Canadian Imperial Bank of Commerce (CM) Q3 2022 Earnings Call Transcript

For the period ending July 31, 2022

August 25, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

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

I would 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. We'll 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 Shawn Beber, our Chief Risk Officer. Also on the call today are a number of our group heads, including Mike Capatides, U.S. Commercial Banking and Wealth Management; Harry Culham, Capital Markets and Direct Financial Services; Laura Dottori-Attanasio, Canadian Personal and Business Banking; and Jon Hountalas, Canadian Commercial Banking and Wealth Management. They're all available to take questions following the prepared remarks.

As usual, during the Q&A to ensure we have enough time for everyone to participate, please limit your questions to one and then re-queue if need be. As noted on Slide 2 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'd like to turn the meeting over to Victor.

Victor Dodig

Thank you, Geoff. Good morning, everyone, and thank you for joining us today. My remarks this morning will include comments about our third quarter results and the operating environment as well as a summary of our key strategic priorities, which we outlined to you on Investor Day. Hratch will then provide a more detailed review of the quarter, you on Investor Day. Hratch will then provide a more detailed review of the quarter, followed by Shawn, who'll cover our credit performance, after which all of us will be happy to take any questions you may have.

Against an increasingly challenging macro environment, our CIBC team delivered solid third quarter results with earnings of CAD1.7 billion. Revenue growth of 10% was underpinned by strong net interest income and fee growth as well as a 19% year-over-year increase in our connectivity revenue. Our asset quality remains very strong with a net write-off ratio that is well below our pre-pandemic levels.

Our earnings generated a return on equity of 15.1%, and our capital position remains strong with a CET1 ratio of 11.8%. The results were driven by organic growth in all of our businesses. We delivered solid volume growth in both consumer and commercial loans and deposits and higher fee income. We also had strong contributions from Direct Financial Services, a key differentiator for CIBC, which I'll speak to later.