Canadian Imperial Bank of Commerce (CM) Q2 2023 Earnings Call Transcript

For the period ending April 30, 2023

May 25, 2023 7:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the CIBC Quarterly Financial Results Conference Call. Please be advised that this call is being recorded.

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

Geoff Weiss

Thank you, and good morning, everyone. We will begin this morning's presentation with opening remarks from Victor Dodig, our President and Chief Executive Officer; followed by Hratch Panossian, our Chief Financial Officer; and Frank Guse, our Chief Risk Officer. Also on the call today are a number of our group heads, including Shawn Beber, US region; Harry Culham, Capital Markets and Direct Financial Services; and Jon Hountalas, Canadian Banking. They're all available to take questions following the prepared remarks.

For those participating on the Q&A, given you have a hard stop to get to another presentation at 8.30, please limit your questions to one, so we can allow as many of you as possible to participate. We will make ourselves accessible after the call for questions or follow-ups.

As noticed on Slide two of our investor presentation, our comments may contain forward-looking statements, which involve assumptions and have inherent risks and uncertainties. Actual results may differ materially.

With that, I will now turn the call over to Victor.

Victor Dodig

Thank you, Jeff, and good morning, everyone. I'll start our call today with an overview of our second quarter performance, followed by insights on the current financial sector dynamics as well as CIBC's resilience as we navigate a fluid economic environment. This morning, we announced adjusted second quarter revenue of $5.7 billion, which is up 6% from the prior year. Our strong performance is a testament to our client-focused strategyand the hard work of our CIBC team members to create value for all our stakeholders.

During the quarter, we continued to leverage past investments, while moderating expense growth. Expenses of $3.2 billion were down 1% sequentially and up 7% year-over-year, and this is within the previous guidance that we've provided you. Pre-provisioned pre-tax earnings of $2.5 billion were up 6.6% from the prior year, while net income of $1.6 billion was 2% lower as impaired credit provisions continue to normalize, again, as expected. We are vigilant in our risk management and continue to closely monitor our asset classes and client segments for signs of stress, taking proactive steps to address potential exposures.