Canadian Imperial Bank of Commerce (NYSE:CM) Q2 2015 Earnings Conference Call - Preliminary Transcript

May 28, 2015 • 08:30 am ET


Canadian Imperial Bank of Commerce (NYSE:CM) Q2 2015 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen. Welcome to the CIBC Second Quarter Results Conference Call. Please be advised that this call is being recorded. To reduce the audio interference, please turn your Blackberry off for the duration of the meeting.

I would now like to turn the meeting over to Geoff Weiss, Senior Vice President, Investor Relations. Please go ahead Mr. Weiss.

Geoff Weiss

Good morning and thank you for joining us. This morning CIBC's senior executives will review CIBC's Q2 2015 results that were released earlier today. The documents referenced on this call including CIBC's Q2 news release, investor presentation and financial supplement, can all be found on our website at In addition, an archive of this audio webcast will be available on our website later today.

This morning's agenda will include opening remarks from Victor Dodig, CIBC's President and Chief Executive Officer; Kevin Glass, our Chief Financial Officer will follow with the financial review; and Laura Dottori-Attanasio, our Chief Risk Officer, will close the formal remarks with the risk management update. After the presentations, there will be a question-and-answer period that will conclude by 9:30 A.M. With us for the question-and-answer period are CIBC's business leaders, including Geoff Belsher; Harry Culham; Steve Geist; and David Williamson, as well as other senior officers.

Before we begin, let me remind you that any individual speaking on behalf of CIBC on today's call may make forward-looking statements that are subject to a variety of risks and uncertainties. These statements may include material factors or assumptions that could cause CIBC's actual results in future periods to differ materially. For more information, please refer to the note about forward-looking statements in today's press release.

With that, let me now turn the meeting over to Victor.

Victor Dodig

Thanks, Geoff. Good morning, everyone and thank you for joining us on our call today. CIBC reported solid second quarter results this morning with adjusted earnings of $924 million or $2.28 per share, which is up 5% from the same period last year.

We also delivered our 22nd consecutive quarter of adjusted return on equity in excess of 20%, and our Basel CET1 ratio remained strong at 10.8%. As well, this morning we announced a $0.03 increase to our quarterly common dividend to $1.09 per share consistent with our plan to move our dividend pay-out ratio to the upper end of our 40% to 50% pay-out range.

Our strong results were driven by growth from all of our business units, backed by continued progress on our client focused strategy. To strengthen relationships, we are listening to our clients and delivering to them service they need in the manner they want. With today's fast paced lifestyle and increasing dependence on technology, what they want is banking that's easy, flexible and personalized. Easy, so that banking is not a time consuming task, flexible, so they can bank where, when and how they want and personalized, so that our financial advice is customized to their needs, and that's why we have repositioned our brand