Canadian Personal Banking Digital Transformation
Third Quarter 2020 Financial Results
Reported ($MM)
Revenue
Q3/20
YOY
QoQ
•
4,708
(1%)
3%
Overall Performance¹
Pre-Provision Earnings² up 1% YoY
Net interest income
2,729
1%
(1%)
•
Operating Leverage of 1.1%
Non-interest income
1,979
(3%)
9%
•
Strong CET1 ratio of 11.8%
Non-Interest Expenses
2,702
1%
Provision for Credit Losses
525
80%
(0%)
(63%)
Net Income
1,172
(16%)
NM
Revenue
Net interest income up 2% YoY
Diluted EPS
$2.55
(17%)
NM
•
Strong trading activity in Capital Markets
Efficiency Ratio
ROE
CET1 Ratio
57.4%
100 bps
(170) bps
•
12.1%
NM
NM
11.8%
36 bps
49 bps
QoQ
3%
(1%)
9%
(2%)
•
•
Solid deposit volume growth in Canadian and U.S. Commercial businesses,
partially offset by lower margins in the U.S.
Volume growth in Personal & Business Banking was more than offset by the
rate environment and competitive pricing pressures
Non-interest income down 3% YoY
•
Canadian Personal & Commercial businesses impacted by decreased client
activity
Expenses
Disciplined expense management in volatile economic conditions
Provision for Credit Losses (PCL)
Total PCL ratio of 50 bps
PCL ratio on impaired of 29 bps, up 2 bps YoY and down 5 bps QoQ
Adjusted¹ ($MM)
Revenue
Net interest income
Q3/20
YOY
4,708
(0%)
2,729
2%
Non-interest income
1,979
(3%)
Non-Interest Expenses
2,606
(1%)
Pre-Provision Earnings²
2,102
1%
9%
Provision for Credit Losses
525
80%
(63%)
Net Income
1,243
(12%)
NM
.
Diluted EPS
$2.71
(13%)
NM
Efficiency Ratio
54.8%
(60) bps
(240) bps
ROE
12.9%
NM
NM
CIBC
2
1 Adjusted results are non-GAAP financial measures. See slide 36 for further details.
Pre-provision earnings is revenue net of non-interest expenses and is a non-GAAP measure. See slide 36 for further details.
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