CM - Earnings call transcript Q4 2021 | Canadian Imperial Bank of Commerce

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Operator

Good morning, and welcome to the CIBC Quarterly Financial Results Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Geoff Weiss, Senior Vice President, Investor Relations. Please go ahead, Geoff.

Geoff Weiss

morning. good and you, Thank

Beber, and Markets; We will are Victor followed opening from are and presentation Hratch on Jon Capatides, Personal Officer. the and Canadian call this our President morning's available Mike today Shawn Officer; including Dodig, Financial and Officer, number our Hountalas, heads, with questions remarks. Chief Dottori-Attanasio, and Risk Panossian, Also Commercial of remarks a Commercial Chief begin Banking our Chief following by They Wealth Banking; Laura and Wealth Management; to take group U.S. Harry all Canadian Banking Culham, Management. Capital their Business Executive

and Q&A, we requeue. everyone ensure to enough have to the ask time please participate, you for questions During that we your limit

our and to uncertainties. I results With Slide our which will the As presentation, now statements, forward-looking materially. over of comments Actual risks assumptions Victor. contain noted and inherent turn that, involve on investor may differ have may X meeting

Victor Dodig

morning, and fourth will going year; highlight good established importantly, momentum second, our that we we fiscal I'd provide results, into was fiscal in for strong Hratch the going we've we build year; enable third, forward and X forward. you I and results, and some further of quarter on want strong our call a coming with share our this financial the our after strong our which view our over Shawn's on priorities as the where economic first, we believe to Geoff, bank growth one like progress we've On enter for environment year everyone. strategic insights things: future and positioned to well review bank, Thanks, certain today, good areas delivered very XXXX growth. made cover Fiscal strategic

a the earnings past has and core relationship-oriented a build modern over been bank Our diversified mix. years of to strong number with franchise strategy primary a

on You this that slide. can see

earnings our from fiscal our priorities results and of of XX% XX% business reflected is executing on In strategy strategic on our with experience executing focus our in growth success and units, earnings XXXX, and in improved laser is which up positive ROE record in $XX.XX, adjusted diversification. of XXXX per share Our scores operating earnings delivered leverage. our client each further

capital our results Composite year a Banks rolling strong, of remains Our position targets with performance ratio S&P the ending and XX% shareholder CETX total XX.X%. XXXX the X-year of key exceeded These outperformed return TSX Index.

of which strong between this buyback of our over just the X% common results and payout dividend $X.XX shareholders, of dividend to increase is announcement of morning our share common million XX%. target program maintaining support ratio outstanding shares, Our XX and our while XX% our

further core inflows consumer and Canadian or and in market our accelerated Direct business franchise through across technology Our rejuvenated from strengthened successfully record DFS acquisitions, harnessing in personal with from driven growth relationships results of share our by the line experience. deepening were all market client by enhance gains to gains strong products, our Services net supported and management. clients growth our client asset businesses, Financial share our top We

growth mortgage During the our market business. year, to we level also returned in

surveys. a DFS client instrumental We technology record Service also capabilities offerings our having business, banking in our of we've deeper the experience experience, scores significant providing these decade progress based clients on app product mobile in GoalPlanner our CIBC better resulted third-party made for revenue to experience and the evolving clients in who continue And clients of expanded The savvy our rollout investments client relationships experience. reflected clients. in double-digit our prefer to to our we over client growth. meet has and a digital in invest the self-directed for a a Overall, Canada modern and on and of our in needs is Imperial in been leading driving best our

of pace Banking attributable portfolios. our share U.S. year, in among on award-winning a to named and number we've as American loan Gundy strength. management and In Mail advisory ranking advisors, clients not In strong. by build our business new new so existing Commercial wealth relationships did Research, cross-border of but and top Canadian among for flow CIBC the the of During were supported were SHOOK as Market asset seeking continue accelerated teams. growth that referrals only Wood gains seamless global far, funds we by commercial business Canadian clients also our remains participating well, peers. the areas to in and and advisors economic XXXX, access established to were our activity robust In Wealth Canada's brokerage Management, Globe largest North by XX the between

across in Our we Capital connectivity strong debt Capital both Markets equity the our for And in future in XX% Markets leverage this to differentiator deliver further we results the to invest strong structured growth. opportunities This and uniquely to Throughout XXXX, business is seek big have importantly, growth is a in strengthen continued bank, revenue area. continue to with competitive our for ranking driving fiscal #X our and business of to underwriting us. XXXX. position

Costco this. quarter example and fourth is portfolio of the Canada, become acquire Our announcement exclusive existing in to of in MasterCards the the clear a to issuer

partnership on addition us is history released offerings. book, base key X have strategy, will the this across we In strategy with years. ESG of strong The in and Costco bank, opportunity suite investment our affluent refocused client our that membership important includes a growing in their provides a pillars. make credit deeper this our of existing Costco Building highly aligned diversifying card strategically client to coming valued to the retail CIBC's base the bring

net was accelerating is zero first released along our in ambition. The climate with action, which August,

planet integrity ensure responsibly, third The trust second underserved enable leveraging inclusion secure, act our activating resources And future. communities empowering and building a client them and access creating contributing clients, safeguard ambitions. to for and create opportunities and is economic data our enhance help is our sustainable We're equitable and CIBC people. and underrepresented their change promote our our to and to social and to more to our team, to positive realize technology the for experience we communities accountability by

of outlook Canada, Now expected sides our near average is let to to States, basis are domestic with economic X% calendar our both largely economists to the is XXXX. is to of increases grow Supply disruptions me expected the In side GDP the United turn the In average latter inflation the expected On the X% are in half while XX pressure forecasting clients, related time. is that by by to by and rise over unemployment non-labor recent border, for are In points range. speaking to abate labor-related unemployment driven interest real in rates GDP growth pricing expected our both of expected factors. and drove X.X%, X%. year.

until persist labor may resolved. inflation wage However, these are shortages

acknowledge Shawn of quarter pass before our of results, most that continue ahead. we capital to I to client the pursue, weather For strong we're in our parts the relationships, will also position to importantly, is we the the important recent business, will Thanks our and British devastated Hratch ambitions on year depth that review fourth against takeaway extreme and conditions well to Columbia. positioned. call I our growth our to deliver And wanted and the

who support continue affected they circumstances. those through been Our thoughts their colleagues families will clients, our these have work and with displaced difficult to are as and

with Our financial are that, turn review. thoughts to you. a And Hratch for call going the with I'm over to

Hratch Panossian

credit the contributing covering all my Combined reflect XXXX, our client quarter color strong over I'll in remarks all. Thank year per and detailed begin our Reported and this the of results across of quarter generate highlights our our our record XXXX. to our of fourth with some the of fourth successful and to with off XX line the growth good in our performance Capping bank quarter number note earnings strong solid you, growth items robust share before business results morning Slide top on of Victor, sheet. $X.XX XXXX a review of of of earnings expectations appendix prior allowed providing resilience performance, for our diversified the franchise revenues. for presentation. balance included fiscal a on units maintain with

transaction-related were was business improved XX% from as a record items, share up these the XX.X% highlights while by balance was pretax interest fees. revenue billion as or basis billion the Revenue in compensation benefiting $X.X P&C Wealth solid The notably from banking presentation investments due results, adjusted $X.XX. of X% across was of we ago business. increase continued year, currency period. impact for year-over-year, strategic starting enterprise the to and our well excluding prior up earnings refer the of across year market improvement from in was of ROE largely in as more momentum most income $X.X Slide over of to earnings and XX prior with X% same than XX% the the previously broad-based will and $X.X our of from net drivers increase had performance-based driven up the my year, Excluding adjusted Adjusted communicated. of Expenses volume investments our growth net offset Pre-provision translation and per income. Management XX% businesses, higher by quarter XX. up Slide the XXX billion points

were growth double-digit business NII X this Banking from the mortgage points declined volume prior rates in more in asset Total X% from growth the NII client impact trading bank Personal Excluding basis by lower quarter up deposit NIMs stable supported last the on and in rate continued and Canadian interest mix than constructive impact our sides non-trading robust year, tailwinds due anticipate a the helped stabilizing as to sheet. growth. of of largely margins. interest NIM of and by was points more offset balance on quarter, Commercial basis environment change X was continued improvement for the down by sequentially. We both growth

improving credit resumption unsecured back of and expect we NIMs rate to the card and products. higher-margin forward, an growth in on stabilize environment Going the P&C of lending

in to of by was quarter last point and deposit as from growth. rates ongoing South activity the partly offset was relative U.S. lower segment the down basis moderating modest X compression NIM margin border, prepayment

We activity in the over prepayment to next loan from stabilize. business continue benefits subside few causing quarters, expect margins the this to to

robust of trading prior transactional income fees, the Noninterest by payment in and fees revenues. Management XX. fees be client despite market up custodial was the year. and investment the the activity our driven benefit up credit same contributing management benefit appreciation to modest quarter activity normalization higher, investment from solid over and also Deposit fund and continued Slide increased quarter a flows. both Wealth to prior advisory trended of XX% and fees last year, and growth market-related billion mutual underwriting and $X.X record from card XX% transactional basis, revenues by in Market-related all On year. of fees continued were to clients. continued and combined reflecting XX% fees banking another to Client Turning up in

factors We contributing to in expect continue aggregate growth. fee these income to

higher up being driver. Expenses XX. were Slide XX% to Turning significant with performance-based compensation a

this, were and as against increased by enhancements X%, as driven Excluding business investment initiatives well infrastructure up growth. expenses strategic

unchanged. operating in while ahead, expense to our fiscal market-leading operating through to remains growth and improvements Looking leverage efficiency generating investments net momentum build manage our our continued on to we top growth and XXXX, recent leverage. intend approach further to line investments business drive In

deliver continues operating continued be goal positive to to medium-term leverage Our growth. through

XX. Slide to Turning

a strong. remains as net risk. higher sheet was with organic of offset growth, by and quality CETX partially Our We of improvements RWAs internal ended generation strong credit ratio lower the quarter market capital from balance XX.X%, asset

ratio credit we portfolio return as we expect at capital LCR accelerated CETX our prioritize more we to organic expect levels business Starting was to operating modest strong normalized highlight liquidity take these decline card on shareholders. we a the drive quarter Average and but to and unit XX, strategic growth Slide XXX%, Going the in going forward. Costco continue for plans, to deployment results. forward, towards capital on plan our

the Banking Business year Expenses largely growth same activity. broad-based All strong progress were up increased Net X% continue of strong and year million was last to generating X% franchise as over sustain Revenue X% and our of and in Reflecting in X% our of in quarter. consumer were year. $X.X up to billion from billion in client this our $XXX few ago. sequentially, to earnings from due the fee income from past volume million, pre-provision $XXX was pretax year a X% of franchise, which years. momentum Personal were up we $X.X the prior the generated momentum strengthening up quarter the over invest

by increased XX where $XXX Management Banking higher million. commissions shows prior due appreciation growth and strategic from to Banking drove XX% was assets the from Moving net were on Wealth results year, driving XX% Slide in pretax million activity year robust revenue and over Slide in the delivered we driven activity. deposits growth fee-based clients income XX% U.S. Banking benefiting earnings increased was year to AUM. continued million. up $XXX of year, of Commercial a Wealth last Management client and primarily and and up pretax in dollars as U.S. Commercial $XXX income revenue up of Pre-provision Management million lending, were borrowing ago. Net market up earnings from prior Commercial Pre-provision $XXX in and deposits. both was Canadian client from XX. Wealth XX% largely

Markets was Slide line of well currency of $XXX X% continues X%, translation solid appreciation. to were corporate as million Slide of year, XX by offset year. AUM $X our and was new strong Corporate frontline year. banking well-diversified earnings FirstCaribbean over of U.S. on and loan Excluding PPP revenues. in by ongoing driven and were million by $XXX Financial our support compared with our and from client last X% prior forgiveness, loss Revenue growth. million by support income last partially in XX% net Other as to and requirements CIBC reflects scale. investments Wealth the of loss the from million $XXX trading a normalization compared in Direct treasury driven business XX% business, business our activity Net and $XXX XX Net driven to growth $XXX in in in prior were of pretax driven up Expenses in quarter infrastructure from business. up to results unit. our the speaks client pre-provision regulatory and Revenue year, last of and other offset Services, $XXX the the as investment growth year future million improvements by as billion quarter market were revenues. and to strong million up the to compared and Capital growth investment of sustain Increased performance-related average corporate continued same headwinds with In year compensation expenses existing our increasing franchise growth in flows benefited needs.

anticipated meet Slide As strategic increased investments, year. focused goals highlighted the purpose year strategic past, to this us with in financial our financial priorities, to our in our full previously highlights segment impacted investments. against are or expenses the by executed enterprise results. and which this XXXX, team targets due XX quarter mentioned our allowing for as Throughout exceed

capabilities that building continued While organizational and forward. momentum will client going our fuel growth

continue objectives now momentum this share to gaining his in franchise achieved Personal strong our As strengthened consumer all strategic of businesses. Canadian our our and Victor and Banking mentioned opening remarks, year. Commercial of have all we We across

Pre-provision the U.S. and year. focus growth by X% deliver translation, target AUM into differentiated delivered build across top confident deliver by global XX% business record in exceeded future including industry strong robust our supported of on strong XX% continued we our us expense results impact growth financial acquisition to across And deepening to increased XX%, All in was markets we're businesses contributing we DFS. earnings, from significant in growth. ROE line progress the record our since each or by guidance through into to U.S. pretax our growth. to units. all pretax growth the XX% for can businesses. and on in all, connectivity business leverage in provided coming our relative This currency compensation of initiatives, And a the momentum our the highest excluding operating growth growth our to and high-value on PrivateBank. investment our client expansion with X%, exceeded our relationships XX% performance-based in expanding including of and positive allows year, business excluding in earnings Our for XXXX, delivered year our Heading the we segment, of was client capital resulted of pre-provision Management of this despite Wealth continued supported it performance flows bank growth all the containing across business.

driven In We Management, outlook, in further bank's anticipate growth. our constructive we expect continue our growth growth helping capabilities this gains our interest revenues, to to drive In strengthen income. intend in client in share continued on P&C fee businesses of Capital diversified line net context Wealth and increasing parallel, market banking and investing Markets focus drive top activity. transaction robust we by business our the robust

the While of pace target across we will we through response outlook have periods may our as our have earlier next next we operating to investment our pretax growth anticipate leverage opportunities range X% the annual and described will in of year, in target report, earnings to positive in generate economic to efforts operating year. our the negative our business leverage Subject required. adjust environment to XX% of pre-provision course the year within

capital also While over growth, prioritize we the towards at to level capital of shareholders position provides organic course us capacity to a will strong higher this capital return our the next deployment year.

achievements I'll over now team's and successful our turn in forward to another with Shawn. pleased call very the are to We XXXX look year.

Shawn Beber

the health place and progress had in during stages campaigns Thanks, fiscal reopening the in XXXX, Throughout lifting that good vaccine and significant pandemic. been by saw more various public of measures at Hratch, economic morning. supported we restrictive

by sector the in service XXXX year. quarter improvement some positioned interest a continue strong fiscal had comfortable from We've and to activity industry showed growth, And credit the to goods chain also quality our remain low levels that as are risk partially and XXXX. we year, of today, business Both and clients and has for disruptions fiscal consumer supply savings enter over measures supported rates. growth. we recovered, higher well continue fourth and While portfolio our job experienced fiscal new sectors a with support

XX. experienced FirstCaribbean for to resilience QX In in million of of an Commercial impaired provisions a improving driven Partially details allowance portfolio our lows parameter Personal quarter reversals. an these course compared QX. in losses remained [and few million with last historic Turning unfavorable and up] near had impaired and reversal as normal and we've to Provision another migration, provision remained our quarter. In provisions credit Canadian due a was primarily by of $XX provision our Markets, updates in loans of conditions. a portfolio, the credit Slide quarter. lower up In U.S. million benefited partially portfolio on QX, in change reversal the of $XXX million Canadian by provision and offsetting forward-looking XX impaired performance, Banking, offset the QX low in coverage our CIBC Business business. this slightly Capital impact $XX from Commercial impaired favorable by indicators Slide performing quarter-over-quarter. model quarter-over-quarter provision increases, stable and Overall, We retail. $XX credit reflecting strong had unfavorable and economic line were

and level we've of We the current of had the continued well in we lower allowance recognized a loan parameter comfortable the model pandemic, level following the several as implemented reflecting in past over level As consistency performing we speed low mentioned quarters. updates losses. onset uncertainty feel These the X and a economic the the recovery respect as quarter. performing in factors the of to impaired a that coverage earlier, the with with provision build resulted overall reversal of provision

quarters, and with credit mix, to XX. quality. Turning remains diversified consistent provided our portfolio We've strong which with both Slide credit overall well previous

which Our uninsured The the low portion was trend than remains both total delinquency new our to of impaired the formations still XX, savings the government of by perform our loan well. portfolio write-offs and low write-off of loan-to-value and business rate. billion, continued to support. provided new increase details lower expect this to QX. were government mortgages driven BBB our and an higher for very Overall the rating quarter gross overview rates average XX gross at has mortgage $XXX our a our of and notwithstanding in to we an fiscal slight are in balances originated XX% balances of overall the to run and and net our portfolio average client ratio and half We pre-COVID in loans. Delinquencies retail over The QX, portfolios XX%. a On in equivalent mortgages. loan-to-value impaired uninsured formations average improve Slide level day continues payment don't in risk XXXX. Canadian And gross our repeat and QX, impaired engagement consumer XX-plus Slide in with clients' the and activities write-offs compared continued behavior, portfolios. delinquencies loan of are our in lower quarter

write-offs past As to over economy of and economy revert related are retail down, wind the reopens had our towards to XXXX begin and the impacts fiscal to to the pandemic effects clients' year. further levels. government ongoing despite liquidity closing, historic delinquencies starts the likely the and the In we've strong of and a businesses more benefits our normalize, support

continued a recovery base economic remains for expectation fiscal XXXX. in Our case

Victor. concern I'll continue it of the full to basis helping We're experienced range course more XXXX, with headwinds to on expect impaired by trend outlook monitor including variants as relieve and could disruptions year historic this expect vaccines, of credit over point and some the chain supply expect economic more in to our we mid-XX measures chains, we'll will developments those disruptions the closely. of targeted of global reverts to affect we've emerging and recovery we that economic to the distribution we of Based be current labor rate over mindful that opposed closures. headwinds for back turn path call While to time the as will our continue impacted pressures, health low inflationary supply to to now closer patterns. abate availability loss allowing the in broader outlook, increased to same

Victor Dodig

Shawn. Thanks,

we as XXXX, focus on successful CIBC's up I'd like beyond. strategic our a So XXXX thoughts for and wrap to share

we position for we we're assess bank As growth. believe a our today, built

trying bank hard newly that branding not worked something is become. Our a in statement to of It's September to we've be. launched promise a the introduced of we're

Our continuing to bank here welcome to and forward challenges and evolution our evident we our a and is winner. for through inspiration is also and short back hub as performance. CIBC in in financial And our has headquarters, to value going be continued colleagues as creation, to to look order. the us positioned Square new navigate disruptions The us emerge foundation built well we a innovation, allowed

the our first experiences client-facing elevate services. priority and one, increasingly two, solutions and simplifying creating client digital processes clients; and our strengthening all by: world with customer in Going to of providing personalized and seamless to our their is an creating bank, end-to-end experience across client more forward, three, experiences; interactions continue advice technology-enabled for

it teams, on investing easier lasting make For with clients. our deliver relationships our to CIBC our we're build technologies leading in to and promise brand

on commercial platform really Our growth where corporate offerings; fast-growing and specialized to client we scaling on private second and is by one, worth affluent higher consumer economy. wealth advice-led offer and aligned can two, segments where to high our is our priority the high-touch relationships relationships that net focus prioritizing matter three, expertise; focusing

be And and franchise to our needs both growth border opportunities. our unique our we can again, to priority assets, growth adjust in sides for our innovation these constructive the to relationships. competitive Direct banking engineered competitive closing, In unit the market on within have on more future border, GDP of to that's and third advantages, an bank and connectivity, will organic a is and grow We build of client where advantage continue energy and at a differentiated complex and business of sides day. flexible faster-growing with so and our significant clients our with invest we the invest capitalize strong leadership Financial reality level. our strong would the transition our growth and have segments, differentiators leverage will grow economic sustainability Services, that on opportunities to be elevated we we environment both positions to robust our our of model their In on cross-bank meet the business plan

for and ascent. We we a are a bank are bank growth, built on the

balanced resources in the a strategy on fronts have right place grow. all to compete to We and

We and deliver our to business, for call the it to questions our to like earn in ability shareholders. operator. for that, are and attract confident talent With pass open up the to I'd to on

Operator

[Operator Instructions].

Our from National Bank first Gabriel is question from Dechaine Financial.

Gabriel Dechaine

a X Stage higher-risk loan of up for Shawn, classification a the X is First performing housekeeping bit is category, XX%.

strokes You model And mentioned migration? broad maybe me the if what that give negative of on there, case, changes driver you parameter not updates. some main the the Is sort that's can assumption you made?

Shawn Beber

Yes. the Gabriel. question, Thanks for

of Stage share It's Stage the that driven lion's from X those X. -- have right. updates shift the absolutely you're parameter the So model to

our of of review part is our this course models. So normal

updating annual are review We of continuously them cycles. as part

cetera. those goes delinquencies, items And are So drivers series at like variety long we different time data that models. underlying utilization and et looking of into a rates, that's

of we a models reflection credit view isn't X has a more So function a then and deterioration, changes. impact this make of terms in the IFRS of that on -- those particular of the types when

So feel loss opening to impaired And economy very said perspective, looking we're from and mid-XXs low the of as my activity an sort an normalizes. remarks, outlook reopens as perspective, good. I in I from still at

Gabriel Dechaine

commentary. Hratch, expense leverage And operating the

half not to we elevated perhaps little might we're first next bit that will It in investments sounds of like in XXXX. keep mean continued It that made maybe medium-term have business with going You expense outcome? objective like positive sounds growth the going year operating be soft. a does leverage,

get basis, but year targeting growth, this comp. X/X, territory. fixed it positive into if from those back you what I clarify you're on like you it can? clarify for adjusted expense Second half, variable if absolute can an And of guess, is mid-single-digits, is you'll few points, Maybe a

Hratch Panossian

our point. in a been opportunity Gabriel. our a is think saying it's basis, of we Thanks, on Thanks important the the net had an managing our question. working and on And way a by opening to growth investments Sure. remarks, I'll start think, good on bit I the we've And which I expenses us. elaborate the for for comments

We positive are to to operating do the top or but is strategy line leverage business and underinvesting. growth expenses our through our continuously investing so rather than in containing generate

we time, so achieved are with growth had those benefits respect this year, we And the level without to low we investments. already operating we some performance-based the same that. leverage and mid positive because achieved of single-digit at to be we with, of and And we'd And compensation did starting and that. the see expense at signaled

operating leverage for positive, the almost year So X%. was

we'll see strategic year, We initiatives those more provide our our And more as bucket, which invest. referenced, will shareholders. do drive for the fact, Next will see transparency investments are started. year-over-year to I and that to we've investment as you And against and benefit returns in continue we that we increasing.

it also the year. next We see than of expense probably driving year this that and more our growth it's about did last growth so half -- proportion

and it, returning on comp last the We than world that is next percent is year rest us back little be, impacts because forth so so will we really the see and The expenses and year. impact inflationary the it increased between of call And this that's going to a be investment digits that's that And there. The bit why maybe increased different of see year this activities business couple also to it. half without low performance-based out resuming. single and items. and expenses, of from those some and the picture of normal a year difference do the for amount development travel

all, specific mid-single-digits get don't in the is, more any want I that guidance. than So I right all think, that. to

have said, that we opportunity the dial or we down. As to up

So more this be next relatively don't And constructive I would think really described. specificity that said, accurate do expect that that we line top at we point. year

achieve And products, positive see interest negative. that. market all with can to of and for to respect we leverage of we constructive And rates year. think do be that year the think so growth across But that environment operating we next can putting continue strive we our half front together, maybe if the we next

some in the I'll upfront get for making up for just later for right? Costco there's come investments our revenues card the credit upfront are portfolio, investment set investments, future example, revenues, and out year. as And call We some to

will drive But full those year, pushing for positive. we're items us earlier of the that for negative. on Some

Gabriel Dechaine

growth revenue [XX%] sneeze Okay. at. nothing this to quarter and

So yes, off. clearly, the helping paying are investments are out, expenses --

Operator

from from Grauman Scotiabank. Meny is question Following

Meny Grauman

the Victor, achieve the future, been geographic able I'm you've would you of that XX% where mix? in terms that you coming U.S. in think earnings you to like the get Slide from as wondering, improvement to about X, at ideally mix show

Victor Dodig

will for Well, X we to your Slide building that we're been question. bank Meny, build. you and the bank thank we've continue reflects the over time that --

We that. Canada. beyond have always revenue on our We've said that streams achieved we're focused diversifying

the same have also in to Wealth that thing billion together United in we've manager over that that capital change. You footprint PrivateBank We've and it's in States. a States. we at U.S. regard. We made according million this to billion. slide, were the look this CIBC's And $X.X we zero That $X to wealth the year, the assets has administration over United profits is in retained we XXXX, continues and client-focused the this in X after-tax generating it And under continued our also has in dramatic pulled in in fourth We've team doubled growing well Management, in ranked almost our time a period markets clients. net investments $XX our XXXX. business billion. are done are can become smart that the to prove separate a investment retained grown Barron's, We've bank from grow. that grow It's and of $XXX where in

forward, goal any strengthen It's our As territory. we market is hand to to go continue our our and on seeing in we don't plan Canada. home

some over In XX% that fact, all would our we forward. I our doing over achieved. growing we're areas and pleased smart outlined to we plan new including I through with and share here across that delivered We're growth going going And believe on, businesses. XX% the of X- today, there. X-year see to of we market emerging organic that businesses, in have of we do plan tuck-in us can period on our that and on acquisitions what some with Everything time. largely really we've U.S., And at we've

Meny Grauman

to that you trying not clearly I I the you've from look success success performance been was but -- changed mean, on wondering at we more PrivateBank? U.S. And the given able was views significant acquisitions? And get the that had just I kind at that that to Why why highlighted what of it given you've U.S. have just that's in doesn't the sound generate that, And in wondering, like is, see your

Victor Dodig

continue growth. really advantages. in to the on it growth, it in anything infrastructure, use and going best can U.S. returns and organic on really, U.S. and just we're to forward. going before Mike colleague, our and growth plan franchise I growth more for the the our of of we But a on to here. And my is off you in that of we quarter call, got because press we're Capatides organically I highest our we want even know industry if to deliver this good XX% capital on investing highest our he see and platform Gabriel be delivering Well, to us invest said terms don't organic And can really add from perspective. moment. seeing so pass competitive is in good year-over-year a this the drive kind

Mike Capatides

Victor. you, Thank Yes.

been the U.S. our U.S. because Markets focus And commercial the all across been CIBC franchises each offices bringing we our but that's businesses. U.S. seamless the our to across We That's our with of the wealth And that has capabilities a connection surprised the have been in growth major network our colleagues of surprised, board. -- -- add to built lending, those been to been has the has just the I'll cities. of out our Capital growth focus full to in it's word it use pleasantly organic not generate So and ability our

next we're growth, all all the robust AUM to a making as Victor very growth on all just forward, and growth those lending looking our this businesses optimistic frankly, Capital mentioned, U.S. Markets in looking we're And year. So platforms, in clients. our we're businesses again, and investments those year at in And connectivity terms in of

Operator

of question America. following Our from is from Ebrahim Bank Poonawala

Ebrahim Poonawala

just guess your that? think on? the messaging your And franchise Remind relative some investments, us, as think following up around need gaps to competitors you your catch around about this secondly, investments. about you your Victor. larger of bigger So up One, I that think theme one competitiveness we as on we with are certain in peers. to there

get there in a par Just see give competitively aggressive positioned? price how at us offering to to the helpful. Do So need you sense more perspective be business? your of or on you Or is better? digital order any bank is would be

Victor Dodig

Ebrahim. question. good Thanks, And

focus easier managers, grow as relative competition. just for our the And our expense theme that's team overarching overall, So relationship to any at technology to both doing. on is want what them our business. our it's to a and competition. with leadership press well as effectively invest so competitive we're do our bank our to gaps at to advantages, as clients We to have don't We our share continue the of strategic market to evident

business. look by You business business by

growth rejuvenated. and You mode. Business It in is is Banking. look at Personal It

winning in moment. market a that share. Laura, And on can are We you comment

in our Services well as our there that as Financial in portfolio in financial digital our card investments see to we've business, You attract the our credit the CRM is made savvy portfolio, which portfolio, planning clients. Direct

investing our in foreign fact has have the that we the investment Bank Markets, on capitalizing shifting And we're being And U.S. relationship Capital our in focus exchange, and and and leadership in made bank. in deliberate Canada. We And world in Wealth unique we for in the management. more derivatives Commercial growth the to investing Management call You investing wealth that our our the been platform more then businesses of And business, the platforms positions a foreign private that in and the our our example, private platform. is and on focus is and in see economy markets. that have investing exchange by engines.

Investor about Day. engines growth Direct unique you're our Services hear that at are more and Our going Financial to

nonrenewable we technology venture focused aspect loans. Our bought focus where on of Financial life deposits And the billion innovation bank shows the leading to side, almost that the renewable on $X we're strategy energy sciences well business, than that's as it but today, sector. the in maybe That sector more America. And have. through Wellington in highlight authorized we've technology been investment billion in winning. the to as banking we our energy Laura, and recurring $XXX loans $X million on only That North the have lender and also then transition want leadership. in in energy, not how the a renewables, finally, we emerging #X commitment had revenue on shows retail you

Laura Dottori-Attanasio

you, Victor. Well, thank

said all, think much that I add. it I you though. more to know don't I have

and setting execution rest, urgency. quite doing of sense and great is a strategic frankly, with a done our just we've think the job it relentless priorities I

be, pain our as can of to we see you the just that. to that journeys. first everything many as to Victor, do we just continue in remove starting points So and And said, client as putting clients we in focused on our trying results we're

incredibly still we've continue we we're have think really can you business. deliver but a progress And we as date. made do, And to growth our so lot that we that the and good to said, strongly to some with momentum in I pleased believe

Ebrahim Poonawala

mentioned a that for margin Not be Got quick terms just and resetting you And U.S. of in Canadian the forward? of if it. should the mindful And that margins. the Hratch. anything, going of follow-up, PPP your U.S. around sure outlook if we

Hratch Panossian

outlook, a but comments in I Ebrahim. around Thanks, remarks margin the few bit happy provide a more color. to had

saw things and of changes is trough unsecured of also interest starting reduction in in that mix impact and trough. to are the business the and you've lower starting P&C because see slowdown That the the the our you that's the quarter-over-quarter. decline X declining over been And And rates smaller, while basis little we while bit points balances in and have so we in stabilization Canadian last reduction quarter. gotten card seen of that this credit. what a business has impact Those is just

portfolio, several forgiveness about forward, think very the it's on points And P&C the Canadian think million so we NIM, Costco that here add further business, the trough Costco product, the to about That would as is next portfolio. activity and was NIM And level PPP is and this there we bit, of in elevated basis or around these couple of reasonably the from that but margins at would quarters start do and a add we've change, will prepayments talk In in before and we the clear the look margins and that. activity million. coming moved even -- we that XX all then given turning stabilize CAD positive. it's on with X that it even but and elevating been been along. stable There levels, U.S., into USD That's quarter, that. some portfolio,

so points basis that's about And on XX the margin.

coming then back and very the the in and there couple strong, are as holding over of some stronger. impact as places, getting of quarters, So provide And deposit the will you happen trajectory well. think tailwinds the that loans But system deposits can product it next of from interest in deposits the And small that rates through, there, core we and the in the will growth. fact, and time plays [XXXs]. in see all and end margins liquidity and on depends to margins

think growth it for bodes So for the for well margins all of well NII we that bank. bodes and

Operator

from from Scott is question Following Chan Canaccord Genuity.

Scott Chan

wanted I Laura, about go to and specifically on side I Canadian this and you quarter. Victor, mortgages just levels the getting to you peer back talked think, on to

punch right or you're are year we press peers of that kind continue look into you're next of want and and perhaps it you as kind you above now? something now So to button where is that the satisfied there,

Laura Dottori-Attanasio

pipeline a activity. Well, But what have with always we've perspective. to managed thanks, good pleased, Look, never Scott. pleased do of to really a growth more continue And do. really from there's we're we to

is to client to quality So deliver growth. broad-based really intention our continue I'd say,

relationships. across we growth differently focus And We of franchising board, our client continue course, or really said, this had And to sell growth. a the say, year continue volume to I'm revenue as deepening fantastic so year. on and to we going

it when better acquisition, not new did better client to perform franchising. and we on we client So we client only incredibly did did on retention came well

made opportunity so to lot continue really And to of great ahead lot a good we us of and see market-leading of a strong deliver we've growth. progress,

Scott Chan

real you second Right. charge describe of real the the on charges several estate I what that kind know quarters Maybe side? any on just my just future And there's ago. just you can to estate question, on if charge. took related and

Victor Dodig

Yes, happy to for do that. question. Thanks the

I this our so into move stage, headquarters our Toronto. really say, is final the -- And relating of would the our first in to tower in

take remember, this year. we CIBC bulk in. start exited exits And was was moving of leases that last million we to remaining a as Square. X you is last did the we And so and the higher you dollars that from QX. the related exited the we're few of today, talking And And we to number buildings

start our leases new that those exit. headquarters, we moving as into were So

I year, Visa we positive over remind payback you, years. will Now a last said of has number as

we the we while are taking so saving estate And real charges, costs. ongoing are

exit. next last from line as And with charge this year, benefit this actually get charges occupancy year. year's benefiting well what you'll the that occupancy both see the And those line new item so did is we on will

costs, us items, from do flat estate what network. and retail including actually occupancy the so to our And onwards. new or cost of respect real moving is to obviously, headquarters XXXX And cost, number it's if you net other with overall, our will, our allows into includes keep a Toronto headquarter corporate that

be in respect those noise costs, flat relatively into that. our headquarters those there while we've exits. the new expenses moved retaining with with some But to So will building

Operator

The Capital Markets. Sohrab following Movahedi question from is from BMO

Sohrab Movahedi

rough I in when A rolled earnings around just In probably of which you was please. past I for of years, dollars to the million think a to or ago, second, a annually. go couple hundred the you've wanted Harry the billion numbers, few add. $X so years is franchise DFS, in couple set had

a baseline relative to billion, $X.X So billion. -- $X.X let's billion say, of at $X.X

through, the of trying have be just pretax is on? of on vis-a-vis the it will franchise statement the a more Hratch so talked from this to very metrics Where little for you team you'll on the and well the here going the it's line, your you geography contributing of to capability presumably PCL that up your what's I'm did pre-provision. franchise And adding leverage maybe talk us but could put and forth? pick so about and You to get a total how the on some bank bit operating DFS year. kind think And feel going do Harry, because income forward? pressure broader

Harry Culham

manner. for forward morning, both and see in you question. answer as in Sohrab, we short diversified continued we growth move PPE a and thank Good that very is The revenue

You've leading enhance, with terms to been performance the delivery really strong for seen several the PPE previous several as a over absolute consistent think, strategy of last years, in and This and this and out. that relative to add continue has the we years. and you the [NI] growth point we are year I pleased our

since And tables as including starting private our core our platform. a intersection across his areas client mentioned, I where we're position years, seen platform, that enhance in platform as So size opening clients this has many We're you've of to market a disciplined the in rankings is of our to the shown remarks. last of in U.S. resources we of Investor around a also the differentiated economy, new in leadership build the our and leading Day renewable, league has for our think, the our focused Canada. now as We we're Markets continue most remain relationships the growth point, in doubling truly platform And until but markets capital, see U.S., Markets continuing Victor on, Victor And think we're And share. further growing the this Key by Capital by advantage. XX% talk about, very course we year-over-year inclusion really finance. and platform grow enhanced areas said doubling last Capital strong diversifying delivering course, in a then, to our wealth of And just year. of saw franchise. the Markets we Direct and the where within which franchise also way, focused, grow therefore, significantly nontraditional Capital on sustainable to by over revenues well, X the of is, of terms retail dollar from lot -- area clients been competitive solutions a connectivity year capital the Services has we about. seeing very focus we're X% we products connectivity the we commercial have And just a U.S. growth leading Financial and clients. that this as

over next So the little normalization we some markets see may of while.

go expect has activity, and as base, and in continue continued lending some our to our as forward. This client to however, well you've Global diversification we across we We geographies. note. in is -- great Markets We seen and pre-pandemic growth we products, and will industries that underwriting increases capabilities, advisory next again which corporate institutional higher can our single-digit year across levels, growth significant growth robust see platform we revenue in above and pre-provision well area as can see see and think deliver earnings the you

the approximately see So on the U.S. United from U.S. is A States. continued into with the platform, the of to in expect terms respect our and of we level come focus geography, to income resources XX% further we deployed

Sohrab Movahedi

$XXX billion, just which right. done year's million pretax this of let's think, around And at off maybe relative pretax higher of on can I be to, think if 'XX you're the end to I've pre-provision, pre-provision you 'XX, clear, Harry, this is, or you grow year. $X.X crystal say, my math

Harry Culham

right It's billion. around that's correct. Yes, $X.X

we back average pre-pandemic we basis were it, generate on you quarter. per to -- quarter in XXX year XXXs, think this If going the mid levels, And million per north of think $XXX we forward. pre-provision earnings call an can

Operator

from is from The following question Mihelic Darko RBC Markets. Capital

Darko Mihelic

questioning bit I line little and just down go to of more. a wanted of future priorities the expenses your

So my though for I are Laura. questions actually for Victor and think

it my want banks spending The I similar. because I was what being a And investing, of more think there, our personal that with, next with way And your the have branches. perspective, count it do more largest relationships. means the of on close just number of first because that it Victor terms to in very branch the hard of sort think mean, to I'm about bank I remarks, sound or made understand, tell in stable, experience. side, Canada through trying prioritization of reports of to X tend the like but X employees in retail differently, It's and relatively just to been each from to very employee to sometimes as your

to further personal question Canada? to is for Or I I I'm you're enhance me. growth impact? trying that but example, continued is lending, look experience? should of specifically I in gaps can just That on auto don't a peers, the on the touch -- where relative to in further to else? would be should So somewhere And the Should look impact for understand investing experience what enhance when in I impact you how can it franchise think personal the I and the for very look couple And mortgages? what just I helpful for the for know, or the like earlier maybe business, with investment think small maybe about of really

Laura Dottori-Attanasio

Well, take thanks, Darko. Victor can Why it don't I there. from start? And then

Personal to So supporting and strategic about I more to to going previously. that priorities all shared Banks, the the the investments continue make are believe specifically we've Business we're

our increase to productivity. end-to-end we that want And our digitization increase we where to all force then want so to call includes of processing. personalization. engagement, want effectiveness, and client that straight-through with our So We continue sales our

frontline us So you're our to to continue tools. in invest going see

client like help about this to us first. think engagement. we've think of So out sales continue also modernized roles that all and we it platforms that's And as and of digital our to our force to the going to with continue then to some Business to Personal us in roll increase where going Bank, relates that's productivity, client a frontline we We're talked our better and roll relationship help it manager. out our lot will we

to out build digital of going to and we're So capabilities continue our self-serve all experiences. our digital

tool. this debit We So year issuance We think had CIBC credit for our verification virtual and we card released Insights. I you digital released saw cards. identity

few. that. a name to to we're upon And to going Just build continue

can we to to of clients us continue to Victor all comfortable. way the to most that So with sustainable with all And and performance ensure deliver they're allow it that, it to back more. elaborate of I'll engage just it our to hand in maybe

Victor Dodig

Sure.

investments seen we're making for clients, dollar we've our we're pre-provision every of that is making our an uplift working hard are our are generating on hard question. good our a it's shareholders. Darko, working What sure earnings is So for in that because laser-focused investments

auto our We've that. articulated business. market CIBC we're referenced The we've share result. relationship smaller GoalPlanner managers, lending, driving a while You Laura the we're faster We're that invested investment made than in better our growing investments relationships. the investing else's. in one, experiences for in client anybody better is has CRM

make frankly, further a headway. against that gap our we make that in going and close going headway us, You see a We're higher we're record to through have score score and to Quite client experience that still competitors, us. for these investments. for to

thing that competitive many are a have that investments of not in -- of our there. Service competitors our going competitive size advantage people, advantage they continues Larger Imperial and in remain The at we our the other average in the retail are to these technology, only level we're marketplace. we're than making the because account

they And invest in business. of will nibble to relationships know a see making. segment continue investments open fintech centers point coming. is in to alongside banking where the banking this starting emerging to building -- because We away we're be competitors our direct for we they focal we technology invest believe We continue I will

you've and going Simplii on Business where but Harry, don't defend add the after market the that to we more if a XX% the want up DFS of client manage know, through direct set Bank. the go growth to to else to we're to get our was bank, going direct I anything you in business more DFS Personal capability. while Our we that own, see been particularly but client that's acquisition relationships adding don't importantly, side,

Harry Culham

Direct growth Yes. nice very path. on is Victor. Services you, Financial a Thank Clearly,

built Simplii business Just alternative clients. banking which Financial got we've for got is continue fintech a rates within institutional in that our in for we've terms the Direct FX our investing reminder for travel. will We've we clients, We we pandemic, very Edge. X leading Investor’s solutions direct believe businesses have opening these to everybody, really technology. and economies see see interest on an We've no-fee the got do-it-yourself group, Services. good movement And as the the progress up a direct That's digital tailwinds. the through value-conscious and got some of savvy businesses

future market optimistic terms about quite generally. share we're So obtaining in of the growth and

Darko Mihelic

in the Yes, And I direct of us I'm mean up. that did do anyway, I you the I direct the XXXX. up in weaved the that. sort to on business, direct. or almost business. follow-up X annually respect I thing glad the you moved a on touched we discussion at glad With you if do it's question because have XX% the guys it it's on which a look I'm to have it. provide can And is revenues see, actually,

Or Investor’s excited the in it so XXXX? most that? are Edge? business? Group it what XXXX Solutions And what's driving you about it that in question And Is Alternative is, Simplii? is Is the for

Harry Culham

for that. question take the Thank you again. I'll

second and trading expect 'XX do franchise from directed of grow. So We volumes throughout a our expect XXXX. in half Edge of but to trading obviously, volumes, benefited Investor’s normalization the fiscal

We take expect to market share.

out, So CIBC we've and grow significant share, market been we're making as our our some and our but market our Victor believe penetration investing increase protecting We're clients. investing we in pointed talent. we're investments, with can share technology, we in

and our be The of happen. pandemic year. perhaps attending travel, as business. we over And leading all opening the our on outsized to increased double Our next group XX% Simplii clients. to of perhaps as of are to students we make very built we Alternative next of the teams onboard grow as FX are of franchise, mentioned, term rates north in working and our growth the area then, with that on can seeing the Solutions fintech, business We're together cross-sell existing really universities, could largest of during see year. clients our medium and that And closely is and that And This payment part as international expect the focus normalize, growth economies. global course, grow interest digits, dividends which investments pre I new is or solutions. arriving course, paying

confident as that with So these more and that we our seen, we the forward. clients really you've we're to results encouraged move can we're value businesses deliver grow but

Victor Dodig

Day, get us visit June details Investor will you business. the more when XX on for even Darko, on

Darko Mihelic

trading be are zero at you Investor’s clear, And commission to and Edge?

Victor Dodig

Darko. No. competition out very most competitively competitively priced, the We're of We there. relationships, more build than priced

Operator

Following question from is from Mario TD Mendonca Securities.

Mario Mendonca

very saw to want I could to legal you $XX further I talk this to The this are go relates get this $XX quarter related what appropriate the meaningful see one quarter. a about what second that provisions the forward? do quarter, million to. But not provisions to And actually so believe to details we going topic. like Could different -- it's related we million a these -- you know provisions, into last same matter? this?

Hratch Panossian

Hratch, It’s I'll take for question, Mario. Thanks that. the Yes.

in bit the in While said, legal of detail, arrive course, part liabilities start as treat our them we don't saying color. of normal we specifically and happy to give note. business to don't matters, speak I'm about And you and as do I'll a you as items all these of

noted their the so And What are are ones I their the that nature think we our got based based we to XX Note matters. would look had and updates ongoing if items haven't. settle and statements changes of ones including we've quantum. have notice think as you're the we've in all year to I of point some this where nature some that And unusual of have them, we what you them And you've note to that some them. to therefore truly at a got you'll seeing you of and on is annual agreements treated had on report, in listing is

far as as that's all related matters. goes those so to And

charges X about these so related and the taken to your behind the quarters, to in that And news referenced question us. you good matters are is, we've future, the

Mario Mendonca

Hratch. probably then And helpful. sticking with That's you,

go? lower ratios, a level? Or bank the XX.X% we'll XX% like Like bogey XX% and buybacks, Could capital capital how XX.X% you is an sounds bank see the growth the On trend into see something growth and sink in support buybacks? you ratio through much appropriate line? like breakthrough can to the or it Do you in have ratio CETX a little lower.

Hratch Panossian

with Yes, I'm start happy Mario. to that,

I think we to have start. position very solid capital

but We points also fairly have that of quarter. by very this impacted was solid basis had generation, we the you XX Like that generation. were charges quarter, this noticed significant

we of on so capital. basis, we're comfortable feel points XX.X%. ongoing And an over that basis starting from And generating XX

highest my that As planning And capital we remarks, is clients I invest support that's and returns our given and draw capital of our we of ratio. organically our the on the to mentioned deliberately believe in all are businesses best benefit shareholders. use our to to that because to for our across down continue of marginal

continue to risk-adjusted we do to and we measures. will the can that we can the So within that maximum that extent to extent

portfolio, north plus impact. be And we we Costco Costco XX the to talked portfolio do when that's the on basis as about of just take points announced and we that, of that, going so

starting on strong from, this rest the unchanged. capital remain draw with leave the place So of increase XX% between on, the it's do I that still in quarter. point what that generation And down the think dividend those from our and we about will will XX% things of capital. sort range. that us and the we're But We've plus announced the levers

NCIB for our continue share in beyond to try will as range. will if that below our buyback go middle may shareholder But shareholders, adjust the value to that's at we focus I believe and that returning of generating We announced capital a financial keeping an look for it We that. we our tuck-ins and our beyond the point, to for we the we future assess If shareholder continue We more what believe we'll do. and the with is that, we And will we intention return treat program at about do, thing acquisitions gives remain acquisitions. thing buyback. be in organic And dividend. is And talked XX%, XX%. capital the to potential through at then value. to look to start same do dividend growth to and needed, the We've the that returns us of the will lines, better shareholders. going the terms of laser think strategic And lever. might is

Mario Mendonca

Do year? think you other thinking? through that raising the expect dividends Or go like banks to go several twice you back do to annual a are you'll

Hratch Panossian

assess Yes. twice stay adjust needed it frankly, we're assess year Mario, our I or an with We on expectations where at. future annual relative our a respect We where targets. we'll to want ongoing at the at it to look earnings or are quarter to stay to we of and wouldn't that we at it as level we look basis. every as trending

Operator

Desjardin The Doug Capital is Young following question from Markets. from

Doug Young

relatively this keep hopefully I'll quick.

that's new there impaired just little in color to maybe was quarter-over-quarter, the but in parameter earlier assume on color little Canada then performing to like as that discussion that. loan then a the on get gross look in It but not, if banking. And well business of and formations pickup Shawn, I build retail about related the loan Hoping small I that's assume the wrong. doesn't small So year-over-year. U.S., changes, that. bit a a I'm

Shawn Beber

Yes. Doug. Thanks,

was than from yes, offset So our that prior performing slight deterioration more relates segment quarters. it's some management in the in and was releases parameter model We build -- in but FLIs, the updates. PBB had those to overlays by of

of so quarters outlook prior XXXX. for 'XX provisions with uptick update. quarter XX% as through long alignment we was see parameter in of of our continue each as to economic activity move we've saw much we in plays about releases to releases performing about We've remains And quarter significant to And reflective this performing in expect that outlook, similar and recognized the fiscal released sort our really the performing of what build then So we that we talked in we and far. out as sort so of -- as XXXX. as

Doug Young

in but going there's that's know And if Wealth but Management, then Okay. just decline did see And there Wealth we in is obviously, don't said focus, on, a Victor, something just or just second the a restatement Management curious. I you've quarter-over-quarter loans. U.S.

Victor Dodig

I didn't at see decline any Doug. all,

business on in growing deposits on on fact, the net mortgage has and market U.S. been In flows, appreciation, growth the on

sort there's of after some the that right? So you're thing, we mean cap. called I the you can seeing same to maybe I recategorization refer think

Hratch Panossian

platform, growth banking Management Wealth private capabilities we out build our On been our growth AUM continue businesses as looking to has we absolutely. Yes, on our And robust. anticipate across forward.

Doug Young

it just can offline. It Yes. It -- relates to the take I relates just to….

Hratch Panossian

it's FX-related. Doug,

So, okay?

Doug Young

Okay.

Operator

Investment The from D'Souza following Veritas question Research. is from Nigel

Nigel D'Souza

say to lot variables case, there downside a bit And up of variant. COVID-XX the Page emergence on variables a context I are recent disclosure the of the on wanted I here. your And it follow within looks optimistic. your of on your the of when and forward-looking I XX at question I look presentation like your to turn that

performing releases is assumptions future there lower? that allowances. would those the risk And limit you'll So revise that of to potential for have a

Hratch Panossian

Nigel, question. thanks for the

these a particular of look, date. So as were set

on the were So they with to quarter. set numbers downside slightly we weighting at ECL and increase coming up and was a center, our said, variant the That scenario in this Delta front before activity horizon. where the Omicron was time did our

watching the right out. feel where plays activity all So to of economic transmissibility, ECL calculation increase your to of our severity see with did I'd we we newest and say the great efficacy in But We how now. reflected. part this slightly in interest point, is downside activity good against have But this of quarter. we of terms But emerging or concern. we're vaccines are that variant about the

So that things should provide some level of coverage play out. how depending on

Nigel D'Souza

the forward-looking if you're the That's here. you've And same follow topic assumption that the disclosed in on disclosing up ratio don't correct past. assumptions, helpful. looks And me I'm I can your debt I like just service think household quickly in wrong, DSR It information. the

considered? something And you're credit does loss now? your provide just Is how you could some always you've expected that something feed So into that color? And modeling? highlighting

Victor Dodig

Yes.

our it our drivers in disclosures, activity, was part the of one it's relevant drives include it really businesses. to the our So thought of consumer it to of we and consumer ECL

Nigel D'Souza

Okay. case base And XXXX, assume? assumes hikes rate in X I your

Victor Dodig

Correct.

Operator

Securities. is Lemar Persaud from Our Cormark from question last

Lemar Persaud

expenses, performance-based the Just of performance-based inclusive that Hratch. is earlier some point Is on on the on expenses comp? clarification of for a Or comp? outlook discussion mid-single-digit of excluding

Hratch Panossian

performance-based year next the this Yes. and question, that had strong compensation we Thanks reason for up. Lemar. And was year, very -- year for a

year year. have we a compensation, starting But factor. a basis, year, strong from to it expect Next because strong we major also a don't plan a we're year-over-year performance-based to on be

there's so without. you and with I way construct investing opportunity -- medium of along. And And and of mid-single-digit of areas take stress discussion to I'll go as in growth some our and sort the But end we've term that the I in order and in investments. long construct we lot a think think we -- the term, up to approach on short range the contribute today. across expenses and to to portfolio, of we for term investments the all our covered portfolio earnings the But

year. expenses investments without while pay higher off year. and so do performance-based mid-single our we that expenses in We compensation next will year this versus our to digit And expect have with low-single-digit

pre-provision from next a so portfolio investment strategic percent And pretax earnings there's to positive contribution few our year.

Lemar Persaud

to the lines want of expenses the continue here. along Okay. I just

the I it in start as back of back the was is of decline down to step Is related to back a back first the year? leverage of Just the is about you're in expenses? half of because XXXX the leverage I reason be acceleration half of operating revenue mentioned, in of growth, the XXXX. improvement half challenged. year of the ask more strong growth the expectation want than a timing circle an up at to revenue So in element expenses? suggesting talking commentary in Or and the step half in The the maybe of rather operating may there that then very a I

was it as X% XX% I And quarter. QX. then mentioned, think last in I

thoughts be would any So there helpful.

Hratch Panossian

said, And we're got and a growth, a happy as we've to dynamic Lemar. not and them, bank still. we're for offer that's standing built -- we've industry, Yes, in we

So and we and long we quarterly basis. business the We're operating over for are the a leverage on continuing don't business manage term, at look we to managing invest long our the the term.

of that service continue So in invest will our who of playing people are areas. we to there's technology hire factors to investing in. a times, And to a a revenues clients. generate number of you're these investing lot One, number for you're build, or

continuing are far. and We're ahead to for mentioned, for In technology so so come solid execution We're hiring are U.S., the invest. Costco and deliver investing example continuing benefits. ourselves That's cases returns building rigorous in frontline because those in we things, investing believe of a very worked business the after accountable I are in we all the we us process tracking we've invest to ahead fact. we holding got was infrastructure. and one are the revenues And people. the we again, to And

so the part confidence looking those the loan some accelerating to we've about And constructive and I'll invest environment environment of got last interest the and in environment. the We've the got the businesses. continuing say is the growth We've And potentially commercial for talked rate revenues. better.

of of things expect. It generate an will not expense those the year. the is And so the we back revenues all half reduction in

to positively the are so invest that next line we But long-term if is more we and approach need very top the of We are robust. pull. portfolio if We've expenses investments looking our a the less a can year. that's of different, we consistent contributing pace And things levers taking more mentioned this our slowly line investments. I adjusted starts can that have we the if got to, top before, some be

Operator

I meeting back would to turn the over Victor. to now like

Victor Dodig

looking I'll my the Jon, some you wealth economy, things on you, economy. remarks. I'm didn't the speak then strategic X to have a perspective in unorthodox thing to you, colleague, a to Canadian one today, to Thank make business but throw of operator. chance unit going Hountalas, Jon a my he and over over can private give closing our are leaders is Canadian how do minute and that

Jon Hountalas

back commercial Economies good. opening on Business Victor. is strong. you, Thank was The the side, half, confidence particularly up.

there, been it's out risks talking there's know challenges, growing. about There's but all them. The I entrepreneurs, to some they're talk top but growth. coping line operational is us You they're strong. to is with And

pipeline good. Our is

pretty So confident. we're feeling

made some and some investments On the wealth side, in we technology. investment people have and We've good performance. tools

So see we momentum. again,

a in year strong had we So 'XX.

I 'XX. you'll strong in another think see SBU out of year the

Victor Dodig

I our Thank appreciate business you, Jon. of see across And that. strong think you I the growth all units.

our revenue and is our XX,XXX a And clients. thank critical of So for our team went to know in members I globally to continued top CIBC bank. metrics. component we focus I Are today, success us. indulging support before wanted that you of purpose-driven, the we wrap over seeing up, client-first thank time you're line their for their our

the experience that You're financial in that our results. you're seeing metrics year client full and in seeing

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Operator

at time, The ended. thank Please we Thank lines your participation. and this disconnect conference your for has you. now you

Canadian Imperial Bank of Commerce (CM) 2 Dec 212021 Q4 Earnings call transcript