532 4,890 6,469

Income taxes 402 309 339 1,098 1,348

Net income $ 1,016 $ 1,172 $ 1,193 $ 3,792 $ 5,121

Net income attributable to non-controlling interests 1 2 8 2 25

Preferred shareholders and other equity instrument holders 30 31 32 122 111

Common shareholders 985 1,139 1,153 3,668 4,985

Net income attributable to equity shareholders $ 1,015 $ 1,170 $ 1,185 $ 3,790 $ 5,096

Financial measures

Reported efficiency ratio 62.9 % 57.4 % 59.5 % 60.6 % 58.3 %

Loan loss ratio^ (1) 0.17 % 0.29 % 0.33 % 0.26 % 0.29 %

Reported return on common shareholders' equity^ (2) 10.7 % 12.1 % 12.9 % 10.0 % 14.5 %

Net interest margin 1.43 % 1.43 % 1.69 % 1.50 % 1.65 %

Net interest margin on average interest-earning assets^ (3) 1.60 % 1.61 % 1.90 % 1.69 % 1.84 %

Return on average assets^ (4) 0.52 % 0.62 % 0.72 % 0.52 % 0.80 %

Return on average interest-earning assets^ (3)(4) 0.58 % 0.69 % 0.81 % 0.58 % 0.89 %

Reported effective tax rate 28.3 % 20.9 % 22.1 % 22.5 % 20.8 %

Common share information

Per share ($) - basic earnings $ 2.21 $ 2.56 $ 2.59 $ 8.23 $ 11.22

- reported diluted earnings 2.20 2.55 2.58 8.22 11.19

- dividends 1.46 1.46 1.44 5.82 5.60

- book value 84.05 83.17 79.87 84.05 79.87

Closing share price ($) 99.38 92.73 112.31 99.38 112.31

Shares outstanding (thousands) - weighted-average basic 446,321 445,416 445,357 445,435 444,324

- weighted-average diluted 446,877 445,894 446,392 446,021 445,457

- end of period 447,085 446,009 445,342 447,085 445,342

Market capitalization ($ millions) $ 44,431 $ 41,358 $ 50,016 $ 44,431 $ 50,016

Value measures

Total shareholder return 8.74 % 14.24 % 9.60 % (5.90) % 4.19 %

Dividend yield (based on closing share price) 5.8 % 6.3 % 5.1 % 5.9 % 5.0 %

Reported dividend payout ratio 66.2 % 57.1 % 55.6 % 70.7 % 49.9 %

Market value to book value ratio 1.18 1.11 1.41 1.18 1.41

Selected financial measures - adjusted^ (5)

Adjusted efficiency ratio^ (6) 56.4 % 54.8 % 56.0 % 55.8 % 55.5 %

Adjusted return on common shareholders' equity^ (2) 13.5 % 12.9 % 14.2 % 11.7 % 15.4 %

Adjusted effective tax rate 24.5 % 21.2 % 20.2 % 21.8 % 20.6 %

Adjusted diluted earnings per share $ 2.79 $ 2.71 $ 2.84 $ 9.69 $ 11.92

Adjusted dividend payout ratio 52.2 % 53.7 % 50.5 % 60.0 % 46.9 %

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

Cash, deposits with banks and securities $ 211,564 $ 212,766 $ 138,669 $ 211,564 $ 138,669

Loans and acceptances, net of allowance 416,388 414,457 398,108 416,388 398,108

Total assets 769,551 768,545 651,604 769,551 651,604

Deposits 570,740 566,135 485,712 570,740 485,712

Common shareholders' equity 37,579 37,095 35,569 37,579 35,569

Average assets 778,933 757,589 655,971 735,492 639,716

Average interest-earning assets^ (3) 692,465 673,527 585,816 654,142 572,677

Average common shareholders' equity 36,762 37,360 35,553 36,792 34,467

Assets under administration (AUA)^ (7)(8) 2,368,904 2,413,768 2,425,651 2,368,904 2,425,651

Assets under management (AUM)^ (8) 265,936 265,639 252,007 265,936 252,007

Balance sheet quality and liquidity measures

Risk-weighted assets (RWA) ($ millions) $ 254,871 $ 256,683 $ 239,863 $ 254,871 $ 239,863

CET1 ratio^ (9) 12.1 % 11.8 % 11.6 % 12.1 % 11.6 %

Tier 1 capital ratio^ (9) 13.6 % 13.0 % 12.9 % 13.6 % 12.9 %

Total capital ratio^ (9) 16.1 % 15.4 % 15.0 % 16.1 % 15.0 %

Leverage ratio 4.7 % 4.6 % 4.3 % 4.7 % 4.3 %

Liquidity coverage ratio (LCR) 145 % 150 % 125 % n/a n/a

Other information

Full-time equivalent employees 43,853 43,952 45,157 43,853 45,157

(1) The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.

(2) Annualized.

Average interest-earning assets include interest-bearing deposits with banks,(3) interest-bearing demand deposits with Bank of Canada, securities, cash collateral on securities borrowed, securities purchased under resale agreements, loans net of allowances, and certain sublease-related assets.

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

Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information(5) included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, see the "Non-GAAP measures" section.

(6) Calculated on a tax equivalent basis (TEB).

Includes the full contract amount of AUA or custody under a 50/50 joint venture(7) between CIBC and The Bank of New York Mellon of $1,861.5 billion (July 31, 2020: $1,903.7 billion; October 31, 2019: $1,923.2 billion).

(8) AUM amounts are included in the amounts reported under AUA.

(9) Effective beginning in the second quarter of 2020, ratios reflect the expected credit loss transitional arrangement announced by OSFI on March 27, 2020.

n/a Not applicable.

Review of Canadian Personal and Business Banking fourth quarter results

2020 2020 2019

$ millions, for the three months ended Oct. 31 Jul. 31 Oct. 31^(1)

Revenue $ 2,139 $ 2,056 $ 2,225

Provision for credit losses

Impaired 89 151 218

Performing 41 69 37

Total provision for credit losses 130 220 255

Non-interest expenses 1,149 1,146 1,156

Income before income taxes 860 690 814

Income taxes 226 182 213

Net income $ 634 $ 508 $ 601

Net income attributable to:

Equity shareholders $ 634 $ 508 $ 601

Efficiency ratio 53.8 % 55.7 % 52.0 %

Return on equity^ (2) 37.5 % 29.7 % 36.8 %

Average allocated common equity^ (2) $ 6,728 $ 6,790 $ 6,472

Full-time equivalent employees 12,879 12,739 13,431

Certain prior period information has been revised. See the "External reporting(1) changes" section of the 2020 Annual Report to Shareholders for additional details.

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

Net income for the quarter was $634 million, up $33 million from the fourth quarter of 2019. Adjusted net income(2) for the quarter was $635 million, up $32 million from the fourth quarter of 2019.

Revenue of $2,139 million was down $86 million from the fourth quarter of 2019, primarily due to narrower margins and lower fees largely driven by reduced client transaction activity as a result of the pandemic, partially offset by volume growth.

Provision for credit losses of $130 million was down $125 million from the fourth quarter of 2019, due to a lower provision for credit losses on impaired loans as a result of lower insolvencies and write-offs in credit cards and personal lending, reflecting the impact of the client relief programs and government support.

Non-interest expenses of $1,149 million were down $7 million from the fourth quarter of 2019.

Review of Canadian Commercial Banking and Wealth Management fourth quarterresults

2020 2020 2019

$ millions, for the three months ended Oct. 31 Jul. 31 Oct. 31^(1)

Revenue

Commercial banking $ 409 $ 417 $ 414

Wealth management 619 596 612

Total revenue 1,028 1,013 1,026

Provision for (reversal of) credit losses

Impaired 21 45 71

Performing 4 12 9

Total provision for credit losses 25 57 80

Non-interest expenses 540 519 530

Income before income taxes 463 437 416

Income taxes 123 117 111

Net income $ 340 $ 320 $ 305

Net income attributable to:

Equity shareholders $ 340 $ 320 $ 305

Efficiency ratio 52.5 % 51.2 % 51.7 %

Return on equity^ (2) 20.7 % 19.4 % 19.7 %

Average allocated common equity^ (2) $ 6,551 $ 6,591 $ 6,126

Full-time equivalent employees 4,984 4,981 5,048

Certain prior period information has been revised. See the "External reporting(1) changes" section of the 2020 Annual Report to Shareholders for additional details.

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

Net income for the quarter was $340 million, up $35 million from the fourth quarter of 2019. Adjusted net income(2) for the quarter was $341 million, up $35 million from the fourth quarter of 2019.

Revenue of $1,028 million was up $2 million from the fourth quarter of 2019, driven mainly by volume growth and market appreciation in wealth management. Revenue declined in commercial banking due to changes in the interest rate environment and muted client lending activity, which more than offset volume growth in deposits.

Provision for credit losses of $25 million was down $55 million from the fourth quarter of 2019, due to lower provision for credit losses on impaired loans in the retail and wholesale sectors.

Non-interest expenses of $540 million were up $10 million from the fourth quarter of 2019, primarily due to higher employee-related compensation, partially offset by lower travel and business development activity.

Review of U.S. Commercial Banking and Wealth Management fourth quarter results

2020 2020 2019

$ millions, for the three months ended Oct. 31 Jul. 31 Oct. 31^(1)

Revenue

Commercial banking^ (2) $ 358 $ 364 $ 343

Wealth management 157 150 159

Total revenue^ (3)(4) 515 514 502

Provision for (reversal of) credit losses

Impaired 55 42 13

Performing 27 118 4

Total provision for credit losses 82 160 17

Non-interest expenses 270 271 286

Income before income taxes 163 83 199

Income taxes^ (3) 32 21 20

Net income $ 131 $ 62 $ 179

Net income attributable to:

Equity shareholders $ 131 $ 62 $ 179

Efficiency ratio 52.4 % 52.7 % 57.0 %

Return on equity^ (5) 5.7 % 2.6 % 8.0 %

Average allocated common equity^ (5) $ 9,191 $ 9,559 $ 8,842

Full-time equivalent employees 2,101 2,105 2,113

Certain prior period information has been revised. See the "External reporting(1) changes" section of the 2020 Annual Report to Shareholders for additional details.

Certain information has been reclassified to conform to the presentation adopted in the first quarter of 2020. Commercial banking now includes the Other(2) line of business, which includes the treasury activities relating to CIBC Bank USA, as these activities primarily support the commercial banking line of business.

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income(3) taxes include a TEB adjustment of nil for the quarter ended October 31, 2020 (July 31, 2020: nil; October 31, 2019: nil). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

Included $5 million of accretion of the acquisition date fair value discount on(4) the acquired loans of The PrivateBank, shown as an item of note, for the quarter ended October 31, 2020 (July 31, 2020: $5 million; October 31, 2019: $8 million).

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

Net income for the quarter was $131 million, down $48 million from the fourth quarter of 2019. Adjusted net income(5) for the quarter was $144 million, down $46 million from the fourth quarter of 2019.

Revenue of $515 million was up $13 million from the fourth quarter of 2019, primarily due to higher loan and deposit volumes and strong growth in asset management fees, partially offset by margin compression due to decline in interest rates and lower transactional loan-related fees.

Provision for credit losses of $82 million was up $65 million from the fourth quarter of 2019. The current quarter included a higher provision for credit losses on performing loans due to unfavourable credit migration. Provision for credit losses on impaired loans was up mainly due to impairments as a result of certain borrower-specific performance issues.

Non-interest expenses of $270 million were down $16 million from the fourth quarter of 2019, primarily due to lower business development and employee-related compensation.

Review of Capital Markets fourth quarter results

2020 2020 2019

$ millions, for the three months ended Oct. 31 Jul. 31 Oct. 31^(1)

Revenue

Global markets $ 470 $ 637 $ 432

Corporate and investment banking 322 363 308

Total revenue^ (2) 792 1,000 740

Provision for (reversal of) credit losses

Impaired 19 56 24

Performing (11) 5 21

Total provision for credit losses 8 61 45

Non-interest expenses 384 413 386

Income before income taxes 400 526 309

Income taxes^ (2) 133 134 79

Net income $ 267 $ 392 $ 230

Net income attributable to:

Equity shareholders $ 267 $ 392 $ 230

Efficiency ratio 48.5 % 41.3 % 52.0 %

Return on equity^ (3) 15.8 % 22.7 % 14.4 %

Average allocated common equity^ (3) $ 6,707 $ 6,895 $ 6,335

Full-time equivalent employees 1,470 1,476 1,449

Certain prior period information has been revised. See the "External reporting(1) changes" section of the 2020 Annual Report to Shareholders for additional details.

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $37 million for the quarter ended October 31,(2) 2020 (July 31, 2020: $51 million; October 31, 2019: $48 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.

Reported and adjusted(3) net income for the quarter was $267 million, compared with reported and adjusted(3) net income of $230 million for the fourth quarter of 2019.

Revenue of $792 million was up $52 million from the fourth quarter of 2019. In global markets, revenue increased driven by interest rate and commodities trading and global markets financing activities, partially offset by lower foreign exchange trading revenue. In corporate and investment banking, revenue increased driven by higher corporate banking and debt underwriting activity, partially offset by lower advisory and equity underwriting revenue.

Provision for credit losses of $8 million was down $37 million from the fourth quarter of 2019, mainly due to a decline in provision for credit losses on performing loans from accounts migrating to impaired, while the fourth quarter of 2019 reflected the impact of a worsening of our economic outlook.

Non-interest expenses of $384 million were down $2 million from the fourth quarter of 2019, primarily due to lower performance-related compensation, partially offset by higher spending on strategic initiatives.

Review of Corporate and Other fourth quarter results

2020 2020 2019

$ millions, for the three months ended Oct. 31 Jul. 31 Oct. 31^(1)

Revenue

International banking $ 178 $ 180 $ 201

Other (52) (55) 78

Total revenue^ (2) 126 125 279

Provision for (reversal of) credit losses

Impaired (6) 6 4

Performing 52 21 1

Total provision for credit losses 46 27 5

Non-interest expenses 548 353 480

Loss before income taxes (468) (255) (206)

Income taxes^ (2) (112) (145) (84)

Net loss $ (356) $ (110) $ (122)

Net income (loss) attributable to:

Non-controlling interests $ 1 $ 2 $ 8

Equity shareholders (357) (112) (130)

Full-time equivalent employees 22,419 22,651 23,116

Certain prior period information has been revised. See the "External reporting(1) changes" section of the 2020 Annual Report to Shareholders for additional details.

Revenue and income taxes of Capital Markets and U.S. Commercial Banking and Wealth Management are reported on a TEB. The equivalent amounts are offset in(2) the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $37 million for the quarter ended October 31, 2020 (July 31, 2020: $51 million; October 31, 2019: $48 million).

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

Net loss for the quarter was $356 million, compared with a net loss of $122 million for the fourth quarter of 2019. Adjusted net loss(3) for the quarter was $107 million, compared with an adjusted net loss(3) of $20 million for the fourth quarter of 2019.

Revenue of $126 million was down $153 million from the fourth quarter of 2019. International banking revenue was down primarily due to lower revenue in CIBC FirstCaribbean due to a decrease in margins and fee income, partially offset by higher loan volumes. Other revenue was down primarily due to lower Treasury revenue largely as a result of excess liquidity costs, interest income in the prior year related to the expected settlement of certain income tax matters, shown as an item of note, and the impact of changes relating to our adoption of IFRS 16 "Leases" in the current year that were largely offset in non-interest expenses.

Provision for credit losses was $46 million, up $41 million from the fourth quarter of 2019, due to a higher provision for credit losses on performing loans related to the COVID-19 pandemic in the Caribbean region, partially offset by a lower provision on impaired loans in CIBC FirstCaribbean.

Non-interest expenses of $548 million were up $68 million from the fourth quarter of 2019, primarily due to a charge related to the consolidation of our real estate portfolio and a higher goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, partially offset by a gain in the current quarter as a result of plan amendments related to pension and other post-employment plans, and lower legal provisions, all shown as items of note. The current quarter was also impacted by changes relating to our adoption of IFRS 16, as noted above.

Income tax benefit was up $28 million from the fourth quarter of 2019, primarily due to higher losses. The goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, shown as an item of note, is not deductible for tax purposes.

Consolidated balance sheet

$ millions, as at October 31 2020 2019

ASSETS

Cash and non-interest-bearing deposits with banks $ 43,531 $ 3,840

Interest-bearing deposits with banks 18,987 13,519

Securities 149,046 121,310

Cash collateral on securities borrowed 8,547 3,664

Securities purchased under resale agreements 65,595 56,111

Loans

Residential mortgages 221,165 208,652

Personal 42,222 43,651

Credit card 11,389 12,755

Business and government 135,546 125,798

Allowance for credit losses (3,540) (1,915)

406,782 388,941

Other

Derivative instruments 32,730 23,895

Customers' liability under acceptances 9,606 9,167

Property and equipment 2,997 1,813

Goodwill 5,253 5,449

Software and other intangible assets 1,961 1,969

Investments in equity-accounted associates and joint ventures 658 586

Deferred tax assets 650 517

Other assets 23,208 20,823

77,063 64,219

$ 769,551 $ 651,604

LIABILITIES AND EQUITY

Deposits

Personal $ 202,152 $ 178,091

Business and government 311,426 257,502

Bank 17,011 11,224

Secured borrowings 40,151 38,895

570,740 485,712

Obligations related to securities sold short 15,963 15,635

Cash collateral on securities lent 1,824 1,822

Obligations related to securities sold under repurchase agreements 71,653 51,801

Other

Derivative instruments 30,508 25,113

Acceptances 9,649 9,188

Deferred tax liabilities 33 38

Other liabilities 22,134 19,031

62,324 53,370

Subordinated indebtedness 5,712 4,684

Equity

Preferred shares and other equity instruments 3,575 2,825

Common shares 13,908 13,591

Contributed surplus 117 125

Retained earnings 22,119 20,972

Accumulated other comprehensive income (AOCI) 1,435 881

Total shareholders' equity 41,154 38,394

Non-controlling interests 181 186

Total equity 41,335 38,580

$ 769,551 $ 651,604

Consolidated statement of income

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions, except as noted Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Interest income^ (1)

Loans $ 3,099 $ 3,120 $ 4,091 $ 13,863 $ 16,048

Securities 572 568 707 2,568 2,779

Securities borrowed or purchased under resale agreements 87 113 375 842 1,474

Deposits with banks 42 37 104 249 396

3,800 3,838 5,277 17,522 20,697

Interest expense

Deposits 822 913 2,040 5,326 8,422

Securities sold short 59 57 64 254 291

Securities lent or sold under repurchase agreements 71 83 307 656 1,198

Subordinated indebtedness 36 33 56 159 198

Other 20 23 9 83 37

1,008 1,109 2,476 6,478 10,146

Net interest income 2,792 2,729 2,801 11,044 10,551

Non-interest income

Underwriting and advisory fees 103 123 105 468 475

Deposit and payment fees 186 176 228 781 908

Credit fees 265 261 248 1,020 958

Card fees 105 98 110 410 458

Investment management and custodial fees 357 336 341 1,382 1,305

Mutual fund fees 402 391 403 1,586 1,595

Insurance fees, net of claims 95 94 107 386 430

Commissions on securities transactions 83 88 77 362 313

Gains (losses) from financial instruments measured/designated at

fair value through profit or loss (FVTPL), net 86 270 168 694 761

Gains (losses) from debt securities measured at fair value through

other comprehensive income (FVOCI) and amortized cost, net 4 10 6 9 34

Foreign exchange other than trading 45 63 59 234 304

Income from equity-accounted associates and joint ventures 12 25 22 79 92

Other 65 44 97 286 427

1,808 1,979 1,971 7,697 8,060

Total revenue 4,600 4,708 4,772 18,741 18,611

Provision for credit losses 291 525 402 2,489 1,286

Non-interest expenses

Employee compensation and benefits 1,371 1,512 1,436 6,259 5,726

Occupancy costs 321 202 230 944 892

Computer, software and office equipment 516 474 493 1,939 1,874

Communications 72 79 71 308 303

Advertising and business development 71 51 95 271 359

Professional fees 53 51 67 203 226

Business and capital taxes 30 22 25 117 110

Other 457 311 421 1,321 1,366

2,891 2,702 2,838 11,362 10,856

Income before income taxes 1,418 1,481 1,532 4,890 6,469

Income taxes 402 309 339 1,098 1,348

Net income $ 1,016 $ 1,172 $ 1,193 $ 3,792 $ 5,121

Net income attributable to non-controlling interests $ 1 $ 2 $ 8 $ 2 $ 25

Preferred shareholders and other equity instrument holders $ 30 $ 31 $ 32 $ 122 $ 111

Common shareholders 985 1,139 1,153 3,668 4,985

Net income attributable to equity shareholders $ 1,015 $ 1,170 $ 1,185 $ 3,790 $ 5,096

Earnings per share (in dollars)

Basic $ 2.21 $ 2.56 $ 2.59 $ 8.23 $ 11.22

Diluted 2.20 2.55 2.58 8.22 11.19

Dividends per common share (in dollars) 1.46 1.46 1.44 5.82 5.60

Interest income included $3.3 billion for the quarter ended October 31, 2020(1) (July 31, 2020: $3.5 billion; October 31, 2019: $4.8 billion) calculated based on the effective interest rate method.

Consolidated statement of comprehensive income

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Net income $ 1,016 $ 1,172 $ 1,193 $ 3,792 $ 5,121

Other comprehensive income (loss) (OCI), net of income tax, that is subject tosubsequent

reclassification to net income

Net foreign currency translation adjustments

Net gains (losses) on investments in foreign operations (187) (1,388) (79) 382 (21)

Net gains (losses) on hedges of investments in foreign operations 103 770 35 (202) (10)

(84) (618) (44) 180 (31)

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI 5 158 53 254 244

Net (gains) losses reclassified to net income (5) (7) (4) (22) (28)

- 151 49 232 216

Net change in cash flow hedges

Net gains (losses) on derivatives designated as cash flow hedges 32 78 91 142 137

Net (gains) losses reclassified to net income (62) (83) (50) 19 (6)

(30) (5) 41 161 131

OCI, net of income tax, that is not subject to subsequent reclassification tonet income

Net gains (losses) on post-employment defined benefit plans 147 (210) 11 80 (220)

Net gains (losses) due to fair value change of fair value option (FVO) liabilities

attributable to changes in credit risk (8) (63) 13 (56) 28

Net gains (losses) on equity securities designated at FVOCI 25 27 1 50 (2)

164 (246) 25 74 (194)

Total OCI^ (1) 50 (718) 71 647 122

Comprehensive income $ 1,066 $ 454 $ 1,264 $ 4,439 $ 5,243

Comprehensive income attributable to non-controlling interests $ 1 $ 2 $ 8 $ 2 $ 25

Preferred shareholders and other equity instrument holders $ 30 $ 31 $ 32 $ 122 $ 111

Common shareholders 1,035 421 1,224 4,315 5,107

Comprehensive income attributable to equity shareholders $ 1,065 $ 452 $ 1,256 $ 4,437 $ 5,218

Includes $1 million of losses for the quarter ended October 31, 2020 (July 31,(1) 2020: $21 million of gains; October 31, 2019: $2 million of gains), relating to our investments in equity-accounted associates and joint ventures.

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Income tax (expense) benefit allocated to each component of OCI

Subject to subsequent reclassification to net income

Net foreign currency translation adjustments

Net gains (losses) on investments in foreign operations $ 1 $ 56 $ - $ 42 $ -

Net gains (losses) on hedges of investments in foreign operations (3) (65) (8) (46) (16)

(2) (9) (8) (4) (16)

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI (7) (41) (13) (59) (36)

Net (gains) losses reclassified to net income 1 2 2 7 10

(6) (39) (11) (52) (26)

Net change in cash flow hedges

Net gains (losses) on derivatives designated as cash flow hedges (12) (28) (32) (51) (49)

Net (gains) losses reclassified to net income 22 30 17 (7) 2

10 2 (15) (58) (47)

Not subject to subsequent reclassification to net income

Net gains (losses) on post-employment defined benefit plans (42) 75 1 (19) 77

Net gains (losses) due to fair value change of FVO liabilities attributable

to changes in credit risk 4 22 (4) 20 (10)

Net gains (losses) on equity securities designated at FVOCI (9) (8) (1) (17) -

(47) 89 (4) (16) 67

$ (45) $ 43 $ (38) $ (130) $ (22)

Consolidated statement of changes in equity

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Preferred shares and other equity instruments

Balance at beginning of period $ 2,825 $ 2,825 $ 2,825 $ 2,825 $ 2,250

Issue of preferred shares and limited recourse capital notes 750 - - 750 575

Balance at end of period $ 3,575 $ 2,825 $ 2,825 $ 3,575 $ 2,825

Common shares

Balance at beginning of period $ 13,800 $ 13,722 $ 13,525 $ 13,591 $ 13,243

Issue of common shares 89 81 97 371 377

Purchase of common shares for cancellation - - (30) (68) (30)

Treasury shares 19 (3) (1) 14 1

Balance at end of period $ 13,908 $ 13,800 $ 13,591 $ 13,908 $ 13,591

Contributed surplus

Balance at beginning of period $ 122 $ 119 $ 128 $ 125 $ 136

Compensation expense arising from equity-settled share-based awards 3 4 2 14 16

Exercise of stock options and settlement of other equity-settled share-based (8) (1) (4) (20) (27)awards

Other - - (1) (2) -

Balance at end of period $ 117 $ 122 $ 125 $ 117 $ 125

Retained earnings

Balance at beginning of period before accounting policy changes n/a n/a n/a $ 20,972 $ 18,537

Impact of adopting IFRS 15 at November 1, 2018 n/a n/a n/a n/a 6

Impact of adopting IFRS 16 at November 1, 2019 n/a n/a n/a 148 n/a

Balance at beginning of period after accounting policy changes $ 21,726 $ 21,238 $ 20,535 21,120 18,543

Net income attributable to equity shareholders 1,015 1,170 1,185 3,790 5,096

Dividends and distributions

Preferred and other equity instruments (30) (31) (32) (122) (111)

Common (652) (650) (641) (2,592) (2,488)

Premium on purchase of common shares for cancellation - - (79) (166) (79)

Realized gains (losses) on equity securities designated at FVOCI reclassified 62 - 5 93 18from AOCI

Other (2) (1) (1) (4) (7)

Balance at end of period $ 22,119 $ 21,726 $ 20,972 $ 22,119 $ 20,972

AOCI, net of income tax

AOCI, net of income tax, that is subject to subsequent reclassification to netincome

Net foreign currency translation adjustments

Balance at beginning of period $ 1,257 $ 1,875 $ 1,037 $ 993 $ 1,024

Net change in foreign currency translation adjustments (84) (618) (44) 180 (31)

Balance at end of period $ 1,173 $ 1,257 $ 993 $ 1,173 $ 993

Net gains (losses) on debt securities measured at FVOCI

Balance at beginning of period $ 309 $ 158 $ 28 $ 77 $ (139)

Net change in securities measured at FVOCI - 151 49 232 216

Balance at end of period $ 309 $ 309 $ 77 $ 309 $ 77

Net gains (losses) on cash flow hedges

Balance at beginning of period $ 304 $ 309 $ 72 $ 113 $ (18)

Net change in cash flow hedges (30) (5) 41 161 131

Balance at end of period $ 274 $ 304 $ 113 $ 274 $ 113

AOCI, net of income tax, that is not subject to subsequent reclassification tonet income

Net gains (losses) on post-employment defined benefit plans

Balance at beginning of period $ (430) $ (220) $ (374) $ (363) $ (143)

Net change in post-employment defined benefit plans 147 (210) 11 80 (220)

Balance at end of period $ (283) $ (430) $ (363) $ (283) $ (363)

Net gains (losses) due to fair value change of FVO liabilities attributable to changes

in credit risk

Balance at beginning of period $ (32) $ 31 $ 3 $ 16 $ (12)

Net change attributable to changes in credit risk (8) (63) 13 (56) 28

Balance at end of period $ (40) $ (32) $ 16 $ (40) $ 16

Net gains (losses) on equity securities designated at FVOCI

Balance at beginning of period $ 39 $ 12 $ 49 $ 45 $ 65

Net gains (losses) on equity securities designated at FVOCI 25 27 1 50 (2)

Realized gains (losses) on equity securities designated at FVOCI reclassified to retained (62) - (5) (93) (18)

earnings

Balance at end of period $ 2 $ 39 $ 45 $ 2 $ 45

Total AOCI, net of income tax $ 1,435 $ 1,447 $ 881 $ 1,435 $ 881

Non-controlling interests

Balance at beginning of period $ 179 $ 184 $ 182 $ 186 $ 173

Net income attributable to non-controlling interests 1 2 8 2 25

Dividends (2) (2) (2) (15) (11)

Other 3 (5) (2) 8 (1)

Balance at end of period $ 181 $ 179 $ 186 $ 181 $ 186

Equity at end of period $ 41,335 $ 40,099 $ 38,580 $ 41,335 $ 38,580

n/a Not applicable.

Consolidated statement of cash flows

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Cash flows provided by (used in) operating activities

Net income $ 1,016 $ 1,172 $ 1,193 $ 3,792 $ 5,121

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

Provision for credit losses 291 525 402 2,489 1,286

Amortization and impairment ^(1) 536 249 312 1,311 838

Stock options and restricted shares expense 3 4 2 14 16

Deferred income taxes (16) (52) 18 (228) 108

Losses (gains) from debt securities measured at FVOCI and amortized cost (4) (10) (6) (9) (34)

Net losses (gains) on disposal of land, buildings and equipment - - - 4 (7)

Other non-cash items, net 14 (89) (39) (767) (229)

Net changes in operating assets and liabilities

Interest-bearing deposits with banks 64 (1,348) (761) (5,468) (208)

Loans, net of repayments (2,256) 6,334 (3,550) (18,891) (17,653)

Deposits, net of withdrawals 3,775 22,072 3,187 82,120 19,838

Obligations related to securities sold short (263) 1,287 2,092 328 1,853

Accrued interest receivable (179) 223 (93) 97 (122)

Accrued interest payable 109 (238) 120 (238) 138

Derivative assets 10,715 (3,107) 667 (8,832) (2,484)

Derivative liabilities (12,386) 1,643 (884) 5,184 4,037

Securities measured at FVTPL (1,868) (3,278) 2,704 (8,296) (1,826)

Other assets and liabilities measured/designated at FVTPL 975 759 (417) 1,563 1,222

Current income taxes (221) 292 13 1,287 (309)

Cash collateral on securities lent 260 (8) (95) 2 (909)

Obligations related to securities sold under repurchase agreements 6,678 (14,802) 1,704 19,852 20,961

Cash collateral on securities borrowed (1,335) (1,480) 1,235 (4,883) 1,824

Securities purchased under resale agreements (10,747) 10,574 (3,597) (9,394) (10,785)

Other, net 1,845 (2,147) 1,765 (742) (4,041)

(2,994) 18,575 5,972 60,295 18,635

Cash flows provided by (used in) financing activities

Issue of subordinated indebtedness - 1,000 - 1,000 1,500

Redemption/repurchase/maturity of subordinated indebtedness (33) - (1,000) (33) (1,001)

Issue of preferred shares and limited recourse capital notes, net of issuance 747 - - 747 568cost

Issue of common shares for cash 4 41 43 163 157

Purchase of common shares for cancellation - - (109) (234) (109)

Net sale (purchase) of treasury shares 19 (3) (1) 14 1

Dividends and distributions paid (650) (642) (623) (2,571) (2,406)

Repayment of lease liabilities (78) (77) - (307) -

9 319 (1,690) (1,221) (1,290)

Cash flows provided by (used in) investing activities

Purchase of securities measured/designated at FVOCI and amortized cost (10,056) (16,201) (12,619) (54,075) (42,304)

Proceeds from sale of securities measured/designated at FVOCI and amortized 2,346 4,159 2,640 11,883 13,764cost

Proceeds from maturity of debt securities measured at FVOCI and amortized cost 4,968 4,952 5,730 23,093 10,948

Cash used in acquisitions, net of cash acquired - - (25) - (25)

Net sale (purchase) of property and equipment (100) (98) (106) (309) (272)

(2,842) (7,188) (4,380) (19,408) (17,889)

Effect of exchange rate changes on cash and non-interest-bearing deposits with (13) (103) (3) 25 4banks

Net increase (decrease) in cash and non-interest-bearing deposits with banks

during the period (5,840) 11,603 (101) 39,691 (540)

Cash and non-interest-bearing deposits with banks at beginning of period 49,371 37,768 3,941 3,840 4,380

Cash and non-interest-bearing deposits with banks at end of period ^(2) $ 43,531 $ 49,371 $ 3,840 $ 43,531 $ 3,840

Cash interest paid $ 899 $ 1,347 $ 2,356 $ 6,716 $ 10,008

Cash interest received 3,401 3,850 4,978 16,774 19,840

Cash dividends received 220 211 206 845 735

Cash income taxes paid 639 69 308 39 1,549

Comprises amortization and impairment of buildings, right-of-use assets,(1) furniture, equipment, leasehold improvements, software and other intangible assets, and goodwill.

Includes restricted cash of $463 million (July 31, 2020: $468 million; October(2) 31, 2019: $479 million) and interest-bearing demand deposits with Bank of Canada.

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 measures useful in understanding how management views underlying business performance.

Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted results remove items of note from reported results and are used to calculate our adjusted measures. Adjusted measures represent non-GAAP measures.

For a more detailed discussion on our non-GAAP measures, see the "Non-GAAP measures" section of CIBC's 2020 Annual Report. To reflect the changes that we made in the first quarter of 2020 (see the "External reporting changes" section of CIBC's 2020 Annual Report for additional details regarding these changes).

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results.

For the three For the twelve

months ended months ended

2020 2020 2019 2020 2019

$ millions Oct. 31 Jul. 31 Oct. 31 Oct. 31 Oct. 31

Operating results - reported

Total revenue $ 4,600 $ 4,708 $ 4,772 $ 18,741 $ 18,611

Provision for credit losses 291 525 402 2,489 1,286

Non-interest expenses 2,891 2,702 2,838 11,362 10,856

Income before income taxes 1,418 1,481 1,532 4,890 6,469

Income taxes 402 309 339 1,098 1,348

Net income 1,016 1,172 1,193 3,792 5,121

Net income attributable to non-controlling interests 1 2 8 2 25

Net income attributable to equity shareholders 1,015 1,170 1,185 3,790 5,096

Diluted EPS ($) $ 2.20 $ 2.55 $ 2.58 $ 8.22 $ 11.19

Impact of items of note^ (1)(2)

Revenue

Settlement of certain income tax matters^ (3) $ - $ - $ (67) $ - $ (67)

Purchase accounting adjustments^ (4) - - (7) - (34)

Impact of items of note on revenue - - (74) - (101)

Expenses

Amortization of acquisition-related intangible assets^ (5) (23) (26) (28) (105) (109)

Transaction and integration-related costs as well as purchase accounting - - 9 - 11 adjustments^ (6)

Charge related to the consolidation of our real estate portfolio (114) - - (114) -

Gain as a result of plan amendments related to pension and other 79 - - 79 - post-employment plans

Restructuring charge^ (7) - - - (339) -

Goodwill impairment^ (8) (220) - (135) (248) (135)

Increase in legal provisions^ (3) - (70) (28) (70) (28)

Charge for payment made to Air Canada^ (9) - - - - (227)

Impact of items of note on expenses (278) (96) (182) (797) (488)

Total pre-tax impact of items of note on net income 278 96 108 797 387

Settlement of certain income tax matters^ (3) - - (18) - (18)

Transaction and integration-related costs as well as purchase accounting - - (5) - (12) adjustments^ (4)(6)

Amortization of acquisition-related intangible assets^ (5) 5 6 8 25 27

Charge related to the consolidation of our real estate portfolio 30 - - 30 -

Gain as a result of plan amendments related to pension and other (21) - - (21) - post-employment plans

Restructuring charge^ (7) - - - 89 -

Increase in legal provisions^ (3) - 19 7 19 7

Charge for payment made to Air Canada^ (9) - - - - 60

Impact of items of note on income taxes 14 25 (8) 142 64

Total after-tax impact of items of note on net income 264 71 116 655 323

Impact of items of note on diluted EPS ($) $ 0.59 $ 0.16 $ 0.26 $ 1.47 $ 0.73

Operating results - adjusted^ (10)

Total revenue^ (11) $ 4,600 $ 4,708 $ 4,698 $ 18,741 $ 18,510

Provision for credit losses 291 525 402 2,489 1,286

Non-interest expenses 2,613 2,606 2,656 10,565 10,368

Income before income taxes 1,696 1,577 1,640 5,687 6,856

Income taxes 416 334 331 1,240 1,412

Net income 1,280 1,243 1,309 4,447 5,444

Net income attributable to non-controlling interests 1 2 8 2 25

Net income attributable to equity shareholders 1,279 1,241 1,301 4,445 5,419

Adjusted diluted EPS ($) $ 2.79 $ 2.71 $ 2.84 $ 9.69 $ 11.92

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

(2) Reflects the impact of items of note on our adjusted results as compared with our reported results.

(3) Recognized in Corporate and Other.

Includes the accretion of the acquisition date fair value discount on the(4) acquired loans of The PrivateBank, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, recognized in U.S. Commercial Banking and Wealth Management.

Amortization of acquisition-related intangible assets is recognized in the SBU(5) of the acquired business or Corporate and Other. A summary is provided in the table below.

Canadian Personal and Business Banking (pre-tax) $ (2) $ (2) $ (3) $ (8) $ (9)

Canadian Personal and Business Banking (after-tax) (1) (2) (2) (6) (7)

Canadian Commercial Banking and Wealth Management (pre-tax) (1) - (1) (1) (1)

Canadian Commercial Banking and Wealth Management (after-tax) (1) - (1) (1) (1)

U.S. Commercial Banking and Wealth Management (pre-tax) (17) (21) (22) (83) (88)

U.S. Commercial Banking and Wealth Management (after-tax) (13) (15) (16) (61) (65)

Corporate and Other (pre-tax) (3) (3) (2) (13) (11)

Corporate and Other (after-tax) (3) (3) (1) (12) (9)

Transaction costs include legal and other advisory fees and interest adjustments relating to the obligation payable to dissenting shareholders. Integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the businesses of The PrivateBank (subsequently rebranded as CIBC Bank USA) and Geneva Advisors with CIBC, including enabling cross-sell opportunities and expansion of services in(6) the U.S. market, the upgrade and conversion of systems and processes, project management, integration-related travel, severance, consulting fees and marketing costs related to rebranding activities. Purchase accounting adjustments, shown as an item of note from the fourth quarter of 2017 to the fourth quarter of 2019, include changes in the fair value of contingent consideration relating to the Geneva Advisors and Wellington Financial acquisitions. These items are recognized in Corporate and Other.

Restructuring charge associated with ongoing efforts to transform our cost(7) structure and simplify our bank. This charge consists primarily of employee severance and related costs and was recognized in Corporate and Other.

(8) Goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean recognized in Corporate and Other.

Charge for a payment made to Air Canada, including related sales tax and(9) transaction costs, to secure our participation in its new loyalty program recognized in Canadian Personal and Business Banking.

(10) Adjusted to exclude the impact of items of note.

(11) Excludes TEB adjustments of $37 million (July 31, 2020: $51 million; October 31, 2019: $48 million). Our adjusted efficiency ratio is calculated on a TEB.

Canadian U.S.

Canadian Commercial Commercial

Personal Banking and Banking and

and Business Wealth Wealth Capital Corporate CIBC

$ millions, for the three months ended Banking Management Management Markets and Other Total

2020 Reported net income (loss) $ 634 $ 340 $ 131 $ 267 $ (356) $ 1,016

Oct. 31 After-tax impact of items of note^ (1) 1 1 13 - 249 264

Adjusted net income (loss)^ (2) $ 635 $ 341 $ 144 $ 267 $ (107) $ 1,280

2020 Reported net income (loss) $ 508 $ 320 $ 62 $ 392 $ (110) $ 1,172

Jul. 31 After-tax impact of items of note^ (1) 2 - 15 - 54 71

Adjusted net income (loss)^ (2) $ 510 $ 320 $ 77 $ 392 $ (56) $ 1,243

2019 Reported net income (loss) $ 601 $ 305 $ 179 $ 230 $ (122) $ 1,193

Oct. 31^ (3) After-tax impact of items of note^ (1) 2 1 11 - 102 116

Adjusted net income (loss)^ (2) $ 603 $ 306 $ 190 $ 230 $ (20) $ 1,309

$ millions, for the twelve months ended

2020 Reported net income (loss) $ 1,962 $ 1,202 $ 380 $ 1,131 $ (883) $ 3,792

Oct. 31 After-tax impact of items of note^ (1) 6 1 61 - 587 655

Adjusted net income (loss)^ (2) $ 1,968 $ 1,203 $ 441 $ 1,131 $ (296) $ 4,447

2019 Reported net income (loss) $ 2,289 $ 1,287 $ 682 $ 954 $ (91) $ 5,121

Oct. 31^ (3) After-tax impact of items of note^ (1) 174 1 40 - 108 323

Adjusted net income (loss)^ (2) $ 2,463 $ 1,288 $ 722 $ 954 $ 17 $ 5,444

(1) Reflects impact of items of note under the "2020 Financial results review" section of the 2020 Annual Report.

(2) Non-GAAP measure.

Certain prior period information has been revised. See the "External reporting(3) changes" section of the 2020 Annual Report to Shareholders for additional details.

Basis of presentationThe 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 consolidated financial statements follow the same accounting policies and methods of application as CIBC's consolidated financial statements as at and for the year ended October 31, 2020.

Conference Call/WebcastThe conference call will be held at 8:00 a.m. (ET) and is available in English (416-340-2217, or toll-free 1-800-806-5484, passcode 1028175#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 7008374#). Participants are asked to dial in 10 minutes before the call. Immediately following the formal presentations, CIBC executives will be available to answer questions.

A live audio webcast of the conference call will also be available in English and French at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

Details of CIBC's 2020 fourth quarter and fiscal year results, as well as a presentation to investors, will be available in English and French at www.cibc.com, Investor Relations section, prior to the conference call/webcast. We are not incorporating information contained on the website in this news release.

A telephone replay will be available in English (905-694-9451 or 1-800-408-3053, passcode 2796615#) and French (514-861-2272 or 1-800-408-3053, passcode 7602633#) until 11:59 p.m. (ET)January 3, 2021. The audio webcast will be archived at www.cibc.com/en/about-cibc/investor-relations/quarterly-results.html.

About CIBCCIBC is a leading North American financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html.

The information below forms a part of this news 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 news release prior to it being issued.

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 news release, 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 "Core business performance", "Strong fundamentals", and "Making a difference in our Communities" sections of this news release, and the Management's Discussion and Analysis in our 2020 Annual Report under the heading "Economic and market environment - Outlook for calendar year 2021" and other statements about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2021 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 "Economic and market environment - Outlook for calendar year 2021" section of our 2020 Annual Report, as updated by quarterly reports, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of the coronavirus (COVID-19) pandemic on the global economy, financial markets, and our business, results of operations, reputation and financial condition and the expectation that oil prices will remain well below year-ago levels, there is inherently more uncertainty associated with our assumptions as compared to prior periods. 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: the occurrence, continuance or intensification of public health emergencies, such as the COVID-19 pandemic, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, legal, conduct, regulatory and environmental and related social risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; 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 Organisation for Economic Co-operation and Development Common Reporting Standard, 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 bank recapitalization legislation and 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, including changes relating to economic or trade matters; the possible effect on our business of international conflicts and terrorism; natural disasters, 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; increasing cyber security risks which may include theft or disclosure of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; 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 or associates; 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; 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 global credit risks; 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; the risk that expected benefits of an acquisition, merger or divestiture will not be realized within the expected time frame or at all; 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. Any forward-looking statements contained in this news release represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this news release or in other communications except as required by law.

SOURCE CIBC