Canadian Imperial Bank of Commerce (NYSE:CM) Q3 2016 Earnings Conference Call - Final Transcript

Aug 25, 2016 • 08:00 am ET


Canadian Imperial Bank of Commerce (NYSE:CM) Q3 2016 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. Welcome to the CIBC Third Quarter Results Conference Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to John Ferren, Senior Vice President, Corporate CFO and Investor Relations. Please go ahead, Mr. Ferren.

John Ferren

Thank you very much, good morning and thank you everyone for joining us today. This morning, CIBC senior executives will review the bank's third quarter results that were released earlier this morning. The documents referenced on this call, including CIBC's third quarter 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 a financial review. And Laura Dottori Attanasio, our Chief Risk Officer will close the formal remarks with a risk management update.

After the presentations, there will be a question-and-answer period that will conclude by 9 o'clock AM. Also, with us for the question-and-answer period are CIBC's business leaders, including 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

Thank you, John. Good morning, everyone and thanks for joining us. This morning, CIBC reported adjusted net income of $1.1 billion or $2.67 per share, an increase of 9% from the same period last year. Key drivers of our results this quarter were year-over-year revenue growth of 4.3%, supported by continued volume growth and higher fee income in retail and business banking and another strong quarter in capital markets. As well, we continue to effectively manage our expenses resulting in operating leverage at 2.6% this quarter.

Our adjusted efficiency ratio of 57.8% was 150 basis points better than a year ago, and loan losses were also well down from levels in our second quarter.

We're very pleased with our performance this quarter, which was achieved against the backdrop of an economic environment that remains challenging and the volatile market conditions coming out of the Brexit vote. Through this difficult period, we supported our clients. We effectively managed risk and we generated value for our shareholders. Although, we can't control the economy or the interest rate environment, what our team at CIBC can do is control our strategy to remain profitable and to continue to grow under these conditions. We've been very clear and transparent on how we will build a strong, innovative and relationship