PR Newswire | Dec 2, 2021 05:55AM EST

12/02 04:54 CST

CIBC announces fourth quarter and fiscal 2021 results TORONTO, Dec. 2, 2021

CIBC's 2021 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. Our 2021 Annual Report is available on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars, unless otherwise indicated.

TORONTO, Dec. 2, 2021 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced its results for the fourth quarter and fiscal year ended October 31, 2021.

"We delivered strong financial performance in 2021 with growth across all of our strategic business units as our entire team focused on helping our clients achieve their ambitions," said Victor Dodig, President and CEO, CIBC. "Against the backdrop of the ongoing global pandemic, our bank continued to invest for the future, including expanding our platform and capabilities in the U.S., accelerating the growth of our Canadian consumer franchise, and making foundational investments in cloud technology and other capabilities that will enable us to do more for clients in 2022 and beyond. We also launched our new brand, a statement on the bank we've become by living our purpose, and a symbol of the opportunities that lie ahead. We enter the new fiscal year well positioned for growth with a strong capital position, clear momentum across our business, and the full commitment of our team as we contribute to an equitable and sustainable future for our clients, our communities and our planet."

Fourth quarter highlights

Q4/21 Q4/20 Q3/21 YoY QoQ VarianceVariance

Reported Net Income $1,440 $1,016 $1,730 +42% -17% million million million

Adjusted Net Income ^(1) $1,573 $1,280 $1,808 +23% -13% million million million

Reported Diluted Earnings Per $3.07 $2.20 $3.76 +40% -18% Share (EPS)

Adjusted Diluted EPS ^(1) $3.37 $2.79 $3.93 +21% -14%

Reported Return on Common 13.4% 10.7% 17.1% Shareholders' Equity (ROE)^ (2) Adjusted ROE ^(1)(2) 14.7% 13.5% 17.9% Common Equity Tier 1 (CET1) 12.4% 12.1% 12.3% Ratio ^(2)

CIBC's results for the fourth quarter of 2021 were affected by the following items of note aggregating to a negative impact of $0.30 per share:

* $109 million ($80 million after-tax) charge related to the consolidation of our real estate portfolio; * $40 million ($29 million after-tax) increase in legal provisions; * $19 million ($15 million after-tax) amortization of acquisition-related intangible assets; and * $12 million ($9 million after-tax) in transaction and integration-related costs(3) associated with the acquisition of the Canadian Costco credit card portfolio.

For the year ended October 31, 2021, CIBC reported net income of $6.4 billion and adjusted net income(1) of $6.7 billion, compared with reported net income of $3.8 billion and adjusted net income(1) of $4.4 billion for 2020.

The following table summarizes our performance in 2021 against our key financial measures and targets, set over the medium term, which we define as three to five years, assuming a normal business environment and credit cycle.

Financial Measure Target ^(4) 2021 Reported Results 2021 Adjusted Results ^(1)

Diluted EPS growth 5% to 10% annually $13.93, up 69% from 2020$14.47, up 49% from 2020

ROE ^(2) 15% + 16.1% 16.7%

Operating leverage ^(2) Positive 5.3%, an increase of 9300.7%, an increase of 130 basis points from 2020 basis points from 2020

CET1 ratio ^(2) Strong buffer to regulatory minimum12.4%

Dividend payout ratio ^(2)40% to 50% 41.8% 40.3%

Outperform the S&P/TSX Composite CIBC - 91.9% Total shareholder return Banks Index over a rolling five-year period S&P/TSX Composite Banks Index - 80.4%

(1) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

(2) For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section.

Transaction and integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the(3) Canadian Costco credit card portfolio, including enabling cross-sell opportunities, the upgrade and conversion of systems and processes, project management, and communication costs. These items are recognized in Canadian Personal and Business Banking.

(4) Based on adjusted results. Adjusted measures are non-GAAP measures. For additional information, see the "Non-GAAP measures" section.

Core business performanceF2021 Financial Highlights

(C$ million) F2021 F2020 YoY Variance

Canadian Personal and Business Banking ^(1)

Reported Net Income $2,494$1,785up 40%

Adjusted Net Income ^(2) $2,503$1,791up 40%

Pre-provision, pre-tax earnings ^(2) $3,736$3,614up 3%

Adjusted pre-provision, pre-tax earnings ^(2) $3,748$3,622up 3%



Canadian Commercial Banking and Wealth Management

Reported Net Income $1,665$1,202up 39%

Adjusted Net Income ^(2) $1,665$1,203up 38%

Pre-provision, pre-tax earnings ^(2) $2,227$1,942up 15%

Adjusted pre-provision, pre-tax earnings ^(2) $2,227$1,943up 15%



U.S. Commercial Banking and Wealth Management ^(1)

Reported Net Income $926 $375 up 147%

Adjusted Net Income ^(2) $976 $436 up 124%

Pre-provision, pre-tax earnings ^(2) $1,073$917 up 17%

Adjusted pre-provision, pre-tax earnings ^(2) $1,141$1,000up 14%



Capital Markets ^(1)

Reported Net Income $1,857$1,308up 42%

Adjusted Net Income ^(2) $1,857$1,308up 42%

Pre-provision, pre-tax earnings ^(2) $2,403$2,124up 13%

Adjusted pre-provision, pre-tax earnings ^(2) $2,403$2,124up 13%

Certain prior period information has been revised. See the "External(1) reporting changes" section of our 2021 Annual Report for additional details.

(2) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Strong fundamentalsWhile investing in core businesses, CIBC has continued to strengthen key fundamentals. In 2021, CIBC maintained its capital strength and sound risk management practices:

* Capital ratios were strong, with a Basel III CET1 ratio(1) of 12.4% as noted above, and Tier 1(1) and Total capital ratios(1) of 14.1% and 16.2%, respectively, at October 31, 2021; * Market risk, as measured by average Value-at-Risk, was $7.6 million in 2021 compared with $8.5 million in 2020; * We continued to have solid credit performance, with a loan loss ratio(1) of 16 basis points compared with 26 basis points in 2020; * Liquidity Coverage Ratio(1) was 127% for the three months ended October 31, 2021; and * Leverage Ratio(1) was 4.7% at October 31, 2021.

CIBC announced an increase in its quarterly common share dividend from $1.46 per share to $1.61 per share for the quarter ending January 31, 2022.

Today we announced our intention to purchase for cancellation up to 10 million common shares, or approximately 2.2% of our outstanding common shares under a new normal course issuer bid, subject to the approval of the Toronto Stock Exchange.

(1) For additional information on the composition of these specified financial measures, see the "Fourth quarter financial highlights" section.

Credit qualityProvision for credit losses was $78 million for the fourth quarter, down $213 million or 73% from the same quarter last year. The current quarter included a provision reversal on performing loans of $34 million, while the same quarter last year included a provision for credit losses of $113 million. Provision for credit losses on impaired loans was down $66 million as the prior year quarter was adversely impacted by the COVID-19 pandemic.

Making a difference in our CommunitiesWe invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter, we further strengthened our communities through the following initiatives:

* Supported cancer research and care as Team CIBC participated in the annual Ride to Conquer Cancer and Weekend to Conquer Cancer benefitting the Princess Margaret Cancer Foundation, and celebrated our 25th anniversary as title partner of the CIBC Run for the Cure as we worked with the Canadian Cancer Society to support innovative breast cancer research and support programs. * Recognized the inaugural National Day for Truth and Reconciliation and announced initiatives supporting economic prosperity for Indigenous peoples in Canada. We announced further commitments to our newly launched Reconciliation Framework and donated $50,000 to the Orange Shirt Society, an organization working to support Survivors of the residential school system in Canada. * CIBC and the BlackNorth Initiative announced that applications are now being accepted for the Youth Accelerator, in partnership with BGC Canada, that will provide students from the Black community $50,000 over four years for tuition, mentorship, financial education and opportunities to secure paid internships or co-ops. * Together with our clients and team members, we responded to several global crises including donations to earthquake relief in Haiti, relief efforts following Hurricane Ida, clean drinking water for Iqaluit, and immediate aid to vulnerable groups in Afghanistan, including support for the evacuation and resettlement of Afghan women and families landing in Canada, and journalists fleeing persecution.

In 2021, corporate and employee giving to more than 4,000 charities was $132.7 million(1), while employee volunteering totalled more than 99,000 hours.

Subsequent to the end of the quarter, we announced the CIBC Foundation, which will serve our commitment to advance inclusion for a more equitable society and help make ambitions real for communities. To support this goal, we have made donations totalling $70 million in fiscal 2021 to launch the foundation, with plans to grow to $155 million over time.

(1) Includes corporate giving, including $70 million to CIBC Foundation, corporate sponsorships and employee giving and fundraising.

Fourth quarter financial highlights

As at or for the As at or for the

three months ended twelve months ended

2021 2021 2020 2021 2020

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

Financial results ($ millions)

Net interest income $ 2,980 $ 2,893 $ 2,792 $ 11,459 $ 11,044

Non-interest income 2,084 2,163 1,808 8,556 7,697

Total revenue 5,064 5,056 4,600 20,015 18,741

Provision for (reversal of) credit losses 78 (99) 291 158 2,489

Non-interest expenses 3,135 2,918 2,891 11,535 11,362

Income before income taxes 1,851 2,237 1,418 8,322 4,890

Income taxes 411 507 402 1,876 1,098

Net income $ 1,440 $ 1,730 $ 1,016 $ 6,446 $ 3,792

Net income attributable to non-controlling interests 4 5 1 17 2

Preferred shareholders and other equity instrument holders 47 30 30 158 122

Common shareholders 1,389 1,695 985 6,271 3,668

Net income attributable to equity shareholders $ 1,436 $ 1,725 $ 1,015 $ 6,429 $ 3,790

Financial measures

Reported efficiency ratio^ (1) 61.9 % 57.7 % 62.9 % 57.6 % 60.6 %

Reported operating leverage^ (1) 1.7 % (0.6) % (5.5) % 5.3 % (4.0) %

Loan loss ratio^ (2) 0.10 % 0.10 % 0.17 % 0.16 % 0.26 %

Reported return on common shareholders' equity^ (1)(3) 13.4 % 17.1 % 10.7 % 16.1 % 10.0 %

Net interest margin^ (1) 1.41 % 1.42 % 1.43 % 1.42 % 1.50 %

Net interest margin on average interest-earning assets^ (4)(5) 1.58 % 1.60 % 1.60 % 1.59 % 1.69 %

Return on average assets^ (5)(6) 0.68 % 0.85 % 0.52 % 0.80 % 0.52 %

Return on average interest-earning assets^ (4)(5)(6) 0.77 % 0.96 % 0.58 % 0.89 % 0.58 %

Reported effective tax rate 22.2 % 22.7 % 28.3 % 22.5 % 22.5 %

Common share information

Per share ($) - basic earnings $ 3.08 $ 3.77 $ 2.21 $ 13.97 $ 8.23

- reported diluted earnings 3.07 3.76 2.20 13.93 8.22

- dividends 1.46 1.46 1.46 5.84 5.82

- book value^ (7) 91.66 90.06 84.05 91.66 84.05

Closing share price ($) 150.17 145.07 99.38 150.17 99.38

Shares outstanding (thousands) - weighted-average basic 450,469 449,590 446,321 448,953 445,435

- weighted-average diluted 452,028 451,148 446,877 450,183 446,021

- end of period 450,828 450,082 447,085 450,828 447,085

Market capitalization ($ millions) $ 67,701 $ 65,293 $ 44,431 $ 67,701 $ 44,431

Value measures

Total shareholder return 4.55 % 14.68 % 8.74 % 58.03 % (5.90) %

Dividend yield (based on closing share price) 3.9 % 4.0 % 5.8 % 3.9 % 5.9 %

Reported dividend payout ratio ^ (1) 47.3 % 38.7 % 66.2 % 41.8 % 70.7 %

Market value to book value ratio 1.64 1.61 1.18 1.64 1.18

Selected financial measures - adjusted ^ (8)

Adjusted efficiency ratio^ (9) 57.8 % 55.1 % 56.4 % 55.4 % 55.8 %

Adjusted operating leverage^ (9) (2.8) % (0.6) % (0.7) % 0.7 % (0.6) %

Adjusted return on common shareholders' equity^ (3) 14.7 % 17.9 % 13.5 % 16.7 % 11.7 %

Adjusted effective tax rate 22.5 % 22.8 % 24.5 % 22.7 % 21.8 %

Adjusted diluted earnings per share $ 3.37 $ 3.93 $ 2.79 $ 14.47 $ 9.69

Adjusted dividend payout ratio 43.2 % 37.0 % 52.2 % 40.3 % 60.0 %

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

Cash, deposits with banks and securities $ 218,398 $ 207,774 $ 211,564 $ 218,398 $ 211,564

Loans and acceptances, net of allowance for credit losses 462,879 449,167 416,388 462,879 416,388

Total assets 837,683 806,067 769,551 837,683 769,551

Deposits 621,158 602,969 570,740 621,158 570,740

Common shareholders' equity^ (1) 41,323 40,533 37,579 41,323 37,579

Average assets^ (5) 835,931 806,768 778,933 809,621 735,492

Average interest-earning assets^ (4)(5) 747,009 718,403 692,465 721,686 654,142

Average common shareholders' equity^ (1)(5) 40,984 39,263 36,762 38,881 36,792

Assets under administration (AUA)^ (1)(10)(11)(12) 2,963,221 2,982,469 2,364,005 2,963,221 2,364,005

Assets under management (AUM)^ (1)(11)(12) 316,834 310,560 261,037 316,834 261,037

Balance sheet quality and liquidity measures ^ (13)

Risk-weighted assets (RWA) ($ millions) $ 272,814 $ 268,999 $ 254,871 $ 272,814 $ 254,871

CET1 ratio^ (14) 12.4 % 12.3 % 12.1 % 12.4 % 12.1 %

Tier 1 capital ratio^ (14) 14.1 % 13.7 % 13.6 % 14.1 % 13.6 %

Total capital ratio^ (14) 16.2 % 16.0 % 16.1 % 16.2 % 16.1 %

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

Liquidity coverage ratio (LCR)^ (15) 127 % 126 % 145 % n/a n/a

Other information

Full-time equivalent employees 45,282 44,904 43,853 45,282 43,853

Certain additional disclosures on the composition of these specified financial(1) measures have been incorporated by reference and can be found in the "Glossary" section on pages 100 to 102 of our 2021 Annual Report, available on SEDAR at www.sedar.com.

The ratio is calculated as the provision for (reversal of) credit losses on(2) impaired loans to average loans and acceptances, net of allowance for credit losses.

(3) Annualized.

Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with Bank of Canada, securities, cash(4) collateral on securities borrowed, securities purchased under resale agreements, loans net of allowance for credit losses, and certain sublease-related assets.

(5) Average balances are calculated as a weighted average of daily closing balances.

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

(7) Common shareholders' equity divided by the number of common shares issued and outstanding at end of period.

Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information(8) 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.

(9) Calculated on a taxable equivalent basis (TEB).

Includes the full contract amount of AUA or custody under a 50/50 joint venture(10) between CIBC and The Bank of New York Mellon of $2,341.1 billion (July 31, 2021: $2,380.2 billion; October 31, 2020: $1,861.5 billion).

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

(12) Certain prior period information was restated in the second quarter of 2021.

RWA and our capital ratios are calculated pursuant to OSFI's Capital Adequacy Requirements (CAR) Guideline, the leverage ratio is calculated pursuant to OSFI's Leverage Requirements Guideline, and LCR is calculated pursuant to(13) OSFI's Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on BCBS standards. For additional information, see the "Capital management" and "Liquidity risk" sections on pages 32 and 72, respectively, of our 2021 Annual Report.

Effective beginning in the second quarter of 2020, ratios reflect the expected(14) credit loss transitional arrangement announced by OSFI on March 27, 2020 in response to the onset of the COVID-19 pandemic.

(15) Average for the three months ended for each respective period.

n/a Not applicable.

Review of Canadian Personal and Business Banking fourth quarter results

2021 2021 2020

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

Revenue $ 2,128 $ 2,056 $ 1,997

Provision for (reversal of) credit losses

Impaired 87 82 88

Performing 77 (15) 33

Total provision for credit losses 164 67 121

Non-interest expenses 1,152 1,118 1,076

Income before income taxes 812 871 800

Income taxes 215 229 210

Net income $ 597 $ 642 $ 590

Net income attributable to:

Equity shareholders $ 597 $ 642 $ 590

Efficiency ratio 54.1 % 54.4 % 53.9 %

Operating leverage (0.4) % 3.4 % (4.2) %

Return on equity^ (2) 35.9 % 38.6 % 36.1 %

Average allocated common equity^ (2) $ 6,608 $ 6,595 $ 6,509

Full-time equivalent employees 12,629 12,578 12,437

Net income for the quarter was $597 million, up $7 million from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(2) were $988 million, up $65 million from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $2,128 million was up $131 million from the fourth quarter of 2020, primarily due to strong volume growth and higher non-interest income, partially offset by lower product spreads.

Provision for credit losses of $164 million was up $43 million from the fourth quarter of 2020, due to a higher provision for credit losses on performing loans mainly as a result of model parameter updates.

Non-interest expenses of $1,152 million were up $76 million from the fourth quarter of 2020 due to higher spending on strategic initiatives and higher performance-based compensation.

Certain prior period information has been revised. See the "External(1) reporting changes" section of our 2021 Annual Report for additional details.

(2) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Review of Canadian Commercial Banking and Wealth Management fourth quarterresults

2021 2021 2020

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

Revenue

Commercial banking $ 489 $ 475 $ 409

Wealth management 751 732 619

Total revenue 1,240 1,207 1,028

Provision for (reversal of) credit losses

Impaired 6 (11) 21

Performing (11) (38) 4

Total provision for (reversal of) credit losses (5) (49) 25

Non-interest expenses 646 617 540

Income before income taxes 599 639 463

Income taxes 157 169 123

Net income $ 442 $ 470 $ 340

Net income attributable to:

Equity shareholders $ 442 $ 470 $ 340

Efficiency ratio 52.0 % 51.2 % 52.5 %

Operating leverage 1.1 % 0.2 % (1.5) %

Return on equity^ (1) 24.9 % 27.2 % 20.7 %

Average allocated common equity^ (1) $ 7,039 $ 6,863 $ 6,551

Full-time equivalent employees 5,241 5,256 4,984

Net income for the quarter was $442 million, up $102 million from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(1) were $594 million, up $105 million from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $1,240 million was up $212 million from the fourth quarter of 2020, driven mainly by volume growth reflecting market appreciation and record net sales, as well as higher commissions in wealth management. Revenue increased in commercial banking due to volume growth in loans and deposits, and higher credit fees from increased client transactional activity.

Provision for credit losses was a reversal of $5 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision for credit losses of $25 million in the fourth quarter of 2020, reflective of an increased provision on one fraud-related impairment and a higher provision on impaired loans in the retail and wholesale sectors.

Non-interest expenses of $646 million were up $106 million from the fourth quarter of 2020, primarily due to higher performance-based compensation.

(1) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Review of U.S. Commercial Banking and Wealth Management fourth quarter resultsin Canadian dollars

2021 2021 2020

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

Revenue

Commercial banking $ 366 $ 350 $ 362

Wealth management 196 189 157

Total revenue^ (2) 562 539 519

Provision for (reversal of) credit losses

Impaired 8 25 55

Performing (59) (82) 27

Total provision for (reversal of) credit losses (51) (57) 82

Non-interest expenses 296 274 267

Income before income taxes 317 322 170

Income taxes 61 56 35

Net income $ 256 $ 266 $ 135

Net income attributable to:

Equity shareholders $ 256 $ 266 $ 135

Efficiency ratio 52.5 % 50.9 % 51.7 %

Return on equity^ (3) 11.2 % 12.1 % 5.9 %

Average allocated common equity^ (3) $ 9,085 $ 8,738 $ 9,127

Full-time equivalent employees 2,170 2,155 2,085

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

2021 2021 2020

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

Revenue

Commercial banking $ 293 $ 284 $ 272

Wealth management 155 154 120

Total revenue^ (2) 448 438 392

Provision for (reversal of) credit losses

Impaired 7 19 41

Performing (47) (65) 20

Total provision for (reversal of) credit losses (40) (46) 61

Non-interest expenses 235 223 203

Income before income taxes 253 261 128

Income taxes 49 45 26

Net income $ 204 $ 216 $ 102

Net income attributable to:

Equity shareholders $ 204 $ 216 $ 102

Operating leverage (1.9) % 3.8 % 12.0 %

Net income for the quarter was $256 million (US$204 million), up $121 million (up US$102 million) from the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(3) were $282 million (US$226 million), up $13 million (up US$24 million) from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of US$448 million was up US$56 million from the fourth quarter of 2020, primarily due to higher loan and deposit volumes and strong growth in asset management fees.

Provision for credit losses was a reversal of US$40 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision of US$61 million in the fourth quarter of 2020. The same quarter last year reflects a higher provision on performing loans as a result of an unfavourable change in our economic outlook, and a higher provision in the real estate and construction, and manufacturing sectors.

Non-interest expenses of US$235 million were up US$32 million from the fourth quarter of 2020, primarily due to higher employee-related compensation and higher expenses related to investments in the business and infrastructure.

Certain prior period information has been revised. See the "External(1) reporting changes" section of our 2021 Annual Report for additional details.

Included $3 million (US$3 million) of income relating to the accretion of(2) the acquisition date fair value discount on the acquired loans of The PrivateBank, for the quarter ended October 31, 2021 (July 31, 2021: $3 million (US$2 million); October 31, 2020: $5 million (US$4 million)).

(3) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Review of Capital Markets fourth quarter results

2021 2021 2020

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

Revenue

Global markets $ 420 $ 503 $ 427

Corporate and investment banking 382 428 322

Direct financial services 210 209 185

Total revenue^ (2) 1,012 1,140 934

Provision for (reversal of) credit losses

Impaired - (18) 20

Performing (34) (42) (3)

Total provision for (reversal of) credit losses (34) (60) 17

Non-interest expenses 528 529 458

Income before income taxes 518 671 459

Income taxes^ (2) 140 180 149

Net income $ 378 $ 491 $ 310

Net income attributable to:

Equity shareholders $ 378 $ 491 $ 310

Efficiency ratio 52.2 % 46.4 % 49.0 %

Operating leverage (7.2) % (9.0) % 7.8 %

Return on equity^ (3) 19.7 % 26.6 % 17.8 %

Average allocated common equity^ (3) $ 7,632 $ 7,331 $ 6,926

Full-time equivalent employees 2,225 2,259 1,912

Reported net income for the quarter was $378 million, compared with reported net income of $310 million for the fourth quarter of 2020. Adjusted pre-provision, pre-tax earnings(3) were up $8 million or 2% from the fourth quarter of 2020, due to higher revenue partially offset by higher expenses.

Revenue of $1,012 million was up $78 million from the fourth quarter of 2020. In global markets, revenue decreased due to lower fixed income and commodities trading, partially offset by higher foreign exchange and equities trading revenue. In corporate and investment banking, revenue increased driven by higher equity and debt underwriting activity, higher advisory revenue and higher corporate banking revenue.

Provision for credit losses was a reversal of $34 million due to a favourable change in economic conditions as well as our economic outlook, compared with a provision of $17 million in the fourth quarter of 2020, reflective of a higher provision on impaired loans in the oil and gas sector.

Non-interest expenses of $528 million were up $70 million from the fourth quarter of 2020, primarily due to higher employee-related compensation and higher spending on strategic initiatives.

Certain prior period information has been revised. See the "External(1) reporting changes" section of our 2021 Annual Report for additional details.

Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended(2) October 31, 2021 (July 31, 2021: $51 million; October 31, 2020: $37 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(3) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Review of Corporate and Other fourth quarter results

2021 2021 2020

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

Revenue

International banking $ 180 $ 165 $ 178

Other (58) (51) (56)

Total revenue^ (2) 122 114 122

Provision for (reversal of) credit losses

Impaired 11 30 (6)

Performing (7) (30) 52

Total provision for credit losses 4 - 46

Non-interest expenses 513 380 550

Loss before income taxes (395) (266) (474)

Income taxes^ (2) (162) (127) (115)

Net loss $ (233) $ (139) $ (359)

Net income (loss) attributable to:

Non-controlling interests $ 4 $ 5 $ 1

Equity shareholders (237) (144) (360)

Full-time equivalent employees 23,017 22,656 22,435

Net loss for the quarter was $233 million, compared with a net loss of $359 million for the fourth quarter of 2020. Adjusted pre-provision, pre-tax losses(3) were up $69 million or 41% from the fourth quarter of 2020, due to higher expenses.

Revenue of $122 million was comparable with the fourth quarter of 2020. Higher U.S. dollar revenue in CIBC FirstCaribbean driven by higher fees and volume growth, and higher treasury revenue were offset by the impact of foreign exchange translation and lower product margins.

Provision for credit losses was $4 million, down $42 million from the fourth quarter of 2020, due to a lower provision on performing loans, partially offset by a higher provision on impaired loans due to the impact of the COVID-19 pandemic in CIBC FirstCaribbean.

Non-interest expenses of $513 million were down $37 million from the fourth quarter of 2020. Adjusted non-interest expenses(3) of $361 million were up $69 million from the fourth quarter of 2020, primarily due to higher corporate support costs.

Income tax benefit was up $47 million from the fourth quarter of 2020, as that quarter included a goodwill impairment charge related to our controlling interest in CIBC FirstCaribbean, which was not deductible for tax purposes.

Certain prior period information has been revised. See the "External(1) reporting changes" section of our 2021 Annual Report for additional details.

Revenue and income taxes of Capital Markets are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate(2) and Other. Accordingly, revenue and income taxes include a TEB adjustment of $48 million for the quarter ended October 31, 2021 (July 31, 2021: $51 million; October 31, 2020: $37 million).

(3) This measure is a non-GAAP measure. For additional information, see the "Non-GAAP measures" section.

Consolidated balance sheet

$ millions, as at October 31 2021 2020

ASSETS

Cash and non-interest-bearing deposits with banks $ 34,573 $ 43,531

Interest-bearing deposits with banks 22,424 18,987

Securities 161,401 149,046

Cash collateral on securities borrowed 12,368 8,547

Securities purchased under resale agreements 67,572 65,595

Loans

Residential mortgages 251,526 221,165

Personal 41,897 42,222

Credit card 11,134 11,389

Business and government 150,213 135,546

Allowance for credit losses (2,849) (3,540)

451,921 406,782

Other

Derivative instruments 35,912 32,730

Customers' liability under acceptances 10,958 9,606

Property and equipment 3,286 2,997

Goodwill 4,954 5,253

Software and other intangible assets 2,029 1,961

Investments in equity-accounted associates and joint ventures 658 658

Deferred tax assets 402 650

Other assets 29,225 23,208

87,424 77,063

$ 837,683 $ 769,551

LIABILITIES AND EQUITY

Deposits

Personal $ 213,932 $ 202,152

Business and government 344,388 311,426

Bank 20,246 17,011

Secured borrowings 42,592 40,151

621,158 570,740

Obligations related to securities sold short 22,790 15,963

Cash collateral on securities lent 2,463 1,824

Obligations related to securities sold under repurchase agreements 71,880 71,653

Other

Derivative instruments 32,101 30,508

Acceptances 10,961 9,649

Deferred tax liabilities 38 33

Other liabilities 24,923 22,134

68,023 62,324

Subordinated indebtedness 5,539 5,712

Equity

Preferred shares and other equity instruments 4,325 3,575

Common shares 14,351 13,908

Contributed surplus 110 117

Retained earnings 25,793 22,119

Accumulated other comprehensive income (AOCI) 1,069 1,435

Total shareholders' equity 45,648 41,154

Non-controlling interests 182 181

Total equity 45,830 41,335

$ 837,683 $ 769,551

Consolidated statement of income

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

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

Interest income^ (1)

Loans $ 3,103 $ 3,042 $ 3,099 $ 12,150 $ 13,863

Securities 527 516 572 2,141 2,568

Securities borrowed or purchased under resale agreements 75 75 87 319 842

Deposits with banks 32 27 42 131 249

3,737 3,660 3,800 14,741 17,522

Interest expense

Deposits 612 618 822 2,651 5,326

Securities sold short 61 57 59 236 254

Securities lent or sold under repurchase agreements 42 40 71 208 656

Subordinated indebtedness 29 30 36 122 159

Other 13 22 20 65 83

757 767 1,008 3,282 6,478

Net interest income 2,980 2,893 2,792 11,459 11,044

Non-interest income

Underwriting and advisory fees 151 197 103 713 468

Deposit and payment fees 216 199 186 797 781

Credit fees 295 292 265 1,152 1,020

Card fees 125 108 105 460 410

Investment management and custodial fees 441 417 357 1,621 1,382

Mutual fund fees 469 452 402 1,772 1,586

Insurance fees, net of claims 87 93 95 358 386

Commissions on securities transactions 101 102 83 426 362

Gains (losses) from financial instruments measured/designated at

fair value through profit or loss (FVTPL), net 82 134 86 607 694

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

other comprehensive income (FVOCI) and amortized cost, net 22 10 4 90 9

Foreign exchange other than trading 50 79 45 276 234

Income from equity-accounted associates and joint ventures 11 12 12 55 79

Other 34 68 65 229 286

2,084 2,163 1,808 8,556 7,697

Total revenue 5,064 5,056 4,600 20,015 18,741

Provision for (reversal of) credit losses 78 (99) 291 158 2,489

Non-interest expenses

Employee compensation and benefits 1,669 1,619 1,371 6,450 6,259

Occupancy costs 327 202 321 916 944

Computer, software and office equipment 552 504 516 2,030 1,939

Communications 76 76 72 318 308

Advertising and business development 87 55 71 237 271

Professional fees 95 78 53 277 203

Business and capital taxes 28 25 30 111 117

Other 301 359 457 1,196 1,321

3,135 2,918 2,891 11,535 11,362

Income before income taxes 1,851 2,237 1,418 8,322 4,890

Income taxes 411 507 402 1,876 1,098

Net income $ 1,440 $ 1,730 $ 1,016 $ 6,446 $ 3,792

Net income attributable to non-controlling interests $ 4 $ 5 $ 1 $ 17 $ 2

Preferred shareholders and other equity instrument holders $ 47 $ 30 $ 30 $ 158 $ 122

Common shareholders 1,389 1,695 985 6,271 3,668

Net income attributable to equity shareholders $ 1,436 $ 1,725 $ 1,015 $ 6,429 $ 3,790

Earnings per share (in dollars)

Basic $ 3.08 $ 3.77 $ 2.21 $ 13.97 $ 8.23

Diluted 3.07 3.76 2.20 13.93 8.22

Dividends per common share (in dollars) 1.46 1.46 1.46 5.84 5.82

Interest income included $3.4 billion for the quarter ended October 31, 2021(1) (July 31, 2021: $3.3 billion; October 31, 2020: $3.3 billion) calculated based on the effective interest rate method.

Consolidated statement of comprehensive income

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

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

Net income $ 1,440 $ 1,730 $ 1,016 $ 6,446 $ 3,792

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 (301) 546 (187) (2,610) 382

Net gains (losses) on hedges of investments in foreign operations 172 (318) 103 1,495 (202)

(129) 228 (84) (1,115) 180

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI (33) (1) 5 (50) 254

Net (gains) losses reclassified to net income (15) (9) (5) (66) (22)

(48) (10) - (116) 232

Net change in cash flow hedges

Net gains (losses) on derivatives designated as cash flow hedges (187) 211 32 178 142

Net (gains) losses reclassified to net income 32 (161) (62) (315) 19

(155) 50 (30) (137) 161

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

Net gains (losses) on post-employment defined benefit plans 254 137 147 917 80

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

attributable to changes in credit risk 17 10 (8) 12 (56)

Net gains (losses) on equity securities designated at FVOCI 30 25 25 100 50

301 172 164 1,029 74

Total OCI^ (1) (31) 440 50 (339) 647

Comprehensive income $ 1,409 $ 2,170 $ 1,066 $ 6,107 $ 4,439

Comprehensive income attributable to non-controlling interests $ 4 $ 5 $ 1 $ 17 $ 2

Preferred shareholders and other equity instrument holders $ 47 $ 30 $ 30 $ 158 $ 122

Common shareholders 1,358 2,135 1,035 5,932 4,315

Comprehensive income attributable to equity shareholders $ 1,405 $ 2,165 $ 1,065 $ 6,090 $ 4,437

Includes $9 million of losses for the quarter ended October 31, 2021(1) (July 31, 2021: $3 million of losses; October 31, 2020: $1 million of losses), relating to our investments in equity-accounted associates and joint ventures.

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

$ 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 $ 11 $ (19) $ 1 $ 45 $ 42

Net gains (losses) on hedges of investments in foreign operations (10) 18 (3) (53) (46)

1 (1) (2) (8) (4)

Net change in debt securities measured at FVOCI

Net gains (losses) on securities measured at FVOCI 5 (3) (7) (11) (59)

Net (gains) losses reclassified to net income 5 3 1 23 7

10 - (6) 12 (52)

Net change in cash flow hedges

Net gains (losses) on derivatives designated as cash flow hedges 66 (75) (12) (64) (51)

Net (gains) losses reclassified to net income (11) 57 22 112 (7)

55 (18) 10 48 (58)

Not subject to subsequent reclassification to net income

Net gains (losses) on post-employment defined benefit plans (74) (49) (42) (311) (19)

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

to changes in credit risk (6) (3) 4 (4) 20

Net gains (losses) on equity securities designated at FVOCI (10) (9) (9) (34) (17)

(90) (61) (47) (349) (16)

$ (24) $ (80) $ (45) $ (297) $ (130)

Consolidated statement of changes in equity

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

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

Preferred shares and other equity instruments

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

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

Balance at end of period $ 4,325 $ 3,575 $ 3,575 $ 4,325 $ 3,575

Common shares

Balance at beginning of period $ 14,252 $ 14,130 $ 13,800 $ 13,908 $ 13,591

Issue of common shares 99 124 89 458 371

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

Treasury shares - (2) 19 (15) 14

Balance at end of period $ 14,351 $ 14,252 $ 13,908 $ 14,351 $ 13,908

Contributed surplus

Balance at beginning of period $ 117 $ 119 $ 122 $ 117 $ 125

Compensation expense arising from equity-settled share-based awards 2 3 3 19 14

Exercise of stock options and settlement of other equity-settled share-based (14) (6) (8) (43) (20)awards

Other 5 1 - 17 (2)

Balance at end of period $ 110 $ 117 $ 117 $ 110 $ 117

Retained earnings

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

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

Balance at beginning of period after accounting policy changes $ 25,055 $ 24,003 $ 21,726 $ 22,119 21,120

Net income attributable to equity shareholders 1,436 1,725 1,015 6,429 3,790

Dividends and distributions

Preferred and other equity instruments (47) (30) (30) (158) (122)

Common (657) (657) (652) (2,622) (2,592)

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

Realized gains (losses) on equity securities designated at FVOCI reclassified 9 14 62 27 93from AOCI

Other (3) - (2) (2) (4)

Balance at end of period $ 25,793 $ 25,055 $ 22,119 $ 25,793 $ 22,119

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 $ 187 $ (41) $ 1,257 $ 1,173 $ 993

Net change in foreign currency translation adjustments (129) 228 (84) (1,115) 180

Balance at end of period $ 58 $ 187 $ 1,173 $ 58 $ 1,173

Net gains (losses) on debt securities measured at FVOCI

Balance at beginning of period $ 241 $ 251 $ 309 $ 309 $ 77

Net change in securities measured at FVOCI (48) (10) - (116) 232

Balance at end of period $ 193 $ 241 $ 309 $ 193 $ 309

Net gains (losses) on cash flow hedges

Balance at beginning of period $ 292 $ 242 $ 304 $ 274 $ 113

Net change in cash flow hedges (155) 50 (30) (137) 161

Balance at end of period $ 137 $ 292 $ 274 $ 137 $ 274

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 $ 380 $ 243 $ (430) $ (283) $ (363)

Net change in post-employment defined benefit plans 254 137 147 917 80

Balance at end of period $ 634 $ 380 $ (283) $ 634 $ (283)

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

in credit risk

Balance at beginning of period $ (45) $ (55) $ (32) $ (40) $ 16

Net change attributable to changes in credit risk 17 10 (8) 12 (56)

Balance at end of period $ (28) $ (45) $ (40) $ (28) $ (40)

Net gains (losses) on equity securities designated at FVOCI

Balance at beginning of period $ 54 $ 43 $ 39 $ 2 $ 45

Net gains (losses) on equity securities designated at FVOCI 30 25 25 100 50

Realized gains (losses) on equity securities designated at FVOCI reclassified to retained (9) (14) (62) (27) (93)

earnings

Balance at end of period $ 75 $ 54 $ 2 $ 75 $ 2

Total AOCI, net of income tax $ 1,069 $ 1,109 $ 1,435 $ 1,069 $ 1,435

Non-controlling interests

Balance at beginning of period $ 177 $ 170 $ 179 $ 181 $ 186

Net income attributable to non-controlling interests 4 5 1 17 2

Dividends (6) (1) (2) (9) (15)

Other 7 3 3 (7) 8

Balance at end of period $ 182 $ 177 $ 181 $ 182 $ 181

Equity at end of period $ 45,830 $ 44,285 $ 41,335 $ 45,830 $ 41,335

n/a Not applicable.

Consolidated statement of cash flows

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

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

Cash flows provided by (used in) operating activities

Net income $ 1,440 $ 1,730 $ 1,016 $ 6,446 $ 3,792

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

Provision for (reversal of) credit losses 78 (99) 291 158 2,489

Amortization and impairment ^(1) 287 244 536 1,017 1,311

Stock options and restricted shares expense 2 3 3 19 14

Deferred income taxes (11) (44) (16) (41) (228)

Losses (gains) from debt securities measured at FVOCI and amortized (22) (10) (4) (90) (9)cost

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

Other non-cash items, net 470 (55) 14 927 (767)

Net changes in operating assets and liabilities

Interest-bearing deposits with banks (2,362) 211 64 (3,437) (5,468)

Loans, net of repayments (14,462) (17,188) (2,256) (46,883) (18,891)

Deposits, net of withdrawals 18,948 25,466 3,775 47,521 82,120

Obligations related to securities sold short 975 1,546 (263) 6,827 328

Accrued interest receivable (170) 77 (179) 46 97

Accrued interest payable 114 (249) 109 (419) (238)

Derivative assets (1,546) 973 10,715 (3,172) (8,832)

Derivative liabilities 2,797 (4,855) (12,386) 1,582 5,184

Securities measured at FVTPL (191) 791 (1,868) (9,552) (8,296)

Other assets and liabilities measured/designated at FVTPL 6,081 (2,364) 975 7,277 1,563

Current income taxes 37 290 (221) 543 1,287

Cash collateral on securities lent (1,148) 406 260 639 2

Obligations related to securities sold under repurchase 1,533 1,752 6,678 (2,248) 19,852agreements

Cash collateral on securities borrowed 928 (1,723) (1,335) (3,821) (4,883)

Securities purchased under resale agreements (4,662) 196 (10,747) (1,977) (9,394)

Other, net^ (2) (812) 136 1,983 (4,694) (270)

8,304 7,234 (2,856) (3,332) 60,767

Cash flows provided by (used in) financing activities

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

Redemption/repurchase/maturity of subordinated indebtedness - - (33) (1,008) (33)

Issue of preferred shares and limited recourse capital notes, net of issuance 748 - 747 748 747cost

Issue of common shares for cash 51 86 4 284 163

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

Net sale (purchase) of treasury shares - (2) 19 (15) 14

Dividends and distributions paid (670) (655) (650) (2,649) (2,571)

Repayment of lease liabilities (82) (75) (78) (305) (307)

47 (646) 9 (1,945) (1,221)

Cash flows provided by (used in) investing activities

Purchase of securities measured/designated at FVOCI and amortized cost (15,249) (12,641) (10,056) (49,896) (54,075)

Proceeds from sale of securities measured/designated at FVOCI and amortized 5,748 3,978 2,346 23,917 11,883cost

Proceeds from maturity of debt securities measured at FVOCI and amortized cost 5,780 5,555 4,968 23,312 23,093

Net sale (purchase) of property, equipment, software and other intangibles^ (2) (270) (210) (238) (839) (781)

(3,991) (3,318) (2,980) (3,506) (19,880)

Effect of exchange rate changes on cash and non-interest-bearing deposits with (21) 40 (13) (175) 25banks

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

during the period 4,339 3,310 (5,840) (8,958) 39,691

Cash and non-interest-bearing deposits with banks at beginning of period 30,234 26,924 49,371 43,531 3,840

Cash and non-interest-bearing deposits with banks at end of period ^(3) $ 34,573 $ 30,234 $ 43,531 $ 34,573 $ 43,531

Cash interest paid $ 643 $ 1,016 $ 899 $ 3,701 $ 6,716

Cash interest received 3,363 3,545 3,401 13,890 16,774

Cash dividends received 204 192 220 897 845

Cash income taxes paid 385 261 639 1,374 39

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

(2) Restated from amounts previously presented.

(3) Includes restricted cash of $446 million (July 31, 2021: $498 million;October 31, 2020: $463 million) and interest-bearing demand deposits with Bankof 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, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure", 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 measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes, adjusted net income and adjusted pre-provision, pre-tax earnings, remove items of note from reported results to calculate our adjusted results. Adjusted measures represent non-GAAP measures.

Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found in the "Non-GAAP measures" section on page 15 of our 2021 Annual Report available on SEDAR at www.sedar.com.

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

For the three For the twelve

months ended months ended

2021 2021 2020 2021 2020

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

Operating results - reported

Total revenue $ 5,064 $ 5,056 $ 4,600 $ 20,015 $ 18,741

Provision for (reversal of) credit losses 78 (99) 291 158 2,489

Non-interest expenses 3,135 2,918 2,891 11,535 11,362

Income before income taxes 1,851 2,237 1,418 8,322 4,890

Income taxes 411 507 402 1,876 1,098

Net income 1,440 1,730 1,016 6,446 3,792

Net income attributable to non-controlling interests 4 5 1 17 2

Net income attributable to equity shareholders 1,436 1,725 1,015 6,429 3,790

Diluted EPS ($) $ 3.07 $ 3.76 $ 2.20 $ 13.93 $ 8.22

Impact of items of note^ (1)

Non-interest expenses

Amortization of acquisition-related intangible assets^ (2) $ (19) $ (20) $ (23) $ (79) $ (105)

Transaction and integration-related costs^ (3) (12) - - (12) -

Charge related to the consolidation of our real estate portfolio (109) - (114) (109) (114)

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

Restructuring charge^ (4) - - - - (339)

Goodwill impairment^ (5) - - (220) - (248)

Increase in legal provisions^ (6) (40) (85) - (125) (70)

Impact of items of note on non-interest expenses (180) (105) (278) (325) (797)

Total pre-tax impact of items of note on net income 180 105 278 325 797

Amortization of acquisition-related intangible assets^ (2) 4 5 5 19 25

Transaction and integration-related costs^ (3) 3 - - 3 -

Charge related to the consolidation of our real estate portfolio 29 - 30 29 30

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

Restructuring charge^ (4) - - - - 89

Increase in legal provisions^ (6) 11 22 - 33 19

Impact of items of note on income taxes 47 27 14 84 142

Total after-tax impact of items of note on net income 133 78 264 241 655

Impact of items of note on diluted EPS ($) $ 0.30 $ 0.17 $ 0.59 $ 0.54 $ 1.47

Operating results - adjusted^ (7)

Total revenue - adjusted^ (8) $ 5,064 $ 5,056 $ 4,600 $ 20,015 $ 18,741

Provision for (reversal of) credit losses - adjusted 78 (99) 291 158 2,489

Non-interest expenses - adjusted 2,955 2,813 2,613 11,210 10,565

Income before income taxes - adjusted 2,031 2,342 1,696 8,647 5,687

Income taxes - adjusted 458 534 416 1,960 1,240

Net income - adjusted 1,573 1,808 1,280 6,687 4,447

Net income attributable to non-controlling interests - adjusted 4 5 1 17 2

Net income attributable to equity shareholders - adjusted 1,569 1,803 1,279 6,670 4,445

Adjusted diluted EPS ($) $ 3.37 $ 3.93 $ 2.79 $ 14.47 $ 9.69

(1) Items of note are removed from reported results to calculate adjusted results.

Amortization of acquisition-related intangible assets is recognized in the SBU(2) of the acquired business or Corporate and Other. A summary is provided in the table below.

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

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

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

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

U.S. Commercial Banking and Wealth Management (pre-tax) (16) (17) (17) (68) (83)

U.S. Commercial Banking and Wealth Management (after-tax) (12) (13) (13) (50) (61)

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

Corporate and Other (after-tax) (3) (2) (3) (10) (12)

Transaction and integration costs are comprised of direct and incremental costs incurred as part of planning for and executing the integration of the Canadian(3) Costco credit card portfolio, including enabling cross-sell opportunities, the upgrade and conversion of systems and processes, project management and communication costs. These items are recognized in Canadian Personal and Business Banking in the fourth quarter of 2021.

Restructuring charge associated with ongoing efforts to transform our cost(4) structure and simplify our bank. This charge consists primarily of employee severance and related costs and was recognized in Corporate and Other.

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

(6) Recognized in Corporate and Other.

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

Excludes a TEB adjustment of $48 million (July 31, 2021: $51 million; October(8) 31, 2020: $37 million). Our adjusted efficiency ratio and adjusted operating leverage are calculated on a TEB. For further details on TEB, see pages 15 and 18 of our 2021 Annual Report.

The following tables provide a reconciliation of GAAP (reported) net income and non-interest expenses to non-GAAP (adjusted) net income and non-interest expenses, respectively, on a segmented basis.

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

2021 Reported net income (loss) $ 597 $ 442 $ 256 $ 378 $ (233) $ 1,440

Oct. 31 After-tax impact of items of note^ (1) 9 - 12 - 112 133

Adjusted net income (loss)^ (2) $ 606 $ 442 $ 268 $ 378 $ (121) $ 1,573

2021 Reported net income (loss) $ 642 $ 470 $ 266 $ 491 $ (139) $ 1,730

Jul. 31 After-tax impact of items of note^ (1) - - 13 - 65 78

Adjusted net income (loss)^ (2) $ 642 $ 470 $ 279 $ 491 $ (74) $ 1,808

2020 Reported net income (loss) $ 590 $ 340 $ 135 $ 310 $ (359) $ 1,016

Oct. 31^ (3) After-tax impact of items of note^ (1) 1 1 13 - 249 264

Adjusted net income (loss)^ (2) $ 591 $ 341 $ 148 $ 310 $ (110) $ 1,280

$ millions, for the twelve months ended

2021 Reported net income (loss) $ 2,494 $ 1,665 $ 926 $ 1,857 $ (496) $ 6,446

Oct. 31 After-tax impact of items of note^ (1) 9 - 50 - 182 241

Adjusted net income (loss)^ (2) $ 2,503 $ 1,665 $ 976 $ 1,857 $ (314) $ 6,687

2020 Reported net income (loss) $ 1,785 $ 1,202 $ 375 $ 1,308 $ (878) $ 3,792

Oct. 31^ (3) After-tax impact of items of note^ (1) 6 1 61 - 587 655

Adjusted net income (loss)^ (2) $ 1,791 $ 1,203 $ 436 $ 1,308 $ (291) $ 4,447

(1) Items of note are removed from reported results to calculate adjusted results.

(2) Non-GAAP measure.

Certain prior period information has been revised. See the "External(3) reporting changes" section of our 2021 Annual Report for additional details.

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

2021 Reported non-interest expenses $ 1,152 $ 646 $ 296 $ 528 $ 513 $ 3,135

Oct. 31 Pre-tax impact of items of note^ (1) 12 - 16 - 152 180

Adjusted non-interest expenses^ (2) $ 1,140 $ 646 $ 280 $ 528 $ 361 $ 2,955

2021 Reported non-interest expenses $ 1,118 $ 617 $ 274 $ 529 $ 380 $ 2,918

Jul. 31 Pre-tax impact of items of note^ (1) - - 17 - 88 105

Adjusted non-interest expenses^ (2) $ 1,118 $ 617 $ 257 $ 529 $ 292 $ 2,813

2020 Reported non-interest expenses $ 1,076 $ 540 $ 267 $ 458 $ 550 $ 2,891

Oct. 31^ (3) Pre-tax impact of items of note^ (1) 2 1 17 - 258 278

Adjusted non-interest expenses^ (2) $ 1,074 $ 539 $ 250 $ 458 $ 292 $ 2,613

$ millions, for the twelve months ended

2021 Reported non-interest expenses $ 4,414 $ 2,443 $ 1,121 $ 2,117 $ 1,440 $ 11,535

Oct. 31 Pre-tax impact of items of note^ (1) 12 - 68 - 245 325

Adjusted non-interest expenses^ (2) $ 4,402 $ 2,443 $ 1,053 $ 2,117 $ 1,195 $ 11,210

2020 Reported non-interest expenses $ 4,308 $ 2,179 $ 1,126 $ 1,929 $ 1,820 $ 11,362

Oct. 31^ (3) Pre-tax impact of items of note^ (1) 8 1 83 - 705 797

Adjusted non-interest expenses^ (2) $ 4,300 $ 2,178 $ 1,043 $ 1,929 $ 1,115 $ 10,565

(1) Items of note are removed from reported results to calculate adjusted results.

(2) Non-GAAP measure.

Certain prior period information has been revised. See the "External(3) reporting changes" section of our 2021 Annual Report for additional details.

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.

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

2021 Net income (loss) $ 597 $ 442 $ 256 $ 378 $ (233) $ 1,440

Oct. 31 Add: provision for (reversal of) credit losses 164 (5) (51) (34) 4 78

Add: income taxes 215 157 61 140 (162) 411

Pre-provision (reversal), pre-tax earnings (losses)^ (1) 976 594 266 484 (391) 1,929

Pre-tax impact of items of note^ (2) 12 - 16 - 152 180

Adjusted pre-provision (reversal), pre-tax earnings (losses)^ (1)

CAD $ 988 $ 594 $ 282 $ 484 $ (239) $ 2,109

USD n/a n/a 226 n/a n/a n/a

2021 Net income (loss) $ 642 $ 470 $ 266 $ 491 $ (139) $ 1,730

Jul. 31 Add: provision for (reversal of) credit losses 67 (49) (57) (60) - (99)

Add: income taxes 229 169 56 180 (127) 507

Pre-provision (reversal), pre-tax earnings (losses)^ (1) 938 590 265 611 (266) 2,138

Pre-tax impact of items of note^ (2) - - 17 - 88 105

Adjusted pre-provision (reversal), pre-tax earnings (losses)^ (1)

CAD $ 938 $ 590 $ 282 $ 611 $ (178) $ 2,243

USD n/a n/a 228 n/a n/a n/a

2020 Net income (loss) $ 590 $ 340 $ 135 $ 310 $ (359) $ 1,016

Oct. 31^ (3) Add: provision for (reversal of) credit losses 121 25 82 17 46 291

Add: income taxes 210 123 35 149 (115) 402

Pre-provision (reversal), pre-tax earnings (losses)^ (1) 921 488 252 476 (428) 1,709

Pre-tax impact of items of note^ (2) 2 1 17 - 258 278

Adjusted pre-provision (reversal), pre-tax earnings (losses)^ (1)

CAD $ 923 $ 489 $ 269 $ 476 $ (170) $ 1,987

USD n/a n/a 202 n/a n/a n/a

$ millions, for the twelve months ended

2021 Net income (loss) $ 2,494 $ 1,665 $ 926 $ 1,857 $ (496) $ 6,446

Oct. 31 Add: provision for (reversal of) credit losses 350 (39) (75) (100) 22 158

Add: income taxes 892 601 222 646 (485) 1,876

Pre-provision (reversal), pre-tax earnings (losses)^ (1) 3,736 2,227 1,073 2,403 (959) 8,480

Pre-tax impact of items of note^ (2) 12 - 68 - 245 325

Adjusted pre-provision (reversal), pre-tax earnings (losses)^ (1)

CAD $ 3,748 $ 2,227 $ 1,141 $ 2,403 $ (714) $ 8,805

USD n/a n/a 909 n/a n/a n/a

2020 Net income (loss) $ 1,785 $ 1,202 $ 375 $ 1,308 $ (878) $ 3,792

Oct. 31^ (3) Add: provision for (reversal of) credit losses 1,189 303 487 311 199 2,489

Add: income taxes 640 437 55 505 (539) 1,098

Pre-provision (reversal), pre-tax earnings (losses)^ (1) 3,614 1,942 917 2,124 (1,218) 7,379

Pre-tax impact of items of note^ (2) 8 1 83 - 705 797

Adjusted pre-provision (reversal), pre-tax earnings (losses)^ (1)

CAD $ 3,622 $ 1,943 $ 1,000 $ 2,124 $ (513) $ 8,176

USD n/a n/a 744 n/a n/a n/a

(1) Non-GAAP measure.

(2) Items of note are removed from reported results to calculate adjusted results.

Certain prior period information has been revised. See the "External(3) reporting changes" section of our 2021 Annual Report for additional details.

n/a Not applicable.

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, 2021.

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 2021 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 2, 2022. 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 11 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, in other reports to shareholders, 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 2021 Annual Report under the heading "Economic and market environment - Outlook for calendar year 2022" 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 2022 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 2022" section of our 2021 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, 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, conduct and legal, regulatory and environmental 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; climate change and other environmental and social 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