Canadian Imperial Bank of Commerce (NYSE:CM) Q3 2017 Earnings Conference Call - Preliminary Transcript

Aug 24, 2017 • 07:30 am ET


Canadian Imperial Bank of Commerce (NYSE:CM) Q3 2017 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen. Welcome to the CIBC Quarterly Financial Results Conference Call. Please be advised that this call is being recorded.I would like to turn the meeting over to John Ferren, Senior Vice-President, Corporate CFO and Investor Relations, CIBC. Please go ahead, Mr. Ferren.Thank you. Good morning, and thank you, everyone, for joining us this morning. CIBC's senior executives will review CIBC's results for the third quarter of 2017 that were released to market earlier this morning. The documents referenced on this call, including CIBC's news release, investor presentation and financial supplements, can all be found on our Web site at An archive of this audio webcast will also be available on our Web site later today.

John Ferren

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 provide a risk management update. With us for the question-and-answer period are CIBC's business leaders, including Harry Culham, Jon Hountalas, Christina Kramer and Larry Richman, as well as other senior officers of the bank.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, John. Good morning, everyone, and thank you for joining us. CIBC reported solid third quarter results this morning with adjusted earnings of $1.2 billion, which is up 9% from last year. Our strong performance was driven by continued volume growth across our businesses, good credit performance, positive operating leverage and the contribution of PrivateBank earnings since June 23rd.

One a per share basis, this quarter's adjusted earnings of $2.77 were up 4% from last year, marking our 12th consecutive quarter of year-over-year EPS growth. And we ended the quarter in a strong capital position with CET 1 ratio of 10.4% that was well above our stated target of remaining above 10%. With consideration to our strong capital position and reflecting our positive outlook, we announced $0.03 dividend increase today, taking our quarterly dividend to our common equity shareholders to $1.30 per share.

While delivering strong financial results, we continued to make progress against our goal of becoming the leader in client experience. In our most recent Ipsos Net Promoter Score, our gap to number narrowed to its smallest ever and we are trending towards our highest fiscal year-end score. Our entire CIBC team is being powered to help us accomplish our client experience goals. And because of this, we're building very good momentum.

We're focused on building enduring relationships with our clients, and helping them through good and through difficult times. I want