Strategic Priorities & Financial Overview slide image

Strategic Priorities & Financial Overview

Notes on slides 21-31 Slide 21 - High-Quality, Client-Driven Balance Sheet 1. 2. 3. 4. Securitized agency MBS are on balance sheet as per IFRS. Derivatives related assets, are largely offset by derivatives related liabilities. Under IFRS derivative amounts with master netting agreements cannot be offset and the gross derivative assets and liabilities are reported on balance sheet. Includes obligations related to securities sold short, cash collateral on securities lent and obligations related to securities under repurchase agreements. Capital includes subordinated liabilities. Slide 22 - Funding Strategy and Sources 1. Source: CIBC 2023 Annual Report. Slide 23 - Wholesale Funding Geography 1. 2. 3. Source: CIBC 2023 Annual Report. "Unsecured" includes Obligation related to securities sold short, Cash collateral on securities lent and Obligations related to securities under repurchase agreements. Percentages may not add up to 100% due to rounding. Slide 24 CIBC Funding Composition 1. 2. 3. 4. Unsecured funding is comprised of wholesale bank deposits, certificates of deposit and commercial paper, bearer deposit notes and bankers' acceptances, senior unsecured EMTN and senior unsecured structured notes. Capital excludes subordinated liabilities. Currency composition, in Canadian dollar equivalent, of funding sourced by CIBC in the wholesale market. Percentages may not add up to 100% due to rounding. Source: CIBC 2023 Annual Report. Slide 26 Mortgage Market Performance and Urbanization Rates 1. 2. 3. Source: UK Finance, CBA, MBA. *Mortgage arrears of 3+ months in Canada and UK or in foreclosure process in the US. Source: Canadian Banker's Association. Source: 2014 Census for France, 2021 Census for Canada, 2011 Census for UK, Germany; 2020 Census for US. Slide 27 Canadian House Prices 12 Source: CREA, October 2023. 1. 2. 1 USD = 1.3717 CAD. 3. 4. 5. Source: Teranet - National Bank House Price Index. Source: OECD, 2022 or latest available. Household debt ratios across countries can be significantly affected by different institutional arrangements, among which tax regulations regarding tax deductibility of interest payments. Source: Bloomberg, Teranet - National Bank House Price Index. Slide 28 CIBC's Mortgage Portfolio 1. LTV ratios for residential mortgages are calculated based on weighted average. The house price estimates for October 31, 2023 and 2022 are based on the Forward Sortation Area level indices from the Teranet - National Bank National Composite House Price Index (Teranet) as September 30, 2023 and 2022, respectively. Teranet is an independent estimate of the rate of change in Canadian home prices. Slide 31 - Canadian Bail-In Regime Update 1. 2. As referenced in the Bank Recapitalization (Bail-in) Regulations: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2018-57/FullText.html. Increased to 25.00% on November 1, 2023 upon increase of Domestic Stability Buffer to 3.50% (versus the maximum of 4.00%) from 3.00%. CIBC 37
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