Exhibit 99.1

Report to Shareholders for the Second Quarter, 2024

www.cibc.com May 30, 2024

Report of the President and Chief Executive Officer

Overview of results

CIBC today announced its financial results for the second quarter ended April 30, 2024.

Second quarter highlights

	Q2/24	Q2/23 (1)	Q1/24	YoY Variance	QoQ Variance
Revenue	$6,164 million	$5,704 million	$6,221 million	+8%	-1%
Reported Net Income	$1,749 million	$1,689 million	$1,728 million	+4%	+1%
Adjusted Net Income (2)	$1,718 million	$1,628 million	$1,770 million	+6%	-3%
Adjusted pre-provision, pre-tax earnings (2)	$2,690 million	$2,477 million	$2,862 million	+9%	-6%
Reported Diluted Earnings Per Share (EPS)	$1.79	$1.76	$1.77	+2%	+1%
Adjusted Diluted EPS (2)	$1.75	$1.70	$1.81	+3%	-3%
Reported Return on Common Shareholders’ Equity (ROE) (3)	13.7%	14.5%	13.5%
Adjusted ROE (2)	13.4%	13.9%	13.8%
Net interest margin on average interest-earnings assets (3)(4)	1.46%	1.54%	1.43%
Net interest margin on average interest-earnings assets (excluding trading) (3)(4)	1.72%	1.65%	1.72%
Common Equity Tier 1 (CET1) Ratio (5)	13.1%	11.9%	13.0%

Results for the second quarter of 2024 were affected by the following items of note aggregating to a positive impact of $0.04 per share:

• $13 million ($10 million after-tax) charge related to the special assessment imposed by the Federal Deposit Insurance Corporation (FDIC) on U.S. depository institutions, which impacted CIBC Bank USA (U.S. Commercial Banking and Wealth Management);

• $51 million recovery to income tax that will be eliminated by the substantive enactment of a Federal tax proposal to deny the dividends received deduction for banks(6) ($71 million tax equivalent basis (TEB) revenue and tax expense in Capital Markets and Direct Financial Services with offsets in Corporate and Other; $51 million tax recovery in Capital Markets and Direct Financial Services); and

• $14 million ($10 million after-tax) amortization of acquisition-related intangible assets.

Our CET1 ratio(5) was 13.1% at April 30, 2024, compared with 13.0% at the end of the prior quarter. CIBC’s leverage ratio(5) and liquidity coverage ratio(5) at April 30, 2024 were 4.3% and 129%, respectively.

In the second quarter, the steady execution of our client-focused strategy across our well-diversified North American platform continued to deliver solid results and create value for our stakeholders. Our team’s ability to attract and deepen client relationships across our bank, including in high growth segments and markets is supporting our momentum. Combined with expense discipline, our robust capital position and disciplined risk management, as well as our ongoing strategic investments, we remain well positioned to navigate the current operating environment and position our bank for the future.

Core business performance

Canadian Personal and Business Banking reported net income of $649 million for the second quarter, up $11 million or 2% from the second quarter a year ago, primarily due to higher revenue driven by higher net interest margin, volume growth and the impact of an additional day in the current quarter, partially offset by a higher provision for credit losses and higher expenses. Adjusted pre-provision, pre-tax earnings(2) were $1,163 million, up $149 million from the second quarter a year ago, as higher revenue was partially offset by higher adjusted(2) non-interest expenses mainly due to higher spending on strategic initiatives, and higher employee-related and performance-based compensation.

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) This measure is a non-GAAP measure. For additional information, see the “Non-GAAP measures” section, including the quantitative reconciliations of reported GAAP measures to: adjusted non-interest expenses and adjusted net income on pages 9 to 13; and adjusted pre-provision, pre-tax earnings on page 14.

(3) For additional information on the composition, see the “Glossary” section.

(4) Average balances are calculated as a weighted average of daily closing balances.

(5) Our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution’s (OSFI’s) Capital Adequacy Requirements (CAR) Guideline and the leverage ratio is calculated pursuant to OSFI’s Leverage Requirements Guideline, all of which are based on the Basel Committee on Banking Supervision (BCBS) standards. The Basel III reforms related to market risk and credit valuation adjustments were implemented as of November 1, 2023. For additional information, see the “Capital management” and “Liquidity risk” sections.

(6) This item of note reports the impact on consolidated income tax expense that will be subject to an adjustment to our reported results in the third quarter of 2024 because the Federal tax proposal to deny the dividends received deduction for banks was substantively enacted on May 28, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note.

Canadian Commercial Banking and Wealth Management reported net income of $456 million for the second quarter, up $4 million or 1% from the second quarter a year ago, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher expenses. The increase in revenue was due to higher fee-based revenue from market appreciation and higher commission revenue from increased client activity in wealth management. Commercial banking revenue was lower compared to the prior year due to lower deposit margins, partially offset by the impact of an additional day in the current quarter. The lower non-interest income experienced in commercial banking was a result of the reduction in the issuance of Bankers’ Acceptances ahead of the expected cessation of Canadian Dollar Offered Rate (CDOR) and was largely offset by higher net interest income from a corresponding increase in loans. Expenses increased primarily due to higher performance-based compensation. Adjusted pre-provision, pre-tax earnings(1) were $664 million, up $1 million from the second quarter a year ago, as higher revenue in wealth management was largely offset by lower revenue in commercial banking.

U.S. Commercial Banking and Wealth Management reported net income of $93 million (US$69 million) for the second quarter, up $38 million (US$29 million or 73%) from the second quarter a year ago, primarily due to a lower provision for credit losses and higher revenue, partially offset by higher expenses. Adjusted pre-provision, pre-tax earnings(1) were $291 million (US$215 million), down $21 million (US$14 million) from the second quarter a year ago, as higher revenue was more than offset by higher expenses. Higher non-interest income was primarily due to market appreciation. Non-interest expenses increased mainly due to higher spending on strategic initiatives and higher performance-based and employee-related compensation.

Capital Markets and Direct Financial Services reported net income of $560 million for the second quarter, up $63 million or 13% from the second quarter a year ago, primarily due to higher revenue from our global markets, investment banking and direct financial services businesses, partially offset by higher non-interest expenses. Expenses were up due to higher spending on strategic initiatives and higher performance-based and employee-related compensation. Adjusted pre-provision, pre-tax earnings(1) were up $13 million or 2% from the second quarter a year ago due to higher revenue, largely offset by higher expenses.

(1) This measure is a non-GAAP measure. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section.

Making a difference in our communities

At CIBC, we believe there should be no limits to ambition. We invest our time and resources to remove barriers to ambitions and demonstrate that when we come together, positive change happens that helps our communities thrive. This quarter:

• CIBC and the University of Waterloo announced that CIBC has committed $500,000 to improve access to education for Black undergraduate students. The CIBC Inclusion Award for Black Students is open to students entering their first year of a full-time degree program, with preference being given to students enrolled in a Science, Technology, Engineering or Mathematics (STEM) program.

• CIBC invested $300,000 to continue proudly sponsoring HackerGal as their Lead Partner for Inclusion and Community Engagement in support of their mission to inspire Canadian girls and gender-diverse learners to code, create and become the technology leaders of tomorrow by ensuring they have the education, community and confidence to succeed in STEM.

• CIBC Foundation and AlloProf announced the CIBC Foundation’s donation of $100,000 to support the development and dissemination of professional services and digital academic support resources, making them available free of charge to all Quebec students and their parents.

Victor G. Dodig

President and Chief Executive Officer

ii CIBC SECOND QUARTER 2024

Enhanced Disclosure Task Force

The Enhanced Disclosure Task Force (EDTF), established by the Financial Stability Board, released its report “Enhancing the Risk Disclosures of Banks” in 2012, which included thirty-two disclosure recommendations. The index below provides the listing of these disclosures, along with their locations. EDTF disclosures are located in our 2023 Annual Report, quarterly Report to Shareholders, and supplementary packages, which may be found on our website (www.cibc.com). No information on CIBC’s website, including the supplementary packages, should be considered incorporated herein by reference.

			Second quarter, 2024
Topics	Recommendations	Disclosures	Management’s discussion and analysis	Consolidated financial statements		Pillar 3 report and Supplementary regulatory capital disclosure		2023 Annual Report
			Page references
General	1	Index of risk information – current page
	2	Risk terminology and measures	50–53				87–89		104–107
	3	Top and emerging risks	28–30						55–58
	4	Key future regulatory ratio requirements	25, 40–42		74		14, 22		37, 39–41, 79, 80, 171–172
Risk governance, risk management  and business  model	5	Risk management structure							48, 49
	6	Risk culture and appetite							47, 50–52
	7	Risks arising from business activities	31						53, 58
	8	Bank-wide stress testing	34						35–36, 54, 62, 68, 75, 77
Capital  adequacy and  risk-weighted assets	9	Minimum capital requirements	24		74				35–37, 171–172
	10	Components of capital and reconciliation to the consolidated regulatory balance sheet					13–16		40
	11	Regulatory capital flow statement					17		41
	12	Capital management and planning							43–45, 171–172
	13	Business activities and risk-weighted assets	31				5		42–43, 58
	14	Risk-weighted assets and capital requirements					5		38, 42–43
	15	Credit risk by major portfolios					35–49		60–66
	16	Risk-weighted assets flow statement					5, 9		42–43
	17	Back-testing of models					85, 86		54, 62, 73
Liquidity	18	Liquid assets	39						78
Funding	19	Encumbered assets	40						78
	20	Contractual maturities of assets, liabilities and off-balance sheet instruments	44–45						82
	21	Funding strategy and sources	43						81
Market risk	22	Reconciliation of trading and non-trading portfolios to the consolidated balance  sheet	37						72
	23	Significant trading and non-trading market risk factors	37–38						72–76
	24	Model assumptions, limitations and validation procedures							72–76
	25	Stress testing and scenario analysis							35, 75
Credit risk	26	Analysis of credit risk exposures	32–36				10–11, 81–84		63–70, 143–150, 190
	27	Impaired loan and forbearance techniques	32, 35						60, 68, 89, 123–124
	28	Reconciliation of impaired loans and the allowance for credit losses	35		68				68, 144
	29	Counterparty credit risk arising from derivatives					52–54, 67–70, 84, 35 (1)		60, 64, 82, 159–161
	30	Credit risk mitigation	32				26, 69, 84		60, 160–161
Other risks	31	Other risks	45						83–87
	32	Discussion of publicly known risk events			76				83, 183

(1) Included in our supplementary financial information package.

CIBC SECOND QUARTER 2024 iii

Management’s discussion and analysis

Management’s discussion and analysis (MD&A) is provided to enable readers to assess CIBC’s financial condition and results of operations as at and for the quarter and six months ended April 30, 2024 compared with corresponding periods. The MD&A should be read in conjunction with our 2023 Annual Report and the unaudited interim consolidated financial statements included in this report. Unless otherwise indicated, all financial information in this MD&A has been prepared in accordance with International Financial Reporting Standards (IFRS or GAAP) and all amounts are expressed in Canadian dollars (CAD). Certain disclosures in the MD&A have been shaded as they form an integral part of the interim consolidated financial statements. The MD&A is current as of May 29, 2024. Additional information relating to CIBC is available on SEDAR+ at www.sedarplus.com and on the United States (U.S.) Securities and Exchange Commission’s (SEC) website at www.sec.gov. No information on CIBC’s website (www.cibc.com) should be considered incorporated herein by reference. A glossary of terms used throughout this quarterly report can be found on pages 47 to 53.

Contents

2	Second quarter financial highlights
3	External reporting changes
3	Financial performance overview
3	Economic outlook
3	Significant events
4	Financial results review
6	Review of quarterly financial information
8	Non-GAAP measures
15	Strategic business units overview
15	Canadian Personal and Business Banking
16	Canadian Commercial Banking and Wealth Management
18	U.S. Commercial Banking and Wealth Management
20	Capital Markets and Direct Financial Services
21	Corporate and Other

23	Financial condition
23	Review of condensed consolidated balance sheet
24	Capital management
27	Off-balance sheet arrangements
28	Management of risk
28	Risk overview
28	Top and emerging risks
32	Credit risk
37	Market risk
39	Liquidity risk
45	Other risks
45	Accounting and control matters
45	Critical accounting policies and estimates
45	Accounting developments
46	Other regulatory developments
46	Controls and procedures
46	Related-party transactions
47	Glossary

A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this report, in other filings with Canadian securities regulators or the SEC and in other communications. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements made in the “Financial performance overview – Economic outlook”, “Financial performance overview – Significant events”, “Financial performance overview – Financial results review”, “Financial performance overview – Review of quarterly financial information”, “Financial condition – Capital management”, “Management of risk – Risk overview”, “Management of risk – Top and emerging risks”, “Management of risk – Credit risk”, “Management of risk – Market risk”, “Management of risk – Liquidity risk”, “Accounting and control matters – Critical accounting policies and estimates”, and “Accounting and control matters – Other regulatory developments” sections of this report and other statements about our operations, business lines, financial condition, risk management, priorities, targets and sustainability commitments (including with respect to net-zero emissions and our environmental, social and governance (ESG) related activities), ongoing objectives, strategies, the regulatory environment in which we operate and outlook for calendar year 2024 and subsequent periods. Forward-looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “target”, “predict”, “commit”, “ambition”, “goal”, “strive”, “project”, “objective” and other similar expressions or future or conditional verbs such as “will”, “may”, “should”, “would” and “could”. By their nature, these statements require us to make assumptions, including the economic assumptions set out in the “Financial performance overview – Economic outlook” section of this report, and are subject to inherent risks and uncertainties that may be general or specific. Given the continuing impact of high inflation, rising interest rates, ongoing adverse developments in the U.S. banking sector which adds pressure on liquidity and funding conditions for the financial industry, the impact of hybrid work arrangements and higher interest rates on the U.S. real estate sector, potential recession and the war in Ukraine and conflict in the Middle East on the global economy, financial markets, and our business, results of operations, reputation and financial condition, there is inherently more uncertainty associated with our assumptions as compared to prior periods. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: inflationary pressures; global supply-chain disruptions; geopolitical risk, including from the war in Ukraine and conflict in the Middle East, the occurrence, continuance or intensification of public health emergencies, such as the impact of post-pandemic hybrid work arrangements, and any related government policies and actions; credit, market, liquidity, strategic, insurance, operational, reputation, conduct and legal, regulatory and environmental risk; currency value and interest rate fluctuations, including as a result of market and oil price volatility; the effectiveness and adequacy of our risk management and valuation models and processes; legislative or regulatory developments in the jurisdictions where we operate, including the Organisation for Economic Co-operation and Development Common Reporting Standard, and regulatory reforms in the United Kingdom and Europe, the Basel Committee on Banking Supervision’s global standards for capital and liquidity reform, and those relating to bank recapitalization legislation and the payments system in Canada; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions, and interest rate and liquidity regulatory guidance; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments, including changes relating to economic or trade matters; the possible effect on our business of international conflicts, such as the war in Ukraine and conflict in the Middle East, and terrorism; natural disasters, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; potential disruptions to our information technology systems and services; increasing cyber security risks which may include theft or disclosure of assets, unauthorized access to sensitive information, or operational disruption; social media risk; losses incurred as a result of internal or external fraud; anti-money laundering; the accuracy and completeness of information provided to us concerning clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates or associates; intensifying competition from established competitors and new entrants in the financial services industry including through internet and mobile banking; technological change including the use of data and artificial intelligence in our business; global capital market activity; changes in monetary and economic policy; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations, including increasing Canadian household debt levels and global credit risks; climate change and other ESG related risks including our ability to implement various sustainability-related initiatives internally and with our clients under expected time frames and our ability to scale our sustainable finance products and services; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; our ability to successfully execute our strategies and complete and integrate acquisitions and joint ventures; the risk that expected benefits of an acquisition, merger or divestiture will not be realized within the expected time frame or at all; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Any forward-looking statements contained in this report represent the views of management only as of the date hereof and are presented for the purpose of assisting our shareholders and financial analysts in understanding our financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement that is contained in this report or in other communications except as required by law.

CIBC SECOND QUARTER 2024 1

Second quarter financial highlights

		As at or for the three months ended									As at or for the six months ended
Unaudited		2024 Apr. 30			2024 Jan. 31			2023 Apr. 30 (1)			2024 Apr. 30			2023 Apr. 30 (1)
Financial results ($ millions)
Net interest income		$	3,281		$	3,249		$	3,187		$	6,530		$	6,392
Non-interest income			2,883			2,972			2,517			5,855			5,241
Total revenue			6,164			6,221			5,704			12,385			11,633
Provision for credit losses			514			585			438			1,099			733
Non-interest expenses			3,501			3,465			3,140			6,966			7,602
Income before income taxes			2,149			2,171			2,126			4,320			3,298
Income taxes			400			443			437			843			1,176
Net income		$	1,749		$	1,728		$	1,689		$	3,477		$	2,122
Net income attributable to non-controlling interests		$	10		$	12		$	11		$	22		$	20
Preferred shareholders and other equity instrument holders			61			67			67			128			139
Common shareholders			1,678			1,649			1,611			3,327			1,963
Net income attributable to equity shareholders		$	1,739		$	1,716		$	1,678		$	3,455		$	2,102
Financial measures
Reported efficiency ratio (2)			56.8	%		55.7	%		55.1	%		56.2	%		65.4	%
Reported operating leverage (2)			(3.4	)%		27.3	%		5.2	%		14.8	%		(16.9	)%
Loan loss ratio (3)			0.34	%		0.36	%		0.29	%		0.35	%		0.24	%
Reported return on common shareholders’ equity (2)			13.7	%		13.5	%		14.5	%		13.6	%		8.7	%
Net interest margin (2)			1.35	%		1.32	%		1.40	%		1.33	%		1.37	%
Net interest margin on average interest-earning assets (2)(4)			1.46	%		1.43	%		1.54	%		1.44	%		1.52	%
Return on average assets (2)(4)			0.72	%		0.70	%		0.74	%		0.71	%		0.45	%
Return on average interest-earning assets (2)(4)			0.78	%		0.76	%		0.82	%		0.77	%		0.50	%
Reported effective tax rate			18.6	%		20.4	%		20.5	%		19.5	%		35.6	%
Common share information
Per share ($)	– basic earnings	$	1.79		$	1.77		$	1.77		$	3.56		$	2.16
	– reported diluted earnings		1.79			1.77			1.76			3.55			2.16
	– dividends		0.900			0.900			0.850			1.800			1.700
	– book value (5)		53.35			52.46			50.46			53.35			50.46
Closing share price ($)			64.26			60.76			56.80			64.26			56.80
Shares outstanding (thousands)	– weighted-average basic		937,849			931,775			912,297			934,779			909,488
	– weighted-average diluted		939,813			932,330			913,219			935,980			910,444
	– end of period		943,002			937,223			917,769			943,002			917,769
Market capitalization ($ millions)		$	60,597		$	56,946		$	52,129		$	60,597		$	52,129
Value measures
Total shareholder return			7.16	%		25.98	%		(5.07	)%		35.01	%		(5.36	)%
Dividend yield (based on closing share price)			5.7	%		5.9	%		6.1	%		5.6	%		6.0	%
Reported dividend payout ratio (2)			50.3	%		50.9	%		48.1	%		50.6	%		78.7	%
Market value to book value ratio			1.20			1.16			1.13			1.20			1.13
Selected financial measures – adjusted (6)
Adjusted efficiency ratio (7)			56.4	%		54.0	%		56.6	%		55.2	%		55.8	%
Adjusted operating leverage (7)			0.5	%		2.1	%		(0.4	)%		1.3	%		(0.9	)%
Adjusted return on common shareholders’ equity			13.4	%		13.8	%		13.9	%		13.6	%		14.7	%
Adjusted effective tax rate			21.1	%		22.3	%		20.1	%		21.7	%		21.2	%
Adjusted diluted earnings per share (EPS)		$	1.75		$	1.81		$	1.70		$	3.57		$	3.64
Adjusted dividend payout ratio			51.3	%		49.6	%		50.0	%		50.4	%		46.7	%
On- and off-balance sheet information ($ millions)
Cash, deposits with banks and securities		$	284,673		$	274,757		$	246,294		$	284,673		$	246,294
Loans and acceptances, net of allowance for credit losses			543,897			539,295			538,273			543,897			538,273
Total assets			1,001,758			971,667			935,215			1,001,758			935,215
Deposits			731,952			724,545			705,917			731,952			705,917
Common shareholders’ equity (2)			50,311			49,166			46,312			50,311			46,312
Average assets (4)			990,022			982,321			932,775			986,129			943,138
Average interest-earning assets (2)(4)			915,294			902,747			847,244			908,952			849,960
Average common shareholders’ equity (2)(4)			49,809			48,588			45,597			49,192			45,333
Assets under administration (AUA) (2)(8)(9)			3,280,627			3,143,839			2,995,583			3,280,627			2,995,583
Assets under management (AUM) (2)(9)			349,158			325,713			310,637			349,158			310,637
Balance sheet quality and liquidity measures (10)
Risk-weighted assets (RWA) ($ millions)		$	326,514		$	316,333		$	321,188		$	326,514		$	321,188
Common Equity Tier 1 (CET1) ratio			13.1	%		13.0	%		11.9	%		13.1	%		11.9	%
Tier 1 capital ratio			14.7	%		14.6	%		13.4	%		14.7	%		13.4	%
Total capital ratio			17.0	%		17.0	%		15.5	%		17.0	%		15.5	%
Leverage ratio			4.3	%		4.3	%		4.2	%		4.3	%		4.2	%
Liquidity coverage ratio (LCR)			129	%		137	%		124	%		n/a			n/a
Net stable funding ratio (NSFR)			115	%		115	%		117	%		115	%		117	%
Other information
Full-time equivalent employees			47,774			48,047			48,673			47,774			48,673

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) For additional information on the composition, see the “Glossary” section.

(3) The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.

(4) Average balances are calculated as a weighted average of daily closing balances.

(5) Common shareholders’ equity divided by the number of common shares issued and outstanding at end of period.

(6) Adjusted measures are non-GAAP measures. Adjusted measures are calculated in the same manner as reported measures, except that financial information included in the calculation of adjusted measures is adjusted to exclude the impact of items of note. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section.

(7) Commencing the first quarter of 2024, we no longer gross up tax-exempt revenue to bring it to a TEB for the application of this ratio to our consolidated results. Prior period amounts have been restated to conform with the change in presentation adopted in the first quarter of 2024.

(8) Includes the full contract amount of AUA or custody under a 50/50 joint venture between CIBC and The Bank of New York Mellon of $2,572.4 billion (January 31, 2024: $2,485.4 billion; April 30, 2023: $2,370.5 billion).

(9) AUM amounts are included in the amounts reported under AUA.

(10) RWA and our capital ratios are calculated pursuant to the Office of the Superintendent of Financial Institution’s (OSFI’s) Capital Adequacy Requirements (CAR) Guideline, the leverage ratio is calculated pursuant to OSFI’s Leverage Requirements Guideline, and LCR and NSFR are calculated pursuant to OSFI’s Liquidity Adequacy Requirements (LAR) Guideline, all of which are based on the Basel Committee on Banking Supervision (BCBS) standards. The Basel III reforms related to market risk and credit valuation adjustments were implemented as of November 1, 2023. For additional information, see the “Capital management” and “Liquidity risk” sections.

n/a Not applicable.

2 CIBC SECOND QUARTER 2024

External reporting changes

The following external reporting changes were made in the first quarter of 2024. Prior period amounts were restated accordingly.

Adoption of IFRS 17 “Insurance Contracts” (IFRS 17)

We adopted IFRS 17 “Insurance Contracts” (IFRS 17), commencing November 1, 2023, which replaced IFRS 4 “Insurance Contracts” (IFRS 4). The adoption of IFRS 17 required us to restate the comparative year ended October 31, 2023. Insurance results are now presented in Income from insurance activities, net under Non-interest income, which replaced Insurance fees, net of claims in the income statement. For further details on the adoption of IFRS 17, see Note 1 to the interim consolidated financial statements. Regulatory capital measures for prior periods have not been restated.

Financial performance overview

Economic outlook

Tight monetary policy is expected to result in a continuation of below-normal global growth for the remainder of 2024. The United Kingdom (U.K.) and some eurozone countries will struggle to emerge from recessions that commenced in the second half of 2023 after high interest rates hit a region already vulnerable due to the spillover from the war in Ukraine. China’s economy has benefitted from a pick-up in exports, but continues to see soft domestic demand. The global slowdown will result in many commodity prices at lower average levels in 2024 than what persisted earlier in this expansion, although geopolitical risks to supply could bring upward pressure in some commodities. Despite military disruptions to traffic in the Suez Canal, supply chains should continue to see further improvement from the recovery in global inventories after earlier COVID-19 shutdowns, and from the expected easing in global demand pressures.

In Canada, the Bank of Canada is expected to maintain its 5% overnight rate until roughly mid-year as it awaits for more evidence that sluggish growth is leading to a further easing in inflation. Although early 2024 saw growth improve from the slow pace experienced since mid-2022, we expect a return to a slower pace through the spring and summer as high interest rates constrain spending by indebted households. Such an economic slowdown should, however, allow inflation to end this year close to the 2% target. For 2024 as a whole, we forecast growth of roughly 1%, and expect the unemployment rate to edge a bit further above 6%. However, if as we expect, overnight interest rates end the year 100 basis points lower, growth should be stronger in the final quarter of 2024 and the unemployment rate should have started to move down again from that peak.

The U.S. has been much more resilient in the face of higher interest rates so far, but diminished household savings and weak business loan demand point to a deceleration in growth over the remainder of 2024. While growth for 2024 as a whole could still be near 2.5%, a deceleration in quarterly growth is expected to see the unemployment rate climb modestly over 4% in the latter half of the year, allowing wage inflation to ease. There are still downside risks to the U.S. growth outlook tied to sluggish business lending activity. However, we expect that reduced inflation will allow the Federal Reserve to cut its target rate by 50 basis points in the latter half of the year, with room to cut more aggressively if downside risks emerge.

The soft pace of Canadian economic growth, and high interest rates in the first half of the year, will likely have broad implications across our strategic business units (SBUs) for the remainder of the year. Higher levels of unemployment and higher interest rates have resulted in a moderate deterioration in business and household credit quality. Deterioration in the credit quality of select sectors, including the U.S. office real estate market, could continue in response to worsening economic or market conditions. Deposit growth will be slow, as quantitative tightening will require bonds currently held by the central bank to be financed in the public markets, with high rates resulting in greater growth in term deposits relative to short-term deposits. While the increase in interest rates appears to have leveled off with an expectation of declines, we expect the impact on our net interest margins to be relatively stable for 2024.

For Canadian Personal Banking, mortgage growth is expected to remain soft before picking up later this year, in line with sluggish home sale volumes and little change in average house prices due to the high level of interest rates in the first half of 2024. Although year-over-year non-mortgage consumer credit demand will be supported by population growth, lower inflation and weaker discretionary spending will contribute to slower growth in dollar terms.

Canadian commercial, and corporate banking loan growth is expected to continue to decelerate through to mid-2024 with softer economic growth and lower levels of residential construction, before improving in the second half of the year. In our U.S. commercial banking and wealth businesses, loan growth has slowed, consistent with industry trends, but is expected to improve later in the year in conjunction with expected interest rate reductions.

Financial markets have benefitted from expectations for central bank interest rate reductions later in the year. While we expect that softer economic conditions will impact corporate earnings, Canadian and U.S. wealth management businesses should benefit as 2024 progresses and markets look ahead to better growth in 2025.

Corporate and investment banking is expected to continue to benefit from merger and acquisition activity that continues to recover from the low levels in early 2023, while corporate bond issuance could pick up later in 2024, given that long-term rates are off their peak.

The economic outlook described above reflects numerous assumptions regarding the economic impact of high interest rates, the easing of inflationary pressures, the impact from events in the U.S. banking sector, as well as the global economic risks emanating from the war in Ukraine, conflict in the Middle East and trade frictions between China and other countries. As a result, actual experience may differ materially from expectations. The impact of geopolitical events on our risk environment, are discussed in the “Top and emerging risks” section. Changes in the level of economic uncertainty continue to impact key accounting estimates and assumptions, particularly the estimation of expected credit losses (ECL). See the “Accounting and control matters” section and Note 6 to our interim consolidated financial statements for further details.

Significant events

Sale of certain banking assets in the Caribbean

On October 31, 2023, FirstCaribbean International Bank Limited (CIBC FirstCaribbean) announced that it had entered into an agreement to sell its banking assets in Curaçao and Sint Maarten. The sale of banking assets in Curaçao was completed on May 24, 2024 upon the satisfaction of the closing conditions, and was not material. The Sint Maarten transaction is subject to closing conditions, and is expected to be finalized in the first quarter of 2025. The impact upon closing is not expected to be material.

CIBC SECOND QUARTER 2024 3

Financial results review

Reported net income for the quarter was $1,749 million, compared with $1,689 million for the same quarter last year, and $1,728 million for the prior quarter.

Adjusted net income(1) for the quarter was $1,718 million, compared with $1,628 million for the same quarter last year, and $1,770 million for the prior quarter.

Reported diluted EPS for the quarter was $1.79, compared with $1.76 for the same quarter last year, and $1.77 for the prior quarter.

Adjusted diluted EPS(1) for the quarter was $1.75, compared with $1.70 for the same quarter last year, and $1.81 for the prior quarter.

In the current quarter, the following items of note increased non-interest expenses by $27 million, decreased income taxes by $58 million and increased net income by $31 million:

• $13 million ($10 million after-tax) charge related to the special assessment imposed by the FDIC on U.S. depository institutions, which impacted CIBC Bank USA (U.S. Commercial Banking and Wealth Management);

• $51 million recovery to income tax that will be eliminated by the substantive enactment of a Federal tax proposal to deny the dividends received deduction for banks(2) ($71 million TEB revenue and tax expense in Capital Markets and Direct Financial Services with offsets in Corporate and Other; $51 million tax recovery in Capital Markets and Direct Financial Services); and

• $14 million ($10 million after-tax) amortization of acquisition-related intangible assets ($4 million after-tax in Canadian Personal and Business Banking, and $6 million after-tax in U.S. Commercial Banking and Wealth Management).

Net interest income(3)

	For the three months ended								For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30		2024 Apr. 30			2023 Apr. 30
Net interest income consists of:
Non-trading net interest income (3)	$	3,443		$	3,459		$	3,161	$	6,902		$	6,426
Trading net interest income (3)(4)		(162	)		(210	)		26		(372	)		(34	)
	$	3,281		$	3,249		$	3,187	$	6,530		$	6,392

Net interest income was up $94 million or 3% from the same quarter last year, primarily due to higher net interest margin in our non-trading businesses, volume growth across most of our businesses and the impact of an additional day in the current quarter, partially offset by lower trading net interest income.

Net interest income was up $32 million or 1% from the prior quarter, primarily due to higher trading net interest income and volume growth across most of our businesses, partially offset by the impact of fewer days in the current quarter and lower net interest margin in our non-trading businesses.

Net interest income for the six months ended April 30, 2024 was up $138 million or 2% from the same period in 2023, primarily due to higher net interest margin in our non-trading businesses and volume growth across most of our businesses, partially offset by lower trading net interest income.

Non-interest income(3)

Non-interest income was up $366 million or 15% from the same quarter last year, primarily due to higher trading non-interest income, higher underwriting and advisory fees, higher fee-based revenue, higher gains from foreign exchange other than trading, and higher commissions on securities transactions.

Non-interest income was down $89 million or 3% from the prior quarter, primarily due to lower trading non-interest income and lower credit fees, partially offset by higher investment management and custodial fees, higher underwriting and advisory fees, and higher commissions on securities transactions.

Non-interest income for the six months ended April 30, 2024 was up $614 million or 12% from the same period in 2023, primarily due to higher trading non-interest income, higher underwriting and advisory fees, higher investment management and custodial fees, and higher credit fees.

(1) Adjusted measures are non-GAAP measures. For additional information and a reconciliation of reported results to adjusted results, where applicable, see the “Non-GAAP measures” section.

(2) This item of note reports the impact on consolidated income tax expense that will be subject to an adjustment to our reported results in the third quarter of 2024 because the Federal tax proposal to deny the dividends received deduction for banks was substantively enacted on May 28, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note.

(3) Trading activities include those that meet the risk definition of trading for regulatory capital and trading market risk management purposes as defined in accordance with OSFI’s CAR Guideline. Starting in the first quarter of 2024, a revised risk definition for trading was implemented resulting in a change in the classification of certain fixed income financing activities that were previously considered non-trading that are now classified as trading, which included the fixed income financing activities that were already included in trading activities starting in the first quarter of 2023. The revised definition was adopted as part of our implementation of the Fundamental Review of the Trading Book (FRTB) rules under the Basel III reforms for market risk that became effective on November 1, 2023. Trading activities and related risk management strategies can periodically shift trading income between net interest income and non-interest income. Therefore, we view total trading income as the most appropriate measure of trading performance.

(4) Does not include a TEB adjustment of $71 million for the quarter ended April 30, 2024 (January 31, 2024: $68 million; April 30, 2023: $64 million) and $139 million for the six months ended April 30, 2024 (April 30, 2023: $126 million).

4 CIBC SECOND QUARTER 2024

Provision for credit losses

	For the three months ended								For the six months ended
$ millions	2024 Apr. 30		2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Provision for (reversal of) credit losses – impaired
Canadian Personal and Business Banking	$	270	$	285		$	231		$	555		$	419
Canadian Commercial Banking and Wealth Management		5		16			33			21			59
U.S. Commercial Banking and Wealth Management		161		189			100			350			141
Capital Markets and Direct Financial Services		6		6			4			12			(7	)
Corporate and Other		5		(4	)		11			1			26
		447		492			379			939			638
Provision for (reversal of) credit losses – performing
Canadian Personal and Business Banking		–		44			(108	)		44			(138	)
Canadian Commercial Banking and Wealth Management		32		4			13			36			33
U.S. Commercial Banking and Wealth Management		25		55			148			80			205
Capital Markets and Direct Financial Services		10		2			15			12			16
Corporate and Other		–		(12	)		(9	)		(12	)		(21	)
		67		93			59			160			95
	$	514	$	585		$	438		$	1,099		$	733

Provision for credit losses was $514 million, up $76 million from the same quarter last year. Provision for credit losses on performing loans was up mainly due to a provision reversal in Canadian Personal and Business Banking in the prior year quarter, partially offset by lower provisions in U.S. Commercial Banking and Wealth Management in the current quarter. Provision for credit losses on impaired loans was up mainly due to higher provisions in U.S. Commercial Banking and Wealth Management, and Canadian Personal and Business Banking, partially offset by lower provisions in Canadian Commercial Banking and Wealth Management.

Provision for credit losses was down $71 million from the prior quarter. Provision for credit losses on performing loans was down mainly due to lower provisions in Canadian Personal and Business Banking and U.S. Commercial Banking and Wealth Management, partially offset by higher provisions in Canadian Commercial Banking and Wealth Management and Capital Markets and Direct Financial Services. Provision for credit losses on impaired loans was down due to lower impairments in Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management and U.S. Commercial Banking and Wealth Management.

Provision for credit losses for the six months ended April 30, 2024 was up $366 million from the same period in 2023. Provision for credit losses on performing loans was up mainly due to a provision reversal in Canadian Personal and Business Banking in the prior year period, partially offset by lower provisions in U.S. Commercial Banking and Wealth Management in the current period. Provision for credit losses on impaired loans was up due to higher impairments in Canadian Personal and Business Banking, and U.S. Commercial Banking and Wealth Management. 

Non-interest expenses

Non-interest expenses were up $361 million or 11% from the same quarter last year, primarily due to higher performance-based and employee-related compensation, higher computer, software and office equipment expenses, and a decrease in legal provisions, shown as an item of note in the same quarter last year.

Non-interest expenses were up $36 million or 1% from the prior quarter, primarily due to higher employee-related and performance-based compensation, higher computer, software and office equipment expenses, and higher professional fees, partially offset by a higher charge related to the special assessment imposed by the FDIC in the prior quarter, shown as an item of note.

Non-interest expenses for the six months ended April 30, 2024 were down $636 million or 8% from the same period in 2023, primarily due to an increase in legal provisions in the first quarter of 2023, shown as an item of note, partially offset by higher performance-based and employee-related compensation, higher computer, software and office equipment expenses, and a charge related to the special assessment imposed by the FDIC in the current period, as noted above.

Taxes

Income tax expense was down $37 million or 8% from the same quarter last year, despite higher income, due to changes in earnings mix.

Income tax expense was down $43 million or 10% from the prior quarter, due to lower income and earnings mix.

Income tax expense for the six months ended April 30, 2024 was down $333 million or 28% from the same period in 2023, as the first quarter of 2023 included an income tax charge taken to recognize the Canada Recovery Dividend (CRD) tax and the retroactive impact of the 1.5% tax rate increase, which was shown as an item of note.

On November 28, 2023, the Canadian federal government tabled Bill C-59 in Parliament, which includes certain tax measures from the 2023 fall economic statement and 2023 federal budget. Bill C-59 includes the denial of the dividends received deduction in respect of Canadian shares held as mark-to-market property, as well as a 2% tax on certain share buy backs. The application date for these measures is January 1, 2024. Bill C-59 was not substantively enacted as at April 30, 2024, and is therefore not reflected in the reported income tax expense for the quarter and six months ended April 30, 2024.

On May 28, 2024, Parliament completed third reading of Bill C-59. As a result, the proposal to deny the dividends received deduction for banks was substantively enacted as of that date and will be reflected in the reported income tax expense for the third quarter ended July 31, 2024.

On May 2, 2024, the Canadian federal government tabled Bill C-69 for first reading in Parliament. Bill C-69 includes certain provisions of the Canadian federal budget tabled on April 16, 2024, as well as a revised Global Minimum Tax Act (GMTA), which differs in part from the GMTA released by the Canadian federal government on August 4, 2023. The GMTA will implement rules in Canada for a 15% global minimum tax regime as part of Canada’s agreement to adopt the Organisation for Economic Co-operation and Development (OECD) Pillar Two regime for a global minimum tax. More than 135 OECD member countries have agreed to adopt the regime. Pillar Two rules are in different stages of adoption globally. Certain countries in which CIBC operates have enacted Pillar Two legislation, however, the legislation is not yet in effect in those countries. The GMTA is expected to be enacted in 2024 and with application as of CIBC’s 2025 fiscal year. CIBC is currently reviewing the latest draft of the GMTA in Bill C-69 and evaluating its impact on our global operations, which impact is not reasonably estimable at this time.

The IASB issued “International Tax Reform – Pillar Two Model Rules”, which amended IAS 12 “Income Taxes” (IAS 12), to provide temporary relief from the accounting and disclosure for deferred taxes arising from the implementation of Pillar Two Model Rules. CIBC has applied this exception to recognizing and disclosing deferred taxes related to Pillar Two income taxes. Further amendments to IAS 12 require additional disclosures during the periods where the Pillar Two legislation has been enacted or substantively enacted but is not yet in effect.

CIBC SECOND QUARTER 2024 5

Foreign exchange

The following table provides the estimated impact of U.S. dollar (USD) translation on key lines of our interim consolidated statement of income, as a result of changes in average exchange rates.

	For the three months ended						For the six months ended
$ millions, except per share amounts	Apr. 30, 2024 vs. Apr. 30, 2023			Apr. 30, 2024 vs. Jan. 31, 2024			Apr. 30, 2024 vs. Apr. 30, 2023
Estimated increase (decrease) in:
Total revenue	$	7		$	25		$	5
Provision for (reversal of) credit losses		1			3			1
Non-interest expenses		3			11			3
Income taxes		1			3			–
Net income (loss)		2			8			1
Impact on EPS:
Basic	$	–		$	0.01		$	–
Diluted		–			0.01			–
Average USD appreciation (depreciation) relative to CAD		0.4	%		1.5	%		0.2	%

Review of quarterly financial information

$ millions, except per share amounts, for the three months ended		2024										2023	(1)					2022
	Apr. 30		Jan. 31		Oct. 31		Jul. 31		Apr. 30		Jan. 31			Oct. 31			Jul. 31
Revenue
Canadian Personal and Business Banking	$	2,476	$	2,497	$	2,458	$	2,414	$	2,282	$	2,262		$	2,262		$	2,321
Canadian Commercial Banking and Wealth Management		1,384		1,374		1,366		1,350		1,336		1,351			1,316			1,338
U.S. Commercial Banking and Wealth Management		666		681		672		666		648		706			653			604
Capital Markets and Direct Financial Services (2)		1,488		1,561		1,290		1,355		1,362		1,481			1,182			1,199
Corporate and Other (2)		150		108		61		67		76		129			(25	)		109
Total revenue	$	6,164	$	6,221	$	5,847	$	5,852	$	5,704	$	5,929		$	5,388		$	5,571
Net interest income	$	3,281	$	3,249	$	3,197	$	3,236	$	3,187	$	3,205		$	3,185		$	3,236
Non-interest income		2,883		2,972		2,650		2,616		2,517		2,724			2,203			2,335
Total revenue		6,164		6,221		5,847		5,852		5,704		5,929			5,388			5,571
Provision for credit losses		514		585		541		736		438		295			436			243
Non-interest expenses		3,501		3,465		3,440		3,307		3,140		4,462			3,483			3,183
Income before income taxes		2,149		2,171		1,866		1,809		2,126		1,172			1,469			2,145
Income taxes		400		443		381		377		437		739			284			479
Net income	$	1,749	$	1,728	$	1,485	$	1,432	$	1,689	$	433		$	1,185		$	1,666
Net income attributable to:
Non-controlling interests	$	10	$	12	$	8	$	10	$	11	$	9		$	7		$	6
Equity shareholders		1,739		1,716		1,477		1,422		1,678		424			1,178			1,660
EPS – basic	$	1.79	$	1.77	$	1.53	$	1.48	$	1.77	$	0.39		$	1.26		$	1.79
– diluted		1.79		1.77		1.53		1.47		1.76		0.39			1.26			1.78

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Capital Markets and Direct Financial Services revenue and income taxes are reported on a TEB with an equivalent offset in the revenue and income taxes of Corporate and Other.

Our quarterly results are modestly affected by seasonal factors. The second quarter has fewer days as compared with the other quarters, generally leading to lower earnings. The summer months (July – third quarter and August – fourth quarter) typically experience lower levels of market activity, which affects our brokerage, investment management, and capital markets activities.

Revenue

Revenue in our lending and deposit-taking businesses is generally driven by volume growth, fees related to client transaction activity and the interest rate environment. Our wealth management businesses are driven by net sales activity impacting AUA and AUM, the level of client investment activity and market conditions. Capital markets revenue is also influenced, to a large extent, by market conditions affecting client trading, underwriting and advisory activity.

Canadian Personal and Business Banking has benefitted from loan and deposit growth through the periods presented above, driven by organic client growth, and deepening relationships across our client base. The rising rate environment has contributed to slower growth in loans and deposits and improved net interest margin, through wider deposit margins, partially offset by compressed loan margins.

Canadian Commercial Banking and Wealth Management revenue has benefitted from commercial banking volume growth, offset by market-related headwinds in wealth management. In commercial banking, revenue growth has been driven by client demand that has tempered in recent quarters and from an increase in interest rates. In wealth management, AUA and AUM growth and associated fee income have been impacted by volatility in equity markets along with the impact of macro environmental factors, which have shown signs of recovery over the first and second quarters of 2024.

U.S. Commercial Banking and Wealth Management continues to benefit from organic client acquisition. Deposit balances decreased in the second and third quarters of 2023 which was accompanied by a shift in deposit mix due to the interest rate environment, but average balances increased in the most recent three quarters. Loans declined in the fourth quarter of 2023 and first quarter of 2024, while revolver usage and demand remains low, with a return to growth in the second quarter of 2024. Wealth Management AUA and AUM experienced market-related headwinds and market volatility in the first half of 2023, recent growth has been positively impacted by market appreciation.

Capital Markets and Direct Financial Services had lower trading revenue in the third and fourth quarters of 2022 and 2023. The first quarters of 2023 and 2024 had higher trading revenue driven by robust market conditions and strong client activity.

Corporate and Other included the impact of higher net interest margins in International banking from rising interest rates. Starting in the second quarter of 2023, funding costs increased due to interest rate volatility, which negatively impacted Corporate and Other. The negative impact lessened as the increased funding costs were passed on to the SBUs over time.

6 CIBC SECOND QUARTER 2024

Provision for credit losses

Provision for credit losses is dependent upon the credit cycle, on the credit performance of the loan portfolios, and changes in our economic outlook. We continue to operate in an uncertain macroeconomic environment due to concerns related to higher levels of interest rates and inflation, geopolitical events and slower economic growth. There is considerable judgment involved in the estimation of expected credit losses in the current environment.

The faster than expected pace of interest rate increases, along with rising inflation, continued supply chain disruption and the increase in global geopolitical concerns, impacted our provision for credit losses on performing loans in the second, third and fourth quarters of 2022, and the third and fourth quarters of 2023. Unfavourable credit migration also impacted our provision for credit losses in all quarters in 2023 and the first and second quarters of 2024. An unfavourable change in our outlook for the U.S. real estate and construction sector contributed to an increase in provision for credit losses on performing loans in the second, third and fourth quarters of 2023 and the first quarter of 2024.

In Canadian Personal and Business Banking, provisions on impaired loans continue to trend higher as expected, due to the unfavourable macro environments for the retail portfolios and write-offs from the seasoning of the acquired Canadian Costco credit card portfolio.

In Canadian Commercial Banking and Wealth Management, fiscal 2023 and the first quarter of 2024 included higher provisions on impaired loans.

In U.S. Commercial Banking and Wealth Management, the fourth quarter of 2022, all quarters of 2023 and the first and second quarters of 2024 included higher provisions on impaired loans. The increased provision in the third and fourth quarters of 2023 and the first and second quarters of 2024 was mainly attributable to the real estate and construction sector.

In Capital Markets and Direct Financial Services, impaired loan losses have continued to remain low.

In Corporate and Other, provisions for impaired loans in International banking have remained relatively stable. The fourth quarter of 2023 and the first quarter of 2024 included provision reversals.

Non-interest expenses

Non-interest expenses have fluctuated over the period largely due to changes in employee compensation expenses, investments in strategic initiatives and movement in foreign exchange rates. The first and second quarters of 2024 included a charge related to the special assessment imposed by the FDIC, shown as an item of note. The fourth quarter of 2022 and the first quarter of 2023 included increases in legal provisions, while the second quarter of 2023 included a decrease in legal provisions in Corporate and Other, all shown as items of note. The fourth quarter of 2022 included charges related to the consolidation of our real estate portfolio as a result of our move to our new global headquarters, shown as an item of note.

Income taxes

Income taxes vary with changes in taxable income in the jurisdictions in which the income is earned. The first quarter of 2023 included an income tax charge taken to recognize the CRD tax and the retroactive impact of the 1.5% tax rate increase, which was shown as an item of note.

CIBC SECOND QUARTER 2024 7

Non-GAAP measures

We use a number of financial measures to assess the performance of our business lines as described below. Some measures are calculated in accordance with GAAP (IFRS), while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP measures, which include non-GAAP financial measures and non-GAAP ratios as defined in National Instrument 52-112 “Non-GAAP and Other Financial Measures Disclosure”, useful in understanding how management views underlying business performance.

Adjusted measures

Management assesses results on a reported and adjusted basis and considers both as useful measures of performance. Adjusted measures, which include adjusted total revenue, adjusted provision for credit losses, adjusted non-interest expenses, adjusted income before income taxes, adjusted income taxes and adjusted net income, in addition to the adjusted measures noted below, remove items of note from reported results to calculate our adjusted results. Items of note include the amortization of intangible assets, and certain items of significance that arise from time to time which management believes are not reflective of underlying business performance. We believe that adjusted measures provide the reader with a better understanding of how management assesses underlying business performance and facilitates a more informed analysis of trends. While we believe that adjusted measures may facilitate comparisons between our results and those of some of our Canadian peer banks, which make similar adjustments in their public disclosure, it should be noted that there is no standardized meaning for adjusted measures under GAAP.

We also adjust our SBU results to gross up tax-exempt revenue on certain securities to a TEB, being the amount of fully taxable revenue, which, were it to have incurred tax at the statutory income tax rate, would yield the same after-tax revenue. See the “Strategic business units overview” section and Note 30 to our consolidated financial statements included in our 2023 Annual Report for further details.

Adjusted diluted EPS

We adjust our reported diluted EPS to remove the impact of items of note, net of income taxes, to calculate the adjusted EPS.

Adjusted efficiency ratio

We adjust our reported revenue and non-interest expenses to remove the impact of items of note. Commencing the first quarter of 2024, we no longer gross up tax-exempt revenue to bring it to a TEB for the application of this ratio to our consolidated results. Prior period amounts have been restated to conform with the change in presentation adopted in the first quarter of 2024.

Adjusted operating leverage

We adjust our reported revenue and non-interest expenses to remove the impact of items of note. Commencing the first quarter of 2024, we no longer gross up tax-exempt revenue to bring it to a TEB for the application of this ratio to our consolidated results. Prior period amounts have been restated to conform with the change in presentation adopted in the first quarter of 2024.

Adjusted dividend payout ratio

We adjust our reported net income attributable to common shareholders to remove the impact of items of note, net of income taxes, to calculate the adjusted dividend payout ratio.

Adjusted return on common shareholders’ equity

We adjust our reported net income attributable to common shareholders to remove the impact of items of note, net of income taxes, to calculate the adjusted return on common shareholders’ equity.

Adjusted effective tax rate

We adjust our reported income before income taxes and reported income taxes to remove the impact of items of note, to calculate the adjusted effective tax rate.

Pre-provision, pre-tax earnings

Pre-provision, pre-tax earnings is calculated as revenue net of non-interest expenses, and provides the reader with an assessment of our ability to generate earnings to cover credit losses through the credit cycle, as well as an additional basis for comparing underlying business performance between periods by excluding the impact of provision for credit losses, which involves the application of judgments and estimates related to matters that are uncertain and can vary significantly between periods. We adjust our pre-provision, pre-tax earnings to remove the impact of items of note to calculate the adjusted pre-provision, pre-tax earnings. As discussed above, we believe that adjusted measures provide the reader with a better understanding of how management assesses underlying business performance and facilitates a more informed analysis of trends.

Allocated common equity

Common equity is allocated to the SBUs based on the estimated amount of regulatory capital required to support their businesses (as determined for the consolidated bank pursuant to OSFI’s regulatory capital requirements and internal targets). Unallocated common equity is reported in Corporate and Other. Allocating capital on this basis provides a consistent framework to evaluate the returns of each SBU commensurate with the risk assumed. In the first quarter of 2024, we increased the common equity allocated to our SBUs to 12% of common equity Tier 1 capital requirements for each SBU, reflecting an increase from 11% in 2023. As part of the adoption of the Basel III reforms, a revised approach for allocating operational risk RWA to each of the SBUs was introduced effective April 30, 2023. The new allocations are driven by the contributions of each SBU to the total 3 years of revenue and total 10 years of operational losses. This change in methodology impacted allocated common equity effective the third quarter of 2023. For additional information, see the “Risks arising from business activities” section.

8 CIBC SECOND QUARTER 2024

Segmented return on equity

We use return on equity on a segmented basis as one of the measures for performance evaluation and resource allocation decisions. While return on equity for total CIBC provides a measure of return on common equity, return on equity on a segmented basis provides a similar metric based on allocated common equity to our SBUs. As a result, segmented return on equity is a non-GAAP ratio. Segmented return on equity is calculated as net income attributable to common shareholders for each SBU expressed as a percentage of average allocated common equity, which is the average of monthly allocated common equity during the period. In the first quarter of 2024, we increased the common equity allocated to our SBUs, as noted above.

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis.

$ millions, for the three months ended April 30, 2024	Canadian Personal and Business Banking			Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services			Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
Operating results – reported
Total revenue	$	2,476		$	1,384	$	666		$	1,488		$	150		$	6,164		$	489
Provision for credit losses		270			37		186			16			5			514			136
Non-interest expenses		1,319			720		396			706			360			3,501			290
Income (loss) before income taxes		887			627		84			766			(215	)		2,149			63
Income taxes		238			171		(9	)		206			(206	)		400			(6	)
Net income (loss)		649			456		93			560			(9	)		1,749			69
Net income attributable to non-controlling interests		–			–		–			–			10			10			–
Net income (loss) attributable to equity shareholders		649			456		93			560			(19	)		1,739			69
Diluted EPS ($)															$	1.79
Impact of items of note (1)
Revenue
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks(2)	$	–		$	–	$	–		$	(71	)	$	71		$	–		$	–
Impact of items of note on revenue		–			–		–			(71	)		71			–			–
Non-interest expenses
Amortization of acquisition-related intangible assets		(6	)		–		(8	)		–			–			(14	)		(6	)
Charge related to the special assessment imposed by the FDIC		–			–		(13	)		–			–			(13	)		(10	)
Impact of items of note on non-interest expenses		(6	)		–		(21	)		–			–			(27	)		(16	)
Total pre-tax impact of items of note on net income		6			–		21			(71	)		71			27			16
Income taxes
Amortization of acquisition-related intangible assets		2			–		2			–			–			4			2
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks(2)		–			–		–			(20	)		71			51			–
Charge related to the special assessment imposed by the FDIC		–			–		3			–			–			3			2
Impact of items of note on income taxes		2			–		5			(20	)		71			58			4
Total after-tax impact of items of note on net income	$	4		$	–	$	16		$	(51	)	$	–		$	(31	)	$	12
Impact of items of note on diluted EPS ($) (3)															$	(0.04	)
Operating results – adjusted (4)
Total revenue – adjusted (5)	$	2,476		$	1,384	$	666		$	1,417		$	221		$	6,164		$	489
Provision for credit losses – adjusted		270			37		186			16			5			514			136
Non-interest expenses – adjusted		1,313			720		375			706			360			3,474			274
Income (loss) before income taxes – adjusted		893			627		105			695			(144	)		2,176			79
Income taxes – adjusted		240			171		(4	)		186			(135	)		458			(2	)
Net income (loss) – adjusted		653			456		109			509			(9	)		1,718			81
Net income attributable to non-controlling interests – adjusted		–			–		–			–			10			10			–
Net income (loss) attributable to equity shareholders – adjusted		653			456		109			509			(19	)		1,708			81
Adjusted diluted EPS ($)															$	1.75

(1) Items of note are removed from reported results to calculate adjusted results.

(2) This item of note reports the impact on consolidated income tax expense that will be subject to an adjustment to our reported results in the third quarter of 2024 because the Federal tax proposal to deny the dividends received deduction for banks was substantively enacted on May 28, 2024. The corresponding impact on TEB in Capital Markets and Direct Financial Services and Corporate and Other is also included in this item of note with no impact on the consolidated item of note.

(3) Includes the impact of rounding differences between diluted EPS and adjusted diluted EPS.

(4) Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures.

(5) CIBC total results excludes a TEB adjustment of $71 million for the quarter ended April 30, 2024 (January 31, 2024: $68 million; April 30, 2023: $64 million) and $139 million for the six months ended April 30, 2024 (April 30, 2023: $126 million).

(6) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(7) Relates to the net legal provisions recognized in the first and second quarters of 2023.

(8) The income tax charge is comprised of $510 million for the present value of the estimated amount of the Canada Recovery Dividend (CRD) tax of $555 million, and a charge of $35 million related to the fiscal 2022 impact of the 1.5% increase in the tax rate applied to taxable income of certain bank and insurance entities in excess of $100 million for periods after April 2022. The discount of $45 million on the CRD tax accretes over the four-year payment period from initial recognition.

CIBC SECOND QUARTER 2024 9

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis.

$ millions, for the three months ended January 31, 2024	Canadian Personal and Business Banking			Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services			Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
Operating results – reported
Total revenue	$	2,497		$	1,374	$	681		$	1,561		$	108		$	6,221		$	507
Provision for (reversal of) credit losses		329			20		244			8			(16	)		585			182
Non-interest expenses		1,280			669		478			712			326			3,465			356
Income (loss) before income taxes		888			685		(41	)		841			(202	)		2,171			(31	)
Income taxes		238			187		(32	)		229			(179	)		443			(24	)
Net income (loss)		650			498		(9	)		612			(23	)		1,728			(7	)
Net income attributable to non-controlling interests		–			–		–			–			12			12			–
Net income (loss) attributable to equity shareholders		650			498		(9	)		612			(35	)		1,716			(7	)
Diluted EPS ($)															$	1.77
Impact of items of note (1)
Revenue
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks (2)	$	–		$	–	$	–		$	(52	)	$	52		$	–		$	–
Impact of items of note on revenue		–			–		–			(52	)		52			–			–
Non-interest expenses
Amortization of acquisition-related intangible assets		(7	)		–		(8	)		–			–			(15	)		(6	)
Charge related to the special assessment imposed by the FDIC		–			–		(91	)		–			–			(91	)		(67	)
Impact of items of note on non-interest expenses		(7	)		–		(99	)		–			–			(106	)		(73	)
Total pre-tax impact of items of note on net income		7			–		99			(52	)		52			106			73
Income taxes
Amortization of acquisition-related intangible assets		2			–		2			–			–			4			1
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks (2)		–			–		–			(15	)		52			37			–
Charge related to the special assessment imposed by the FDIC		–			–		23			–			–			23			17
Impact of items of note on income taxes		2			–		25			(15	)		52			64			18
Total after-tax impact of items of note on net income	$	5		$	–	$	74		$	(37	)	$	–		$	42		$	55
Impact of items of note on diluted EPS ($) (3)															$	0.04
Operating results – adjusted (4)
Total revenue – adjusted (5)	$	2,497		$	1,374	$	681		$	1,509		$	160		$	6,221		$	507
Provision for (reversal of) credit losses – adjusted		329			20		244			8			(16	)		585			182
Non-interest expenses – adjusted		1,273			669		379			712			326			3,359			283
Income (loss) before income taxes – adjusted		895			685		58			789			(150	)		2,277			42
Income taxes – adjusted		240			187		(7	)		214			(127	)		507			(6	)
Net income (loss) – adjusted		655			498		65			575			(23	)		1,770			48
Net income attributable to non-controlling interests – adjusted		–			–		–			–			12			12			–
Net income (loss) attributable to equity shareholders – adjusted		655			498		65			575			(35	)		1,758			48
Adjusted diluted EPS ($)															$	1.81

See previous page for footnote references.

10 CIBC SECOND QUARTER 2024

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis.

$ millions, for the three months ended April 30, 2023		Canadian Personal and Business Banking	(6)		Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services		Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
Operating results – reported
Total revenue	$	2,282		$	1,336	$	648		$	1,362	$	76		$	5,704		$	477
Provision for credit losses		123			46		248			19		2			438			183
Non-interest expenses		1,274			673		354			664		175			3,140			261
Income (loss) before income taxes		885			617		46			679		(101	)		2,126			33
Income taxes		247			165		(9	)		182		(148	)		437			(7	)
Net income		638			452		55			497		47			1,689			40
Net income attributable to non-controlling interests		–			–		–			–		11			11			–
Net income attributable to equity shareholders		638			452		55			497		36			1,678			40
Diluted EPS ($)														$	1.76
Impact of items of note (1)
Non-interest expenses
Amortization of acquisition-related intangible assets	$	(6	)	$	–	$	(18	)	$	–	$	(3	)	$	(27	)	$	(13	)
Decrease in legal provisions		–			–		–			–		114			114			–
Impact of items of note on non-interest expenses		(6	)		–		(18	)		–		111			87			(13	)
Total pre-tax impact of items of note on net income		6			–		18			–		(111	)		(87	)		13
Income taxes
Amortization of acquisition-related intangible assets		–			–		5			–		1			6			3
Decrease in legal provisions		–			–		–			–		(32	)		(32	)		–
Impact of items of note on income taxes		–			–		5			–		(31	)		(26	)		3
Total after-tax impact of items of note on net income	$	6		$	–	$	13		$	–	$	(80	)	$	(61	)	$	10
Impact of items of note on diluted EPS ($) (3)														$	(0.06	)
Operating results – adjusted (4)
Total revenue – adjusted (5)	$	2,282		$	1,336	$	648		$	1,362	$	76		$	5,704		$	477
Provision for credit losses – adjusted		123			46		248			19		2			438			183
Non-interest expenses – adjusted		1,268			673		336			664		286			3,227			248
Income (loss) before income taxes – adjusted		891			617		64			679		(212	)		2,039			46
Income taxes – adjusted		247			165		(4	)		182		(179	)		411			(4	)
Net income (loss) – adjusted		644			452		68			497		(33	)		1,628			50
Net income attributable to non-controlling interests – adjusted		–			–		–			–		11			11			–
Net income (loss) attributable to equity shareholders – adjusted		644			452		68			497		(44	)		1,617			50
Adjusted diluted EPS ($)														$	1.70

See previous pages for footnote references.

CIBC SECOND QUARTER 2024 11

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis.

$ millions, for the six months ended April 30, 2024	Canadian Personal and Business Banking			Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services			Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
Operating results – reported
Total revenue	$	4,973		$	2,758	$	1,347		$	3,049		$	258		$	12,385		$	996
Provision for (reversal of) credit losses		599			57		430			24			(11	)		1,099			318
Non-interest expenses		2,599			1,389		874			1,418			686			6,966			646
Income (loss) before income taxes		1,775			1,312		43			1,607			(417	)		4,320			32
Income taxes		476			358		(41	)		435			(385	)		843			(30	)
Net income (loss)		1,299			954		84			1,172			(32	)		3,477			62
Net income attributable to non-controlling interests		–			–		–			–			22			22			–
Net income (loss) attributable to equity shareholders		1,299			954		84			1,172			(54	)		3,455			62
Diluted EPS ($)															$	3.55
Impact of items of note (1)
Revenue
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks (2)	$	–		$	–	$	–		$	(123	)	$	123		$	–		$	–
Impact of items of note on revenue		–			–		–			(123	)		123			–			–
Non-interest expenses
Amortization of acquisition-related intangible assets		(13	)		–		(16	)		–			–			(29	)		(12	)
Charge related to the special assessment imposed by the FDIC		–			–		(104	)		–			–			(104	)		(77	)
Impact of items of note on non-interest expenses		(13	)		–		(120	)		–			–			(133	)		(89	)
Total pre-tax impact of items of note on net income		13			–		120			(123	)		123			133			89
Income taxes
Amortization of acquisition-related intangible assets		4			–		4			–			–			8			3
Recovery to income tax that will be eliminated with the substantive enactment of a Federal proposal to deny the dividends received    deduction for banks (2)		–			–		–			(35	)		123			88			–
Charge related to the special assessment imposed by the FDIC		–			–		26			–			–			26			19
Impact of items of note on income taxes		4			–		30			(35	)		123			122			22
Total after-tax impact of items of note on net income	$	9		$	–	$	90		$	(88	)	$	–		$	11		$	67
Impact of items of note on diluted EPS ($) (3)															$	0.02
Operating results – adjusted (4)
Total revenue – adjusted (5)	$	4,973		$	2,758	$	1,347		$	2,926		$	381		$	12,385		$	996
Provision for (reversal of) credit losses – adjusted		599			57		430			24			(11	)		1,099			318
Non-interest expenses – adjusted		2,586			1,389		754			1,418			686			6,833			557
Income (loss) before income taxes – adjusted		1,788			1,312		163			1,484			(294	)		4,453			121
Income taxes – adjusted		480			358		(11	)		400			(262	)		965			(8	)
Net income (loss) – adjusted		1,308			954		174			1,084			(32	)		3,488			129
Net income attributable to non-controlling interests – adjusted		–			–		–			–			22			22			–
Net income (loss) attributable to equity shareholders – adjusted		1,308			954		174			1,084			(54	)		3,466			129
Adjusted diluted EPS ($)															$	3.57

See previous pages for footnote references.

12 CIBC SECOND QUARTER 2024

The following table provides a reconciliation of GAAP (reported) results to non-GAAP (adjusted) results on a segmented basis.

$ millions, for the six months ended April 30, 2023		Canadian Personal and Business Banking	(6)		Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services		Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
Operating results – reported
Total revenue	$	4,544		$	2,687	$	1,354		$	2,843	$	205		$	11,633		$	1,003
Provision for credit losses		281			92		346			9		5			733			256
Non-interest expenses		2,564			1,338		734			1,314		1,652			7,602			544
Income (loss) before income taxes		1,699			1,257		274			1,520		(1,452	)		3,298			203
Income taxes		471			336		18			411		(60	)		1,176			13
Net income (loss)		1,228			921		256			1,109		(1,392	)		2,122			190
Net income attributable to non-controlling interests		–			–		–			–		20			20			–
Net income (loss) attributable to equity shareholders		1,228			921		256			1,109		(1,412	)		2,102			190
Diluted EPS ($)														$	2.16
Impact of items of note (1)
Non-interest expenses
Amortization of acquisition-related intangible assets	$	(13	)	$	–	$	(34	)	$	–	$	(6	)	$	(53	)	$	(25	)
Increase in legal provisions (7)		–			–		–			–		(1,055	)		(1,055	)		–
Impact of items of note on non-interest expenses		(13	)		–		(34	)		–		(1,061	)		(1,108	)		(25	)
Total pre-tax impact of items of note on net income		13			–		34			–		1,061			1,108			25
Income taxes
Amortization of acquisition-related intangible assets		2			–		9			–		1			12			6
Increase in legal provisions (7)		–			–		–			–		293			293			–
Income tax charge related to the 2022 Canadian Federal budget (8)		–			–		–			–		(545	)		(545	)		–
Impact of items of note on income taxes		2			–		9			–		(251	)		(240	)		6
Total after-tax impact of items of note on net income	$	11		$	–	$	25		$	–	$	1,312		$	1,348		$	19
Impact of items of note on diluted EPS ($) (3)														$	1.48
Operating results – adjusted (4)
Total revenue – adjusted (5)	$	4,544		$	2,687	$	1,354		$	2,843	$	205		$	11,633		$	1,003
Provision for credit losses – adjusted		281			92		346			9		5			733			256
Non-interest expenses – adjusted		2,551			1,338		700			1,314		591			6,494			519
Income (loss) before income taxes – adjusted		1,712			1,257		308			1,520		(391	)		4,406			228
Income taxes – adjusted		473			336		27			411		(311	)		936			19
Net income (loss) – adjusted		1,239			921		281			1,109		(80	)		3,470			209
Net income attributable to non-controlling interests – adjusted		–			–		–			–		20			20			–
Net income (loss) attributable to equity shareholders – adjusted		1,239			921		281			1,109		(100	)		3,450			209
Adjusted diluted EPS ($)														$	3.64

See previous pages for footnote references.

CIBC SECOND QUARTER 2024 13

The following table provides a reconciliation of GAAP (reported) net income to non-GAAP (adjusted) pre-provision, pre-tax earnings on a segmented basis.

$ millions, for the three months ended		Canadian Personal and Business Banking		Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services			Corporate and Other			CIBC Total			U.S. Commercial Banking and Wealth Management (US$ millions)
2024	Net income (loss)	$	649	$	456	$	93		$	560		$	(9	)	$	1,749		$	69
Apr. 30	Add: provision for credit losses		270		37		186			16			5			514			136
	Add: income taxes		238		171		(9	)		206			(206	)		400			(6	)
	Pre-provision (reversal), pre-tax earnings (losses) (1)		1,157		664		270			782			(210	)		2,663			199
	Pre-tax impact of items of note (2)		6		–		21			(71	)		71			27			16
	Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)	$	1,163	$	664	$	291		$	711		$	(139	)	$	2,690		$	215
2024	Net income (loss)	$	650	$	498	$	(9	)	$	612		$	(23	)	$	1,728		$	(7	)
Jan. 31	Add: provision for (reversal of) credit losses		329		20		244			8			(16	)		585			182
	Add: income taxes		238		187		(32	)		229			(179	)		443			(24	)
	Pre-provision (reversal), pre-tax earnings (losses) (1)		1,217		705		203			849			(218	)		2,756			151
	Pre-tax impact of items of note (2)		7		–		99			(52	)		52			106			73
	Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)	$	1,224	$	705	$	302		$	797		$	(166	)	$	2,862		$	224
2023	Net income	$	638	$	452	$	55		$	497		$	47		$	1,689		$	40
Apr. 30 (4)	Add: provision for credit losses		123		46		248			19			2			438			183
	Add: income taxes		247		165		(9	)		182			(148	)		437			(7	)
	Pre-provision (reversal), pre-tax earnings (losses) (1)		1,008		663		294			698			(99	)		2,564			216
	Pre-tax impact of items of note (2)		6		–		18			–			(111	)		(87	)		13
	Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)	$	1,014	$	663	$	312		$	698		$	(210	)	$	2,477		$	229
$ millions, for the six months ended
2024	Net income (loss)	$	1,299	$	954	$	84		$	1,172		$	(32	)	$	3,477		$	62
Apr. 30	Add: provision for (reversal of) credit losses		599		57		430			24			(11	)		1,099			318
	Add: income taxes		476		358		(41	)		435			(385	)		843			(30	)
	Pre-provision (reversal), pre-tax earnings (losses) (1)		2,374		1,369		473			1,631			(428	)		5,419			350
	Pre-tax impact of items of note (2)		13		–		120			(123	)		123			133			89
	Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)	$	2,387	$	1,369	$	593		$	1,508		$	(305	)	$	5,552		$	439
2023	Net income (loss)	$	1,228	$	921	$	256		$	1,109		$	(1,392	)	$	2,122		$	190
Apr. 30 (4)	Add: provision for credit losses		281		92		346			9			5			733			256
	Add: income taxes		471		336		18			411			(60	)		1,176			13
	Pre-provision (reversal), pre-tax earnings (losses) (1)		1,980		1,349		620			1,529			(1,447	)		4,031			459
	Pre-tax impact of items of note (2)		13		–		34			–			1,061			1,108			25
	Adjusted pre-provision (reversal), pre-tax earnings (losses) (3)	$	1,993	$	1,349	$	654		$	1,529		$	(386	)	$	5,139		$	484

(1) Non-GAAP measure.

(2) Items of note are removed from reported results to calculate adjusted results.

(3) Adjusted to exclude the impact of items of note. Adjusted measures are non-GAAP measures.

(4) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

14 CIBC SECOND QUARTER 2024

Strategic business units overview

CIBC has four SBUs – Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets and Direct Financial Services. These SBUs are supported by the following functional groups – Technology, Infrastructure and Innovation, Risk Management, People, Culture and Brand, and Finance, as well as other support groups, which all are included within Corporate and Other. The expenses of these functional and support groups are generally allocated to the business lines within the SBUs. Corporate and Other also includes the results of CIBC FirstCaribbean and other portfolio investments, as well as other income statement and balance sheet items not directly attributable to the business lines. The key methodologies and assumptions used in reporting the financial results of our SBUs are provided on page 21 of our 2023 Annual Report.

Canadian Personal and Business Banking

Canadian Personal and Business Banking provides personal and business clients across Canada with financial advice, services and solutions through banking centres, as well as mobile and online channels, to help make their ambitions a reality.

Results(1)

	For the three months ended									For the six months ended
$ millions		2024 Apr. 30			2024 Jan. 31			2023 Apr. 30	(2)		2024 Apr. 30			2023 Apr. 30	(2)
Revenue	$	2,476		$	2,497		$	2,282		$	4,973		$	4,544
Provision for (reversal of) credit losses
Impaired		270			285			231			555			419
Performing		–			44			(108	)		44			(138	)
Total provision for credit losses		270			329			123			599			281
Non-interest expenses		1,319			1,280			1,274			2,599			2,564
Income before income taxes		887			888			885			1,775			1,699
Income taxes		238			238			247			476			471
Net income	$	649		$	650		$	638		$	1,299		$	1,228
Net income attributable to:
Equity shareholders	$	649		$	650		$	638		$	1,299		$	1,228
Total revenue
Net interest income	$	1,899		$	1,927		$	1,732		$	3,826		$	3,441
Non-interest income (3)		577			570			550			1,147			1,103
	$	2,476		$	2,497		$	2,282		$	4,973		$	4,544
Net interest margin on average interest-earning assets (4)(5)		2.43	%		2.41	%		2.27	%		2.42	%		2.22	%
Efficiency ratio		53.3	%		51.2	%		55.8	%		52.3	%		56.4	%
Operating leverage		4.9	%		11.2	%		0.0	%		8.1	%		(4.2	)%
Return on equity (6)		23.0	%		23.6	%		28.4	%		23.3	%		27.4	%
Average allocated common equity (6)	$	11,450		$	10,963		$	9,228		$	11,204		$	9,042
Full-time equivalent employees		13,634			13,474			13,072			13,634			13,072

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(3) Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(4) Average balances are calculated as a weighted average of daily closing balances.

(5) For additional information on the composition, see the “Glossary” section.

(6) For additional information, see the “Non-GAAP measures” section.

Financial overview

Net income for the quarter was $649 million, up $11 million from the same quarter last year, primarily due to higher revenue, partially offset by a higher provision for credit losses and higher non-interest expenses.

Net income was down $1 million from the prior quarter, primarily due to higher non-interest expenses and lower revenue, partially offset by a lower provision for credit losses.

Net income for the six months ended April 30, 2024 was $1,299 million, up $71 million from the same period in 2023, primarily due to higher revenue, partially offset by a higher provision for credit losses and higher non-interest expenses.

Revenue

Revenue was up $194 million or 9% from the same quarter last year. Net interest income was up $167 million or 10% from the same quarter last year, primarily due to higher net interest margin, volume growth and the impact of an additional day in the current quarter. Non-interest income was up $27 million or 5%, primarily due to higher fees.

Revenue was down $21 million or 1% from the prior quarter. Net interest income was down $28 million or 1% from the prior quarter, primarily due to the impact of fewer days in the current quarter, partially offset by higher volume growth and higher net interest margin. Non-interest income was up $7 million or 1%, primarily due to higher fees.

Revenue for the six months ended April 30, 2024 was up $429 million or 9% from the same period in 2023. Net interest income was up $385 million or 11% from the same quarter last year, primarily due to higher net interest margin, volume growth and the impact of an additional day in the current period. Non-interest income was up $44 million or 4%, primarily due to higher fees.

Net interest margin on average interest-earning assets was up 16 basis points from the same quarter last year, mainly due to higher deposit margins and favourable asset mix, partially offset by lower loan margins.

Net interest margin on average interest-earning assets was up 2 basis points from the prior quarter, mainly due to higher relative growth in higher margin products.

CIBC SECOND QUARTER 2024 15

Net interest margin on average interest-earning assets for the six months ended April 30, 2024 was up 20 basis points from the same period in 2023, mainly due to higher deposit margins and favourable asset mix, partially offset by lower loan margins.

Provision for (reversal of) credit losses

Provision for credit losses was up $147 million from the same quarter last year. There was no provision for credit losses on performing loans in the current quarter, while the same quarter last year included a provision reversal, reflective of a favourable change in our economic outlook. Provision for credit losses on impaired loans was up, primarily due to higher write-offs in credit cards and the personal lending portfolio.

Provision for credit losses was down $59 million from the prior quarter. The current quarter had no provision for credit losses on performing loans, while the prior quarter included a provision for credit losses due to unfavourable credit migration, partially offset by a favourable change in our economic outlook. Provision for credit losses on impaired loans was down due to lower provisions for impaired residential mortgages and small business loans, partially offset by higher write-offs in credit cards and the personal lending portfolio in the current quarter.

Provision for credit losses for the six months ended April 30, 2024 was up $318 million from the same period in 2023. The current period included a provision for credit losses on performing loans due to unfavourable credit migration, partially offset by a favourable change in our economic outlook, while the same period last year included a provision reversal reflective of a favourable change in our economic outlook, partially offset by unfavourable credit migration. Provision for credit losses on impaired loans was up due to higher write-offs in credit cards and the personal lending portfolio.

Non-interest expenses

Non-interest expenses were up $45 million or 4% from the same quarter last year, primarily due to higher spending on strategic initiatives, and higher employee-related and performance-based compensation.

Non-interest expenses were up $39 million or 3% from the prior quarter, primarily due to higher spending on strategic initiatives and higher employee-related compensation.

Non-interest expenses for the six months ended April 30, 2024 were up $35 million or 1% from the same period in 2023, primarily due to higher employee-related and performance-based compensation, and higher spending on strategic initiatives.

Income taxes

Income taxes were down $9 million from the same quarter last year, primarily due to earnings mix.

Income taxes were comparable to the prior quarter.

Income taxes for the six months ended April 30, 2024 were up $5 million from the same period in 2023, primarily due to higher income and earnings mix.

Canadian Commercial Banking and Wealth Management

Canadian Commercial Banking and Wealth Management provides high-touch, relationship-oriented banking and wealth management services to middle-market companies, entrepreneurs, high-net-worth individuals and families across Canada, as well as asset management services to institutional investors.

Results(1)

	For the three months ended									For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Revenue
Commercial banking	$	589		$	621		$	620		$	1,210		$	1,241
Wealth management		795			753			716			1,548			1,446
Total revenue		1,384			1,374			1,336			2,758			2,687
Provision for credit losses
Impaired		5			16			33			21			59
Performing		32			4			13			36			33
Total provision for credit losses		37			20			46			57			92
Non-interest expenses		720			669			673			1,389			1,338
Income before income taxes		627			685			617			1,312			1,257
Income taxes		171			187			165			358			336
Net income	$	456		$	498		$	452		$	954		$	921
Net income attributable to:
Equity shareholders	$	456		$	498		$	452		$	954		$	921
Total revenue
Net interest income	$	442		$	449		$	453		$	891		$	917
Non-interest income (2)		942			925			883			1,867			1,770
	$	1,384		$	1,374		$	1,336		$	2,758		$	2,687
Net interest margin on average interest-earning assets (3)(4)		2.91	%		3.31	%		3.49	%		3.10	%		3.49	%
Efficiency ratio		52.0	%		48.7	%		50.4	%		50.4	%		49.8	%
Operating leverage		(3.2	)%		1.1	%		(0.3	)%		(1.1	)%		2.6	%
Return on equity (5)		19.9	%		21.3	%		22.1	%		20.6	%		21.8	%
Average allocated common equity (5)	$	9,344		$	9,289		$	8,379		$	9,316		$	8,533
Full-time equivalent employees		5,410			5,355			5,312			5,410			5,312

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(3) Average balances are calculated as a weighted average of daily closing balances.

(4) For additional information on the composition, see the “Glossary” section.

(5) For additional information, see the “Non-GAAP measures” section.

16 CIBC SECOND QUARTER 2024

Financial overview

Net income for the quarter was $456 million, up $4 million from the same quarter last year, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses.

Net income was down $42 million from the prior quarter, primarily due to higher non-interest expenses and a higher provision for credit losses, partially offset by higher revenue.

Net income for the six months ended April 30, 2024 was $954 million, up $33 million from the same period in 2023, primarily due to higher revenue and a lower provision for credit losses, partially offset by higher non-interest expenses.

Revenue

Revenue was up $48 million or 4% from the same quarter last year.

Commercial banking revenue was down $31 million, primarily due to lower deposit margins, partially offset by the impact of an additional day in the current quarter. Lower non-interest income from the reduction in the issuance of Bankers’ Acceptances ahead of the expected cessation of Canadian Dollar Offered Rate (CDOR) was largely offset by higher net interest income from a corresponding increase in loans.

Wealth management revenue was up $79 million, primarily due to higher fee-based revenue from market appreciation and higher commission revenue from increased client activity.

Revenue was up $10 million or 1% from the prior quarter.

Commercial banking revenue was down $32 million, primarily due to lower deposit margins and the impact of fewer days in the current quarter, partially offset by volume growth. Lower non-interest income from the reduction in the issuance of Bankers’ Acceptances was largely offset by higher net interest income.

Wealth management revenue was up $42 million, primarily due to higher commission revenue from increased client activity and higher fee-based revenue from market appreciation.

Revenue for the six months ended April 30, 2024 was up $71 million or 3% from the same period in 2023.

Commercial banking revenue was down $31 million, primarily due to lower deposit margins, partially offset the impact of an additional day in the current quarter. Lower non-interest income from the reduction in the issuance of Bankers’ Acceptances was largely offset by higher net interest income.

Wealth management revenue was up $102 million, primarily due to higher fee-based revenue from market appreciation and higher commission revenue from increased client activity.

Net interest margin on average interest-earning assets was down 58 basis points from the same quarter last year, primarily due to lower deposit margins.

Net interest margin on average interest-earning assets was down 40 basis points from the prior quarter, primarily due to lower deposit margins.

Net interest margin on average interest-earning assets for the six months ended April 30, 2024 was down 39 basis points from the same period in 2023, primarily due to lower deposit margins.

Provision for credit losses

Provision for credit losses was down $9 million from the same quarter last year. Provision for credit losses on performing loans was up due to an unfavourable change in our economic outlook, partially offset by favourable credit migration. Provision for credit losses on impaired loans was down due to lower provisions in the retail and wholesale sector, and the education, health and social services sector.

Provision for credit losses was up $17 million from the prior quarter. Provision for credit losses on performing loans was up due to an unfavourable change in our economic outlook, partially offset by favourable credit migration. Provision for credit losses on impaired loans was down due to lower provisions in the retail and wholesale sector.

Provision for credit losses for the six months ended April 30, 2024 was down $35 million from the same period in 2023. Provision for credit losses on performing loans was comparable to the same period last year, with an unfavourable change in our economic outlook in the current period offset by a favourable change in credit migration. Provision for credit losses on impaired loans was down due to lower provisions in the retail and wholesale sector, and the education, health and social services sector.

Non-interest expenses

Non-interest expenses were up $47 million or 7% from the same quarter last year, primarily due to higher performance-based and employee-related compensation.

Non-interest expenses was up $51 million or 8% from the prior quarter, primarily due to higher performance-based and employee-related compensation.

Non-interest expenses for the six months ended April 30, 2024 were up $51 million or 4% from the same period in 2023, primarily due to higher performance-based and employee-related compensation.

Income taxes

Income taxes were up $6 million from the same quarter last year, primarily due to higher income and earnings mix.

Income taxes were down $16 million from the prior quarter, primarily due to lower income.

Income taxes for the six months ended April 30, 2024 were up $22 million from the same period in 2023, primarily due to higher income and earnings mix.

CIBC SECOND QUARTER 2024 17

U.S. Commercial Banking and Wealth Management

U.S. Commercial Banking and Wealth Management provides tailored, relationship-oriented banking and wealth management solutions across the U.S., focusing on middle-market and mid-corporate companies, entrepreneurs, high-net-worth individuals and families, as well as operating personal and small business banking services in six U.S. markets.

Results in Canadian dollars(1)

	For the three months ended									For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Revenue
Commercial banking	$	462		$	467		$	430		$	929		$	872
Wealth management		204			214			218			418			482
Total revenue		666			681			648			1,347			1,354
Provision for credit losses
Impaired		161			189			100			350			141
Performing		25			55			148			80			205
Total provision for credit losses		186			244			248			430			346
Non-interest expenses		396			478			354			874			734
Income (loss) before income taxes		84			(41	)		46			43			274
Income taxes		(9	)		(32	)		(9	)		(41	)		18
Net income (loss)	$	93		$	(9	)	$	55		$	84		$	256
Net income (loss) attributable to:
Equity shareholders	$	93		$	(9	)	$	55		$	84		$	256
Total revenue
Net interest income	$	458		$	465		$	460		$	923		$	936
Non-interest income		208			216			188			424			418
	$	666		$	681		$	648		$	1,347		$	1,354
Average allocated common equity (2)	$	10,728		$	11,618		$	11,472		$	11,178		$	11,466
Full-time equivalent employees		2,811			2,790			2,595			2,811			2,595

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) For additional information, see the “Non-GAAP measures” section.

Results in U.S. dollars(1)

	For the three months ended									For the six months ended
US$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Revenue
Commercial banking	$	339		$	348		$	317		$	687		$	646
Wealth management		150			159			160			309			357
Total revenue		489			507			477			996			1,003
Provision for credit losses
Impaired		118			141			73			259			104
Performing		18			41			110			59			152
Total provision for credit losses		136			182			183			318			256
Non-interest expenses		290			356			261			646			544
Income (loss) before income taxes		63			(31	)		33			32			203
Income taxes		(6	)		(24	)		(7	)		(30	)		13
Net income (loss)	$	69		$	(7	)	$	40		$	62		$	190
Net income (loss) attributable to:
Equity shareholders	$	69		$	(7	)	$	40		$	62		$	190
Total revenue
Net interest income	$	336		$	346		$	338		$	682		$	693
Non-interest income		153			161			139			314			310
	$	489		$	507		$	477		$	996		$	1,003
Net interest margin on average interest-earning assets (2)(3)		3.43	%		3.49	%		3.41	%		3.46	%		3.47	%
Efficiency ratio		59.5	%		70.1	%		54.7	%		64.9	%		54.2	%
Operating leverage		(9.1	)%		(29.3	)%		(1.0	)%		(19.6	)%		(2.0	)%
Return on equity (4)		3.5	%		(0.3	)%		2.0	%		1.5	%		4.5	%
Average allocated common equity (4)	$	7,872		$	8,658		$	8,456		$	8,269		$	8,496

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) Average balances are calculated as a weighted average of daily closing balances.

(3) For additional information on the composition, see the “Glossary” section.

(4) For additional information, see the “Non-GAAP measures” section.

18 CIBC SECOND QUARTER 2024

Financial overview

Net income for the quarter was $93 million (US$69 million), up $38 million (US$29 million) from the same quarter last year, primarily due to a lower provision for credit losses and higher revenue, partially offset by higher non-interest expenses, including a $13 million (US$10 million) charge related to the special assessment imposed by the FDIC, shown as an item of note.

Net income was up $102 million (US$76 million) from the prior quarter, primarily due to lower non-interest expenses and a lower provision for credit losses, partially offset by lower revenue. The current quarter included a $13 million (US$10 million) charge related to the special assessment imposed by the FDIC, as noted above, compared to a $91 million (US$67 million) charge included in the prior quarter.

Net income for the six months ended April 30, 2024 was $84 million (US$62 million), down $172 million (US$128 million) from the same period in 2023, primarily due to higher non-interest expenses, including a $104 million (US$77 million) charge related to the special assessment imposed by the FDIC, as noted above, and a higher provision for credit losses.

Revenue

Revenue was up US$12 million or 3% from the same quarter last year.

Commercial banking revenue was up US$22 million, primarily due to higher loan margins, the impact of an additional day in the current quarter and higher fees, partially offset by lower deposit margins.

Wealth management revenue was down US$10 million, primarily due to lower deposit margins, partially offset by higher asset management fees from the impact of market appreciation on average AUM balances.

Revenue was down US$18 million or 4% from the prior quarter.

Commercial banking revenue was down US$9 million, primarily due to the impact of fewer days in the current quarter, and lower deposit and loan margins.

Wealth management revenue was down US$9 million, primarily due to annual performance-based mutual fund fees included in the prior quarter and lower deposit margins, partially offset by higher deposit volume.

Revenue for the six months ended April 30, 2024 was down US$7 million or 1% from the same period in 2023.

Commercial banking revenue was up US$41 million, primarily due to higher loan margins and higher fees, partially offset by lower deposit margins.

Wealth management revenue was down US$48 million, primarily due to lower deposit margins and deposit volume.

Net interest margin on average interest-earning assets was up 2 basis points from the same quarter last year, primarily due to higher loan margins and funding mix, partially offset by lower deposit margins.

Net interest margin on average interest-earning assets was down 6 basis points from the prior quarter, primarily due to lower loan and deposit margins.

Net interest margin on average interest-earning assets for the six months ended April 30, 2024 was down 1 basis point from the same period in 2023, primarily due to lower deposit margins, partially offset by higher loan margins.

Provision for credit losses

Provision for credit losses was down US$47 million from the same quarter last year. Provision for credit losses on performing loans was down as the current quarter included a favourable change in our economic outlook compared to an unfavourable change in our outlook and credit migration in the same quarter last year, partially offset by a model parameter update in the current quarter. Provision for credit losses on impaired loans was up due to higher provisions in various sectors.

Provision for credit losses was down US$46 million from the prior quarter. Provision for credit losses on performing loans was down as the current quarter included a favourable change in our economic outlook compared to an unfavourable change in the prior quarter, partially offset by a model parameter update in the current quarter. Provision for credit losses on impaired loans was down due to lower provisions in the real estate and construction sector, partially offset by higher provisions in various other sectors.

Provision for credit losses for the six months ended April 30, 2024 was up US$62 million from the same period in 2023. Provision for credit losses on performing loans was down due to a favourable change in both our economic outlook and credit migration in the current period compared to unfavourable changes in the prior year period, partially offset by model parameter updates in the current period. Provision for credit losses on impaired loans was up due to higher provisions in the real estate and construction and various other sectors, partially offset by lower provisions in the hardware and software sector.

Non-interest expenses

Non-interest expenses were up US$29 million or 11% from the same quarter last year, primarily due to a US$10 million charge related to the special assessment imposed by the FDIC, shown as an item of note, higher spending on strategic initiatives, and higher employee-related and performance-based compensation.

Non-interest expenses were down US$66 million or 19% from the prior quarter, primarily due to a US$10 million charge related to the special assessment imposed by the FDIC, as noted above, compared to a US$67 million charge included in the prior quarter, and lower performance-based compensation.

Non-interest expenses for the six months ended April 30, 2024 were up $102 million or 19% from the same period in 2023, primarily due to a US$77 million charge related to the special assessment imposed by the FDIC, as noted above, and higher employee-related compensation.

Income taxes

Income taxes were comparable to the same quarter last year, despite higher income, due to changes in earnings mix.

Income taxes recoveries were down US$18 million from the prior quarter, primarily due to higher income.

Income taxes for the six months ended April 30, 2024 were down US$43 million from the same period in 2023, due to lower income and earnings mix.

CIBC SECOND QUARTER 2024 19

Capital Markets and Direct Financial Services

Capital Markets and Direct Financial Services provides integrated global markets products and services, investment banking and corporate banking solutions, and top-ranked research to our clients around the world, and leverages CIBC’s digital capabilities to provide a cohesive set of direct banking, direct investing and innovative multi-currency payment solutions for CIBC’s clients.

Results(1)

	For the three months ended									For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Revenue
Global markets	$	730		$	797		$	669		$	1,527		$	1,455
Corporate and investment banking		444			443			395			887			784
Direct financial services		314			321			298			635			604
Total revenue (2)		1,488			1,561			1,362			3,049			2,843
Provision for (reversal of) credit losses
Impaired		6			6			4			12			(7	)
Performing		10			2			15			12			16
Total provision for credit losses		16			8			19			24			9
Non-interest expenses		706			712			664			1,418			1,314
Income before income taxes		766			841			679			1,607			1,520
Income taxes (2)		206			229			182			435			411
Net income	$	560		$	612		$	497		$	1,172		$	1,109
Net income attributable to:
Equity shareholders	$	560		$	612		$	497		$	1,172		$	1,109
Efficiency ratio		47.4	%		45.6	%		48.8	%		46.5	%		46.2	%
Operating leverage		3.0	%		(4.1	)%		(8.8	)%		(0.7	)%		(2.1	)%
Return on equity (3)		24.2	%		26.4	%		22.8	%		25.3	%		24.4	%
Average allocated common equity (3)	$	9,385		$	9,216		$	8,919		$	9,300		$	9,153
Full-time equivalent employees		2,366			2,388			2,339			2,366			2,339

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) Revenue and income taxes are reported on a TEB. Accordingly, revenue and income taxes include a TEB adjustment of $71 million for the quarter ended April 30, 2024 (January 31, 2024: $68 million; April 30, 2023: $64 million) and $139 million for the six months ended April 30, 2024 (April 30, 2023: $126 million). The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(3) For additional information, see the “Non-GAAP measures” section.

Financial overview

Net income for the quarter was up $63 million from the same quarter last year, primarily due to higher revenue, partially offset by higher non-interest expenses.

Net income was down $52 million from the prior quarter, primarily due to lower revenue and a higher provision for credit losses, partially offset by lower non-interest expenses.

Net income for the six months ended April 30, 2024 was $1,172 million, up $63 million from the same period in 2023, primarily due to higher revenue, partially offset by higher non-interest expenses and a higher provision for credit losses.

Revenue

Revenue was up $126 million or 9% from the same quarter last year.

Global markets revenue was up $61 million, primarily due to higher revenue from equity derivatives and fixed income trading, and higher financing revenue, partially offset by lower commodities and foreign exchange trading revenue.

Corporate and investment banking revenue was up $49 million, primarily due to higher debt and equity underwriting activity.

Direct financial services revenue was up $16 million, primarily due to higher trading volumes in direct investing and higher revenue from Simplii Financial.

Revenue was down $73 million or 5% from the prior quarter.

Global markets revenue was down $67 million, primarily due to lower revenue from foreign exchange and commodities trading, and fixed income, partially offset by higher revenue from equity derivatives trading and higher financing revenue.

Corporate and investment banking revenue was up $1 million, primarily due to higher debt and equity underwriting activity, and lower losses from our investment portfolios in the current quarter, partially offset by lower advisory and corporate banking revenue.

Direct financial services revenue was down $7 million, due to lower revenue from Simplii Financial and in our foreign exchange and payments business, partially offset by higher trading volumes in direct investing.

Revenue for the six months ended April 30, 2024 was up $206 million or 7% from the same period in 2023.

Global markets revenue was up $72 million, primarily due to higher equity derivatives trading and financing revenue, partially offset by lower revenue from fixed income and commodities trading, and lower equity trading.

Corporate and investment banking revenue was up $103 million, primarily due to higher advisory revenue, and higher debt and equity underwriting activity, partially offset by lower corporate banking revenue.

Direct financial services revenue was up $31 million, due to higher revenue from Simplii Financial, growth in our foreign exchange and payments business, and higher trading volumes in direct investing.

20 CIBC SECOND QUARTER 2024

Provision for (reversal of) credit losses

Provision for credit losses was down $3 million from the same quarter last year. Provision for credit losses on performing loans was down mainly due to less unfavourable credit migration. Provision for credit losses on impaired loans was comparable with the same quarter last year.

Provision for credit losses was up $8 million from the prior quarter. Provision for credit losses on performing loans was up mainly due to an unfavourable change in our economic outlook and unfavourable credit migration. Provision for credit losses on impaired loans was comparable with the same quarter last year.

Provision for credit losses for the six months ended April 30, 2024 was up $15 million from the same period in 2023. Provision for credit losses on performing loans was down due to less unfavourable credit migration. The current period included a provision for credit losses on impaired loans mainly attributable to Simplii Financial, while the same period last year included a provision reversal attributable to the utilities sector, partially offset by a provision in Simplii Financial.

Non-interest expenses

Non-interest expenses were up $42 million or 6% from the same quarter last year, primarily due to higher spending on strategic initiatives, and higher performance-based and employee-related compensation.

Non-interest expenses were down $6 million or 1% from the prior quarter, primarily due to lower performance-related and employee-related compensation, partially offset by higher spending on strategic initiatives.

Non-interest expenses for the six months ended April 30, 2024 were up $104 million or 8% from the same period in 2023, primarily due to higher spending on strategic initiatives, and higher performance-based and employee-related compensation.

Income taxes

Income taxes were up $24 million from the same quarter last year, primarily due to higher income.

Income taxes were down $23 million from the prior quarter, primarily due to lower income.

Income taxes for the six months ended April 30, 2024 were up $24 million from the same period in 2023, primarily due to higher income.

Corporate and Other

Corporate and Other includes the following functional groups – Technology, Infrastructure and Innovation, Risk Management, People, Culture and Brand, and Finance, as well as other support groups. The expenses of these functional and support groups are generally allocated to the business lines within the SBUs. Corporate and Other also includes the results of CIBC FirstCaribbean and other portfolio investments, as well as other income statement and balance sheet items not directly attributable to the business lines.

Results(1)

	For the three months ended									For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Revenue
International banking	$	248		$	239		$	238		$	487		$	477
Other		(98	)		(131	)		(162	)		(229	)		(272	)
Total revenue (2)		150			108			76			258			205
Provision for (reversal of) credit losses
Impaired		5			(4	)		11			1			26
Performing		–			(12	)		(9	)		(12	)		(21	)
Total provision for (reversal of) credit losses		5			(16	)		2			(11	)		5
Non-interest expenses		360			326			175			686			1,652
Loss before income taxes		(215	)		(202	)		(101	)		(417	)		(1,452	)
Income taxes (2)		(206	)		(179	)		(148	)		(385	)		(60	)
Net income (loss)	$	(9	)	$	(23	)	$	47		$	(32	)	$	(1,392	)
Net income (loss) attributable to:
Non-controlling interests	$	10		$	12		$	11		$	22		$	20
Equity shareholders		(19	)		(35	)		36			(54	)		(1,412	)
Full-time equivalent employees (3)		23,553			24,040			25,355			23,553			25,355

(1) For additional segmented information, see the notes to the interim consolidated financial statements.

(2) Revenue and income taxes of Capital Markets and Direct Financial Services are reported on a TEB. The equivalent amounts are offset in the revenue and income taxes of Corporate and Other. Accordingly, revenue and income taxes include a TEB adjustment of $71 million for the quarter ended April 30, 2024 (January 31, 2024: $68 million; April 30, 2023: $64 million) and $139 million for the six months ended April 30, 2024 (April 30, 2023: $126 million).

(3) Includes full-time equivalent employees for which the expenses are allocated to the business lines within the SBUs. The majority of the full-time equivalent employees for functional and support costs of CIBC Bank USA are included in the U.S. Commercial Banking and Wealth Management SBU.

Financial overview

Net loss for the quarter was $9 million, compared with a net income of $47 million in the same quarter last year, primarily due to higher non-interest expenses and a higher provision for credit losses, partially offset by higher revenue. The same quarter last year included a decrease in legal provisions, shown as an item of note.

Net loss for the quarter was $9 million, compared with a net loss of $23 million in the prior quarter, primarily due to higher revenue, partially offset by higher non-interest expenses and a provision for credit losses in the current quarter compared with a provision reversal in the prior quarter.

Net loss for the six months ended April 30, 2024 was $32 million, compared with a net loss of $1,392 million for the same period in 2023, primarily due to lower non-interest expenses, higher revenue and a provision reversal in the current period compared with a provision for credit losses in the same period last year. The same period last year included an increase in legal provisions, shown as an item of note.

CIBC SECOND QUARTER 2024 21

Revenue

Revenue was up $74 million or 97% from the same quarter last year.

International banking revenue was up $10 million, primarily due to lower provision for credit losses on debt securities, higher net interest margin, the impact of foreign exchange translation and higher fees, partially offset by a gain on the sale of certain banking assets in the Caribbean in the same quarter last year.

Other revenue was up $64 million, primarily due to higher treasury revenue resulting from lower funding costs borne by Treasury, partially offset by lower revenue from our strategic investments.

Revenue was up $42 million or 39% from the prior quarter.

International banking revenue was up $9 million, primarily due to the impact of foreign exchange translation, higher fees, higher volumes, and lower provision for credit losses on debt securities, partially offset by the impact of fewer days in the current quarter.

Other revenue was up $33 million, primarily due to higher treasury revenue and higher revenue from our strategic investments.

Revenue for the six months ended April 30, 2024 was up $53 million or 26% from the same period in 2023.

International banking revenue was up $10 million, primarily due to higher net interest margin, the impact of foreign exchange translation and lower provision for credit losses on debt securities, partially offset by a gain on the sale of certain banking assets in the Caribbean in the same period last year.

Other revenue was up $43 million, primarily due to higher treasury revenue resulting from lower funding costs borne by Treasury, partially offset by lower revenue from our strategic investments.

Provision for (reversal of) credit losses

Provision for credit losses was up $3 million from the same quarter last year as a decrease in provision reversal on performing loans was partially offset by a decrease in provision for credit losses on impaired loans.

Provision for credit losses was up $21 million from the prior quarter. The provision for credit losses on performing loans was nil in the current quarter compared to a provision reversal in the prior quarter due to a favourable change in our economic outlook. The current quarter included a provision for credit losses on impaired loans attributable to International banking, while the prior quarter included a provision reversal.

Provision reversal of credit losses for the six months ended April 30, 2024 was $11 million, compared with a provision for credit losses of $5 million in the same period in 2023. Provision reversal on performing loans was down due to a less favourable change in our economic outlook. Provision for credit losses on impaired loans was down attributable to International banking.

Non-interest expenses

Non-interest expenses were up $185 million or 106% from the same quarter last year, primarily due to a decrease in legal provisions in the same quarter last year, shown as an item of note, higher corporate costs, and higher expenses in International banking related to the pending sale of certain banking assets in the Caribbean.

Non-interest expenses were up $34 million or 10% from the prior quarter, primarily due to higher expenses in International banking related to the pending sale of certain banking assets in the Caribbean.

Non-interest expenses for the six months ended April 30, 2024 were down $966 million or 58% from the same period in 2023, primarily due to an increase in legal provisions in the first quarter of 2023, shown as an item of note, partially offset by higher corporate costs and charges related to the outsourcing of certain operational activities, and higher expenses in International banking related to the pending sale of certain banking assets in the Caribbean.

Income taxes

Income tax benefit for the six months ended April 30, 2024 was up $325 million from the same period in 2023, as the first quarter of 2023 included an income tax charge to recognize the CRD tax and the retroactive impact of the 1.5% tax rate increase, which was shown as an item of note.

22 CIBC SECOND QUARTER 2024

Financial condition

Review of condensed consolidated balance sheet

$ millions, as at	2024 Apr. 30		2023 Oct. 31 (1)
Assets
Cash and deposits with banks	$	49,143	$	55,718
Securities		235,530		211,348
Securities borrowed and purchased under resale agreements		99,797		94,835
Loans and acceptances, net of allowance for credit losses		543,897		540,153
Derivative instruments		31,410		33,243
Other assets		41,981		40,393
	$	1,001,758	$	975,690
Liabilities and equity
Deposits	$	731,952	$	723,376
Obligations related to securities lent, sold short and under repurchase agreements		133,087		113,865
Derivative instruments		38,812		41,290
Other liabilities		34,456		37,513
Subordinated indebtedness		7,795		6,483
Equity		55,656		53,163
	$	1,001,758	$	975,690

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

Assets

As at April 30, 2024, total assets were up $26.1 billion or 3% from October 31, 2023, net of an approximate $3 billion decrease due to the depreciation of the U.S. dollar.

Cash and deposits with banks decreased by $6.6 billion or 12%, primarily due to lower short-term placements in Treasury.

Securities increased by $24.2 billion or 11%, primarily due to increases in equity trading securities, debt security portfolios in our trading businesses, and mortgage-backed securities.

Securities borrowed and purchased under resale agreements increased by $5.0 billion or 5%, primarily due to client-driven activities.

Loans and acceptances, net of allowance for credit losses, increased by $3.7 billion or 1%, primarily due to increases in business and government loans, which was net of the impact of foreign exchange translation, and the credit card portfolio. Customers’ liability under acceptances decreased by $4.7 billion, in anticipation of the upcoming CDOR transition in June 2024.

Derivative instruments decreased by $1.8 billion or 6%, largely driven by decreases in foreign exchange and interest rate derivatives valuation, partially offset by an increase in equity derivatives valuation.

Other assets increased by $1.6 billion or 4%, primarily due to increases in collateral pledged for derivatives, accrued interest receivable, broker receivables, and accounts receivable.

Liabilities

As at April 30, 2024, total liabilities were up $23.6 billion or 3% from October 31, 2023, net of an approximate $2 billion decrease due to the depreciation of the U.S. dollar.

Deposits increased by $8.6 billion or 1%, primarily due to increased retail volume growth, partially offset by a decrease in business and government deposits. Further details on the composition of deposits are provided in Note 7 to our interim consolidated financial statements.

Obligations related to securities lent, sold short and under repurchase agreements increased by $19.2 billion or 17%, primarily due to client-driven activities.

Derivative instruments decreased by $2.5 billion or 6%, largely driven by decreases in interest rate and foreign exchange derivatives valuation, partially offset by increases in commodity and equity derivatives valuation.

Other liabilities decreased by $3.1 billion or 8%, primarily due to a decrease in acceptances, partially offset by an increase in accrued interest payable. Acceptances decreased by $4.7 billion, in anticipation of the upcoming CDOR transition in June 2024.

Subordinated indebtedness increased by $1.3 billion or 20% due to the issuance of subordinated indebtedness in the first quarter. For further details see the “Capital management” section.

Equity

As at April 30, 2024, equity increased by $2.5 billion or 5% from October 31, 2023, primarily due to a net increase in retained earnings from net income that exceeded dividends and distributions and the negative retained earnings adjustment from the adoption of IFRS 17, and the issuance of common shares primarily related to our shareholder investment plan, net of a decrease in accumulated other comprehensive income (AOCI).

CIBC SECOND QUARTER 2024 23

Capital management

Our overall capital management objective is to maintain a strong and efficient capital base. For additional details on capital management, see pages 35 to 45 of our 2023 Annual Report.

Regulatory capital and total loss absorbing capacity (TLAC) requirements

Our regulatory capital requirements are determined in accordance with guidelines issued by OSFI, which are based upon the capital standards developed by the BCBS.

Regulatory capital consists of CET1, Tier 1 and Tier 2 capital. Qualifying regulatory capital instruments must be capable of absorbing loss at the point of non-viability of the financial institution.

The tiers of regulatory capital indicate increasing quality/permanence and the ability to absorb losses. The major components of our regulatory capital are summarized as follows:

(1) Excluding AOCI relating to cash flow hedges and changes to FVO liabilities attributable to changes in own credit risk.

OSFI requires all institutions to achieve target capital ratios which include buffers. Targets may be higher for certain institutions at OSFI’s discretion. CIBC has been designated by OSFI as a domestic systemically important bank (D-SIB) in Canada. D-SIBs are subject to a CET1 surcharge equal to 1.0% of RWA. In addition, OSFI expects D-SIBs to hold a Domestic Stability Buffer (DSB) requirement intended to address Pillar 2 risks that are not adequately captured in the Pillar 1 capital requirements. The DSB is currently at 3.5%, but can range from 0% to 4.0% of RWA. Additionally, banks need to hold an incremental countercyclical capital buffer equal to their weighted-average buffer requirement in Canada and across certain other jurisdictions where they have private sector credit exposures.

In addition, the Basel III capital standards include a non-risk-based capital metric, the leverage ratio, to supplement risk-based capital requirements. The leverage ratio is defined as Tier 1 capital divided by the leverage ratio exposure. The leverage ratio exposure is defined under the standards as the sum of:

(i) On-balance sheet assets less Tier 1 capital regulatory adjustments;

(ii) Derivative exposures;

(iii) Securities financing transaction exposures; and

(iv) Off-balance sheet exposures (such as commitments, direct credit substitutes, letters of credit, and securitization exposures).

Under OSFI’s TLAC guideline, D-SIBs are required to maintain a supervisory target TLAC ratio (which builds on the risk-based capital ratios) and a minimum TLAC leverage ratio (which builds on the leverage ratio). TLAC is defined as the aggregate of total capital and other TLAC instruments primarily comprised of bail-in eligible instruments with a residual maturity greater than 365 days. TLAC is required to ensure that a non-viable D-SIB has sufficient loss absorbing capacity to support its recapitalization. This would, in turn, facilitate an orderly resolution of the D-SIB while minimizing adverse impacts on the financial sector stability and taxpayers.

OSFI’s current regulatory capital and TLAC targets are summarized below. Targets may be higher for certain institutions at OSFI’s discretion. We are in compliance with all current capital, leverage and TLAC requirements imposed by OSFI.

As at April 30, 2024	Minimum		Capital conservation buffer		D-SIB buffer		Pillar 1 targets	(1)	Domestic Stability Buffer	(2)	Target including all buffer requirements
CET1 ratio	4.5	%	2.5	%	1.0	%	8.0	%	3.5	%	11.5	%
Tier 1 capital ratio	6.0	%	2.5	%	1.0	%	9.5	%	3.5	%	13.0	%
Total capital ratio	8.0	%	2.5	%	1.0	%	11.5	%	3.5	%	15.0	%
Leverage ratio	3.0	%	n/a		0.5	%	3.5	%	n/a		3.5	%
TLAC ratio	18.0	%	2.5	%	1.0	%	21.5	%	3.5	%	25.0	%
TLAC leverage ratio	6.75	%	n/a		0.5	%	7.25	%	n/a		7.25	%

(1) The countercyclical capital buffer applicable to CIBC is insignificant as at April 30, 2024.

(2) The DSB is currently at 3.5%, but can range from 0.0% to 4.0% of RWA.

n/a Not applicable.

Capital adequacy requirements are applied on a consolidated basis consistent with our financial statements, except for our insurance subsidiaries (CIBC Cayman Reinsurance Limited and CIBC Life Insurance Company Limited), which are excluded from the regulatory scope of consolidation. The basis of consolidation applied to our financial statements is described in Note 1 to the consolidated financial statements included in our 2023 Annual Report. CIBC Life Insurance Company Limited is subject to OSFI’s Life Insurance Capital Adequacy Test.

24 CIBC SECOND QUARTER 2024

Regulatory capital, leverage and TLAC ratios

Our capital and TLAC positions remain above OSFI regulatory requirements. Our capital, leverage and TLAC ratios are presented in the table below:

$ millions, as at	2024 Apr. 30			2023 Oct. 31
CET1 capital	$	42,728		$	40,327
Tier 1 capital		47,845			45,270
Total capital		55,478			52,119
RWA consisting of:
Credit risk	$	268,681		$	274,714
Market risk		12,787			8,004
Operational risk		45,046			43,402
Total RWA	$	326,514		$	326,120
CET1 ratio		13.1	%		12.4	%
Tier 1 capital ratio		14.7	%		13.9	%
Total capital ratio		17.0	%		16.0	%
Leverage ratio exposure	$	1,112,411		$	1,079,103
Leverage ratio		4.3	%		4.2	%
TLAC available	$	95,890		$	100,176
TLAC ratio		29.4	%		30.7	%
TLAC leverage ratio		8.6	%		9.3	%

CET1 ratio

The CET1 ratio at April 30, 2024 increased 0.7% from October 31, 2023, driven by an increase in CET1 capital partially offset by an increase in RWA.

The increase in CET1 capital was mainly due to internal capital generation (net income less dividends and distributions), an increase in common shares primarily related to our shareholder investment plan, and the increase in AOCI related to debt securities measured at FVOCI, partially offset by the impact of foreign currency translation and the adoption of IFRS 17.

The increase in RWA was due to increases in market risk and operational risk RWA, partially offset by a decrease in credit risk RWA. The reduction in credit risk RWA was mainly due to converting the majority of CIBC Bank USA’s credit portfolios to the internal ratings-based (IRB) approach from the standardized approach, regulatory changes impacting the credit valuation adjustment (CVA) and foreign currency translation, partially offset by credit portfolio migration, regulatory changes related to certain residential mortgages in negative amortization and organic growth. The increase in market risk RWA was mainly due to the implementation of Basel III reforms related to market risk and an increase in risk levels. The increase in operational risk RWA was due to an increase in risk levels.

Tier 1 capital ratio

The Tier 1 capital ratio at April 30, 2024 increased 0.8% from October 31, 2023, primarily due to the factors affecting the CET1 ratio noted above, and the issuance of Series 57 shares, partially offset by the redemption of Series 49 shares, both in the current quarter. See the “Capital initiatives” section for further details.

Total capital ratio

The Total capital ratio at April 30, 2024 increased 1.0% from October 31, 2023, primarily due to a $1.25 billion issuance of subordinated debentures in the first quarter included in Tier 2 capital and the factors affecting the Tier 1 capital ratio noted above, partially offset by a decrease in eligible allowances included in Tier 2 capital. See the “Capital initiatives” section for further details.

Leverage ratio

The leverage ratio at April 30, 2024 increased 0.1% from October 31, 2023, primarily driven by the increase in Tier 1 capital discussed above, partially offset by the impact of an increase in leverage ratio exposure. The increase in leverage ratio exposure was primarily driven by an increase in on-balance sheet and securities financing transactions exposures.

TLAC ratio and TLAC leverage ratio

The TLAC ratio at April 30, 2024 decreased 1.3% from October 31, 2023, driven by a decrease in total TLAC instruments and the increase in RWA. The decrease in TLAC instruments was primarily a result of a lower level of bail-in eligible liabilities, partially offset by higher total capital due to the factors noted above.

The TLAC leverage ratio at April 30, 2024 decreased 0.7% from October 31, 2023, primarily due to the decrease in TLAC instruments as noted above and the increase in leverage ratio exposure as noted above.

Continuous enhancement to regulatory capital and TLAC requirements

The discussion below provides an update to Basel III reforms and revised Pillar 3 disclosure requirements and BCBS and OSFI publications that have been issued since our 2023 Annual Report.

Basel III reforms and revised Pillar 3 disclosure requirements

In 2023, we adopted revised CAR and LAR guidelines that came into effect in the second quarter of 2023 as part of OSFI’s implementation of the Basel III reforms, and implemented related revised Pillar 3 disclosure that became effective in the second and fourth quarters of 2023. In the first quarter of 2024, we implemented the Basel III reforms related to the revised market risk and CVA frameworks that became effective as of November 1, 2023. The related revised Pillar 3 disclosure for market risk and CVA will be implemented in the fourth quarter of 2024. The impact to the CET1 ratio from the Basel III reforms are noted above in the “Regulatory capital, leverage and TLAC ratios” section.

CIBC SECOND QUARTER 2024 25

Parental Stand-Alone (Solo) TLAC Framework

The final guideline for the Solo TLAC Framework became effective for D-SIBs as of November 1, 2023. The Solo TLAC ratio is built on the risk-based TLAC ratio set out in the TLAC Guideline and the risk-based capital ratios described in the CAR Guideline. The risk-based Solo TLAC ratio will be the primary basis used by OSFI to measure the sufficiency of loss capacity that is readily available to the parent bank on a stand-alone, legal entity basis.

We continue to monitor and prepare for developments impacting regulatory capital and TLAC requirements and disclosures.

Capital initiatives

The following were the main capital initiatives undertaken in 2024:

Employee share purchase plan

Pursuant to the employee share purchase plan, we issued 786,615 common shares for consideration of $51 million for the current quarter and 1,457,807 common shares for consideration of $90 million for the six months ended April 30, 2024.

Shareholder investment plan

Pursuant to the shareholder investment plan, we issued 4,693,884 common shares for consideration of $299 million for the current quarter and 9,811,613 common shares for consideration of $607 million for the six months ended April 30, 2024.

Dividends

Common and preferred share dividends are declared quarterly at the discretion of the CIBC Board of Directors. The declaration and payment of dividends is governed by Section 79 of the Bank Act (Canada) and the terms of the preferred shares, as explained in Note 15 to the consolidated financial statements included in our 2023 Annual Report.

Preferred shares

On April 30, 2024, we redeemed all 13 million Non-cumulative Rate Reset Class A Preferred Shares Series 49 (NVCC) (Series 49 shares), at a redemption price of $25.00 per Series 49 share, for a total redemption cost of $325 million.

Non-cumulative Rate Reset Class A Preferred Shares Series 57 (NVCC) (Series 57 shares)

On March 12, 2024, we issued 500,000 Non-cumulative Rate Reset Class A Preferred Shares Series 57 (NVCC) (Series 57 shares) with a par value of $1,000.00 per share, for gross proceeds of $500 million. For the initial five-year period to April 12, 2029, the Series 57 shares pay semi-annual cash dividends on the 12th day of April and October in each year, as declared, at a rate of 7.337%. The first dividend, if declared, will be payable on October 12, 2024. On April 12, 2029, and on April 12 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 3.90%.

Subject to regulatory approval and certain provisions of the shares, we may redeem all or any part of the then outstanding Series 57 shares at par during the period from March 12, 2029 to and including April 12, 2029 and during the period from March 12 to and including April 12 every five years thereafter.

Subordinated indebtedness

On January 16, 2024, we issued $1.25 billion principal amount of 5.30% Debentures due January 16, 2034. The Debentures bear interest at a fixed rate of 5.30% per annum (paid semi-annually) until January 16, 2029, and at Daily Compounded Canadian Overnight Repo Rate Average (CORRA) plus 2.02% per annum (paid quarterly) thereafter until maturity on January 16, 2034. The debenture qualifies as Tier 2 capital.

Subsequent to quarter end, on May 14, 2024, we announced the redemption of $1.5 billion of our 2.95% Debentures due June 19, 2029. In accordance with their terms, the Debentures will be redeemed at 100% of their principal amount, plus accrued and unpaid interest thereon. The debenture qualified as Tier 2 capital.

26 CIBC SECOND QUARTER 2024

Convertible instruments

The table below provides a summary of our NVCC capital instruments outstanding:

		Shares outstanding				Minimum conversion price per common share	Maximum number of common shares issuable on conversion
$ millions, except number of shares and per share amounts, as at April 30, 2024	Number of shares		Par value
Preferred shares (1)(2)
Series 39 (NVCC)		16,000,000	$	400	$	2.50	160,000,000
Series 41 (NVCC)		12,000,000		300		2.50	120,000,000
Series 43 (NVCC)		12,000,000		300		2.50	120,000,000
Series 47 (NVCC)		18,000,000		450		2.50	180,000,000
Series 51 (NVCC)		10,000,000		250		2.50	100,000,000
Series 56 (NVCC)		600,000		600		2.50	240,000,000
Series 57 (NVCC)		500,000		500		2.50	200,000,000
Limited recourse capital notes (2)(3)
4.375% Limited recourse capital notes Series 1 (NVCC)		n/a		750		2.50	300,000,000
4.000% Limited recourse capital notes Series 2 (NVCC)		n/a		750		2.50	300,000,000
7.150% Limited recourse capital notes Series 3 (NVCC)		n/a		800		2.50	320,000,000
Subordinated indebtedness (2)(4)
2.95% Debentures due June 19, 2029 (NVCC)		n/a		1,500		2.50	900,000,000
2.01% Debentures due July 21, 2030 (NVCC)		n/a		1,000		2.50	600,000,000
1.96% Debentures due April 21, 2031 (NVCC)		n/a		1,000		2.50	600,000,000
4.20% Debentures due April 7, 2032 (NVCC)		n/a		1,000		2.50	600,000,000
5.33% Debentures due January 20, 2033 (NVCC)		n/a		1,000		2.50	600,000,000
5.35% Debentures due April 20, 2033 (NVCC)		n/a		750		2.50	450,000,000
5.30% Debentures due January 16, 2034 (NVCC)		n/a		1,250		2.50	750,000,000
Total			$	12,600			6,540,000,000

(1) Upon the occurrence of a Trigger Event, each share is convertible into a number of common shares, determined by dividing the par value of $25.00 ($1,000 in the case of Series 56 and 57) plus declared and unpaid dividends by the average common share price (as defined in the relevant prospectus supplement) subject to a minimum price per share (subject to adjustment in certain events as defined in the relevant prospectus supplement, including a share split). Preferred shareholders do not have the right to convert their shares into common shares.

(2) The maximum number of common shares issuable on conversion excludes the impact of declared but unpaid dividends and accrued interest.

(3) Upon the occurrence of a Trigger Event, the Series 53, 54 and 55 Preferred Shares held in the Limited Recourse Trust in support of the limited recourse capital notes are convertible into a number of common shares, determined by dividing the par value of $1,000 by the average common share price (as defined in the relevant prospectus supplement) subject to a minimum price per common share (subject to adjustment in certain events as defined in the relevant prospectus supplement, including a share split).

(4) Upon the occurrence of a Trigger Event, the Debentures are convertible into a number of common shares, determined by dividing 150% of the par value plus accrued and unpaid interest by the average common share price (as defined in the relevant prospectus supplement) subject to a minimum price per common share (subject to adjustment in certain events as defined in the relevant prospectus supplement, including a share split).

n/a Not applicable.

The occurrence of a “Trigger Event” would result in conversion of all of the outstanding NVCC instruments described above, which would represent a dilution impact of 87% based on the number of CIBC common shares and NVCC instruments outstanding as at April 30, 2024. As described in the CAR Guideline, a Trigger Event occurs when OSFI determines the bank is or is about to become non-viable and, if after conversion of all contingent instruments and consideration of any other relevant factors or circumstances, it is reasonably likely that its viability will be restored or maintained; or if the bank has accepted or agreed to accept a capital injection or equivalent support from a federal or provincial government, without which OSFI would have determined the bank to be non-viable.

In addition to the potential dilution impacts related to the NVCC instruments discussed above, as at April 30, 2024, $57.7 billion (October 31, 2023: $60.8 billion) of our outstanding liabilities were subject to conversion under the bail-in regime. Under the bail-in regime, there is no fixed and pre-determined contractual conversion ratio for the conversion of the specified eligible shares and liabilities of CIBC that are subject to a bail-in conversion into common shares, nor are there specific requirements regarding whether liabilities subject to a bail-in conversion are converted into common shares of CIBC or any of its affiliates. Canada Deposit Insurance Corporation (CDIC) determines the timing of the bail-in conversion, the portion of the specified eligible shares and liabilities to be converted and the terms and conditions of the conversion, subject to parameters set out in the bail-in regime. See the “Regulatory capital and total loss absorbing capacity (TLAC) requirements” section for further details.

Off-balance sheet arrangements

We enter into off-balance sheet arrangements in the normal course of our business. Further details of our off-balance sheet arrangements are provided on pages 45–46 of our 2023 Annual Report and also in Note 6 and Note 21 to the consolidated financial statements included in our 2023 Annual Report.

CIBC SECOND QUARTER 2024 27

Management of risk

Our approach to management of risk has not changed significantly from that described on pages 47 to 87 of our 2023 Annual Report.

Risk overview

CIBC faces a wide variety of risks across all of its areas of business. Identifying and understanding risks and their impact allows CIBC to frame its risk appetite and risk management practices. Defining acceptable levels of risk, and establishing sound principles, policies and practices for managing risks, is fundamental to achieving consistent and sustainable long-term performance, while remaining within our risk appetite.

Our risk appetite defines tolerance levels for various risks. This is the foundation for our risk management culture and our risk management framework.

Our risk management framework includes:

• CIBC, SBU, functional group-level and regional risk appetite statements;

• Risk frameworks, policies, procedures and limits to align activities with our risk appetite;

• Regular risk reports to identify and communicate risk levels;

• An independent control framework to identify and test the design and operating effectiveness of our key controls;

• Stress testing to consider the potential impact of changes in the business environment on capital, liquidity and earnings;

• Proactive consideration of risk mitigation options in order to optimize results; and

• Oversight through our risk-focused committees and governance structure.

Managing risk is a shared responsibility at CIBC. Business units and risk management professionals work in collaboration to ensure that business strategies and activities are consistent with our risk appetite. CIBC’s approach to enterprise-wide risk management aligns with the three lines of defence model:

(i) As the first line of defence, CIBC’s Management, in SBUs and functional groups own the risks and are accountable and responsible for identifying and assessing risks inherent in its activities in accordance with the CIBC risk appetite. In addition, Management establishes and maintains controls to mitigate such risks. Management may include governance groups within the business to facilitate the Control Framework and other risk-related processes. A Governance Group refers to a group within Business Unit Management (first line of defence) whose focus is to manage governance, risk and control activities on behalf of that Business Unit Management. A Governance Group is considered first line of defence, in conjunction with Business Unit Management. Control Groups are enterprise groups with typically bank-wide accountability for managing particular risk types alongside Business Units. They provide subject matter expertise to Business Unit Management and/or implement/maintain enterprise-wide control programs and activities for their domain area (for example Information Security). While Control Groups collaborate with Business Unit Management in identifying and managing risk, accountabilities for managing risk remain with Business Unit Management. Control Groups also challenge risk decisions and risk mitigation strategies.

(ii) The second line of defence is independent from the first line of defence and provides an enterprise-wide view of specific risk types, guidance and effective challenge to risk and control activities. Risk Management is the primary second line of defence. Risk Management may leverage subject matter expertise of other groups (e.g., third parties or Control Groups) to inform their independent assessments, as appropriate.

(iii) As the third line of defence, CIBC’s Internal Audit is responsible for providing reasonable assurance to senior management and the Audit Committee of the Board on the effectiveness of CIBC’s governance practices, risk management processes, and Internal Control as a part of its risk-based audit plan and in accordance with its mandate as described in the Internal Audit Charter.

A strong risk culture and communication between the three lines of defence are important characteristics of effective risk management.

We continuously monitor our risk profile against our defined risk appetite and related limits, taking action as needed to maintain an appropriate balance of risk and return. Monitoring our risk profile includes forward-looking analysis of sensitivity to local and global market factors, economic conditions, and geopolitical and regulatory environments that influence our overall risk profile.

Regular and transparent risk reporting and discussion at senior management committees facilitates communication of risks and discussion of risk management strategies across the organization.

Top and emerging risks

We monitor and review top and emerging risks that may affect our future results, and take action to mitigate potential risks. We perform in-depth analyses, which may include stress testing our exposures relative to the risks, and we provide updates and related developments to the Board on a regular basis. Top and emerging risks are those that we consider to have potential negative implications that are material for CIBC. See pages 55 to 58 of our 2023 Annual Report for details regarding the following top and emerging risks:

• Inflation, interest rates and economic growth

• Technology, information and cyber security risk

• Disintermediation risk

• Third-party risk

• U.S. banking regulation

• Corporate transactions

The remainder of this section describes top and emerging risks that have been updated for developments that have occurred since the issuance of our 2023 Annual Report, as well as regulatory and accounting developments that are material for CIBC.

28 CIBC SECOND QUARTER 2024

Canadian consumer debt and the housing market

The latest household debt-to-income ratio data reflects a continued downward trend that started in the third quarter of 2023. It is below pre-pandemic levels due to growth in disposable income and slower debt growth. Mortgage debt continues to trend at historically high levels, while non-mortgage debt-to-income and service ratios remain at historically low levels as clients maintain low utilization and high payment rates. Mortgage service ratios could see further increases as mortgages continue to renew at higher rates, and income growth decelerates from a slowing labour market.

2023 and 2024 year-to-date property sale volumes have slowed to 2018–2019 levels. Sustained high interest rates will maintain pressure on sales and mortgage growth that will put denominator pressure on serious arrears rates, as delinquencies rise from fiscal 2021–2022 cohorts maturing. Unemployment rates at current levels could elevate non-mortgage debt levels, as well as unsecured delinquency and loss rates, typical of the credit cycle. Effective November 1, 2023, OSFI revised its Capital Adequacy Requirements and Mortgage Insurer Capital Adequacy Test guidelines, resulting in an increase to RWA for mortgages that have been in negative amortization for three consecutive months with loan-to-value (LTV) over 65%.

Geopolitical risk

The level of geopolitical risk escalates at certain points in time. While the specific impact on the global economy and on global credit and capital markets would depend on the nature of the event, in general, any major event could result in instability and volatility, leading to widening spreads, declining equity valuations, flight to safe-haven currencies and increased purchases of gold. In the short run, market disruption could hurt the net income of our trading and non-trading market risk positions. Geopolitical risk could reduce economic growth, and in combination with the potential impacts on commodity prices and the recent rise of protectionism, could have serious negative implications for general economic and banking activities. Current areas of concern include:

• Conflict in the Middle East;

• Relations between the U.S. and Iran;

• The war in Ukraine;

• Ongoing U.S., Canada and China relations and trade issues; and

• Rising civil unrest and activism globally.

While it is impossible to predict where new geopolitical disruption will occur, we do pay particular attention to markets and regions with existing or recent historical instability to assess the impact of these environments on the markets and businesses in which we operate.

Climate risk

On March 13, 2024, the Canadian Sustainability Standards Board (CSSB) released proposed Canadian Sustainability Disclosure Standards (CSDS) 1 “General Requirements for Disclosure of Sustainability-related Financial Information” and CSDS 2 “Climate-related Disclosures” for consultation, which align with the International Sustainability Standards Board’s (ISSB) inaugural standards IFRS S1 “General Requirements for Disclosure of Sustainability-related Financial Information” (IFRS S1) and IFRS S2 “Climate-related Disclosures” (IFRS S2). The proposals include certain Canadian-specific modifications to the effective dates and transition relief of IFRS S1 and IFRS S2, including the deferral of the initial application by one year to our reporting period ending October 31, 2026, to the extent that the proposed CSDS become effective in Canada.

On March 20, 2024, OSFI published updates to Guideline B-15 on Climate Risk Management (Guideline B-15), to align its minimum mandatory climate-related financial disclosure expectations with IFRS S2. OSFI is expected to continue to review Guideline B-15 as practices and standards evolve. Guideline B-15 continues to be initially effective for us for our reporting period ended October 31, 2024 for certain disclosure elements.

Commodity prices

Commodity prices can experience significant volatility due to a variety of factors that affect supply and demand fundamentals. These include, but are not limited to, the current economic environment, geopolitical risk, market liquidity, financial speculators, seasonality and weather, and the transition from fossil fuels to renewable energy. Current areas of focus for CIBC include the potential for the conflict in the Middle East and the war in Ukraine to disrupt the supply and transportation of oil, gas and agricultural products. The impact on inflation and central bank policy is also in focus. Although CIBC monitors its exposure to changes in commodity prices and has risk mitigants to control for this exposure, fluctuating commodity prices could have adverse impacts on banking activities.

Data and Artificial Intelligence risk

Throughout fiscal 2023, we observed growth in Generative Artificial Intelligence (AI) tools and a steady increase in AI exploration at the bank. The commercialization of advanced language models, advances in access and availability, and an emphasis on responsible practices have opened up several use cases. There is increased public and regulatory attention to AI’s ethical implications, including concerns about accuracy, bias and fairness. To address this, AI governance is under development at the bank, as well as an enterprise-wide AI framework, incorporating trustworthy AI principles into AI development and deployment practices. From a model risk perspective, OSFI released an updated draft of Guideline E-23 on Model Risk Management which recognizes the surge in AI and Machine Learning (ML) analytics increasing the risk arising from the use of models. As such, the definition of “model” in the updated draft Guideline E-23 expressly includes AI/ML methods. As we navigate the increased adoption of solutions using AI, our approach will remain rooted in ensuring responsible use and ensuring operational risks are mitigated.

Anti-money laundering, anti-terrorist financing and sanctions

Money laundering, terrorist financing activities and other related crimes pose a threat to the stability and integrity of a country’s financial sector and its broader economy. In recognition of this threat, the international community has made the fight against these illegal activities a priority. We are committed to adhering to all regulatory requirements pertaining to anti-money laundering (AML), anti-terrorist financing (ATF) and sanctions in the jurisdictions where we operate and implementing best practices to minimize the impact of such activities. In Canada, to improve the effectiveness of the AML/ATF regime, amendments to the regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act continue to be published, with some provisions coming into force in 2024. In accordance with these amendments, we have implemented procedures, processes and controls with respect to client due diligence, record keeping and reporting as well as mandatory annual AML/ATF and Sanctions training for all employees to ensure that relevant regulatory obligations are met in each jurisdiction where we operate. Canada, the U.S., the U.K. and the EU continue to expand and adjust economic sanctions related to the war in Ukraine, and with respect to the conflict in the Middle East, which continue to develop. While overall exposure is deemed limited, we continue to monitor and enhance controls, as required to respond to these evolving situations.

CIBC SECOND QUARTER 2024 29

Interbank Offered Rate transition

Interest rate benchmarks including the London Interbank Offered Rate (LIBOR) and other similar benchmark rates have been reformed and replaced by alternative benchmark rates (alternative rates) that meet regulatory definitions. Sterling, Japanese yen, Swiss franc, Euro and some USD LIBOR settings transitioned to alternative rates in 2022, and the remaining USD LIBOR settings transitioned in 2023. CDOR is expected to transition to CORRA in June 2024. See the “Other regulatory developments” section for further details.

Tax reform

On November 28, 2023, the Canadian federal government tabled Bill C-59 in Parliament, which includes certain tax measures from the 2023 fall economic statement and 2023 federal budget. Bill C-59 includes the denial of the dividends received deduction in respect of Canadian shares held as mark-to-market property, as well as a 2% tax on certain share buy backs. The application date for these measures is January 1, 2024. Bill C-59 was not substantively enacted as at April 30, 2024, and is therefore not reflected in the reported income tax expense for the quarter and six months ended April 30, 2024.

On May 28, 2024, Parliament completed third reading of Bill C-59. As a result, the proposal to deny the dividends received deduction for banks was substantively enacted as of that date and will be reflected in the reported income tax expense for the third quarter ended July 31, 2024.

On May 2, 2024, the Canadian federal government tabled Bill C-69 for first reading in Parliament. Bill C-69 includes certain provisions of the Canadian federal budget tabled on April 16, 2024, as well as a revised GMTA, which differs in part from the GMTA released by the Canadian federal government on August 4, 2023. The GMTA would implement rules in Canada for a 15% global minimum tax regime as part of Canada’s agreement to adopt the OECD Pillar Two regime for a global minimum tax. More than 135 OECD member countries have agreed to adopt the regime. Pillar Two rules are in different stages of adoption globally. Certain countries in which CIBC operates have enacted Pillar Two legislation, however, the legislation is not yet in effect in those countries. In order to meet OECD’s recommended timing, the GMTA is expected to be enacted in 2024 and with application as of CIBC’s 2025 fiscal year. CIBC is currently reviewing the latest draft of the GMTA in Bill C-69 and evaluating its impact on our global operations, which impact is not reasonably estimable at this time. See the “Financial results review – Taxes” section for further details.

Regulatory developments

See the “Capital management”, “Credit risk” and “Accounting and control matters” sections for additional information on regulatory developments.

Accounting developments

See the “Accounting and control matters” section and Note 1 to the interim consolidated financial statements for additional information on accounting developments.

30 CIBC SECOND QUARTER 2024

Risks arising from business activities

The chart below shows our business activities and related risk measures based upon regulatory RWA and allocated common equity as at April 30, 2024:

(1) Average balances are calculated as a weighted average of daily closing balances.

(2) Includes counterparty credit risk (CCR) of $21 million, which comprises derivatives and repo-style transactions.

(3) Includes CCR of $11,998 million, which comprises derivatives and repo-style transactions.

(4) Includes CCR of $496 million, which comprises derivatives and repo-style transactions.

(5) Average allocated common equity is a non-GAAP measure. For additional information on the composition of this non-GAAP measure, see the “Non-GAAP measures” section.

(6) Represents average allocated common equity relating to capital deductions, such as goodwill and intangible assets, in accordance with the rules in OSFI’s CAR Guideline.

CIBC SECOND QUARTER 2024 31

Credit risk

Credit risk is the risk of financial loss due to a borrower or counterparty failing to meet its obligations in accordance with contractual terms.

Credit risk arises out of the lending businesses in each of our SBUs and in International banking, which is included in Corporate and Other. Other sources of credit risk consist of our trading activities, which include our OTC derivatives, debt securities, and our repo-style transaction activity. In addition to losses on the default of a borrower or counterparty, unrealized gains or losses may occur due to changes in the credit spread of the counterparty, which could impact the carrying or fair value of our assets.

Exposure to credit risk

The following table provides our exposure to credit risk by portfolios based upon how we manage the business and the associated risks. Gross credit exposure amounts presented in the table below represent our estimate of exposure at default (EAD), which is net of derivative master netting agreements and CVA but is before allowance for credit losses or credit risk mitigation for IRB approaches. Gross credit exposure amounts relating to our business and government portfolios are reduced for collateral held for repo-style transactions, which reflects the EAD value of such collateral.

$ millions, as at	2024 Apr. 30							2023 Oct. 31
		IRB approach	(1)(2)		Standardized approach		Total		IRB approach	(1)(2)		Standardized approach		Total
Business and government portfolios
Drawn	$	382,996		$	15,580	$	398,576	$	318,366		$	80,259	$	398,625
Undrawn commitments		70,215			1,126		71,341		58,823			9,661		68,484
Repo-style transactions		390,560			1		390,561		340,267			–		340,267
Other off-balance sheet		16,674			412		17,086		15,482			937		16,419
OTC derivatives		16,714			124		16,838		17,688			140		17,828
Gross EAD on business and government portfolios		877,159			17,243		894,402		750,626			90,997		841,623
Less: Collateral held for repo-style transactions		372,955			–		372,955		325,118			–		325,118
Net EAD on business and government portfolios		504,204			17,243		521,447		425,508			90,997		516,505
Retail portfolios
Drawn		325,153			7,949		333,102		320,785			11,012		331,797
Undrawn commitments		106,369			3,888		110,257		103,846			3,826		107,672
Other off-balance sheet		437			120		557		413			116		529
Gross EAD on retail portfolios		431,959			11,957		443,916		425,044			14,954		439,998
Securitization exposures (3)		25,056			16,138		41,194		24,171			13,870		38,041
Gross EAD (4)	$	1,334,174		$	45,338	$	1,379,512	$	1,199,841		$	119,821	$	1,319,662
Net EAD (4)	$	961,219		$	45,338	$	1,006,557	$	874,723		$	119,821	$	994,544

(1) Beginning the first quarter of 2024, the IRB approach was applied to the majority of our credit portfolios within CIBC Bank USA, which previously followed the standardized approach.

(2) Includes exposures subject to the supervisory slotting approach.

(3) OSFI guidelines define a hierarchy of approaches for treating securitization exposures in our banking book. Depending on the underlying characteristics, exposures are eligible for either the standardized approach or the IRB approach. The external ratings-based approach (SEC-ERBA), which is inclusive of the internal assessment approach (SEC-IAA), includes exposures that qualify for the IRB approach, as well as exposures under the standardized approach.

(4) Excludes exposures arising from derivative and repo-style transactions which are cleared through qualified central counterparties (QCCPs) as well as credit risk exposures arising from other assets that are subject to the credit risk framework, including other balance sheet assets which are risk-weighted at 100%, significant investments in the capital of non-financial institutions which are risk-weighted at 1250%, settlement risk, and amounts below the thresholds for deduction which are risk-weighted at 250%. Non-trading equity exposures are also excluded and are subject to a range of risk-weightings dependent on the nature of the security.

Forbearance techniques

We employ forbearance techniques to manage client relationships and to minimize credit losses due to default, foreclosure or repossession. In certain circumstances, it may be necessary to modify a loan for reasons related to a borrower’s financial difficulties, reducing the potential of default. Total debt restructurings are subject to our normal quarterly impairment review which considers, amongst other factors, covenants and/or payment delinquencies. Loan loss provisions are adjusted as appropriate.

In retail lending, forbearance techniques include interest capitalization, amortization amendments and debt consolidations. We have a set of eligibility criteria that allow our Client Account Management team to determine suitable remediation strategies and propose products based on each borrower’s situation.

The solutions available to corporate and commercial clients vary based on the individual nature of the client’s situation and are undertaken selectively where it has been determined that the client has or is likely to have repayment difficulties servicing its obligations. Covenants often reveal changes in the client’s financial situation before there is a change in payment behaviour and typically allow for a right to reprice or accelerate payments. Solutions may be temporary in nature or may involve other special management options.

32 CIBC SECOND QUARTER 2024

Real estate secured personal lending

Real estate secured personal lending comprises residential mortgages, and personal loans and lines secured by residential property (HELOC). This portfolio is lower risk compared with other retail portfolios, as we have a first charge on the majority of the properties and a second lien on only a small portion of the portfolio. We use the same lending criteria in the adjudication of both first lien and second lien loans.

The following disclosures are required by OSFI pursuant to the Guideline B-20 “Residential Mortgage Underwriting Practices and Procedures” (Guideline B-20).

The following table provides details on our residential mortgage and HELOC portfolios:

	Residential mortgages  (1)								HELOC (2)				Total
$ billions, as at April 30, 2024	Insured				Uninsured				Uninsured				Insured				Uninsured
Ontario (3)	$	18.3	12	%	$	131.4	88	%	$	11.1	100	%	$	18.3	11	%	$	142.5	89	%
British Columbia and territories (4)		6.0	12			45.0	88			4.0	100			6.0	11			49.0	89
Alberta		10.2	40			15.6	60			1.8	100			10.2	37			17.4	63
Quebec		4.6	21			17.5	79			1.3	100			4.6	20			18.8	80
Central prairie provinces		2.7	39			4.3	61			0.6	100			2.7	36			4.9	64
Atlantic provinces		2.7	30			6.2	70			0.7	100			2.7	28			6.9	72
Canadian portfolio (5)(6)		44.5	17			220.0	83			19.5	100			44.5	16			239.5	84
U.S. portfolio (5)		–	–			2.7	100			–	–			–	–			2.7	100
Other international portfolio (5)		–	–			2.8	100			–	–			–	–			2.8	100
Total portfolio	$	44.5	16	%	$	225.5	84	%	$	19.5	100	%	$	44.5	15	%	$	245.0	85	%
October 31, 2023	$	47.4	17	%	$	223.9	83	%	$	19.0	100	%	$	47.4	16	%	$	242.9	84	%

(1) Balances reflect principal values.

(2) We did not have any insured HELOCs as at April 30, 2024 and October 31, 2023.

(3) Includes $8.1 billion (October 31, 2023: $8.7 billion) of insured residential mortgages, $81.1 billion (October 31, 2023: $80.1 billion) of uninsured residential mortgages, and $6.4 billion (October 31, 2023: $6.2 billion) of HELOCs in the Greater Toronto Area (GTA).

(4) Includes $2.6 billion (October 31, 2023: $2.8 billion) of insured residential mortgages, $30.5 billion (October 31, 2023: $30.9 billion) of uninsured residential mortgages, and $2.5 billion (October 31, 2023: $2.5 billion) of HELOCs in the Greater Vancouver Area (GVA).

(5) Geographic location is based on the address of the property.

(6) 57% (October 31, 2023: 58%) of insurance on Canadian residential mortgages is provided by Canada Mortgage and Housing Corporation (CMHC) and the remaining by two private Canadian insurers, both rated at least AA (low) by DBRS Limited (Morningstar DBRS).

The average LTV ratios(1) for our uninsured residential mortgages and HELOCs originated and acquired during the quarter ended April 30, 2024, are provided in the following table:

	For the three months ended																		For the six months ended
	2024 Apr. 30						2024 Jan. 31						2023 Apr. 30						2024 Apr. 30						2023 Apr. 30
	Residential mortgages			HELOC			Residential mortgages			HELOC			Residential mortgages			HELOC			Residential mortgages			HELOC			Residential mortgages			HELOC
Ontario (2)		67	%		66	%		66	%		66	%		65	%		65	%		67	%		66	%		65	%		65	%
British Columbia and territories (3)		62			62			63			63			62			61			62			62			62			62
Alberta		71			71			71			71			72			72			71			71			72			71
Quebec		69			70			68			70			68			69			68			70			68			69
Central prairie provinces		72			73			71			74			71			71			71			73			71			71
Atlantic provinces		67			68			68			69			69			69			68			69			69			69
Canadian portfolio (4)		67	%		66	%		67	%		66	%		66	%		65	%		67	%		66	%		66	%		65	%
U.S. portfolio (4)		70	%		n/m			65	%		n/m			68	%		n/m			67	%		n/m			65	%		n/m
Other international portfolio (4)		72	%		n/m			73	%		n/m			71	%		n/m			73	%		n/m			71	%		n/m

(1) LTV ratios for newly originated and acquired residential mortgages and HELOCs are calculated based on weighted average.

(2) Average LTV ratios for our uninsured GTA residential mortgages originated during the quarter were 67% (January 31, 2024: 66%; April 30, 2023: 64%) and 67% for the six months ended April 30, 2024 (April 30, 2023: 65%).

(3) Average LTV ratios for our uninsured GVA residential mortgages originated during the quarter were 61% (January 31, 2024: 62%; April 30, 2023: 60%) and 62% for the six months ended April 30, 2024 (April 30, 2023: 62%).

(4) Geographic location is based on the address of the property.

n/m Not meaningful.

The following table provides the average LTV ratios on our total Canadian residential mortgage portfolio:

	Insured		Uninsured
April 30, 2024 (1)(2)	55	%	52	%
October 31, 2023 (1)(2)	52	%	50	%

(1) LTV ratios for residential mortgages are calculated based on weighted average. The house price estimates for April 30, 2024 and October 31, 2023 are based on the Forward Sortation Area level indices from the Teranet – National Bank National Composite House Price Index (Teranet) as of March 31, 2024 and September 30, 2023, respectively. Teranet is an independent estimate of the rate of change in Canadian home prices.

(2) Average LTV ratio on our uninsured GTA residential mortgage portfolio was 53% (October 31, 2023: 49%). Average LTV ratio on our uninsured GVA residential mortgage portfolio was 45% (October 31, 2023: 44%).

CIBC SECOND QUARTER 2024 33

The tables below summarize the remaining amortization profile of our total Canadian, U.S. and other international residential mortgages. The first table provides the remaining amortization periods based on the minimum contractual payment amounts with the assumption that variable rate mortgages renew at payment amounts that maintain the original amortization schedule. The second table summarizes the remaining amortization profile of our total Canadian, U.S. and other international residential mortgages based upon current customer payment amounts.

Contractual payment basis

	0–5 years			>5–10 years			>10–15 years			>15–20 years			>20–25 years			>25–30 years			>30–35 years			>35 years
Canadian portfolio
April 30, 2024		–	%		1	%		1	%		11	%		48	%		39	%		–	%		–	%
October 31, 2023		–	%		1	%		1	%		11	%		50	%		37	%		–	%		–	%
U.S. portfolio
April 30, 2024		–	%		1	%		–	%		2	%		11	%		86	%		–	%		–	%
October 31, 2023		–	%		1	%		–	%		2	%		10	%		87	%		–	%		–	%
Other international portfolio
April 30, 2024		7	%		12	%		20	%		22	%		23	%		15	%		1	%		–	%
October 31, 2023		7	%		12	%		20	%		23	%		21	%		16	%		1	%		–	%

Current customer payment basis

	0–5 years		>5–10 years		>10–15 years		>15–20 years		>20–25 years		>25–30 years		>30–35 years		>35 years	(1)
Canadian portfolio
April 30, 2024	2	%	3	%	6	%	14	%	31	%	23	%	1	%	20	%
October 31, 2023	1	%	3	%	6	%	13	%	31	%	22	%	2	%	22	%
U.S. portfolio
April 30, 2024	1	%	3	%	7	%	9	%	11	%	69	%	–	%	–	%
October 31, 2023	1	%	2	%	7	%	8	%	11	%	71	%	–	%	–	%
Other international portfolio
April 30, 2024	7	%	12	%	20	%	22	%	23	%	15	%	1	%	–	%
October 31, 2023	7	%	12	%	20	%	23	%	21	%	16	%	1	%	–	%

(1) Includes variable rate mortgages of $53.7 billion (October 31, 2023: $59.9 billion), of which $35.9 billion (October 31, 2023: $42.9 billion) relates to mortgages in which all of the fixed contractual payments are currently being applied to interest based on the rates in effect at April 30, 2024 and October 31, 2023, respectively, and the terms of the mortgages, with the portion of the contractual interest requirement not met by the payments being added to the principal. Since the amortization profile reflected in this table is based on the current amount of existing contractual payments, it does not reflect that the contractual payment amount is required to be increased at the time of renewal by the amount necessary to reduce the amortization period down to the period in effect at the time the mortgage was originally provided.

The extended amortization profile is driven by the prime rate increases that commenced in early 2022, impacting clients with a variable rate mortgage. The increase in interest rates had no impact on the remaining amortization period for fixed rate mortgages which in the current interest rate environment are assumed to be renewed at the same or a shorter amortization period.

We have two types of condominium exposures in Canada: mortgages and developer loans. Both are primarily concentrated in the Toronto and Vancouver areas. As at April 30, 2024, our Canadian condominium mortgages were $40.6 billion (October 31, 2023: $40.2 billion) of which 17% (October 31, 2023: 18%) were insured. Our drawn developer loans were $2.2 billion (October 31, 2023: $2.2 billion) or 1.1% (October 31, 2023: 1.1%) of our business and government portfolio, and our related undrawn exposure was $6.1 billion (October 31, 2023: $6.3 billion). The condominium developer exposure is diversified across 119 projects.

We stress test our mortgage and HELOC portfolios to determine the potential impact of different economic events. Our stress tests can use variables such as unemployment rates, debt service ratios and housing price changes, to model potential outcomes for a given set of circumstances. The stress testing involves variables that could behave differently in certain situations. Our main tests use economic variables in a similar range or more conservative to historical events when Canada experienced economic downturns. Our results show that in an economic downturn, our capital position should be sufficient to absorb mortgage and HELOC losses.

34 CIBC SECOND QUARTER 2024

Impaired loans

The following table provides details of our impaired loans and allowance for credit losses:

	As at or for the three months ended																											As at or for the six months ended
$ millions	2024 Apr. 30									2024 Jan. 31									2023 Apr. 30									2024 Apr. 30									2023 Apr. 30
	Business and government loans			Consumer loans			Total			Business and government loans			Consumer loans			Total			Business and government loans			Consumer loans			Total			Business and government loans			Consumer loans			Total			Business and government loans			Consumer loans			Total
Gross impaired loans
Balance at beginning of period	$	1,839		$	1,158		$	2,997		$	1,956		$	1,034		$	2,990		$	1,042		$	900		$	1,942		$	1,956		$	1,034		$	2,990		$	920		$	823		$	1,743
Classified as impaired during the period		399			673			1,072			456			633			1,089			528			481			1,009			855			1,306			2,161			760			970			1,730
Transferred to performing during the period		(19	)		(127	)		(146	)		(78	)		(88	)		(166	)		(24	)		(137	)		(161	)		(97	)		(215	)		(312	)		(71	)		(228	)		(299	)
Net repayments (1)		(240	)		(177	)		(417	)		(226	)		(124	)		(350	)		(108	)		(79	)		(187	)		(466	)		(301	)		(767	)		(149	)		(171	)		(320	)
Amounts written off		(385	)		(313	)		(698	)		(222	)		(289	)		(511	)		(37	)		(254	)		(291	)		(607	)		(602	)		(1,209	)		(48	)		(476	)		(524	)
Foreign exchange and other		35			6			41			(47	)		(8	)		(55	)		8			8			16			(12	)		(2	)		(14	)		(3	)		1			(2	)
Balance at end of period	$	1,629		$	1,220		$	2,849		$	1,839		$	1,158		$	2,997		$	1,409		$	919		$	2,328		$	1,629		$	1,220		$	2,849		$	1,409		$	919		$	2,328
Allowance for credit losses – impaired loans	$	433		$	452		$	885		$	636		$	437		$	1,073		$	514		$	363		$	877		$	433		$	452		$	885		$	514		$	363		$	877
Net impaired loans (2)
Balance at beginning of period	$	1,203		$	721		$	1,924		$	1,289		$	629		$	1,918		$	632		$	573		$	1,205		$	1,289		$	629		$	1,918		$	569		$	510		$	1,079
Net change in gross impaired		(210	)		62			(148	)		(117	)		124			7			367			19			386			(327	)		186			(141	)		489			96			585
Net change in allowance		203			(15	)		188			31			(32	)		(1	)		(104	)		(36	)		(140	)		234			(47	)		187			(163	)		(50	)		(213	)
Balance at end of period	$	1,196		$	768		$	1,964		$	1,203		$	721		$	1,924		$	895		$	556		$	1,451		$	1,196		$	768		$	1,964		$	895		$	556		$	1,451
Net impaired loans as a percentage of net loans and acceptances								0.36	%								0.36	%								0.27	%								0.36	%								0.27	%

(1) Includes proceeds from the disposal of loans.

(2) Net impaired loans are gross impaired loans net of stage 3 allowance for credit losses.

Gross impaired loans

As at April 30, 2024, gross impaired loans were $2,849 million, up $521 million from the same quarter last year, primarily due to increases in the Canadian residential mortgages and personal lending portfolios, as well as the real estate and construction, the capital goods manufacturing and the hardware and software sectors, partially offset by a decrease in the retail and wholesale sector.

Gross impaired loans were down $148 million from the prior quarter, primarily due to a decrease in the real estate and construction sector, including from the sale of loans in the current quarter, partially offset by increases in the capital goods manufacturing and the hardware and software sectors.

47% of gross impaired loans related to Canada, of which the residential mortgages and personal lending portfolios, as well as the real estate and construction, and the education, health and social services sectors accounted for the majority.

41% of gross impaired loans related to the U.S., of which the real estate and construction, the capital goods manufacturing and the hardware and software sectors accounted for the majority.

The remaining gross impaired loans related to International banking, of which the residential mortgages and personal lending portfolios, as well as the business services, and the real estate and construction sectors accounted for the majority.

Allowance for credit losses – impaired loans

Allowance for credit losses on impaired loans was $885 million, up $8 million from the same quarter last year, primarily due to increases in the Canadian mortgages and personal lending portfolios, as well as the real estate and construction sector, partially offset by a decrease in the retail and wholesale sector.

Allowance for credit losses on impaired loans was down $188 million from the prior quarter, primarily due to a decrease in the real estate and construction sector.

Loans contractually past due but not impaired

The following table provides an aging analysis of loans that are not impaired, where repayment of principal or payment of interest is contractually in arrears. Loans less than 30 days past due are excluded as such loans are not generally indicative of the borrowers’ ability to meet their payment obligations.

$ millions, as at					2024 Apr. 30		2023 Oct. 31
	31 to 90 days		Over 90 days		Total		Total
Residential mortgages	$	1,029	$	–	$	1,029	$	1,019
Personal		315		–		315		280
Credit card		269		162		431		361
Business and government		274		–		274		184
	$	1,887	$	162	$	2,049	$	1,844

CIBC SECOND QUARTER 2024 35

Exposure to certain countries and regions

The following table provides our exposure to certain countries and regions outside of Canada and the U.S.

Our direct exposures presented in the table below comprise (A) funded – on-balance sheet loans (stated at amortized cost net of stage 3 allowance for credit losses, if any), deposits with banks (stated at amortized cost net of stage 3 allowance for credit losses, if any) and securities (stated at carrying value); (B) unfunded – unutilized credit commitments, letters of credit, and guarantees (stated at notional amount net of stage 3 allowance for credit losses, if any); and (C) derivative mark-to-market (MTM) receivables (stated at fair value) and repo-style transactions (stated at fair value).

The following table provides a summary of our positions in these regions:

Direct exposures
		Funded								Unfunded						Derivative MTM receivables and repo-style transactions (1)
$ millions, as at April 30, 2024	Corporate		Sovereign		Banks		Total funded (A)		Corporate		Banks		Total unfunded (B)		Corporate		Sovereign		Banks		Net exposure (C)		Total direct exposure (A)+(B)+(C)
U.K.	$	10,772	$	3,439	$	2,608	$	16,819	$	6,599	$	916	$	7,515	$	655	$	25	$	243	$	923	$	25,257
Europe excluding U.K. (2)		8,010		2,620		4,456		15,086		7,244		1,530		8,774		50		77		582		709		24,569
Caribbean		5,209		2,500		3,741		11,450		2,032		3,030		5,062		54		–		270		324		16,836
Latin America (3)		776		23		24		823		610		11		621		12		125		–		137		1,581
Asia		1,181		5,018		1,800		7,999		387		584		971		–		384		1,045		1,429		10,399
Oceania (4)		6,661		1,243		465		8,369		3,572		129		3,701		43		–		15		58		12,128
Other		274		–		16		290		398		1		399		–		–		–		–		689
Total (5)	$	32,883	$	14,843	$	13,110	$	60,836	$	20,842	$	6,201	$	27,043	$	814	$	611	$	2,155	$	3,580	$	91,459
October 31, 2023 (6)	$	29,883	$	11,469	$	14,007	$	55,359	$	20,111	$	5,822	$	25,933	$	986	$	523	$	1,884	$	3,393	$	84,685

(1) The amounts shown are net of CVA and collateral. Collateral on derivative MTM receivables was $3.6 billion (October 31, 2023: $3.4 billion), collateral on repo-style transactions was $66.6 billion (October 31, 2023: $82.1 billion), and both comprise cash and investment grade debt securities.

(2) Exposures to Russia and Ukraine are de minimis.

(3) Includes Mexico, Central America and South America.

(4) Includes Australia and New Zealand.

(5) Excludes exposure of $5,975 million (October 31, 2023: $5,293 million) to supranationals (a multinational organization or a political union comprising member nation-states).

(6) Prior period amounts have been restated to conform with the presentation adopted in the first quarter of 2024.

U.S. office real estate exposure

As at April 30, 2024, our drawn loans in our real estate and construction portfolio in the U.S. was $22,209 million, net of impaired allowances (October 31, 2023: $23,468 million), including $3,925 million (US$2,851 million) (October 31, 2023: $4,723 million (US$3,405 million)) related to U.S. office real estate exposure. Our total drawn commercial loans outstanding related to U.S. office commercial real estate was $4,293 million (US$3,118 million) (October 31, 2023: $5,067 million (US$3,653 million)), including $368 million (US$267 million) (October 31, 2023: $344 million (US$248 million)) in sectors outside of real estate and construction, out of which $444 million (US$322 million) (October 31, 2023: $913 million (US$659 million)) was impaired. The decrease in impaired U.S. office commercial real estate loans was primarily due to the sale of a number of loans during the quarter ended April 30, 2024. The average LTV at origination of the portfolio was 60% (October 31, 2023: 60%), however values have dropped significantly due to sector headwinds. We are closely monitoring this portfolio as conditions evolve.

36 CIBC SECOND QUARTER 2024

Market risk

Market risk is the risk of economic and/or financial loss in our trading and non-trading portfolios from adverse changes in underlying market factors, including interest rates, foreign exchange rates, equity market prices, commodity prices, credit spreads, and customer behaviour for retail products. Market risk arises in CIBC’s trading and treasury activities, and encompasses all market-related positioning and market-making activity.

The trading portfolio consists of positions in financial instruments and commodities held to meet the near-term needs of our clients.

The non-trading portfolio consists of positions in various currencies that related to asset/liability management (ALM) and investment activities.

Risk measurement

The following table provides balances on the interim consolidated balance sheet that are subject to market risk. Certain differences between accounting and risk classifications are detailed in the footnotes below:

$ millions, as at										2024 Apr. 30											2023 Oct. 31 (1)
				Subject to market risk (2)											Subject to market risk (2)
	Consolidated balance sheet			Trading			Non- trading			Not subject to market risk		Consolidated balance sheet			Trading			Non- trading			Not subject to market risk		Non-traded risk primary risk sensitivity
Cash and non-interest-bearing deposits with banks	$	10,299		$	–		$	3,172		$	7,127	$	20,816		$	–		$	2,777		$	18,039		Foreign exchange
Interest-bearing deposits with banks		38,844			5			38,839			–		34,902			–			34,902			–		Interest rate
Securities		235,530			83,911			151,619			–		211,348			65,728			145,620			–		Interest rate, equity
Cash collateral on securities borrowed		13,755			–			13,755			–		14,651			–			14,651			–		Interest rate
Securities purchased under resale agreements		86,042			15,144	(3)		70,898			–		80,184			–			80,184			–		Interest rate
Loans
Residential mortgages		274,544			–			274,544			–		274,244			–			274,244			–		Interest rate
Personal		46,010			–			46,010			–		45,587			–			45,587			–		Interest rate
Credit card		19,560			–			19,560			–		18,538			–			18,538			–		Interest rate
Business and government		201,551			494			201,057			–		194,870			117			194,753			–		Interest rate
Allowance for credit losses		(3,898	)		–			(3,898	)		–		(3,902	)		–			(3,902	)		–		Interest rate
Derivative instruments		31,410			29,311			2,099			–		33,243			30,756			2,487			–		Interest rate, foreign exchange
Customers’ liability under acceptances		6,130			–			6,130			–		10,816			–			10,816			–		Interest rate
Other assets		41,981			1,944			27,054			12,983		40,393			1,947			24,833			13,613		Interest rate, equity, foreign exchange
	$	1,001,758		$	130,809		$	850,839		$	20,110	$	975,690		$	98,548		$	845,490		$	31,652
Deposits	$	731,952		$	26,361	(4)	$	643,470		$	62,121	$	723,376		$	23,190	(4)	$	635,028		$	65,158		Interest rate
Obligations related to securities sold short		23,449			23,272			177			–		18,666			17,710			956			–		Interest rate
Cash collateral on securities lent		8,629			–			8,629			–		8,081			–			8,081			–		Interest rate
Obligations related to securities sold under repurchase agreements		101,009			–			101,009			–		87,118			–			87,118			–		Interest rate
Derivative instruments		38,812			36,787			2,025			–		41,290			39,081			2,209			–		Interest rate, foreign exchange
Acceptances		6,139			–			6,139			–		10,820			–			10,820			–		Interest rate
Other liabilities		28,317			2,966			13,507			11,844		26,693			2,789			11,827			12,077		Interest rate
Subordinated indebtedness		7,795			–			7,795			–		6,483			–			6,483			–		Interest rate
	$	946,102		$	89,386		$	782,751		$	73,965	$	922,527		$	82,770		$	762,522		$	77,235

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Funding valuation adjustment (FVA) exposures are excluded from trading activities for regulatory capital purposes, with related derivative hedges to these FVA exposures also excluded.

(3) Beginning the first quarter of 2024, certain balances have been reclassified to trading as part of the implementation of the Basel III reforms for market risk.

(4) Comprises FVO deposits which are considered trading for market risk purposes, including certain deposit notes that have equity risk exposures and are economically hedged by trading books.

Trading activities

We hold positions in traded financial contracts to meet client investment and risk management needs. Trading revenue (net interest income and non-interest income) is generated from these transactions. Trading instruments are recorded at fair value and include debt and equity securities, as well as interest rate, foreign exchange, equity, commodity, and credit derivative products.

Value-at-Risk

Our Value-at-Risk (VaR) methodology is a statistical technique that measures the potential overnight loss at a 99% confidence level. We use a full revaluation historical simulation methodology to compute VaR and other risk measures.

The following table shows VaR for our trading activities based on risk type.

	As at or for the three months ended																						As at or for the six months ended
$ millions								2024 Apr. 30						2024 Jan. 31						2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
	High		Low		As at			Average			As at			Average			As at			Average			Average			Average
Interest rate risk	$	18.7	$	6.0	$	11.7		$	10.6		$	7.5		$	7.4		$	6.3		$	7.0		$	9.0		$	7.0
Credit spread risk		3.0		1.6		2.4			2.4			2.6			2.4			1.4			1.4			2.4			1.4
Equity risk		7.9		4.9		4.9			6.4			5.2			5.7			3.3			6.1			6.0			5.9
Foreign exchange risk		7.3		0.6		2.7			1.5			1.2			0.9			0.7			0.8			1.2			1.0
Commodity risk		3.2		1.7		3.1			2.4			3.0			2.7			1.9			2.5			2.5			2.5
Diversification effect (1)		n/m		n/m		(9.8	)		(10.3	)		(9.1	)		(9.8	)		(5.8	)		(8.5	)		(9.9	)		(8.8	)
Total VaR (one-day measure)	$	18.8	$	8.9	$	15.0		$	13.0		$	10.4		$	9.3		$	7.8		$	9.3		$	11.2		$	9.0

(1) Total VaR is less than the sum of the VaR of the different market risk types due to risk offsets resulting from a portfolio diversification effect. Prior period amounts have been restated to conform with the presentation adopted in the first quarter of 2024.

n/m Not meaningful. It is not meaningful to compute a diversification effect because the high and low may occur on different days for different risk types.

CIBC SECOND QUARTER 2024 37

Average total VaR for the three months ended April 30, 2024 was up $3.7 million from the prior quarter, driven primarily by an increase in interest rate risk.

Trading revenue

Trading revenue (TEB) comprises both trading net interest income and non-interest income and excludes underwriting fees and commissions. Trading revenue (TEB) in the chart below excludes certain exited portfolios.

During the quarter, trading revenue (TEB) was positive for 100% of the days. Average daily trading revenue (TEB) was $9.0 million during the quarter. Average daily trading revenue (TEB) is calculated as the total trading revenue (TEB) divided by the number of business days in the period.

Trading revenue (TEB) versus VaR

The trading revenue (TEB) versus VaR graph below shows the current quarter and the three previous quarters’ daily trading revenue (TEB) against the close of business day VaR measures.

Non-trading activities

Structural interest rate risk (SIRR)

SIRR primarily consists of the risk arising due to mismatches in assets and liabilities, which do not arise from trading and trading-related businesses. The objective of SIRR management is to lock in product spreads and deliver stable and predictable net interest income over time, while managing the risk to the economic value of our assets arising from changes in interest rates.

SIRR results from differences in the maturities or repricing dates of assets and liabilities, both on- and off-balance sheet, as well as from embedded

optionality in retail products, and other product features that could affect the expected timing of cash flows, such as options to pre-pay loans or redeem term deposits prior to contractual maturity. A number of assumptions affecting cash flows, product repricing and the administration of rates underlie the models used to measure SIRR. The key assumptions pertain to the expected funding profile of mortgage rate commitments, fixed rate loan prepayment behaviour, term deposit redemption behaviour, the treatment of non-maturity deposits and equity. All assumptions are derived empirically based on historical client behaviour, balance sheet composition and product pricing with the consideration of possible forward-looking changes. All models and assumptions used to measure SIRR are subject to independent oversight by Risk Management. A variety of cash instruments and derivatives, primarily interest rate swaps, are used to manage these risks.

The following table shows the potential before-tax impact of an immediate and sustained 100 basis point increase and 100 basis point decrease in interest rates on projected 12-month net interest income and the economic value of equity (EVE) for our structural balance sheet, assuming no subsequent hedging.

Structural interest rate sensitivity – measures

$ millions (pre-tax), as at				2024 Apr. 30									2024 Jan. 31									2023 Apr. 30
		CAD	(1)		USD			Total			CAD	(1)		USD			Total			CAD	(1)		USD			Total
100 basis point increase in interest rates
Increase (decrease) in net interest income	$	216		$	89		$	305		$	163		$	114		$	277		$	276		$	83		$	359
Increase (decrease) in EVE		(820	)		(367	)		(1,187	)		(787	)		(363	)		(1,150	)		(502	)		(290	)		(792	)
100 basis point decrease in interest rates
Increase (decrease) in net interest income		(273	)		(88	)		(361	)		(217	)		(111	)		(328	)		(328	)		(62	)		(390	)
Increase (decrease) in EVE		724			380			1,104			708			379			1,087			413			311			724

(1) Includes CAD and other currency exposures.

38 CIBC SECOND QUARTER 2024

Liquidity risk

Liquidity risk is the risk of having insufficient cash or its equivalent in a timely and cost-effective manner to meet financial obligations as they come due. Common sources of liquidity risk inherent in banking services include unanticipated withdrawals of deposits, the inability to replace maturing debt, credit and liquidity commitments, and additional pledging or other collateral requirements.

Our approach to liquidity risk management supports our business strategy, aligns with our risk appetite and adheres to regulatory expectations.

Our management strategies, objectives and practices are regularly reviewed to align with changes to the liquidity environment, including regulatory, business and/or market developments. Liquidity risk remains within CIBC’s risk appetite.

Governance and management

We manage liquidity risk in a manner that enables us to withstand a liquidity stress event without an adverse impact on the viability of our operations. Actual and anticipated cash flows generated from on- and off-balance sheet exposures are routinely measured and monitored to ensure compliance with established limits. We incorporate stress testing into the management and measurement of liquidity risk. Stress test results assist with the development of our liquidity assumptions, identification of potential constraints to funding planning, and contribute to the design of our contingency funding plan.

Liquidity risk is managed using the three lines of defence model, and the ongoing management of liquidity risk is the responsibility of the Treasurer, supported by guidance from the Global Asset Liability Committee (GALCO).

The Treasurer is responsible for managing the activities and processes required for measurement and the reporting and monitoring of CIBC’s liquidity risk position as the first line of defence.

The Liquidity and Non-Trading Market Risk group provides independent oversight of the measurement, monitoring and control of liquidity risk, as the second line of defence.

Internal audit is the third line of defence providing reasonable assurance to senior management and the Audit Committee of the Board on the effectiveness of CIBC’s governance practices, risk management processes, and internal control as part of its risk-based audit plan and in accordance with its mandate as described in the Internal Audit Charter.

The GALCO governs CIBC’s liquidity risk management, ensuring the liquidity risk management methodologies, assumptions, and key metrics are regularly reviewed and aligned with CIBC’s requirements. The Liquidity Risk Management Committee, a subcommittee of GALCO, monitors global liquidity risk and is responsible for ensuring that CIBC’s liquidity risk profile is comprehensively measured and managed in alignment with CIBC’s strategic direction, risk appetite and regulatory requirements.

The Risk Management Committee (RMC) provides governance through bi-annual review of CIBC’s liquidity risk management policy, and recommends liquidity risk tolerance to the Board through the risk appetite statement which is reviewed annually.

Liquid assets

Available liquid assets include unencumbered cash and marketable securities from on- and off-balance sheet sources that can be used to access funding in a timely fashion. Encumbered liquid assets, composed of assets pledged as collateral and those assets that are deemed restricted due to legal, operational, or other purposes, are not considered as sources of available liquidity when measuring liquidity risk.

Encumbered and unencumbered liquid assets from on- and off-balance sheet sources are summarized as follows:

$ millions, as at			Bank owned liquid assets		Securities received as collateral		Total liquid assets		Encumbered liquid assets		Unencumbered liquid assets	(1)
2024	Cash and deposits with banks	$	49,143	$	–	$	49,143	$	817	$	48,326
Apr. 30	Securities issued or guaranteed by sovereigns, central banks, and multilateral development banks		165,574		105,954		271,528		149,696		121,832
	Other debt securities		5,753		10,271		16,024		3,850		12,174
	Equities		53,521		34,160		87,681		44,819		42,862
	Canadian government guaranteed National Housing Act mortgage-backed securities		33,019		1,932		34,951		16,845		18,106
	Other liquid assets (2)		14,386		2,830		17,216		8,997		8,219
		$	321,396	$	155,147	$	476,543	$	225,024	$	251,519
2023	Cash and deposits with banks	$	55,718	$	–	$	55,718	$	862	$	54,856
Oct. 31	Securities issued or guaranteed by sovereigns, central banks, and multilateral development banks		155,487		94,880		250,367		134,415		115,952
	Other debt securities		5,729		11,681		17,410		4,343		13,067
	Equities		43,798		28,432		72,230		33,317		38,913
	Canadian government guaranteed National Housing Act mortgage-backed securities		31,733		4,908		36,641		17,365		19,276
	Other liquid assets (2)		12,597		2,685		15,282		8,238		7,044
		$	305,062	$	142,586	$	447,648	$	198,540	$	249,108

(1) Unencumbered liquid assets are defined as on-balance sheet assets, assets borrowed or purchased under resale agreements, and other off-balance sheet collateral received less encumbered liquid assets.

(2) Includes cash pledged as collateral for derivatives transactions, select asset-backed securities and precious metals.

The following table summarizes unencumbered liquid assets held by CIBC (parent) and its domestic and foreign subsidiaries:

$ millions, as at	2024 Apr. 30		2023 Oct. 31
CIBC (parent)	$	175,883	$	175,523
Domestic subsidiaries		13,011		13,571
Foreign subsidiaries		62,625		60,014
	$	251,519	$	249,108

CIBC SECOND QUARTER 2024 39

Asset haircuts and monetization depth assumptions under a liquidity stress scenario are applied to the unencumbered liquid asset values to determine estimated cash inflows from monetization. Haircuts take into consideration those margins applicable at central banks – such as the Bank of Canada and the U.S. Federal Reserve Bank – historical observations, and securities characteristics including asset type, issuer, credit ratings, currency and remaining term to maturity, as well as available regulatory guidance.

Our unencumbered liquid assets as at April 30, 2024 increased by $2.4 billion since October 31, 2023, primarily due to an increase in unencumbered liquid securities, partially offset by a reduction in cash balances.

Furthermore, we maintain access eligibility to the Bank of Canada’s Emergency Lending Assistance program and the U.S. Federal Reserve Bank’s Discount Window.

Asset encumbrance

In the course of our day-to-day operations, securities and other assets are pledged to secure obligations, participate in clearing and settlement systems and for other collateral management purposes.

The following table provides a summary of our total on- and off-balance sheet encumbered and unencumbered assets:

		Encumbered					Unencumbered					Total assets
$ millions, as at			Pledged as collateral		Other	(1)		Available as collateral		Other	(2)
2024	Cash and deposits with banks	$	–	$	817		$	48,326	$	–		$	49,143
Apr. 30	Securities (3)		199,949		8,145			178,836		–			386,930
	Loans, net of allowance (4)		–		50,820			28,429		458,518			537,767
	Other assets		7,413		–			2,445		69,663			79,521
		$	207,362	$	59,782		$	258,036	$	528,181		$	1,053,361
2023	Cash and deposits with banks	$	–	$	862		$	54,856	$	–		$	55,718
Oct. 31	Securities (3)		173,467		7,226			169,180		–			349,873
	Loans, net of allowance (4)		–		51,357			30,111		447,869			529,337
	Other assets (5)		6,846		–			2,481		75,125			84,452
		$	180,313	$	59,445		$	256,628	$	522,994		$	1,019,380

(1) Includes assets supporting CIBC’s long-term funding activities and assets restricted for legal or other reasons, such as restricted cash.

(2) Other unencumbered assets are not subject to any restrictions on their use to secure funding or as collateral, however they are not considered immediately available to existing borrowing programs.

(3) Total securities comprise certain on-balance sheet securities, as well as off-balance sheet securities received under resale agreements, secured borrowings transactions, and collateral-for-collateral transactions.

(4) Loans included as available as collateral represent the loans underlying National Housing Act mortgage-backed securities and Federal Home Loan Banks eligible loans.

(5) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

Restrictions on the flow of funds

Our subsidiaries are not subject to significant restrictions that would prevent transfers of funds, dividends or capital distributions. However, certain subsidiaries have different capital and liquidity requirements, established by applicable banking and securities regulators.

We monitor and manage our capital and liquidity requirements across these entities to ensure that resources are used efficiently and entities are in compliance with local regulatory and policy requirements.

Liquidity coverage ratio

The objective of the LCR is to promote short-term resilience of a bank’s liquidity risk profile, ensuring that it has adequate unencumbered high quality liquid resources to meet its liquidity needs in a 30-day acute stress scenario. Canadian banks are required by OSFI to achieve a minimum LCR value of 100%. We are in compliance with this requirement.

In accordance with the calibration methodology contained in OSFI’s LAR Guideline, we report the LCR to OSFI on a monthly basis. The ratio is calculated as the total of unencumbered high quality liquid assets (HQLA) over the total net cash outflows in the next 30 calendar days.

The LCR’s numerator consists of unencumbered HQLA, which follow an OSFI-defined set of eligibility criteria that considers fundamental and market-related characteristics, and the relative ability to operationally monetize assets on a timely basis during a period of stress. Our centrally managed liquid asset portfolio includes those liquid assets reported in the HQLA, such as central government treasury bills and bonds, central bank deposits and high-rated sovereign, agency, provincial, and corporate securities. Asset eligibility limitations inherent in the LCR metric do not necessarily reflect our internal assessment of our ability to monetize its marketable assets under stress.

The ratio’s denominator reflects net cash outflows expected in the LCR’s stress scenario over the 30-calendar-day period. Expected cash outflows represent LCR-defined withdrawal or draw-down rates applied against outstanding liabilities and off-balance sheet commitments, respectively. Significant contributors to our LCR outflows include business and financial institution deposit run-off, draws on undrawn lines of credit and unsecured debt maturities. Cash outflows are partially offset by cash inflows, which are calculated at OSFI-prescribed LCR inflow rates, and include performing loan repayments and maturing non-HQLA marketable assets.

Furthermore, CIBC reports the LCR to OSFI in multiple currencies, and thus measures the extent of potential currency mismatch under the ratio. CIBC predominantly operates in major currencies with deep and fungible foreign exchange markets.

During a period of financial stress, institutions may use their stock of HQLA, thereby falling below 100%, as maintaining the LCR at 100% under such circumstances could produce undue negative effects on the institution and other market participants.

40 CIBC SECOND QUARTER 2024

The LCR is calculated and disclosed using a standard OSFI-prescribed template.

$ millions, average of the three months ended April 30, 2024			Total unweighted value	(1)		Total weighted value	(2)
HQLA
1	HQLA		n/a		$	193,672
Cash outflows
2	Retail deposits and deposits from small business customers, of which:	$	213,586			16,188
3	Stable deposits		98,980			2,969
4	Less stable deposits		114,606			13,219
5	Unsecured wholesale funding, of which:		243,657			120,086
6	Operational deposits (all counterparties) and deposits in networks of cooperative banks		108,779			26,127
7	Non-operational deposits (all counterparties)		101,503			60,584
8	Unsecured debt		33,375			33,375
9	Secured wholesale funding		n/a			18,246
10	Additional requirements, of which:		160,347			36,537
11	Outflows related to derivative exposures and other collateral requirements		20,258			7,830
12	Outflows related to loss of funding on debt products		5,187			5,187
13	Credit and liquidity facilities		134,902			23,520
14	Other contractual funding obligations		3,104			2,150
15	Other contingent funding obligations		418,961			8,584
16	Total cash outflows		n/a			201,791
Cash inflows
17	Secured lending (e.g. reverse repos)		111,736			23,373
18	Inflows from fully performing exposures		24,032			12,585
19	Other cash inflows		16,234			16,234
20	Total cash inflows	$	152,002		$	52,192
						Total adjusted value
21	Total HQLA		n/a		$	193,672
22	Total net cash outflows		n/a		$	149,599
23	LCR		n/a			129	%
$ millions, average of the three months ended January 31, 2024						Total adjusted value
24	Total HQLA		n/a		$	191,694
25	Total net cash outflows		n/a		$	139,910
26	LCR		n/a			137	%

(1) Unweighted inflow and outflow values are calculated as outstanding balances maturing or callable within 30 days of various categories or types of liabilities, off-balance sheet items or contractual receivables.

(2) Weighted values are calculated after the application of haircuts (for HQLA) and inflow and outflow rates prescribed by OSFI.

n/a Not applicable as per the LCR common disclosure template.

Our average LCR as at April 30, 2024 decreased to 129% from 137% in the prior quarter, due to an increase in net cash outflows, partially offset by an increase in HQLA. The increase in total net cash outflows compared to the prior quarter mainly reflects funding nearing maturity.

Net stable funding ratio

Derived from the BCBS’s Basel III framework and incorporated into OSFI’s LAR Guideline, the NSFR standard aims to promote long-term resilience of the financial sector by requiring banks to maintain a sustainable funding profile in relation to the composition of their assets and off-balance sheet activities. Canadian D-SIBs are required to maintain a minimum NSFR value of 100% on a consolidated bank basis. CIBC is in compliance with this requirement.

In accordance with the calibration methodology contained in OSFI’s LAR Guideline, we report the NSFR to OSFI on a quarterly basis. The ratio is calculated as total available stable funding (ASF) over the total required stable funding (RSF).

The numerator consists of the portion of capital and liabilities considered reliable over a one-year time horizon. The NSFR considers longer-term sources of funding to be more stable than short-term funding and deposits from retail and commercial customers to be behaviourally more stable than wholesale funding of the same maturity. In accordance with our funding strategy, key drivers of our ASF include client deposits supplemented by secured and unsecured wholesale funding, and capital instruments.

The denominator represents the amount of stable funding required based on the OSFI-defined liquidity characteristics and residual maturities of assets and off-balance sheet exposures. The NSFR ascribes varying degrees of RSF such that HQLA and short-term exposures are assumed to have a lower funding requirement than less liquid and longer-term exposures. Our RSF is largely driven by retail, commercial and corporate lending, investments in liquid assets, derivative exposures, and undrawn lines of credit and liquidity.

The ASF and RSF may be adjusted to zero for certain liabilities and assets that are determined to be interdependent if they meet the NSFR-defined criteria, which take into account the purpose, amount, cash flows, tenor and counterparties among other aspects to ensure the institution is acting solely as a pass-through unit for the underlying transactions. We report, where applicable, interdependent assets and liabilities arising from transactions OSFI has designated as eligible for such treatment in the LAR Guideline.

CIBC SECOND QUARTER 2024 41

The NSFR is calculated and disclosed using an OSFI-prescribed template, which captures the key quantitative information based on liquidity characteristics unique to the NSFR as defined in the LAR Guideline. As a result, amounts presented in the table below may not allow for direct comparison with the interim consolidated financial statements.

		a		b		c		d		e
		Unweighted value by residual maturity
$ millions, as at April 30, 2024		No maturity		<6 months		6 months to <1 year		>1 year		Weighted value
ASF item
1	Capital	$	56,686	$	–	$	–	$	7,235	$	63,921
2	Regulatory capital		56,686		–		–		7,235		63,921
3	Other capital instruments		–		–		–		–		–
4	Retail deposits and deposits from small business customers		175,663		59,981		26,097		20,038		261,378
5	Stable deposits		88,966		22,333		13,145		9,609		127,832
6	Less stable deposits		86,697		37,648		12,952		10,429		133,546
7	Wholesale funding		174,044		215,798		46,897		93,471		224,387
8	Operational deposits		109,528		3,793		–		–		56,661
9	Other wholesale funding		64,516		212,005		46,897		93,471		167,726
10	Liabilities with matching interdependent assets		–		1,474		1,228		11,551		–
11	Other liabilities		–		110,867 (1)						7,601
12	NSFR derivative liabilities				11,911 (1)
13	All other liabilities and equity not included in the above categories		–		55,025		127		43,804		7,601
14	Total ASF										557,287
RSF item
15	Total NSFR HQLA										17,744
16	Deposits held at other financial institutions for operational purposes		–		2,754		–		42		1,419
17	Performing loans and securities		77,187		134,285		63,429		380,851		404,272
18	Performing loans to financial institutions secured by Level 1 HQLA		–		25,477		1,175		42		1,903
19	Performing loans to financial institutions secured by non-Level 1 HQLA and unsecured performing loans to financial institutions		979		43,144		6,651		22,158		31,327
20	Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and public  sector entities, of which:		38,489		42,316		25,963		154,161		167,979
21	With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk		–		–		–		–		–
22	Performing residential mortgages, of which:		18,457		21,657		29,013		195,787		178,135
23	With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk		18,457		21,571		28,934		190,345		173,428
24	Securities that are not in default and do not qualify as HQLA, including exchange-traded equities		19,262		1,691		627		8,703		24,928
25	Assets with matching interdependent liabilities		–		1,474		1,228		11,551		–
26	Other assets		12,553		68,473 (1)						46,689
27	Physical traded commodities, including gold		2,445								2,078
28	Assets posted as initial margin for derivative contracts and contributions to default funds of central counterparties				10,843 (1)						9,217
29	NSFR derivative assets				6,463 (1)						–
30	NSFR derivative liabilities before deduction of variation margin posted				47 (1)						1,069
31	All other assets not included in the above categories		10,108		43,327		166		7,627		34,325
32	Off-balance sheet items				425,653 (1)						14,547
33	Total RSF									$	484,671
34	NSFR										115	%
$ millions, as at January 31, 2024										Weighted value
35	Total ASF									$	551,067
36	Total RSF									$	478,069
37	NSFR										115	%

(1) No assigned time period per disclosure template design.

Our NSFR was 115% at April 30, 2024, comparable with the prior quarter, mainly due to an increase in retail deposits, offset by a decrease in wholesale funding and an increase in the funding requirement for loans.

CIBC considers the impact of its business decisions on the LCR, NSFR and other liquidity risk metrics that it regularly monitors as part of a robust liquidity risk management function. Variables that can impact the metrics month-over-month include, but are not limited to, items such as wholesale funding activities and maturities, strategic balance sheet initiatives, and transactions and market conditions affecting collateral.

Reporting of the LCR and NSFR is calibrated centrally by Treasury, in conjunction with the SBUs and other functional groups.

42 CIBC SECOND QUARTER 2024

Funding

We fund our operations with client-sourced deposits, supplemented with a wide range of wholesale funding.

Our principal approach aims to fund our consolidated balance sheet with deposits primarily raised from personal and commercial banking channels. We maintain a foundation of relationship-based core deposits, whose stability is regularly evaluated through internally developed statistical assessments.

We routinely access a range of short-term and long-term secured and unsecured funding sources diversified by geography, depositor type, instrument, currency and maturity. We raise long-term funding from existing programs including covered bonds, asset securitizations and unsecured debt.

We continuously evaluate opportunities to diversify into new funding products and investor segments in an effort to maximize funding flexibility and minimize concentration and financing costs. We regularly monitor wholesale funding levels and concentrations to internal limits consistent with our desired liquidity risk profile.

GALCO and RMC review and approve CIBC’s funding plan, which incorporates projected asset and liability growth, funding maturities, and output from our liquidity position forecasting.

The following table provides the contractual maturity profile of our wholesale funding sources at their carrying values:

$ millions, as at April 30, 2024	Less than 1 month		1–3 months		3–6 months		6–12 months		Less than 1 year total		1–2 years		Over 2 years		Total
Deposits from banks (1)	$	6,875	$	1,185	$	475	$	604	$	9,139	$	–	$	–	$	9,139
Certificates of deposit and commercial paper		14,977		18,930		16,440		19,079		69,426		–		–		69,426
Bearer deposit notes and bankers’ acceptances		251		532		616		72		1,471		–		–		1,471
Asset-backed commercial paper		–		–		–		–		–		–		–		–
Senior unsecured medium-term notes (2)		1,648		4,538		3,912		13,619		23,717		10,995		27,398		62,110
Senior unsecured structured notes		–		35		–		62		97		–		69		166
Covered bonds/asset-backed securities
Mortgage securitization		–		1,065		406		1,252		2,723		1,507		10,177		14,407
Covered bonds		–		–		–		506		506		11,518		19,766		31,790
Cards securitization		–		–		–		899		899		2,049		–		2,948
Subordinated liabilities		–		36		–		–		36		–		7,759		7,795
Other (3)		–		275		–		–		275		–		8		283
	$	23,751	$	26,596	$	21,849	$	36,093	$	108,289	$	26,069	$	65,177	$	199,535
Of which:
Secured	$	–	$	1,065	$	406	$	2,657	$	4,128	$	15,074	$	29,943	$	49,145
Unsecured		23,751		25,531		21,443		33,436		104,161		10,995		35,234		150,390
	$	23,751	$	26,596	$	21,849	$	36,093	$	108,289	$	26,069	$	65,177	$	199,535
October 31, 2023	$	12,518	$	25,094	$	30,427	$	36,338	$	104,377	$	26,650	$	71,028	$	202,055

(1) Includes non-negotiable term deposits from banks.

(2) Includes wholesale funding liabilities which are subject to conversion under bail-in regulations. See the “Capital management” section for additional details.

(3) Includes Federal Home Loan Bank (FHLB) deposits.

The following table provides the diversification of CIBC’s wholesale funding by currency:

$ billions, as at	2024 Apr. 30				2023 Oct. 31
CAD	$	47.4	24	%	$	45.8	23	%
USD		111.4	56			113.2	56
Other		40.7	20			43.1	21
	$	199.5	100	%	$	202.1	100	%

We manage liquidity risk in a manner that enables us to withstand severe liquidity stress events. Wholesale funding may present a higher risk of run-off in stress situations, and we maintain significant portfolios of unencumbered liquid assets to mitigate this risk. See the “Liquid assets” section for additional details.

On October 31, 2023, OSFI announced its decision regarding the May 2023 public consultation on the LAR review for wholesale funding sources with retail-like characteristics, specifically high-interest savings account exchange-traded funds. These changes impacting our LCR and NSFR were implemented in the first quarter of 2024.

Credit ratings

Our access to and cost of wholesale funding are dependent on multiple factors, among them credit ratings provided by rating agencies. Rating agencies’ opinions are based upon internal methodologies, and are subject to change based on factors including, but not limited to, financial strength, competitive position, macroeconomic backdrop and liquidity positioning.

Our credit ratings are summarized in the following table:

As at April 30, 2024	Morningstar DBRS	Fitch	Moody’s	S&P
Deposit/Counterparty (1)	AA	AA	Aa2	A+
Senior debt (2)	AA	AA	Aa2	A+
Bail-in senior debt (3)	AA(L)	AA-	A2	A-
Subordinated indebtedness	A(H)	A	Baa1	A-
Subordinated indebtedness – NVCC (4)	A(L)	A	Baa1	BBB+
Limited recourse capital notes – NVCC (4)	BBB(H)	n/a	Baa3	BBB-
Preferred shares – NVCC (4)	Pfd-2	n/a	Baa3	P-2(L)
Short-term debt	R-1(H)	F1+	P-1	A-1
Outlook	Stable	Stable	Stable	Stable

(1) Morningstar DBRS Long-Term Issuer Rating; Fitch Ratings Inc. (Fitch) Long-Term Deposit Rating and Derivative Counterparty Rating; Moody’s Investors Service, Inc. (Moody’s) Long-Term Deposit and Counterparty Risk Assessment Rating; Standard & Poor’s (S&P’s) Issuer Credit Rating.

(2) Includes senior debt issued on or after September 23, 2018 which is not subject to bail-in regulations.

(3) Comprises liabilities which are subject to conversion under bail-in regulations. See the “Capital management” section for additional details.

(4) Comprises instruments which are treated as NVCC in accordance with OSFI’s CAR Guideline.

CIBC SECOND QUARTER 2024 43

Additional collateral requirements for rating downgrades

We are required to deliver collateral to certain derivative counterparties in the event of a downgrade to our current credit risk rating. The collateral requirement is based on MTM exposure, collateral valuations, and collateral arrangement thresholds, as applicable. The following table presents the additional cumulative collateral requirements for rating downgrades:

$ billions, as at	2024 Apr. 30		2023 Oct. 31
One-notch downgrade	$	–	$	–
Two-notch downgrade		0.1		0.2
Three-notch downgrade		0.3		0.4

Contractual obligations

Contractual obligations give rise to commitments of future payments affecting our short- and long-term liquidity and capital resource needs. These obligations include financial liabilities, credit and liquidity commitments, and other contractual obligations.

Assets and liabilities

The following table provides the contractual maturity profile of our on-balance sheet assets, liabilities and equity at their carrying values. Contractual analysis is not representative of our liquidity risk exposure, however, this information serves to inform our management of liquidity risk, and provide input when modelling a behavioural balance sheet.

$ millions, as at April 30, 2024	Less than 1 month		1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		No specified maturity			Total
Assets
Cash and non-interest-bearing deposits with banks (1)	$	10,299	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–		$	10,299
Interest-bearing deposits with banks		38,844		–		–		–		–		–		–		–		–			38,844
Securities		5,775		6,889		8,609		5,493		8,933		40,353		54,521		46,409		58,548			235,530
Cash collateral on securities borrowed		13,755		–		–		–		–		–		–		–		–			13,755
Securities purchased under resale agreements		52,341		16,363		11,508		1,164		3,111		1,555		–		–		–			86,042
Loans
Residential mortgages		3,746		8,128		14,216		11,155		23,578		80,807		123,916		8,998		–			274,544
Personal		1,054		466		914		711		877		686		4,567		5,021		31,714			46,010
Credit card		411		822		1,232		1,232		1,232		4,929		9,702		–		–			19,560
Business and government		13,377		11,478		10,644		11,037		12,111		34,439		69,849		26,949		11,667			201,551
Allowance for credit losses		–		–		–		–		–		–		–		–		(3,898	)		(3,898	)
Derivative instruments		1,581		5,561		2,592		2,923		1,761		4,507		6,883		5,602		–			31,410
Customers’ liability under acceptances		5,752		378		–		–		–		–		–		–		–			6,130
Other assets		–		–		–		–		–		–		–		–		41,981			41,981
	$	146,935	$	50,085	$	49,715	$	33,715	$	51,603	$	167,276	$	269,438	$	92,979	$	140,012		$	1,001,758
October 31, 2023 (2)	$	148,846	$	41,962	$	44,949	$	38,144	$	42,260	$	151,110	$	301,854	$	80,914	$	125,651		$	975,690
Liabilities
Deposits (3)	$	50,592	$	48,318	$	55,668	$	46,057	$	50,314	$	42,054	$	68,715	$	18,096	$	352,138		$	731,952
Obligations related to securities sold short		23,449		–		–		–		–		–		–		–		–			23,449
Cash collateral on securities lent		8,629		–		–		–		–		–		–		–		–			8,629
Obligations related to securities sold under repurchase agreements		88,035		11,174		679		1		–		500		620		–		–			101,009
Derivative instruments		475		4,607		2,922		3,594		1,887		4,767		9,819		10,740		1			38,812
Acceptances		5,761		378		–		–		–		–		–		–		–			6,139
Other liabilities		23		48		71		71		70		263		600		914		26,257			28,317
Subordinated indebtedness		–		36		–		–		–		–		–		7,759		–			7,795
Equity		–		–		–		–		–		–		–		–		55,656			55,656
	$	176,964	$	64,561	$	59,340	$	49,723	$	52,271	$	47,584	$	79,754	$	37,509	$	434,052		$	1,001,758
October 31, 2023 (2)	$	143,144	$	58,442	$	57,764	$	58,203	$	50,934	$	49,917	$	87,009	$	39,861	$	430,416		$	975,690

(1) Cash includes interest-bearing demand deposits with Bank of Canada.

(2) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(3) Comprises $248.4 billion (October 31, 2023: $239.0 billion) of personal deposits; $457.7 billion (October 31, 2023: $462.1 billion) of business and government deposits and secured borrowings; and $25.9 billion (October 31, 2023: $22.3 billion) of bank deposits.

The changes in the contractual maturity profile were due to the natural migration of maturities and also reflect the impact of our regular business activities.

44 CIBC SECOND QUARTER 2024

Credit-related commitments

The following table provides the contractual maturity of notional amounts of credit-related commitments. Since a significant portion of commitments are expected to expire without being drawn upon, the total of the contractual amounts is not representative of future liquidity requirements.

$ millions, as at April 30, 2024		Less than 1 month		1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		No specified maturity	(1)		Total
Unutilized credit commitments	$	2,598	$	10,103	$	5,330	$	5,445	$	7,266	$	24,305	$	71,450	$	2,763	$	238,371		$	367,631
Securities lending (2)		50,032		5,159		5,030		–		–		–		–		–		–			60,221
Standby and performance letters of credit		4,399		2,676		2,956		5,958		3,483		655		750		208		–			21,085
Backstop liquidity facilities		51		240		37		19,400		–		190		413		–		–			20,331
Documentary and commercial letters of credit		44		94		30		4		3		38		26		–		–			239
Other		341		–		–		–		–		–		–		–		–			341
	$	57,465	$	18,272	$	13,383	$	30,807	$	10,752	$	25,188	$	72,639	$	2,971	$	238,371		$	469,848
October 31, 2023	$	50,748	$	31,234	$	14,032	$	11,853	$	8,917	$	29,890	$	72,394	$	3,516	$	232,656		$	455,240

(1) Includes $184.0 billion (October 31, 2023: $179.2 billion) of personal, home equity and credit card lines, which are unconditionally cancellable at our discretion.

(2) Excludes securities lending of $8.6 billion (October 31, 2023: $8.1 billion) for cash because it is reported on the interim consolidated balance sheet.

Other off-balance sheet contractual obligations

The following table provides the contractual maturities of other off-balance sheet contractual obligations affecting our funding needs:

$ millions, as at April 30, 2024	Less than 1 month		1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		Total
Purchase obligations (1)	$	133	$	318	$	272	$	260	$	180	$	658	$	638	$	153	$	2,612
Future lease commitments (2)		–		–		–		–		–		24		92		453		569
Investment commitments		–		–		1		1		12		–		20		476		510
Underwriting commitments		260		–		–		–		–		–		–		–		260
Pension contributions (3)		11		22		32		–		–		–		–		–		65
	$	404	$	340	$	305	$	261	$	192	$	682	$	750	$	1,082	$	4,016
October 31, 2023 (2)	$	145	$	172	$	237	$	251	$	201	$	527	$	705	$	1,106	$	3,344

(1) Obligations that are legally binding agreements whereby we agree to purchase products or services with specific minimum or baseline quantities defined at fixed, minimum or variable prices over a specified period of time are defined as purchase obligations. Purchase obligations are included through to the termination date specified in the respective agreements, even if the contract is renewable. Many of the purchase agreements for goods and services include clauses that would allow us to cancel the agreement prior to expiration of the contract within a specific notice period. However, the amount above includes our obligations without regard to such termination clauses (unless actual notice of our intention to terminate the agreement has been communicated to the counterparty). The table excludes purchases of debt and equity instruments that settle within standard market time frames.

(2) Excludes lease obligations that are accounted for under IFRS 16, which are typically recognized on the consolidated balance sheet, and operating and tax expenses relating to lease commitments. The table includes lease obligations that are not accounted for under IFRS 16, including those related to future starting lease commitments for which we have not yet recognized a lease liability and right-of-use asset.

(3) Includes estimated minimum funding contributions for our funded defined benefit pension plans in Canada, the U.S., the U.K., and the Caribbean. Estimated minimum funding contributions are included only for the remaining annual period ending October 31, 2024 as the minimum contributions are affected by various factors, such as market performance and regulatory requirements, and therefore are subject to significant variability.

Other risks

We also have policies and processes to measure, monitor and control other risks, including strategic, reputation, environmental and social, and operational risks, such as insurance, technology, information and cyber security, and regulatory compliance. These risks and related policies and processes have not changed significantly from those described on pages 83 to 87 of our 2023 Annual Report.

Accounting and control matters

Critical accounting policies and estimates

The interim consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting” using IFRS as issued by the International Accounting Standards Board (IASB). A summary of significant accounting policies is presented in Note 1 to the consolidated financial statements included in our 2023 Annual Report. The interim consolidated financial statements have been prepared using the same accounting policies as CIBC’s consolidated financial statements as at and for the year ended October 31, 2023, except for the adoption of IFRS 17 “Insurance Contracts” on a retrospective basis beginning on November 1, 2023, with a restatement of the comparative period, and the adoption of certain amendments to IAS 12 “Income Taxes” (IAS 12) related to the “International Tax Reform – Pillar Two Model Rules”, on a prospective basis beginning on November 1, 2023.

The adoption of IFRS 17 resulted in an after-tax reduction of $56 million to retained earnings as at November 1, 2022, the beginning of the comparative year and an increase in net income after-tax of $6 million for the year ended October 31, 2023. The financial impact of IFRS 17 is described in Note 1 to our interim consolidated financial statements.

The adoption of the IAS 12 amendments requires us to provide additional disclosure during the periods where Pillar Two legislation has been enacted or substantively enacted but is not yet in effect, as reflected in Note 11 to our interim consolidated financial statements.

Certain accounting policies require us to make judgments and estimates, some of which relate to matters that are uncertain. The current macroeconomic environment, including the impact of higher levels of interest rates, the easing of inflationary pressures, the impact from events in the U.S. banking sector and geopolitical events, gives rise to heightened uncertainty as it relates to our accounting estimates and assumptions and increases the need to apply judgment. In particular, changes in the judgments and estimates related to IFRS 9 can have a significant impact on the level of ECL allowance recognized and period-over-period volatility of the provision for credit losses. See Note 5 to our consolidated financial statements in our 2023 Annual Report and Note 6 to our interim consolidated financial statements for more information concerning the high level of judgment inherent in the estimation of ECL allowance.

Accounting developments

For details on future accounting policy changes, refer to Note 1 to our interim consolidated financial statements.

CIBC SECOND QUARTER 2024 45

Other regulatory developments

Interest rate benchmark reform

Various interest rate and other indices deemed to be “benchmarks” continue to be the subject of international regulatory guidance and reforms. Consistent with announcements by various regulators, we previously transitioned our exposures from Sterling, Japanese yen, Swiss franc and Euro LIBOR settings to the new alternative benchmark rates. We also previously substantially completed the transition of our USD LIBOR referenced contracts to alternative rates as of June 30, 2023. As a result of the Financial Conduct Authority’s announcement that the LIBOR administrator will continue to publish certain USD LIBOR settings on a non-representative synthetic basis after June 30, 2023 for a limited period to allow market participants to use such rates in legacy contracts, we continue to have subordinated debenture liabilities amounting to US$48 million that continue to reference LIBOR.

In December 2021, the Canadian Alternative Reference Rate working group (CARR) recommended to Refinitiv Benchmark Services (UK) Limited (RBSL), the CDOR administrator, to cease the calculation and publication of CDOR after June 30, 2024 and proposed a two-staged approach to the transition from CDOR to CORRA. Following public consultation, on May 16, 2022, RBSL announced that it will permanently cease the publication and calculation of all remaining tenors of CDOR after June 28, 2024. Following this announcement, OSFI published its expectations for CDOR transition, which were consistent with the two-stage transition approach proposed by CARR. OSFI expected that all new derivatives and securities to transition to the alternative rates by June 30, 2023, and expects that no new CDOR exposures to be originated after that date, with limited exceptions. OSFI also expects all loan agreements referencing CDOR to be transitioned by June 28, 2024, and federally regulated financial institutions to prioritize system and model updates to accommodate the use of CORRA prior to June 28, 2024. In 2023, CARR announced the development of 1-month and 3-month Term CORRA benchmarks, which were launched on September 5, 2023. In July 2023, CARR announced that no new CDOR or bankers’ acceptance (BA) loans are to be originated after November 1, 2023. In addition, the Canadian Fixed Income Forum (CFIF) published a white paper in January 2023 on the impact of CDOR cessation on the Bankers’ Acceptance market and the potential for alternative instruments, and the Bank of Canada announced in October 2023 that Bankers’ Acceptances (BAs) will no longer be issued by major Canadian banks after the cessation of CDOR publication in June 2024. In April 2024, RBSL reaffirmed that all three tenors of CDOR will cease to be published after June 28, 2024 and CARR further announced that no synthetic CDOR rate will be made available after RBSL ceases CDOR publication.

The transition from current reference rates such as CDOR to alternative rates such as CORRA may adversely affect the value of, return on, or trading market for contracts linked to existing benchmarks. A significant number of CIBC’s derivatives, securities, and lending and deposit contracts reference CDOR, including contracts with maturity dates that extend beyond the cessation dates announced by the regulators.

In response to the reforms to interest rate benchmarks, CIBC established an Enterprise IBOR Transition Program (Program), to manage and coordinate all aspects of the transition. The Program is supported by a formal governance structure and dedicated working groups that include stakeholders from frontline businesses as well as functional groups such as Treasury, Technology and Operations, Risk Management, Legal, and Finance, to facilitate the transition.

Following the transition of Sterling, Japanese yen, Swiss franc, Euro and USD LIBOR settings to the new alternative benchmark rates, the Program continues to progress on its CDOR transition plan to ensure an orderly transition in alignment with regulatory expectations. Consistent with this, no new derivatives or securities referenced to CDOR were originated after June 30, 2023, with limited permitted exceptions. We are in the process of transitioning our CDOR and BA based contracts to the alternative rates by incorporating appropriate fallback provisions or making amendments to contracts to reference alternative rates, and have developed business processes to support the transition. We have also reduced our BA issuances, ahead of the expected cessation of CDOR, and have made plans with clearing houses to transition our CDOR referencing derivatives to alternative rates in accordance with regulatory expectations. As part of the Program, we continue to engage with industry associations on ongoing developments, and continue to incorporate these into our project plan and make information available to our clients, advising them on recent developments. The Program provides regular updates to senior management, including the Executive Committee, and the Board.

Federal Deposit Insurance Corporation (FDIC) Special Assessment

On November 16, 2023, the FDIC Board of Directors approved the final ruling to implement a special assessment on certain insured U.S. depository institutions to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank. The special assessment was set at an annual rate of approximately 13.4 basis points of an insured depository institution’s estimated uninsured deposits as of December 31, 2022, adjusted to exclude the first US$5 billion applicable to the insured depository institution, originally for an anticipated total of eight quarterly assessment periods. The special assessment is subject to adjustment by the FDIC based on the losses incurred from the receivership process. The special assessment will be collected beginning with the first quarterly assessment period of 2024 (i.e., January 1 through March 31, 2024, with an invoice payment date of June 28, 2024). Our U.S. depository institution, CIBC Bank USA, is subject to this special assessment and recognized a pre-tax charge of $91 million (US$67 million) in the first quarter of 2024, and an additional pre-tax charge of $13 million (US$10 million) in the second quarter of 2024 based on revised expectations of the total amount that will be payable.

Controls and procedures

Disclosure controls and procedures

CIBC’s management, with the participation of the President and Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of CIBC’s disclosure controls and procedures as at April 30, 2024 (as defined in the rules of the SEC and the Canadian Securities Administrators). Based on that evaluation, the President and Chief Executive Officer and the Chief Financial Officer have concluded that such disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There have been no changes in CIBC’s internal control over financial reporting during the quarter ended April 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Related-party transactions

There have been no significant changes to CIBC’s procedures and policies regarding related-party transactions since October 31, 2023. For additional information, refer to pages 94 and 187 of our 2023 Annual Report.

46 CIBC SECOND QUARTER 2024

Glossary

Allowance for credit losses

Under International Financial Reporting Standard (IFRS) 9, allowance for credit losses represents 12 months of expected credit losses (ECL) for instruments that have not been subject to a significant increase in credit risk since initial recognition, while allowance for credit losses represents lifetime ECL for instruments that have been subject to a significant increase in credit risk, including impaired instruments. ECL allowances for loans and acceptances are included in Allowance for credit losses on the consolidated balance sheet. ECL allowances for fair value through other comprehensive income (FVOCI) debt securities are included as a component of the carrying value of the securities, which are measured at fair value. ECL allowances for other financial assets are included in the carrying value of the instrument. ECL allowances for guarantees and loan commitments are included in Other liabilities.

Allowance for credit losses are adjusted for provisions for (reversals of) credit losses and are reduced by write-offs, net of recoveries.

Amortized cost

The amount at which a financial asset or financial liability is measured at initial recognition minus repayments, plus or minus any unamortized origination date premiums or discounts, plus or minus any basis adjustments resulting from a fair value hedge, and minus any reduction for impairment (directly or through the use of an allowance account). The amount of a financial asset or liability measured at initial recognition is the cost of the financial asset or liability including capitalized transaction costs and deferred fees.

Assets under administration (AUA)

Assets administered by CIBC that are beneficially owned by clients and are, therefore, not reported on the consolidated balance sheet. The services provided by CIBC are of an administrative nature, such as safekeeping of securities, client reporting and record keeping, collection of investment income, and the settlement of purchase and sale transactions. In addition, assets under management (AUM) amounts are included in the amounts reported under AUA.

Assets under management (AUM)

Assets managed by CIBC that are beneficially owned by clients and are, therefore, not reported on the consolidated balance sheet. The service provided in respect of these assets is discretionary portfolio management on behalf of the clients.

Average interest-earning assets

Average interest-earning assets include interest-bearing deposits with banks, interest-bearing demand deposits with the Bank of Canada, securities, cash collateral on securities borrowed or securities purchased under resale agreements, loans net of allowance for credit losses, and certain sublease-related assets. Average balances are calculated as a weighted average of daily closing balances.

Average trading interest-earning assets

Average trading interest-earning assets are average interest-earning assets related to trading activities that meet the risk definition of trading for regulatory capital and trading market risk management purposes as defined in accordance with OSFI’s Capital Adequacy Requirements (CAR) Guideline. Starting in the first quarter of 2024, a revised risk definition for trading was implemented resulting in a change in the classification of certain fixed income financing activities that were previously considered non-trading that are now classified as trading, which included the fixed income financing activities that were already included in trading activities starting in the first quarter of 2023. The revised definition was adopted as part of our implementation of the Fundamental Review of the Trading Book (FRTB) rules under the Basel III reforms for market risk that became effective on November 1, 2023.

Basis point

One-hundredth of a percentage point (0.01%).

Collateral

Assets pledged to secure loans or other obligations, which are forfeited if the obligations are not repaid.

Collateralized debt obligation (CDO)

Securitization of any combination of corporate debt, asset-backed securities (ABS), mortgage-backed securities or tranches of other CDOs to form a pool of diverse assets that are tranched into securities that offer varying degrees of risk and return to meet investor demand.

Collateralized loan obligation (CLO)

Securitizations of diversified portfolios of corporate debt obligations and/or ABS that are tranched into securities that offer varying degrees of risk and return to meet investor demand.

Common shareholders’ equity

Common shareholders’ equity includes common shares, contributed surplus, retained earnings and accumulated other comprehensive income (AOCI).

Credit derivatives

A category of financial instruments that allow one party (the beneficiary) to separate and transfer the credit risk of nonpayment or partial payment of an underlying financial instrument to another party (the guarantor).

Credit valuation adjustment (CVA)

A valuation adjustment that is required to be considered in measuring fair value of over-the-counter (OTC) derivatives to recognize the risk that any given derivative counterparty may not ultimately be able to fulfill its obligations. In assessing the net counterparty credit risk (CCR) exposure, we take into account credit mitigants such as collateral, master netting arrangements, and settlements through clearing houses.

Current replacement cost

The estimated cost of replacing an asset at the present time according to its current worth.

CIBC SECOND QUARTER 2024 47

Derivatives

A financial contract that derives its value from the performance of an underlying instrument, index or financial rate.

Dividend payout ratio

Common share dividends paid as a percentage of net income after preferred share dividends, premium on preferred share redemptions, and distributions on other equity instruments.

Dividend yield

Dividends per common share divided by the closing common share price.

Effective interest rate method

A method of calculating the amortized cost of a financial asset or financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.

Efficiency ratio

Non-interest expenses as a percentage of total revenue (net interest income and non-interest income).

Exchange-traded derivative contracts

Standardized derivative contracts (e.g., futures contracts and options) that are transacted on an organized exchange and cleared through a central clearing house, and are generally subject to standard margin requirements.

Fair value

The price that would be received to sell an asset, or paid to transfer a liability, between market participants in an orderly transaction in the principal market at the measurement date under current market conditions.

Forward contracts

A non-standardized contract to buy or sell a specified asset at a specified price and specified date in the future.

Forward rate agreement

An OTC forward contract that determines an interest rate to be paid or received commencing on a specified date in the future for a specified period.

Full-time equivalent employees

A measure that normalizes the number of full-time and part-time employees, base salary plus commissioned employees, and 100% commissioned employees into equivalent full-time units based on actual hours of paid work during a given period, for individuals whose compensation is included in the Employee compensation and benefits line on the consolidated statement of income.

Futures

A standardized contract to buy or sell a specified commodity, currency or financial instrument of standardized quantity and quality at a specific price and date in the future. Futures contracts are traded on an exchange.

Guarantees and standby letters of credit

Primarily represent CIBC’s obligation, subject to certain conditions, to make payments to third parties on behalf of clients, if these clients cannot make those payments, or are unable to meet other specified contractual obligations.

Hedge

A transaction intended to offset potential losses/gains that may be incurred in a transaction or portfolio.

Loan loss ratio

The ratio is calculated as the provision for credit losses on impaired loans to average loans and acceptances, net of allowance for credit losses.

Mark-to-market

The fair value (as defined above) at which an asset can be sold or a liability can be transferred.

Net interest income

The difference between interest earned on assets (such as loans and securities) and interest incurred on liabilities (such as deposits and subordinated indebtedness).

Net interest margin

Net interest income as a percentage of average assets.

Net interest margin on average interest-earning assets

Net interest income as a percentage of average interest-earning assets.

Net interest margin on average interest-earning assets (excluding trading)

Net interest margin on average interest-earning assets (excluding trading) is computed using total net interest income minus trading net interest income, excluding the taxable equivalent basis (TEB) adjustment included therein, divided by total average interest-earning assets excluding average trading interest-earning assets.

Notional amount

Principal amount or face amount of a financial contract used for the calculation of payments made on that contract.

48 CIBC SECOND QUARTER 2024

Off-balance sheet financial instruments

A financial contract that is based mainly on a notional amount and represents a contingent asset or liability of an institution. Such instruments include credit-related arrangements.

Office of the Superintendent of Financial Institutions (OSFI)

OSFI supervises and regulates all banks, all federally incorporated or registered trust and loan companies, insurance companies, cooperative credit associations, fraternal benefit societies, and federal pension plans in Canada.

Operating leverage

Operating leverage is the difference between the year-over-year percentage change in revenue and year-over-year percentage change in non-interest expenses.

Options

A financial contract under which the writer (seller) confers the right, but not the obligation, to the purchaser to either buy (call option) or sell (put option) a specified amount of an underlying asset or instrument at a specified price either at or by a specified date.

Provision for (reversal of) credit losses

An amount charged or credited to income to adjust the allowance for credit losses to the appropriate level, for both performing and impaired financial assets. Provision for (reversal of) credit losses for loans and acceptances and related off-balance sheet loan commitments is included in the Provision for (reversal of) credit losses line on the consolidated statement of income. Provision for (reversal of) credit losses for debt securities measured at FVOCI or amortized cost is included in Gains (losses) from debt securities measured at FVOCI and amortized cost, net.

Return on average assets or average interest-earning assets

Net income expressed as a percentage of average assets or average interest-earning assets.

Return on common shareholders’ equity

Net income attributable to equity shareholders expressed as a percentage of average common shareholders’ equity.

Securities borrowed

Securities are typically borrowed to cover short positions. Borrowing requires the pledging of collateral by the borrower to the lender. The collateral may be cash or a highly rated security.

Securities lent

Securities are typically lent to a borrower to cover their short positions. Borrowing requires the pledging of collateral by the borrower to the lender. The collateral provided may be cash or a highly rated security.

Securities purchased under resale agreements

A transaction where a security is purchased by the buyer and, at the same time, the buyer commits to resell the security to the original seller at a specific price and date in the future.

Securities sold short

A transaction in which the seller sells securities that it does not own. Initially the seller typically borrows the securities in order to deliver them to the purchaser. At a later date, the seller buys identical securities in the market to replace the borrowed securities.

Securities sold under repurchase agreements

A transaction where a security is sold by the seller and, at the same time, the seller commits to repurchase the security from the original purchaser at a specific price and date in the future.

Structured entities (SEs)

Entities that have been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.

Swap contracts

A financial contract in which counterparties exchange a series of cash flows based on a specified notional amount over a specified period.

Taxable equivalent basis (TEB)

The gross-up of tax-exempt revenue on certain securities to a TEB. There is an equivalent offsetting adjustment to the income tax expense.

Total shareholder return

The total return earned on an investment in CIBC’s common shares. The return measures the change in shareholder value, assuming dividends paid are reinvested in additional shares.

Trading net interest income

Trading net interest income is net interest income related to trading activities that meet the risk definition of trading for regulatory capital and trading market risk management purposes, which includes a TEB adjustment. Starting in the first quarter of 2024, a revised risk definition for trading was implemented resulting in a change in the classification of certain fixed income financing activities that were previously considered non-trading that are now classified as trading, which included the fixed income financing activities that were already included in trading activities starting in the first quarter of 2023. The revised definition was adopted as part of our implementation of the Fundamental Review of the Trading Book (FRTB) rules under the Basel III reforms for market risk that became effective on November 1, 2023.

CIBC SECOND QUARTER 2024 49

Risk and capital glossary

Advanced internal ratings-based (AIRB) approach for credit risk

Version of the internal ratings-based (IRB) approach to credit risk where institutions provide their own estimates of probability of default (PD), loss given default (LGD) and exposure at default (EAD), and their own calculation of effective maturity, subject to meeting minimum standards. Effective in the second quarter of 2023, AIRB is no longer permitted for some exposure categories.

Asset/liability management (ALM)

The practice of managing risks that arise from mismatches between the assets and liabilities, mainly in the non-trading areas of the bank. Techniques are used to manage the relative duration of CIBC’s assets (such as loans) and liabilities (such as deposits), in order to minimize the adverse impact of changes in interest rates.

Bail-in eligible liabilities

Bail-in eligible liabilities include long-term (i.e., original maturity over 400 days), unsecured senior debt issued on or after September 23, 2018 that is tradable and transferrable, and any preferred shares and subordinated debt that are not considered non-viability contingent capital (NVCC). Consumer deposits, secured liabilities (including covered bonds), certain financial contracts (including derivatives) and certain structured notes are not bail-in eligible.

Bank exposures

All direct credit risk exposures to deposit-taking institutions and regulated securities firms, and exposures guaranteed by those entities.

Business and government portfolio

A category of exposures that includes lending to businesses and governments, where the primary basis of adjudication relies on the determination and assignment of an appropriate risk rating that reflects the credit risk of the exposure.

Central counterparty (CCP)

A clearing house that interposes itself between counterparties to clear contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the future performance of open contracts.

Common Equity Tier 1 (CET1), Tier 1 and Total capital ratios

CET1, Tier 1 and total regulatory capital, divided by RWA, as defined by OSFI’s Capital Adequacy Requirements (CAR) Guideline, which is based on Basel Committee on Banking Supervision (BCBS) standards.

Comprehensive approach for securities financing transactions

A framework for the measurement of CCR with respect to securities financing transactions, which utilizes a volatility-adjusted collateral value to reduce the amount of the exposure.

Corporate exposures

All direct credit risk exposures to corporations, partnerships and proprietorships, and exposures guaranteed by those entities.

Credit risk

The risk of financial loss due to a borrower or counterparty failing to meet its obligations in accordance with contractual terms.

Drawn exposure

The amount of credit risk exposure resulting from loans and other receivables advanced to the customer.

Economic capital

Economic capital provides a framework to evaluate the returns of each strategic business unit, commensurate with risk assumed. Economic capital is a non-GAAP risk measure based upon an internal estimate of equity capital required by the businesses to absorb unexpected losses consistent with our targeted risk rating over a one-year horizon. Economic capital comprises primarily credit, market, operational and strategic risk capital.

Exposure at default (EAD)

An estimate of the amount of exposure to a customer at the event of, and at the time of, default.

Foundation internal ratings-based (FIRB) approach for credit risk

Version of the IRB approach to credit risk where institutions provide their own estimates of PD and their own calculation of effective maturity and rely on prescribed supervisory estimates for other risk components such as LGD and EAD. Effective in the second quarter of 2023, FIRB methodology must be used for some exposure categories.

Incremental risk charge (IRC)

A capital charge applied in addition to market risk capital specifically to cover default and migration risk in unsecuritized credit assets of varying liquidity held in the trading book.

Internal Capital Adequacy Assessment Process (ICAAP)

A framework and process designed to provide a comprehensive view on capital adequacy, as defined by Pillar II of the Basel Accord, wherein we identify and measure our risks on an ongoing basis in order to ensure that the capital available is sufficient to cover all risks across CIBC.

50 CIBC SECOND QUARTER 2024

Internal models approach (IMA) for market risk

Models, which have been developed by CIBC and approved by OSFI, for the measurement of risk and regulatory capital in the trading portfolio for general market risk, debt specific risk, and equity specific risk.

Internal model method (IMM) for counterparty credit risk (CCR)

Models, which have been developed by CIBC and approved by OSFI, for the measurement of CCR with respect to OTC derivatives.

Internal ratings-based (IRB) approach for credit risk

Approach to determining credit risk capital requirements based on risk components such as PD, LGD, EAD and effective maturity.

Internal ratings-based approach for securitization exposures

This approach comprises two calculation methods available for securitization exposures that require OSFI approval: the Internal Ratings-Based Approach (SEC-IRBA) is available to the banks approved to use the IRB approach for underlying exposures securitized and the Internal Assessment Approach (SEC-IAA) is available for certain securitization exposures extended to asset-backed commercial paper (ABCP) programs.

Leverage ratio exposure

The leverage ratio exposure is defined under the OSFI rules as on-balance sheet assets (unweighted) less Tier 1 capital regulatory adjustments plus derivative exposures, securities financing transaction exposures with a limited form of netting under certain conditions, and other off-balance sheet exposures (such as commitments, direct credit substitutes, undrawn credit card exposures, securitization exposures and unsettled trades).

Leverage ratio

Defined as Tier 1 capital divided by the leverage ratio exposure determined in accordance with guidelines issued by OSFI, which are based on BCBS standards.

Liquidity coverage ratio (LCR)

Derived from the BCBS’s Basel III framework and incorporated into OSFI’s Liquidity Adequacy Requirements (LAR) Guideline, the LCR is a liquidity standard that aims to ensure that an institution has an adequate stock of unencumbered high-quality liquid assets (HQLA) that consists of cash or assets that can be converted into cash at little or no loss of value in private markets, to meet its liquidity needs for a 30-calendar-day liquidity stress scenario.

Liquidity risk

The risk of having insufficient cash or its equivalent in a timely and cost-effective manner to meet financial obligations as they come due.

Loss given default (LGD)

An estimate of the amount of exposure to a customer that will not be recovered following a default by that customer, expressed as a percentage of the EAD. LGD is generally based on through-the-cycle assumptions for regulatory capital purposes, and generally based on point-in-time assumptions reflecting forward-looking information for IFRS 9 ECL purposes.

Market risk

The risk of economic and/or financial loss in our trading and non-trading portfolios from adverse changes in underlying market factors, including interest rates, foreign exchange rates, equity market prices, commodity prices, credit spreads and customer behaviour for retail products.

Master netting agreement

An industry standard agreement designed to reduce the credit risk of multiple transactions with a counterparty through the creation of a legal right of offset of exposures in the event of a default by that counterparty and through the provision for net settlement of all contracts through a single payment.

Net cumulative cash flow (NCCF)

The NCCF is a liquidity horizon metric defined under OSFI’s LAR Guideline as a monitoring and supervision tool for liquidity risk that measures an institution’s detailed cash flows in order to capture the risk posed by funding mismatches between assets and liabilities.

Net stable funding ratio (NSFR)

Derived from the BCBS’s Basel III framework and incorporated into OSFI’s LAR Guideline, the NSFR standard aims to promote long-term resilience of the financial sector by requiring banks to maintain a sustainable stable funding profile in relation to the composition of their assets and off-balance sheet activities.

Non-viability contingent capital (NVCC)

Effective January 1, 2013, in order to qualify for inclusion in regulatory capital, all non-common Tier 1 and Tier 2 capital instruments must be capable of absorbing losses at the point of non-viability of a financial institution. This will ensure that investors in such instruments bear losses before taxpayers where the government determines that it is in the public interest to rescue a non-viable bank.

Operational risk

The risk of loss resulting from people, inadequate or failed internal processes and systems, or from external events.

Other off-balance sheet exposure

The amount of credit risk exposure resulting from the issuance of guarantees and letters of credit.

Other retail

This exposure class includes all loans other than qualifying revolving retail and real estate secured personal lending that are extended to individuals under the regulatory capital reporting framework.

CIBC SECOND QUARTER 2024 51

Over-the-counter (OTC) derivatives exposure

The amount of credit risk exposure resulting from derivatives that trade directly between two counterparties, rather than through exchanges.

Probability of default (PD)

An estimate of the likelihood of default for any particular customer which occurs when that customer is not able to repay its obligations as they become contractually due. PD is based on through-the-cycle assumptions for regulatory capital purposes, and based on point-in-time assumptions reflecting forward-looking information for IFRS 9 ECL purposes.

Qualifying central counterparty (QCCP)

An entity that is licensed to operate as a CCP and is permitted by the appropriate regulator or oversight body to operate as such with respect to the products offered by that CCP.

Qualifying revolving retail

This exposure class includes credit cards, unsecured lines of credit and overdraft protection products extended to individuals. Under the standardized approach, these exposures would be included under “other retail”.

Real estate secured personal lending

This exposure class includes residential mortgages and home equity loans and lines of credit extended to individuals.

Regulatory capital

Regulatory capital, as defined by OSFI’s CAR Guideline, is comprised of CET1, Additional Tier 1 (AT1) and Tier 2 capital. CET1 capital includes common shares, retained earnings, AOCI (excluding AOCI relating to cash flow hedges and changes in fair value option liabilities attributable to changes in own credit risk) and qualifying instruments issued by a consolidated banking subsidiary to third parties, less regulatory adjustments for items such as goodwill and other intangible assets, certain deferred tax assets, net assets related to defined benefit pension plans, and certain investments. AT1 capital primarily includes NVCC preferred shares, Limited Recourse Capital Notes, and qualifying instruments issued by a consolidated subsidiary to third parties. Tier 1 capital is comprised of CET1 plus AT1. Tier 2 capital includes NVCC subordinated indebtedness, eligible general allowances, and qualifying instruments issued by a consolidated subsidiary to third parties. Total capital is comprised of Tier 1 capital plus Tier 2 capital. Qualifying regulatory capital instruments must be capable of absorbing loss at the point of non-viability of the financial institution.

Repo-style transactions exposure

The amount of credit risk exposure resulting from our securities bought or sold under resale agreements, as well as securities borrowing and lending activities.

Reputation risk

The risk of negative publicity regarding CIBC’s business conduct or practices which, whether true or not, could significantly harm CIBC’s reputation as a leading financial institution, or could materially and adversely affect CIBC’s business, operations, or financial condition.

Resecuritization

A securitization exposure in which the risk associated with an underlying pool of exposures is tranched and at least one of the underlying exposures is a securitization exposure.

Retail portfolios

A category of exposures that primarily includes consumer but also small business lending, where the primary basis of adjudication relies on credit-scoring models.

Risk-weighted assets (RWA)

RWA consist of three components: (i) RWA for credit risk, which are calculated using the IRB and standardized approaches, (ii) RWA for market risk, and (iii) RWA for operational risk. The IRB RWA are calculated using PDs, LGDs, EADs, and in some cases maturity adjustments, while the standardized approach applies risk weighting factors specified in the OSFI guidelines to on- and off-balance sheet exposures. Beginning the first quarter of 2024, the RWA for market risk in the trading portfolio is based on standardized capital requirements defined by OSFI. Prior to the first quarter of 2024, the RWA for market risk in the trading portfolio were based on internal models approved by OSFI with the exception of the RWA for traded securitization assets where we were using the methodology defined by OSFI. The RWA for operational risk, which relate to the risk of losses resulting from people, inadequate or failed internal processes, and systems or from external events, are calculated under a standardized approach.

Since the introduction of Basel II in 2008, OSFI has prescribed a capital floor requirement for institutions that use the IRB approach for credit risk. The capital floor is determined by applying an adjustment factor specified by OSFI to the capital requirement calculated by reference to standardized approach. Any shortfall in the IRB capital requirement is added to RWA.

Securitization

The process of selling assets (normally financial assets such as loans, leases, trade receivables, credit card receivables or mortgages) to trusts or other SEs. A SE normally issues securities or other forms of interests to investors and/or the asset transferor, and the SE uses the proceeds from the issue of securities or other forms of interest to purchase the transferred assets. The SE will generally use the cash flows generated by the assets to meet the obligations under the securities or other interests issued by the SE, which may carry a number of different risk profiles.

Simple, transparent and comparable (STC) securitizations

Securitization exposures satisfying a set of regulatory STC criteria. Such exposures qualify for a preferential capital treatment under the securitization framework.

52 CIBC SECOND QUARTER 2024

Small and medium enterprises (SME) retail

This exposure class includes all loans extended to scored small businesses under the regulatory capital reporting framework.

Sovereign exposures

All direct credit risk exposures to governments, central banks and certain public sector entities, and exposures guaranteed by those entities.

Specialized lending (SL)

A subset of Corporate exposures falling into one of the following sub-classes: project finance (PF), object finance (OF), commodities finance (CF), income-producing real estate (IPRE), and high-volatility commercial real estate (HVCRE). Primary source of repayment for such credits is the income generated by the asset(s), rather than the independent capacity of a broader commercial enterprise.

Standardized approach for credit risk

Applied to exposures when there is not sufficient information to allow for the use of the AIRB approach for credit risk. Credit risk capital requirements are calculated based on a standardized set of risk weights as prescribed in the CAR Guideline. The standardized risk weights are based on external credit assessments, where available, and other risk-related factors, including export credit agencies, exposure asset class, collateral, etc.

Standardized approach for operational risk

Effective in the second quarter of 2023, this approach is based on a prescribed formula made up of three components: (i) the Business Indicator (BI) which is a financial-statement-based proxy for operational risk, (ii) the Business Indicator Component (BIC) which is calculated by multiplying the BI by a set of regulatory determined marginal coefficients, and (iii) the Internal Loss Multiplier which is a scaling factor that is based on the average historical operational losses and the BIC.

Standardized approach for securitization exposures

This approach comprises the calculation methods available for securitization exposures that do not require OSFI approval: the external ratings-based approach (SEC-ERBA) and the standardized approach (SEC-SA).

Strategic risk

The risk of ineffective or improper implementation of business strategies. It includes the potential financial loss and impact to resiliency due to the failure of organic growth initiatives or failure to respond appropriately to changes in the business or industry environments.

Stressed Value-at-Risk

A VaR calculation using a one-year observation period related to significant losses for the given portfolio at a specified level of confidence and time horizon.

Structural foreign exchange risk

Structural foreign exchange risk is the risk primarily inherent in net investments in foreign operations due to changes in foreign exchange rates, and foreign currency denominated RWA and foreign currency denominated capital deductions.

Structural interest rate risk

Structural interest rate risk primarily consists of the risk arising due to mismatches in assets and liabilities, which do not arise from trading and trading-related businesses.

Total loss absorbing capacity (TLAC) measure

The sum of Total capital and bail-in eligible liabilities (as defined above) that have a residual maturity greater than one year.

Total loss absorbing capacity ratio

Defined as TLAC measure divided by RWA determined in accordance with guidelines issued by OSFI.

Total loss absorbing capacity leverage ratio

Defined as TLAC measure divided by leverage ratio exposure determined in accordance with guidelines issued by OSFI.

Undrawn exposures

The amount of credit risk exposure resulting from loans that have not been advanced to a customer, but which a customer may be entitled to draw in the future.

Value-at-Risk (VaR)

Generally accepted risk measure that uses statistical models to estimate the distribution of possible returns on a given portfolio at a specified level of confidence and time horizon.

CIBC SECOND QUARTER 2024 53

Interim consolidated financial statements

(Unaudited)

Contents
55	Consolidated balance sheet
56	Consolidated statement of income
57	Consolidated statement of comprehensive income
58	Consolidated statement of changes in equity
59	Consolidated statement of cash flows
60	Notes to the interim consolidated financial statements

60	Note 1	–	Changes in accounting policies
61	Note 2	–	Significant estimates and assumptions
62	Note 3	–	Fair value measurement
65	Note 4	–	Significant transactions
66	Note 5	–	Securities
68	Note 6	–	Loans
73	Note 7	–	Deposits
73	Note 8	–	Subordinated indebtedness

74	Note 9	–	Share capital
75	Note 10	–	Post-employment benefits
75	Note 11	–	Income taxes
76	Note 12	–	Earnings per share
76	Note 13	–	Contingent liabilities and provisions
77	Note 14	–	Interest income and expense
77	Note 15	–	Segmented information

54 CIBC SECOND QUARTER 2024

Consolidated balance sheet

Unaudited, millions of Canadian dollars, as at	2024 Apr. 30			2023 Oct. 31 (1)
ASSETS
Cash and non-interest-bearing deposits with banks	$	10,299		$	20,816
Interest-bearing deposits with banks		38,844			34,902
Securities (Note 5)		235,530			211,348
Cash collateral on securities borrowed		13,755			14,651
Securities purchased under resale agreements		86,042			80,184
Loans (Note 6)
Residential mortgages		274,544			274,244
Personal		46,010			45,587
Credit card		19,560			18,538
Business and government		201,551			194,870
Allowance for credit losses		(3,898	)		(3,902	)
		537,767			529,337
Other
Derivative instruments		31,410			33,243
Customers’ liability under acceptances		6,130			10,816
Property and equipment		3,256			3,251
Goodwill		5,393			5,425
Software and other intangible assets		2,751			2,742
Investments in equity-accounted associates and joint ventures		698			669
Deferred tax assets		669			647
Other assets		29,214			27,659
		79,521			84,452
	$	1,001,758		$	975,690
LIABILITIES AND EQUITY
Deposits (Note 7)
Personal	$	248,396		$	239,035
Business and government		408,563			412,561
Bank		25,848			22,296
Secured borrowings		49,145			49,484
		731,952			723,376
Obligations related to securities sold short		23,449			18,666
Cash collateral on securities lent		8,629			8,081
Obligations related to securities sold under repurchase agreements		101,009			87,118
Other
Derivative instruments		38,812			41,290
Acceptances		6,139			10,820
Deferred tax liabilities		37			40
Other liabilities		28,280			26,653
		73,268			78,803
Subordinated indebtedness (Note 8)		7,795			6,483
Equity
Preferred shares and other equity instruments		5,098			4,925
Common shares (Note 9)		16,813			16,082
Contributed surplus		114			109
Retained earnings		31,990			30,352
Accumulated other comprehensive income (AOCI)		1,394			1,463
Total shareholders’ equity		55,409			52,931
Non-controlling interests		247			232
Total equity		55,656			53,163
	$	1,001,758		$	975,690

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

The accompanying notes and shaded sections in “MD&A – Management of risk” are an integral part of these interim consolidated financial statements.

CIBC SECOND QUARTER 2024 55

Consolidated statement of income

	For the three months ended						For the six months ended
Unaudited, millions of Canadian dollars, except as noted	2024 Apr. 30		2024 Jan. 31		2023 Apr. 30 (1)		2024 Apr. 30		2023 Apr. 30 (1)
Interest income (Note 14) (2)
Loans	$	8,250	$	8,281	$	7,263	$	16,531	$	14,190
Securities		2,379		2,306		1,735		4,685		3,306
Securities borrowed or purchased under resale agreements		1,452		1,390		1,028		2,842		2,023
Deposits with banks and other		692		757		657		1,449		1,424
		12,773		12,734		10,683		25,507		20,943
Interest expense (Note 14)
Deposits		7,576		7,711		6,211		15,287		12,098
Securities sold short		150		156		102		306		194
Securities lent or sold under repurchase agreements		1,492		1,354		987		2,846		1,877
Subordinated indebtedness		136		120		118		256		221
Other		138		144		78		282		161
		9,492		9,485		7,496		18,977		14,551
Net interest income		3,281		3,249		3,187		6,530		6,392
Non-interest income
Underwriting and advisory fees		191		169		136		360		239
Deposit and payment fees		228		231		214		459		434
Credit fees		332		366		324		698		661
Card fees		112		100		106		212		212
Investment management and custodial fees		488		458		435		946		863
Mutual fund fees		434		445		422		879		894
Income from insurance activities, net (1)		87		97		84		184		176
Commissions on securities transactions		106		87		87		193		175
Gains (losses) from financial instruments measured/designated at fair value through profit or loss (FVTPL), net		685		845		495		1,530		1,173
Gains (losses) from debt securities measured at fair value through other comprehensive income (FVOCI) and amortized cost, net		31		15		31		46		41
Foreign exchange other than trading (FXOTT)		102		92		77		194		204
Income (loss) from equity-accounted associates and joint ventures		25		16		36		41		32
Other		62		51		70		113		137
		2,883		2,972		2,517		5,855		5,241
Total revenue		6,164		6,221		5,704		12,385		11,633
Provision for credit losses (Note 6)		514		585		438		1,099		733
Non-interest expenses
Employee compensation and benefits		2,009		1,950		1,863		3,959		3,772
Occupancy costs		208		217		200		425		408
Computer, software and office equipment		653		621		608		1,274		1,196
Communications		96		86		96		182		185
Advertising and business development		86		77		68		163		141
Professional fees		64		52		59		116		117
Business and capital taxes		28		35		31		63		70
Other (Note 13)		357		427		215		784		1,713
		3,501		3,465		3,140		6,966		7,602
Income before income taxes		2,149		2,171		2,126		4,320		3,298
Income taxes		400		443		437		843		1,176
Net income	$	1,749	$	1,728	$	1,689	$	3,477	$	2,122
Net income attributable to non-controlling interests	$	10	$	12	$	11	$	22	$	20
Preferred shareholders and other equity instrument holders	$	61	$	67	$	67	$	128	$	139
Common shareholders		1,678		1,649		1,611		3,327		1,963
Net income attributable to equity shareholders	$	1,739	$	1,716	$	1,678	$	3,455	$	2,102
Earnings per share (in dollars) (Note 12)
Basic	$	1.79	$	1.77	$	1.77	$	3.56	$	2.16
Diluted		1.79		1.77		1.76		3.55		2.16
Dividends per common share (in dollars)		0.900		0.900		0.850		1.800		1.700

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Interest income included $11.9 billion for the quarter ended April 30, 2024 (January 31, 2024: $11.9 billion; April 30, 2023: $10.1 billion) and $23.9 billion for the six months ended April 30, 2024 (April 30, 2023: $19.7 billion), calculated based on the effective interest rate method.

The accompanying notes and shaded sections in “MD&A – Management of risk” are an integral part of these interim consolidated financial statements.

56 CIBC SECOND QUARTER 2024

Consolidated statement of comprehensive income

	For the three months ended									For the six months ended
Unaudited, millions of Canadian dollars	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30 (1)			2024 Apr. 30			2023 Apr. 30 (1)
Net income	$	1,749		$	1,728		$	1,689		$	3,477		$	2,122
Other comprehensive income (loss) (OCI), net of income tax, that is subject to subsequent reclassification to net income
Net foreign currency translation adjustments
Net gains (losses) on investments in foreign operations		1,244			(1,603	)		784			(359	)		(226	)
Net gains (losses) on hedges of investments in foreign operations		(779	)		962			(431	)		183			112
		465			(641	)		353			(176	)		(114	)
Net change in debt securities measured at FVOCI
Net gains (losses) on debt securities measured at FVOCI		21			160			134			181			263
Net (gains) losses reclassified to net income		(21	)		(10	)		(25	)		(31	)		(32	)
		–			150			109			150			231
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges		(374	)		871			105			497			681
Net (gains) losses reclassified to net income		(92	)		(116	)		(107	)		(208	)		(480	)
		(466	)		755			(2	)		289			201
OCI, net of income tax, that is not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans		13			(78	)		(69	)		(65	)		(163	)
Net gains (losses) due to fair value change of fair value option (FVO) liabilities attributable to changes in credit risk		(57	)		(199	)		7			(256	)		(141	)
Net gains (losses) on equity securities designated at FVOCI		(10	)		–			7			(10	)		13
		(54	)		(277	)		(55	)		(331	)		(291	)
Total OCI (2)		(55	)		(13	)		405			(68	)		27
Comprehensive income	$	1,694		$	1,715		$	2,094		$	3,409		$	2,149
Comprehensive income attributable to non-controlling interests	$	10		$	12		$	11		$	22		$	20
Preferred shareholders and other equity instrument holders	$	61		$	67		$	67		$	128		$	139
Common shareholders		1,623			1,636			2,016			3,259			1,990
Comprehensive income attributable to equity shareholders	$	1,684		$	1,703		$	2,083		$	3,387		$	2,129
(1)  Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details. (2)  Includes $1 million of gains for the quarter ended April 30, 2024 (January 31, 2024: $53 million of gains; April 30, 2023: $40 million of gains) and $54 million of gains for the six months ended April 30, 2024 (April 30, 2023: $61 million of gains), relating to our investments in equity-accounted associates and joint ventures.
	For the three months ended									For the six months ended
Unaudited, millions of Canadian dollars	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
Income tax (expense) benefit allocated to each component of OCI
Subject to subsequent reclassification to net income
Net foreign currency translation adjustments
Net gains (losses) on investments in foreign operations	$	(34	)	$	45		$	(28	)	$	11		$	7
Net gains (losses) on hedges of investments in foreign operations		78			(96	)		32			(18	)		(11	)
		44			(51	)		4			(7	)		(4	)
Net change in debt securities measured at FVOCI
Net gains (losses) on debt securities measured at FVOCI		(2	)		(32	)		(29	)		(34	)		(63	)
Net (gains) losses reclassified to net income		8			4			10			12			13
		6			(28	)		(19	)		(22	)		(50	)
Net change in cash flow hedges
Net gains (losses) on derivatives designated as cash flow hedges		144			(335	)		(21	)		(191	)		(242	)
Net (gains) losses reclassified to net income		35			45			33			80			176
		179			(290	)		12			(111	)		(66	)
Not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans		(5	)		31			10			26			46
Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk		21			77			(6	)		98			51
Net gains (losses) on equity securities designated at FVOCI		3			–			(3	)		3			(4	)
		19			108			1			127			93
	$	248		$	(261	)	$	(2	)	$	(13	)	$	(27	)

The accompanying notes and shaded sections in “MD&A – Management of risk” are an integral part of these interim consolidated financial statements.

CIBC SECOND QUARTER 2024 57

Consolidated statement of changes in equity

	For the three months ended						For the six months ended
Unaudited, millions of Canadian dollars	2024 Apr. 30			2023 Apr. 30 (1)			2024 Apr. 30			2023 Apr. 30 (1)
Preferred shares and other equity instruments
Balance at beginning of period	$	4,925		$	4,925		$	4,925		$	4,923
Issue of preferred shares and limited recourse capital notes		500			–			500			–
Redemption of preferred shares		(325	)		–			(325	)		–
Treasury shares		(2	)		–			(2	)		2
Balance at end of period	$	5,098		$	4,925		$	5,098		$	4,925
Common shares (Note 9)
Balance at beginning of period	$	16,447		$	15,046		$	16,082		$	14,726
Issue of common shares		367			341			734			663
Treasury shares		(1	)		2			(3	)		–
Balance at end of period	$	16,813		$	15,389		$	16,813		$	15,389
Contributed surplus
Balance at beginning of period	$	108		$	115		$	109		$	115
Compensation expense arising from equity-settled share-based awards		4			3			6			5
Exercise of stock options and settlement of other equity-settled share-based awards		(1	)		(1	)		(3	)		(3	)
Other (2)		3			1			2			1
Balance at end of period	$	114		$	118		$	114		$	118
Retained earnings
Balance at beginning of period before accounting policy changes		n/a		$	28,348			n/a		$	28,823
Impact of adopting IFRS 17 at November 1, 2022		n/a			n/a			n/a			(56	)
Balance at beginning of period under IFRS 17	$	31,162		$	28,348		$	30,352		$	28,767
Net income attributable to equity shareholders		1,739			1,678			3,455			2,102
Dividends and distributions
Preferred and other equity instruments		(61	)		(67	)		(128	)		(139	)
Common		(844	)		(775	)		(1,683	)		(1,546	)
Realized gains (losses) on equity securities designated at FVOCI reclassified from AOCI		–			2			1			2
Other		(6	)		–			(7	)		–
Balance at end of period	$	31,990		$	29,186		$	31,990		$	29,186
AOCI, net of income tax
AOCI, net of income tax, that is subject to subsequent reclassification to net income
Net foreign currency translation adjustments
Balance at beginning of period	$	1,521		$	1,344		$	2,162		$	1,811
Net change in foreign currency translation adjustments		465			353			(176	)		(114	)
Balance at end of period	$	1,986		$	1,697		$	1,986		$	1,697
Net gains (losses) on debt securities measured at FVOCI
Balance at beginning of period	$	(257	)	$	(494	)	$	(407	)	$	(616	)
Net change in debt securities measured at FVOCI		–			109			150			231
Balance at end of period	$	(257	)	$	(385	)	$	(257	)	$	(385	)
Net gains (losses) on cash flow hedges
Balance at beginning of period	$	(271	)	$	(459	)	$	(1,026	)	$	(662	)
Net change in cash flow hedges		(466	)		(2	)		289			201
Balance at end of period	$	(737	)	$	(461	)	$	(737	)	$	(461	)
AOCI, net of income tax, that is not subject to subsequent reclassification to net income
Net gains (losses) on post-employment defined benefit plans
Balance at beginning of period	$	514		$	738		$	592		$	832
Net change in post-employment defined benefit plans		13			(69	)		(65	)		(163	)
Balance at end of period	$	527		$	669		$	527		$	669
Net gains (losses) due to fair value change of FVO liabilities attributable to changes in credit risk
Balance at beginning of period	$	(71	)	$	86		$	128		$	234
Net change attributable to changes in credit risk		(57	)		7			(256	)		(141	)
Balance at end of period	$	(128	)	$	93		$	(128	)	$	93
Net gains (losses) on equity securities designated at FVOCI
Balance at beginning of period	$	13		$	1		$	14		$	(5	)
Net gains (losses) on equity securities designated at FVOCI		(10	)		7			(10	)		13
Realized (gains) losses on equity securities designated at FVOCI reclassified to retained earnings		–			(2	)		(1	)		(2	)
Balance at end of period	$	3		$	6		$	3		$	6
Total AOCI, net of income tax	$	1,394		$	1,619		$	1,394		$	1,619
Non-controlling interests
Balance at beginning of period	$	235		$	203		$	232		$	201
Net income attributable to non-controlling interests		10			11			22			20
Dividends		(2	)		(2	)		(4	)		(4	)
Other		4			3			(3	)		(2	)
Balance at end of period	$	247		$	215		$	247		$	215
Equity at end of period	$	55,656		$	51,452		$	55,656		$	51,452

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Includes the portion of the estimated tax benefit related to employee stock options that is incremental to the amount recognized in the interim consolidated statement of income.

n/a Not applicable.

The accompanying notes and shaded sections in “MD&A – Management of risk” are an integral part of these interim consolidated financial statements.

58 CIBC SECOND QUARTER 2024

Consolidated statement of cash flows

	For the three months ended						For the six months ended
Unaudited, millions of Canadian dollars	2024 Apr. 30			2023 Apr. 30 (1)			2024 Apr. 30			2023 Apr. 30 (1)
Cash flows provided by (used in) operating activities
Net income	$	1,749		$	1,689		$	3,477		$	2,122
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
Provision for credit losses		514			438			1,099			733
Amortization and impairment (2)		288			282			564			559
Stock options and restricted shares expense		4			3			6			5
Deferred income taxes		(58	)		206			(19	)		(64	)
Losses (gains) from debt securities measured at FVOCI and amortized cost		(31	)		(31	)		(46	)		(41	)
Net losses (gains) on disposal of property and equipment		–			(3	)		–			(3	)
Other non-cash items, net		201			1			(489	)		61
Net changes in operating assets and liabilities
Interest-bearing deposits with banks		(1,234	)		(2,757	)		(3,942	)		976
Loans, net of repayments		(8,907	)		(8,411	)		(8,872	)		(10,618	)
Deposits, net of withdrawals		8,869			9,573			4,818			1,333
Obligations related to securities sold short		3,311			(908	)		4,783			1,447
Accrued interest receivable		(475	)		(564	)		(538	)		(852	)
Accrued interest payable		565			905			762			1,641
Derivative assets		(6,787	)		1,440			1,803			14,056
Derivative liabilities		6,128			(2,788	)		(2,473	)		(15,652	)
Securities measured at FVTPL		(5,832	)		290			(14,109	)		(2,121	)
Other assets and liabilities measured/designated at FVTPL		(472	)		215			2,393			4,107
Current income taxes		1			(400	)		(68	)		204
Cash collateral on securities lent		1,038			1,581			548			824
Obligations related to securities sold under repurchase agreements		11,399			5,590			13,891			(324	)
Cash collateral on securities borrowed		6,008			2,189			896			5,069
Securities purchased under resale agreements		(13,347	)		(4,608	)		(5,858	)		(577	)
Other, net		511			2,470			1,016			3,658
		3,443			6,402			(358	)		6,543
Cash flows provided by (used in) financing activities
Issue of subordinated indebtedness		–			750			1,250			1,750
Redemption/repurchase/maturity of subordinated indebtedness		–			(1,500	)		–			(1,500	)
Issue of preferred shares and limited recourse capital notes, net of issuance cost		498			–			498			–
Redemption of preferred shares		(325	)		–			(325	)		–
Issue of common shares for cash		67			44			124			92
Net sale (purchase) of treasury shares		(3	)		2			(5	)		2
Dividends and distributions paid		(606	)		(546	)		(1,204	)		(1,117	)
Repayment of lease liabilities		(78	)		(83	)		(128	)		(165	)
		(447	)		(1,333	)		210			(938	)
Cash flows provided by (used in) investing activities
Purchase of securities measured/designated at FVOCI and amortized cost		(19,056	)		(20,516	)		(39,567	)		(42,605	)
Proceeds from sale of securities measured/designated at FVOCI and amortized cost		10,910			5,977			16,598			10,470
Proceeds from maturity of debt securities measured at FVOCI and amortized cost		6,694			8,726			13,045			17,413
Net sale (purchase) of property, equipment and software		(212	)		(240	)		(421	)		(486	)
		(1,664	)		(6,053	)		(10,345	)		(15,208	)
Effect of exchange rate changes on cash and non-interest-bearing deposits with banks		57			49			(24	)		9
Net increase (decrease) in cash and non-interest-bearing deposits with banks during the period		1,389			(935	)		(10,517	)		(9,594	)
Cash and non-interest-bearing deposits with banks at beginning of period		8,910			22,876			20,816			31,535
Cash and non-interest-bearing deposits with banks at end of period (3)	$	10,299		$	21,941		$	10,299		$	21,941
Cash interest paid	$	8,928		$	6,590		$	18,216		$	12,910
Cash interest received		11,870			9,876			24,146			19,598
Cash dividends received		428			242			823			493
Cash income taxes paid		458			629			931			1,033

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets.

(3) Includes restricted cash of $522 million (April 30, 2023: $494 million) and interest-bearing demand deposits with Bank of Canada.

The accompanying notes and shaded sections in “MD&A – Management of risk” are an integral part of these interim consolidated financial statements.

CIBC SECOND QUARTER 2024 59

Notes to the interim consolidated financial statements

(Unaudited)

The interim consolidated financial statements of CIBC are prepared in accordance with Section 308(4) of the Bank Act (Canada), which states that, except as otherwise specified by the Office of the Superintendent of Financial Institutions (OSFI), the financial statements are to be prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). There are no accounting requirements of OSFI that are exceptions to IFRS.

These interim consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting” and do not include all of the information required for full annual consolidated financial statements. Except as indicated below, these interim consolidated financial statements follow the same accounting policies and methods of application as CIBC’s consolidated financial statements as at and for the year ended October 31, 2023.

All amounts in these interim consolidated financial statements are presented in millions of Canadian dollars, unless otherwise indicated. These interim consolidated financial statements were authorized for issue by the Board of Directors on May 29, 2024.

Note 1. Changes in accounting policies

a) Retrospective application of new standards

IFRS 17 “Insurance Contracts” (IFRS 17)

CIBC adopted IFRS 17 “Insurance Contracts” as at November 1, 2023, in place of IFRS 4 “Insurance Contracts” (IFRS 4). IFRS 17 provides comprehensive guidance on the recognition, measurement, presentation and disclosure of insurance contracts we issue and reinsurance contracts we hold. We applied IFRS 17 on a retrospective basis beginning on November 1, 2023, with the restatement of the 2023 comparative periods. We recognized an after-tax reduction of $56 million to retained earnings at the beginning of the comparative year November 1, 2022, due to the adoption of IFRS 17.

IFRS 17 requires groups of insurance contracts to be established and measured on the basis of fulfilment cash flows using the measurement models outlined by the standard. Insurance contracts under the General Measurement Model (GMM) are measured based on the present value of fulfilment cash flows, a risk adjustment for non-financial risks, and a contractual service margin (CSM) representing our unearned profits on a portfolio basis, further disaggregated into profitability groups. We have applied GMM to our insurance contracts with contract boundaries exceeding a year. Contracts under the Premium Allocation Approach (PAA) are measured on the basis of premiums received and related cash flows, which has been applied to our insurance contracts with contract boundaries shorter than one year. Under both measurement models, we have measured the liability for incurred claims on the basis of fulfilment cash flows relating to claims incurred.

On transition, we applied the full retrospective approach to transition contracts with contract boundaries shorter than one year, which constitutes the majority of our insurance business. The full retrospective approach required us to measure the insurance contracts as if IFRS 17 had always been applied. We applied the fair value approach to transition contracts with contract boundaries exceeding a year and to which we were unable to apply the full retrospective approach. Under the fair value approach, we determined the CSM of the liability for remaining coverage as at the transition date, as the difference between the fair value of the group of insurance contracts and the fulfilment cash flows measured at that date. Upon adoption, no reclassifications were made to our financial assets under IFRS 9.

The impacted lines on the opening November 1, 2022 consolidated balance sheet as a result of the retrospective application of IFRS 17 were as follows:

$ millions	Reported as at October 31, 2022		IFRS 17 transitional adjustments			Restated as at opening November 1, 2022
Assets
Deferred tax assets		$     480		$   20			$     500
Other assets		35,197		(44	)		35,153
Liabilities and equity
Other liabilities		$  28,072		$   32			$  28,104
Retained earnings		28,823		(56	)		28,767

As part of the adoption of IFRS 17, we present our insurance results as part of Income from insurance activities, net (formerly Insurance fees, net of claims). The adoption of IFRS 17 resulted in an increase in Net income before tax of $9 million and an increase in Income taxes of $3 million for the year ended October 31, 2023. There was an increase in Net income before taxes of $2 million and an increase in Income taxes of $1 million for the three months ended April 30, 2023, and an increase in Net income before taxes of $4 million and an increase in Income taxes of $2 million for the six months ended April 30, 2023.

60 CIBC SECOND QUARTER 2024

b) Prospective application of new standards

International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12 “Income Taxes” (IAS 12)

On May 23, 2023, the IASB issued “International Tax Reform – Pillar Two Model Rules”, which amended IAS 12 to provide temporary relief from the accounting and disclosure for deferred taxes arising from the implementation of Pillar Two Model Rules. CIBC has applied this exception to recognizing and disclosing deferred taxes related to Pillar Two income taxes. Further amendments to IAS 12 require additional disclosures as of CIBC’s fiscal year beginning November 1, 2023, for the periods where the Pillar Two legislation has been enacted or substantively enacted but is not yet in effect, as reflected in Note 11 to our interim consolidated financial statements.

c) Future accounting policy changes

IFRS 18 “Presentation and Disclosure in Financial Statements” (IFRS 18)

On April 9, 2024, the IASB issued IFRS 18 “Presentation and Disclosure in Financial Statements”, which replaces IAS 1 “Presentation of Financial Statements”. IFRS 18 is effective for reporting periods beginning on or after January 1, 2027, which for CIBC will be for the fiscal year beginning November 1, 2027, with the requirement to restate comparative financial periods. Early adoption is permitted. IFRS 18 is a result of the IASB’s Primary Financial Statements project, which aimed to improve the comparability and transparency of communication in financial statements. It introduces a number of new requirements including a more structured consolidated statement of income, new disclosure for certain management-defined performance measures and new guidance on how to aggregate and disaggregate information on the face of the consolidated financial statements and notes. We are currently evaluating the impact that adopting this standard will have on our consolidated financial statements.

Note 2. Significant estimates and assumptions

As disclosed in our 2023 Annual Report, the preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the recognized and measured amounts of assets, liabilities, net income, comprehensive income and related disclosures. Significant estimates and assumptions are made in the areas of the valuation of financial instruments, allowance for credit losses, the evaluation of whether to consolidate structured entities, leases, asset impairment, income taxes, provisions and contingent liabilities, post-employment and other long-term benefit plan assumptions and valuation of self-managed loyalty points programs. We continue to operate in an uncertain macroeconomic environment which gives rise to heightened uncertainty as it relates to accounting estimates and assumptions and increases the need to apply judgment in evaluating the economic and market environment and its impact on significant estimates.

The need to apply judgment particularly impacts estimates and assumptions relating to the allowance for credit losses, where significant judgment continued to be inherent in the forecasting of forward-looking information. Changes in the judgments and estimates related to IFRS 9 can have a significant impact on the level of expected credit loss (ECL) allowance recognized and the period-over-period volatility of the provision for credit losses. Actual results could differ from these estimates and assumptions. See Note 5 to our consolidated financial statements in our 2023 Annual Report, and Note 6 to our interim consolidated financial statements for more information concerning the high level of judgment inherent in the estimation of ECL allowance.

CIBC SECOND QUARTER 2024 61

Note 3. Fair value measurement

Fair value of financial instruments

		Carrying value
$ millions, as at		Amortized cost		Mandatorily measured at FVTPL		Designated at FVTPL		Fair value through OCI		Total		Fair value		Fair value over (under) carrying value
2024	Financial assets
Apr. 30	Cash and deposits with banks	$	49,143	$	–	$	–	$	–	$	49,143	$	49,143	$	–
	Securities		69,136		96,832		–		69,562		235,530		233,947		(1,583	)
	Cash collateral on securities borrowed		13,755		–		–		–		13,755		13,755		–
	Securities purchased under resale agreements		70,898		15,144		–		–		86,042		86,042		–
	Loans
	Residential mortgages		274,042		3		–		–		274,045		270,486		(3,559	)
	Personal		44,955		–		–		–		44,955		44,903		(52	)
	Credit card		18,816		–		–		–		18,816		18,861		45
	Business and government		199,304		526		121		–		199,951		199,681		(270	)
	Derivative instruments		–		31,410		–		–		31,410		31,410		–
	Customers’ liability under acceptances		6,130		–		–		–		6,130		6,130		–
	Other assets		20,097		207		–		–		20,304		20,304		–
	Financial liabilities
	Deposits
	Personal	$	232,147	$	–	$	16,249	$	–	$	248,396	$	248,429	$	33
	Business and government		387,435		–		21,128		–		408,563		409,452		889
	Bank		25,848		–		–		–		25,848		25,848		–
	Secured borrowings		47,861		–		1,284		–		49,145		49,269		124
	Derivative instruments		–		38,812		–		–		38,812		38,812		–
	Acceptances		6,139		–		–		–		6,139		6,139		–
	Obligations related to securities sold short		–		23,449		–		–		23,449		23,449		–
	Cash collateral on securities lent		8,629		–		–		–		8,629		8,629		–
	Obligations related to securities sold under repurchase agreements		96,189		–		4,820		–		101,009		101,009		–
	Other liabilities		20,055		167		27		–		20,249		20,249		–
	Subordinated indebtedness		7,795		–		–		–		7,795		8,030		235
2023	Financial assets
Oct. 31	Cash and deposits with banks	$	55,718	$	–	$	–	$	–	$	55,718	$	55,718	$	–
	Securities		67,294		82,723		–		61,331		211,348		209,326		(2,022	)
	Cash collateral on securities borrowed		14,651		–		–		–		14,651		14,651		–
	Securities purchased under resale agreements		66,797		13,387		–		–		80,184		80,184		–
	Loans
	Residential mortgages		273,785		3		–		–		273,788		268,403		(5,385	)
	Personal		44,570		–		–		–		44,570		44,454		(116	)
	Credit card		17,853		–		–		–		17,853		17,909		56
	Business and government		192,856		126		144		–		193,126		192,727		(399	)
	Derivative instruments		–		33,243		–		–		33,243		33,243		–
	Customers’ liability under acceptances		10,816		–		–		–		10,816		10,816		–
	Other assets		18,651		–		–		–		18,651		18,651		–
	Financial liabilities
	Deposits
	Personal	$	225,183	$	–	$	13,852	$	–	$	239,035	$	238,725	$	(310	)
	Business and government		392,021		–		20,540		–		412,561		412,983		422
	Bank		22,296		–		–		–		22,296		22,296		–
	Secured borrowings		48,098		–		1,386		–		49,484		49,353		(131	)
	Derivative instruments		–		41,290		–		–		41,290		41,290		–
	Acceptances		10,820		–		–		–		10,820		10,820		–
	Obligations related to securities sold short		–		18,666		–		–		18,666		18,666		–
	Cash collateral on securities lent		8,081		–		–		–		8,081		8,081		–
	Obligations related to securities sold under repurchase agreements		82,403		–		4,715		–		87,118		87,118		–
	Other liabilities		18,459		119		16		–		18,594		18,594		–
	Subordinated indebtedness		6,483		–		–		–		6,483		6,561		78

62 CIBC SECOND QUARTER 2024

The table below presents the level in the fair value hierarchy into which the fair values of financial instruments, that are carried at fair value on the interim consolidated balance sheet, are categorized:

	Level 1						Level 2						Level 3
	Quoted market price						Valuation technique – observable market inputs						Valuation technique – non-observable market inputs						Total			Total
$ millions, as at	2024 Apr. 30			2023 Oct. 31			2024 Apr. 30			2023 Oct. 31			2024 Apr. 30			2023 Oct. 31			2024 Apr. 30			2023 Oct. 31
Financial assets
Debt securities mandatorily measured and designated at FVTPL
Government issued or guaranteed	$	4,132		$	4,194		$	25,920		$	25,128		$	–		$	–		$	30,052		$	29,322
Corporate debt		–			–			4,330			4,455			–			–			4,330			4,455
Mortgage- and asset-backed		–			–			4,415			3,056			101			151			4,516			3,207
		4,132			4,194			34,665			32,639			101			151			38,898			36,984
Loans mandatorily measured at FVTPL
Business and government		–			–			526			126			121	(1)		144	(1)		647			270
Residential mortgages		–			–			3			3			–			–			3			3
		–			–			529			129			121			144			650			273
Debt securities measured at FVOCI
Government issued or guaranteed		3,382			3,468			53,603			48,717			–			–			56,985			52,185
Corporate debt		–			–			7,971			6,658			–			–			7,971			6,658
Mortgage- and asset-backed		–			–			3,992			1,916			–			–			3,992			1,916
		3,382			3,468			65,566			57,291			–			–			68,948			60,759
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		57,092			44,852			848			872			608			587			58,548			46,311
Securities purchased under resale agreements measured at FVTPL		–			–			15,144			13,387	(2)		–			–			15,144			13,387
Other assets		–			–			207			–			–			–			207			–
Derivative instruments
Interest rate		1			1			7,666			9,385			36			21			7,703			9,407
Foreign exchange		–			–			13,486			15,509			–			–			13,486			15,509
Credit		–			–			1			18			46			46			47			64
Equity		3,524			2,331			3,634			2,900			5			4			7,163			5,235
Precious metal and other commodity		18			15			2,993			3,013			–			–			3,011			3,028
		3,543			2,347			27,780			30,825			87			71			31,410			33,243
Total financial assets	$	68,149		$	54,861		$	144,739		$	135,143		$	917		$	953		$	213,805		$	190,957
Financial liabilities
Deposits and other liabilities (3)	$	–		$	–		$	(38,475	)	$	(35,671	)	$	(380	)	$	(242	)	$	(38,855	)	$	(35,913	)
Obligations related to securities sold short		(12,849	)		(6,265	)		(10,600	)		(12,401	)		–			–			(23,449	)		(18,666	)
Obligations related to securities sold under repurchase agreements		–			–			(4,820	)		(4,715	)		–			–			(4,820	)		(4,715	)
Derivative instruments
Interest rate		–			(1	)		(11,453	)		(13,781	)		(1,222	)		(1,817	)		(12,675	)		(15,599	)
Foreign exchange		–			–			(15,452	)		(17,677	)		(13	)		–			(15,465	)		(17,677	)
Credit		–			–			(5	)		(11	)		(51	)		(52	)		(56	)		(63	)
Equity		(2,899	)		(2,406	)		(4,262	)		(3,498	)		(4	)		(5	)		(7,165	)		(5,909	)
Precious metal and other commodity		(61	)		(68	)		(3,390	)		(1,974	)		–			–			(3,451	)		(2,042	)
		(2,960	)		(2,475	)		(34,562	)		(36,941	)		(1,290	)		(1,874	)		(38,812	)		(41,290	)
Total financial liabilities	$	(15,809	)	$	(8,740	)	$	(88,457	)	$	(89,728	)	$	(1,670	)	$	(2,116	)	$	(105,936	)	$	(100,584	)

(1) Includes $121 million related to loans designated at FVTPL (October 31, 2023: $144 million).

(2) Restated from amounts previously presented.

(3) Comprises deposits designated at FVTPL of $38,335 million (October 31, 2023: $35,639 million), net bifurcated embedded derivative liabilities of $326 million (October 31, 2023: $139 million), other liabilities designated at FVTPL of $27 million (October 31, 2023: $16 million), and other financial liabilities measured at fair value of $167 million (October 31, 2023: $119 million).

Transfers between levels in the fair value hierarchy are deemed to have occurred at the beginning of the quarter in which the transfer occurred. Transfers between levels can occur as a result of additional or new information regarding valuation inputs and changes in their observability. During the quarter ended April 30, 2024, we transferred $1,597 million of securities mandatorily measured at FVTPL from Level 1 to Level 2 and $759 million from Level 2 to Level 1, and $1,775 million of securities sold short from Level 1 to Level 2 and $2,535 million from Level 2 to Level 1, due to changes in observability in the inputs used to value these securities (for the quarter ended January 31, 2024, $394 million of securities mandatorily measured at FVTPL were transferred from Level 1 to Level 2 and nil from Level 2 to Level 1, and $1,002 million of securities sold short from Level 1 to Level 2 and $551 million from Level 2 to Level 1; for the quarter ended April 30, 2023, $2,166 million of securities mandatorily measured at FVTPL were transferred from Level 1 to Level 2 and $372 million from Level 2 to Level 1, $954 million of securities sold short from Level 1 to Level 2 and $22 million from Level 2 to Level 1). In addition, transfers between Level 2 and Level 3 were made during the quarters ended April 30, 2024, January 31, 2024, and April 30, 2023, primarily due to changes in the assessment of the observability of certain correlation and market volatility and probability inputs that were used in measuring the fair value of our FVO liabilities and derivatives.

The following table presents the changes in fair value of financial assets and liabilities in Level 3. These instruments are measured at fair value utilizing non-observable market inputs. We often hedge positions with offsetting positions that may be classified in a different level. As a result, the gains and losses for assets and liabilities in the Level 3 category presented in the table below do not reflect the effect of offsetting gains and losses on the related hedging instruments that are classified in Level 1 and Level 2.

CIBC SECOND QUARTER 2024 63

				Net gains (losses) included in income (1)
$ millions, for the three months ended		Opening balance			Realized	(2)		Unrealized	(2)(3)		Net unrealized gains (losses) included in OCI	(4)		Transfer in to Level 3			Transfer out of Level 3			Purchases/ Issuances			Sales/ Settlements			Closing balance
Apr. 30, 2024
Debt securities mandatorily measured and designated at FVTPL
Corporate debt	$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–
Mortgage- and asset-backed		147			–			–			–			–			–			12			(58	)		101
Loans mandatorily measured at FVTPL
Business and government		131			–			(1	)		3			–			–			–			(12	)		121
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		586			3			16			(11	)		–			–			32			(18	)		608
Derivative instruments
Interest rate		117			–			(44	)		–			–			(37	)		–			–			36
Foreign exchange		–			–			–			–			–			–			–			–			–
Credit		45			(2	)		2			–			–			–			1			–			46
Equity		5			–			–			–			–			–			–			–			5
Total assets	$	1,031		$	1		$	(27	)	$	(8	)	$	–		$	(37	)	$	45		$	(88	)	$	917
Deposits and other liabilities (5)	$	(399	)	$	(4	)	$	2		$	–		$	(1	)	$	5		$	(24	)	$	41		$	(380	)
Derivative instruments
Interest rate		(908	)		–			(386	)		–			–			52			–			20			(1,222	)
Foreign exchange		(9	)		–			(13	)		–			–			9			–			–			(13	)
Credit		(50	)		–			–			–			(2	)		–			–			1			(51	)
Equity		(6	)		–			–			–			–			2			–			–			(4	)
Total liabilities	$	(1,372	)	$	(4	)	$	(397	)	$	–		$	(3	)	$	68		$	(24	)	$	62		$	(1,670	)
Jan. 31, 2024
Debt securities mandatorily measured and designated at FVTPL
Corporate debt	$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–
Mortgage- and asset-backed		151			–			(3	)		–			–			–			49			(50	)		147
Loans mandatorily measured at FVTPL
Business and government		144			–			3			(4	)		–			–			–			(12	)		131
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		587			2			(6	)		(2	)		–			–			30			(25	)		586
Derivative instruments
Interest rate		21			–			97			–			–			(1	)		–			–			117
Credit		46			(1	)		–			–			–			–			–			–			45
Equity		4			–			–			–			2			(2	)		2			(1	)		5
Total assets	$	953		$	1		$	91		$	(6	)	$	2		$	(3	)	$	81		$	(88	)	$	1,031
Deposits and other liabilities (5)	$	(242	)	$	9		$	(114	)	$	–		$	–		$	7		$	(77	)	$	18		$	(399	)
Derivative instruments
Interest rate		(1,817	)		–			569			–			–			311			–			29			(908	)
Foreign exchange		–			–			(9	)		–			–			–			–			–			(9	)
Credit		(52	)		1			1			–			–			–			–			–			(50	)
Equity		(5	)		–			(1	)		–			(1	)		1			–			–			(6	)
Total liabilities	$	(2,116	)	$	10		$	446		$	–		$	(1	)	$	319		$	(77	)	$	47		$	(1,372	)
Apr. 30, 2023
Debt securities mandatorily measured and designated at FVTPL
Corporate debt	$	2		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	2
Mortgage- and asset-backed		305			–			–			–			–			–			4			(80	)		229
Loans mandatorily measured at FVTPL
Business and government		374			–			2			3			–			–			(11	)		(188	)		180
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		478			–			26			9			–			–			142			(62	)		593
Derivative instruments
Interest rate		43			–			2			–			–			–			5			–			50
Foreign exchange		–			–			24			–			–			–			–			–			24
Credit		44			(1	)		2			–			–			–			–			–			45
Equity		6			–			–			–			2			–			1			(3	)		6
Total assets	$	1,252		$	(1	)	$	56		$	12		$	2		$	–		$	141		$	(333	)	$	1,129
Deposits and other liabilities (5)	$	(428	)	$	(12	)	$	40		$	–		$	(2	)	$	2		$	(20	)	$	78		$	(342	)
Derivative instruments
Interest rate		(753	)		–			(36	)		–			–			8			–			13			(768	)
Foreign exchange		–			–			–			–			–			–			–			–			–
Credit		(49	)		1			(2	)		–			–			–			–			–			(50	)
Equity		(5	)		–			–			–			(1	)		3			–			–			(3	)
Total liabilities	$	(1,235	)	$	(11	)	$	2		$	–		$	(3	)	$	13		$	(20	)	$	91		$	(1,163	)

(1) Cumulative AOCI gains or losses related to equity securities designated at FVOCI are reclassified from AOCI to retained earnings at the time of disposal or derecognition.

(2) Includes foreign currency gains and losses related to debt securities measured at FVOCI.

(3) Comprises unrealized gains and losses relating to the assets and liabilities held at the end of the reporting period.

(4) Foreign exchange translation on loans mandatorily measured at FVTPL held by foreign operations and denominated in the same currency as the foreign operations is included in OCI.

(5) Includes deposits designated at FVTPL of $197 million (January 31, 2024: $212 million; April 30, 2023: $76 million), net bifurcated embedded derivative liabilities of $156 million (January 31, 2024: $174 million; April 30, 2023: $245 million) and other liabilities designated at FVTPL of $27 million (January 31, 2024: $13 million; April 30, 2023: $21 million).

64 CIBC SECOND QUARTER 2024

				Net gains (losses) included in income (1)
$ millions, for the six months ended		Opening balance			Realized	(2)		Unrealized	(2)(3)		Net unrealized gains (losses) included in OCI	(4)		Transfer in to Level 3			Transfer out of Level 3			Purchases/ Issuances			Sales/ Settlements			Closing balance
Apr. 30, 2024
Debt securities mandatorily measured and designated at FVTPL
Corporate debt	$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	–
Mortgage- and asset-backed		151			–			(3	)		–			–			–			61			(108	)		101
Loans mandatorily measured at FVTPL
Business and government		144			–			2			(1	)		–			–			–			(24	)		121
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		587			5			10			(13	)		–			–			62			(43	)		608
Derivative instruments
Interest rate		21			–			53			–			–			(38	)		–			–			36
Foreign exchange		–			–			–			–			–			–			–			–			–
Credit		46			(3	)		2			–			–			–			1			–			46
Equity		4			–			–			–			2			(2	)		2			(1	)		5
Total assets	$	953		$	2		$	64		$	(14	)	$	2		$	(40	)	$	126		$	(176	)	$	917
Deposits and other liabilities (5)	$	(242	)	$	(9	)	$	(81	)	$	–		$	(1	)	$	10		$	(101	)	$	44		$	(380	)
Derivative instruments
Interest rate		(1,817	)		–			183			–			–			363			–			49			(1,222	)
Foreign exchange		–			–			(22	)		–			–			9			–			–			(13	)
Credit		(52	)		1			1			–			(2	)		–			–			1			(51	)
Equity		(5	)		–			(1	)		–			(1	)		3			–			–			(4	)
Total liabilities	$	(2,116	)	$	(8	)	$	80		$	–		$	(4	)	$	385		$	(101	)	$	94		$	(1,670	)
Apr. 30, 2023
Debt securities mandatorily measured and designated at FVTPL
Corporate debt	$	2		$	–		$	–		$	–		$	–		$	–		$	–		$	–		$	2
Mortgage- and asset-backed		207			–			–			–			–			–			106			(84	)		229
Loans mandatorily measured at FVTPL
Business and government		687			–			6			(5	)		–			–			(48	)		(460	)		180
Corporate equity mandatorily measured at FVTPL and designated at FVOCI		459			1			35			9			–			–			168			(79	)		593
Derivative instruments
Interest rate		18			–			25			–			–			–			7			–			50
Foreign exchange		–			–			24			–			–			–			–			–			24
Credit		45			(1	)		1			–			–			–			–			–			45
Equity		4			–			–			–			2			(2	)		5			(3	)		6
Total assets	$	1,422		$	–		$	91		$	4		$	2		$	(2	)	$	238		$	(626	)	$	1,129
Deposits and other liabilities (5)	$	(409	)	$	(17	)	$	(9	)	$	–		$	(2	)	$	2		$	(29	)	$	122		$	(342	)
Derivative instruments
Interest rate		(1,533	)		–			351			–			–			386			(3	)		31			(768	)
Foreign exchange		–			–			–			–			–			–			–			–			–
Credit		(50	)		1			(1	)		–			–			–			–			–			(50	)
Equity		(3	)		–			(1	)		–			(1	)		3			(1	)		–			(3	)
Total liabilities	$	(1,995	)	$	(16	)	$	340		$	–		$	(3	)	$	391		$	(33	)	$	153		$	(1,163	)

(1) Cumulative AOCI gains or losses related to equity securities designated at FVOCI are reclassified from AOCI to retained earnings at the time of disposal or derecognition.

(2) Includes foreign currency gains and losses related to debt securities measured at FVOCI.

(3) Comprises unrealized gains and losses relating to the assets and liabilities held at the end of the reporting period.

(4) Foreign exchange translation on loans mandatorily measured at FVTPL held by foreign operations and denominated in the same currency as the foreign operations is included in OCI.

(5) Includes deposits designated at FVTPL of $197 million (April 30, 2023: $76 million), net bifurcated embedded derivative liabilities of $156 million (April 30, 2023: $245 million) and other liabilities designated at FVTPL of $27 million (April 30, 2023: $21 million).

Financial instruments designated at FVTPL (FVO)

A net gain of $7 million, net of hedges for the three months ended April 30, 2024 (a net loss of $7 million and a net loss of $12 million for the three months ended January 31, 2024 and April 30, 2023, respectively), which is included in the interim consolidated statement of income under Gains (losses) from financial instruments measured/designated at FVTPL, net was recognized for FVO assets and FVO liabilities. A net result of nil, net of hedges for the six months ended April 30, 2024 was recognized for FVO assets and FVO liabilities (a net loss of $20 million for the six months ended April 30, 2023).

The fair value of a FVO liability reflects the credit risk relating to that liability. For those FVO liabilities for which we believe changes in our credit risk would impact the fair value from the note holders’ perspective, the related fair value changes were recognized in OCI.

Note 4. Significant transactions

Sale of certain banking assets in the Caribbean

On October 31, 2023, FirstCaribbean International Bank Limited (CIBC FirstCaribbean) announced that it had entered into an agreement to sell its banking assets in Curaçao and Sint Maarten. The sale of banking assets in Curaçao was completed on May 24, 2024 upon the satisfaction of the closing conditions, and was not material. The Sint Maarten transaction is subject to closing conditions, and is expected to be finalized in the first quarter of 2025. The impact upon closing is not expected to be material.

CIBC SECOND QUARTER 2024 65

Note 5. Securities

Securities

$ millions, as at	2024 Apr. 30		2023 Oct. 31
	Carrying amount
Securities measured and designated at FVOCI	$	69,562	$	61,331
Securities measured at amortized cost (1)		69,136		67,294
Securities mandatorily measured and designated at FVTPL		96,832		82,723
	$	235,530	$	211,348

(1) There were no sales of securities measured at amortized cost during the quarter (October 31, 2023: a realized gain of nil).

Fair value of debt securities measured and equity securities designated at FVOCI

$ millions, as at									2024 Apr. 30										2023 Oct. 31
		Cost/ Amortized cost	(1)		Gross unrealized gains		Gross unrealized losses			Fair value		Cost/ Amortized cost	(1)		Gross unrealized gains		Gross unrealized losses			Fair value
Securities issued or guaranteed by:
Canadian federal government	$	11,704		$	6	$	(7	)	$	11,703	$	10,890		$	16	$	(9	)	$	10,897
Other Canadian governments		15,448			34		(64	)		15,418		13,526			33		(74	)		13,485
U.S. Treasury and agencies		24,588			11		(163	)		24,436		22,383			4		(223	)		22,164
Other foreign governments		5,415			21		(8	)		5,428		5,632			21		(14	)		5,639
Mortgage-backed securities		2,835			3		(31	)		2,807		1,021			–		(43	)		978
Asset-backed securities		1,182			3		–			1,185		944			–		(6	)		938
Corporate debt		7,987			3		(19	)		7,971		6,691			1		(34	)		6,658
		69,159			81		(292	)		68,948		61,087			75		(403	)		60,759
Corporate equity (2)		613			49		(48	)		614		556			48		(32	)		572
	$	69,772		$	130	$	(340	)	$	69,562	$	61,643		$	123	$	(435	)	$	61,331

(1) Net of allowance for credit losses for debt securities measured at FVOCI of $20 million (October 31, 2023: $22 million).

(2) Includes restricted stock.

Fair value of equity securities designated at FVOCI that were disposed of during the three months ended April 30, 2024 was nil (nil and $5 million for the three months ended January 31, 2024 and April 30, 2023, respectively) and nil for the six months ended April 30, 2024 (April 30, 2023: $5 million), at the time of disposal.

Net realized cumulative after-tax gains of nil for the three months ended April 30, 2024 ($1 million and $2 million for the three months ended January 31, 2024 and April 30, 2023, respectively) and $1 million for the six months ended April 30, 2024 (April 30, 2023: $2 million), were reclassified from AOCI to retained earnings, resulting from dispositions of equity securities designated at FVOCI and return on capital distributions from limited partnerships designated at FVOCI.

Dividend income recognized on equity securities designated at FVOCI that were still held as at April 30, 2024 was nil ($1 million and $2 million for the three months ended January 31, 2024 and April 30, 2023, respectively) and $1 million for the six months ended April 30, 2024 (April 30, 2023: $3 million). Dividend income recognized on equity securities designated at FVOCI that were disposed of as at April 30, 2024 was nil (nil and nil for the three months ended January 31, 2024 and April 30, 2023, respectively) and nil for the six months ended April 30, 2024 (April 30, 2023: nil).

66 CIBC SECOND QUARTER 2024

Allowance for credit losses

The following table provides a reconciliation of the opening balance to the closing balance of the ECL allowance for debt securities measured at FVOCI and amortized cost:

		Stage 1			Stage 2			Stage 3
$ millions, as at or for the three months ended		Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired (1)			Total
2024	Debt securities measured at FVOCI and amortized cost
Apr. 30	Balance at beginning of period	$	7		$	20		$	13		$	40
	Provision for (reversal of) credit losses (2)		(1	)		(1	)		–			(2	)
	Write-offs		–			–			–			–
	Foreign exchange and other		–			–			–			–
	Balance at end of period	$	6		$	19		$	13		$	38
	Comprises:
	Debt securities measured at FVOCI		1			19			–			20
	Debt securities measured at amortized cost		5			–			13			18
2024	Debt securities measured at FVOCI and amortized cost
Jan. 31	Balance at beginning of period	$	8		$	20		$	14		$	42
	Provision for (reversal of) credit losses (2)		–			–			(1	)		(1	)
	Write-offs		–			–			–			–
	Foreign exchange and other		(1	)		–			–			(1	)
	Balance at end of period	$	7		$	20		$	13		$	40
	Comprises:
	Debt securities measured at FVOCI		1			20			–			21
	Debt securities measured at amortized cost		6			–			13			19
2023	Debt securities measured at FVOCI and amortized cost
Apr. 30	Balance at beginning of period	$	6		$	19		$	12		$	37
	Provision for credit losses (2)		2			–			3			5
	Write-offs		–			–			–			–
	Foreign exchange and other		–			1			–			1
	Balance at end of period	$	8		$	20		$	15		$	43
	Comprises:
	Debt securities measured at FVOCI		2			20			–			22
	Debt securities measured at amortized cost		6			–			15			21
$ millions, as at or for the six months ended
2024	Debt securities measured at FVOCI and amortized cost
Apr. 30	Balance at beginning of period	$	8		$	20		$	14		$	42
	Provision for (reversal of) credit losses (2)		(1	)		(1	)		(1	)		(3	)
	Write-offs		–			–			–			–
	Foreign exchange and other		(1	)		–			–			(1	)
	Balance at end of period	$	6		$	19		$	13		$	38
2023	Debt securities measured at FVOCI and amortized cost
Apr. 30	Balance at beginning of period	$	7		$	20		$	12		$	39
	Provision for credit losses (2)		2			–			3			5
	Write-offs		–			–			–			–
	Foreign exchange and other		(1	)		–			–			(1	)
	Balance at end of period	$	8		$	20		$	15		$	43

(1) Includes stage 3 ECL allowance on originated credit-impaired amortized cost debt securities.

(2) Included in gains (losses) from debt securities measured at FVOCI and amortized cost, net on our interim consolidated statement of income.

CIBC SECOND QUARTER 2024 67

Note 6. Loans

Allowance for credit losses

The following table provides a reconciliation of the opening balance to the closing balance of the ECL allowance:

$ millions, as at or for the three months ended	2024 Apr. 30
	Stage 1			Stage 2			Stage 3
	Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired			Total
Residential mortgages
Balance at beginning of period	$	88		$	165		$	250		$	503
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		4			(4	)		(12	)		(12	)
Changes in model		–			4			11			15
Net remeasurement (2)		(18	)		6			13			1
Transfers (2)
– to 12-month ECL		19			(19	)		–			–
– to lifetime ECL performing		(2	)		3			(1	)		–
– to lifetime ECL credit-impaired		–			(3	)		3			–
Total provision for (reversal of) credit losses (3)		3			(13	)		14			4
Write-offs		–			–			(4	)		(4	)
Recoveries		–			–			–			–
Interest income on impaired loans		–			–			(6	)		(6	)
Foreign exchange and other		1			(1	)		2			2
Balance at end of period	$	92		$	151		$	256		$	499
Personal
Balance at beginning of period	$	176		$	735		$	187		$	1,098
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		7			(15	)		(9	)		(17	)
Changes in model		–			–			–			–
Net remeasurement (2)		(137	)		155			110			128
Transfers (2)
– to 12-month ECL		144			(144	)		–			–
– to lifetime ECL performing		(16	)		17			(1	)		–
– to lifetime ECL credit-impaired		–			(24	)		24			–
Total provision for (reversal of) credit losses (3)		(2	)		(11	)		124			111
Write-offs		–			–			(132	)		(132	)
Recoveries		–			–			15			15
Interest income on impaired loans		–			–			(2	)		(2	)
Foreign exchange and other		1			–			4			5
Balance at end of period	$	175		$	724		$	196		$	1,095
Credit card
Balance at beginning of period	$	194		$	580		$	–		$	774
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		6			(5	)		–			1
Changes in model		–			–			–			–
Net remeasurement (2)		(94	)		161			96			163
Transfers (2)
– to 12-month ECL		93			(93	)		–			–
– to lifetime ECL performing		(15	)		15			–			–
– to lifetime ECL credit-impaired		–			(50	)		50			–
Total provision for (reversal of) credit losses (3)		(10	)		28			146			164
Write-offs		–			–			(177	)		(177	)
Recoveries		–			–			31			31
Interest income on impaired loans		–			–			–			–
Foreign exchange and other		–			–			–			–
Balance at end of period	$	184		$	608		$	–		$	792
Business and government
Balance at beginning of period	$	258		$	912		$	637		$	1,807
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		9			(2	)		(10	)		(3	)
Changes in model		–			–			–			–
Net remeasurement (2)		21			64			153			238
Transfers (2)
– to 12-month ECL		33			(30	)		(3	)		–
– to lifetime ECL performing		(13	)		14			(1	)		–
– to lifetime ECL credit-impaired		–			(24	)		24			–
Total provision for (reversal of) credit losses (3)		50			22			163			235
Write-offs		–			–			(385	)		(385	)
Recoveries		–			–			31			31
Interest income on impaired loans		–			–			(21	)		(21	)
Foreign exchange and other		4			19			10			33
Balance at end of period	$	312		$	953		$	435		$	1,700
Total ECL allowance (4)	$	763		$	2,436		$	887		$	4,086
Comprises:
Loans	$	667		$	2,346		$	885		$	3,898
Undrawn credit facilities and other off-balance sheet exposures (5)		96			90			2			188

(1) Excludes the disposal and write-off of impaired loans.

(2) Transfers represent stage movements of prior period ECL allowances to the current period stage classification. Net remeasurement represents the current period change in ECL allowances for transfers, net write-offs, changes in forecasts of forward-looking information, parameter updates, and partial repayments in the period.

(3) Provision for (reversal of) credit losses for loans and undrawn credit facilities and other off-balance sheet exposures is presented as Provision for (reversal of) credit losses on our interim consolidated statement of income.

(4) See Note 5 for the ECL allowance on debt securities measured at FVOCI and amortized cost. The ECL allowances for other financial assets classified at amortized cost were immaterial as at April 30, 2024, January 31, 2024 and April 30, 2023 and were excluded from the table above. Financial assets other than loans that are classified at amortized cost are presented on our interim consolidated balance sheet net of ECL allowances.

(5) Included in Other liabilities on our interim consolidated balance sheet.

(6) The April 30, 2023 amounts include the impact of a change in the internal risk rating methodology applied in the first quarter of 2023 at CIBC Bank USA.

68 CIBC SECOND QUARTER 2024

$ millions, as at or for the three months ended	2024 Jan. 31												2023 Apr. 30
	Stage 1			Stage 2			Stage 3						Stage 1			Stage 2			Stage 3
	Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired			Total			Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired			Total
Residential mortgages
Balance at beginning of period	$	90		$	142		$	224		$	456		$	58		$	80		$	170		$	308
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		4			(2	)		(9	)		(7	)		2			(1	)		(9	)		(8	)
Changes in model		–			–			–			–			–			–			–			–
Net remeasurement (2)		(20	)		38			43			61			–			47			43			90
Transfers (2)
– to 12-month ECL		17			(16	)		(1	)		–			19			(18	)		(1	)		–
– to lifetime ECL performing		(2	)		3			(1	)		–			(1	)		3			(2	)		–
– to lifetime ECL credit-impaired		–			(1	)		1			–			–			(2	)		2			–
Total provision for (reversal of) credit losses (3)		(1	)		22			33			54			20			29			33			82
Write-offs		–			–			(3	)		(3	)		–			–			(6	)		(6	)
Recoveries		–			–			4			4			–			–			3			3
Interest income on impaired loans		–			–			(6	)		(6	)		–			–			(3	)		(3	)
Foreign exchange and other		(1	)		1			(2	)		(2	)		–			1			(1	)		–
Balance at end of period	$	88		$	165		$	250		$	503		$	78		$	110		$	196		$	384
Personal
Balance at beginning of period	$	174		$	709		$	181		$	1,064		$	147		$	639		$	157		$	943
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		8			(14	)		(11	)		(17	)		10			(20	)		(10	)		(20	)
Changes in model		–			–			–			–			–			–			–			–
Net remeasurement (2)		(128	)		183			108			163			(128	)		120			89			81
Transfers (2)
– to 12-month ECL		140			(140	)		–			–			147			(146	)		(1	)		–
– to lifetime ECL performing		(18	)		19			(1	)		–			(10	)		15			(5	)		–
– to lifetime ECL credit-impaired		–			(23	)		23			–			–			(20	)		20			–
Total provision for (reversal of) credit losses (3)		2			25			119			146			19			(51	)		93			61
Write-offs		–			–			(126	)		(126	)		–			–			(101	)		(101	)
Recoveries		–			–			17			17			–			–			17			17
Interest income on impaired loans		–			–			(1	)		(1	)		–			–			(1	)		(1	)
Foreign exchange and other		–			1			(3	)		(2	)		(1	)		–			2			1
Balance at end of period	$	176		$	735		$	187		$	1,098		$	165		$	588		$	167		$	920
Credit card
Balance at beginning of period	$	181		$	591		$	–		$	772		$	142		$	685		$	–		$	827
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		6			(19	)		–			(13	)		8			(20	)		–			(12	)
Changes in model		–			–			–			–			–			–			–			–
Net remeasurement (2)		(94	)		165			77			148			(142	)		123			49			30
Transfers (2)
– to 12-month ECL		119			(119	)		–			–			171			(171	)		–			–
– to lifetime ECL performing		(18	)		18			–			–			(6	)		6			–			–
– to lifetime ECL credit-impaired		–			(56	)		56			–			–			(64	)		64			–
Total provision for (reversal of) credit losses (3)		13			(11	)		133			135			31			(126	)		113			18
Write-offs		–			–			(160	)		(160	)		–			–			(147	)		(147	)
Recoveries		–			–			27			27			–			–			34			34
Interest income on impaired loans		–			–			–			–			–			–			–			–
Foreign exchange and other		–			–			–			–			–			–			–			–
Balance at end of period	$	194		$	580		$	–		$	774		$	173		$	559		$	–		$	732
Business and government
Balance at beginning of period	$	294		$	864		$	667		$	1,825		$	303		$	579		$	411		$	1,293
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		3			(20	)		(11	)		(28	)		9			(3	)		(16	)		(10	)
Changes in model		12			29			–			41			–			–			–			–
Net remeasurement (2)		(85	)		211			111			237			(35	)		170			152			287
Transfers (2)
– to 12-month ECL		51			(49	)		(2	)		–			66			(63	)		(3	)		–
– to lifetime ECL performing		(9	)		11			(2	)		–			(9	)		10			(1	)		–
– to lifetime ECL credit-impaired		–			(111	)		111			–			–			(8	)		8			–
Total provision for (reversal of) credit losses (3)		(28	)		71			207			250			31			106			140			277
Write-offs		–			–			(222	)		(222	)		–			–			(37	)		(37	)
Recoveries		–			–			18			18			–			–			8			8
Interest income on impaired loans		–			–			(23	)		(23	)		–			–			(8	)		(8	)
Foreign exchange and other		(8	)		(23	)		(10	)		(41	)		5			6			1			12
Balance at end of period	$	258		$	912		$	637		$	1,807		$	339		$	691		$	515		$	1,545
Total ECL allowance (4)	$	716		$	2,392		$	1,074		$	4,182		$	755		$	1,948		$	878		$	3,581
Comprises:
Loans	$	631		$	2,316		$	1,073		$	4,020		$	668		$	1,852		$	877		$	3,397
Undrawn credit facilities and other off-balance sheet exposures (5)		85			76			1			162			87			96			1			184

See previous page for footnote references.

CIBC SECOND QUARTER 2024 69

$ millions, as at or for the six months ended	2024 Apr. 30												2023 Apr. 30
	Stage 1			Stage 2			Stage 3						Stage 1			Stage 2			Stage 3
	Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired			Total			Collective provision 12-month ECL performing			Collective provision lifetime ECL performing			Collective and individual provision lifetime ECL credit-impaired			Total
Residential mortgages
Balance at beginning of period	$	90		$	142		$	224		$	456		$	57		$	69		$	167		$	293
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		8			(6	)		(21	)		(19	)		5			(1	)		(13	)		(9	)
Changes in model		–			4			11			15			–			–			–			–
Net remeasurement (2)		(38	)		44			56			62			(16	)		76			55			115
Transfers (2)
– to 12-month ECL		36			(35	)		(1	)		–			35			(34	)		(1	)		–
– to lifetime ECL performing		(4	)		6			(2	)		–			(3	)		5			(2	)		–
– to lifetime ECL credit-impaired		–			(4	)		4			–			–			(5	)		5			–
Total provision for (reversal of) credit losses (3)		2			9			47			58			21			41			44			106
Write-offs		–			–			(7	)		(7	)		–			–			(10	)		(10	)
Recoveries		–			–			4			4			–			–			5			5
Interest income on impaired loans		–			–			(12	)		(12	)		–			–			(8	)		(8	)
Foreign exchange and other		–			–			–			–			–			–			(2	)		(2	)
Balance at end of period	$	92		$	151		$	256		$	499		$	78		$	110		$	196		$	384
Personal
Balance at beginning of period	$	174		$	709		$	181		$	1,064		$	137		$	656		$	146		$	939
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		15			(29	)		(20	)		(34	)		22			(35	)		(14	)		(27	)
Changes in model		–			–			–			–			–			–			–			–
Net remeasurement (2)		(265	)		338			218			291			(195	)		201			155			161
Transfers (2)
– to 12-month ECL		284			(284	)		–			–			221			(220	)		(1	)		–
– to lifetime ECL performing		(34	)		36			(2	)		–			(19	)		24			(5	)		–
– to lifetime ECL credit-impaired		–			(47	)		47			–			–			(37	)		37			–
Total provision for (reversal of) credit losses (3)		–			14			243			257			29			(67	)		172			134
Write-offs		–			–			(258	)		(258	)		–			–			(187	)		(187	)
Recoveries		–			–			32			32			–			–			38			38
Interest income on impaired loans		–			–			(3	)		(3	)		–			–			(2	)		(2	)
Foreign exchange and other		1			1			1			3			(1	)		(1	)		–			(2	)
Balance at end of period	$	175		$	724		$	196		$	1,095		$	165		$	588		$	167		$	920
Credit card
Balance at beginning of period	$	181		$	591		$	–		$	772		$	159		$	709		$	–		$	868
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		12			(24	)		–			(12	)		9			(47	)		–			(38	)
Changes in model		–			–			–			–			–			–			–			–
Net remeasurement (2)		(188	)		326			173			311			(317	)		347			90			120
Transfers (2)
– to 12-month ECL		212			(212	)		–			–			344			(344	)		–			–
– to lifetime ECL performing		(33	)		33			–			–			(22	)		22			–			–
– to lifetime ECL credit-impaired		–			(106	)		106			–			–			(128	)		128			–
Total provision for (reversal of) credit losses (3)		3			17			279			299			14			(150	)		218			82
Write-offs		–			–			(337	)		(337	)		–			–			(279	)		(279	)
Recoveries		–			–			58			58			–			–			61			61
Interest income on impaired loans		–			–			–			–			–			–			–			–
Foreign exchange and other		–			–			–			–			–			–			–			–
Balance at end of period	$	184		$	608		$	–		$	792		$	173		$	559		$	–		$	732
Business and government
Balance at beginning of period	$	294		$	864		$	667		$	1,825		$	335		$	490		$	351		$	1,176
Provision for (reversal of) credit losses
Originations net of repayments and other derecognitions (1)		12			(22	)		(21	)		(31	)		16			(6	)		(20	)		(10	)
Changes in model		12			29			–			41			–			6			–			6
Net remeasurement (2)(6)		(64	)		275			264			475			(89	)		280			224			415
Transfers (2)
– to 12-month ECL		84			(79	)		(5	)		–			101			(98	)		(3	)		–
– to lifetime ECL performing		(22	)		25			(3	)		–			(22	)		36			(14	)		–
– to lifetime ECL credit-impaired		–			(135	)		135			–			–			(17	)		17			–
Total provision for (reversal of) credit losses (3)		22			93			370			485			6			201			204			411
Write-offs		–			–			(607	)		(607	)		–			–			(48	)		(48	)
Recoveries		–			–			49			49			–			–			16			16
Interest income on impaired loans		–			–			(44	)		(44	)		–			–			(12	)		(12	)
Foreign exchange and other		(4	)		(4	)		–			(8	)		(2	)		–			4			2
Balance at end of period	$	312		$	953		$	435		$	1,700		$	339		$	691		$	515		$	1,545
Total ECL allowance (4)	$	763		$	2,436		$	887		$	4,086		$	755		$	1,948		$	878		$	3,581
Comprises:
Loans	$	667		$	2,346		$	885		$	3,898		$	668		$	1,852		$	877		$	3,397
Undrawn credit facilities and other off-balance sheet exposures (5)		96			90			2			188			87			96			1			184

See previous pages for footnote references.

70 CIBC SECOND QUARTER 2024

Inputs, assumptions and model techniques

We continue to operate in an uncertain macroeconomic environment. There is inherent uncertainty in estimating the impact that higher levels of interest rates, the easing of inflationary pressures, events in the U.S. banking sector and geopolitical events will have on the macroeconomic environment. As a result, a heightened level of judgment in estimating ECLs in respect of all these elements, as discussed below, continued to be required. See Note 5 to our consolidated financial statements in our 2023 Annual Report and Note 2 to our interim consolidated financial statements for additional information concerning the significant estimates and credit judgment inherent in the estimation of ECL allowances.

The following tables provide the base case, upside case and downside case scenario forecasts for select forward-looking information variables used to estimate our ECL.

	Base case						Upside case						Downside case
As at April 30, 2024		Average value over the next 12 months			Average value over the remaining forecast period	(1)		Average value over the next 12 months			Average value over the remaining forecast period	(1)		Average value over the next 12 months			Average value over the remaining forecast period	(1)
Real gross domestic product (GDP) year-over-year growth
Canada (2)		1.0	%		1.9	%		2.3	%		2.7	%		(0.5	)%		1.1	%
United States		2.0	%		2.0	%		3.2	%		2.9	%		0.3	%		0.8	%
Unemployment rate
Canada (2)		6.1	%		6.0	%		5.3	%		5.3	%		7.3	%		6.9	%
United States		4.2	%		4.0	%		3.5	%		3.2	%		5.1	%		4.7	%
Canadian Housing Price Index year-over-year growth (2)		1.5	%		3.1	%		6.2	%		8.0	%		(5.3	)%		1.6	%
Standard and Poor’s (S&P) 500 Index year-over-year growth rate		5.9	%		5.9	%		10.0	%		9.7	%		(6.7	)%		(2.6	)%
Canadian household debt service ratio		15.2	%		14.6	%		14.6	%		14.3	%		15.8	%		15.0	%
West Texas Intermediate Oil Price (US$)	$	78		$	75		$	98		$	131		$	66		$	57
As at January 31, 2024
Real GDP year-over-year growth
Canada (2)		0.6	%		2.0	%		1.7	%		2.7	%		(0.6	)%		1.0	%
United States		2.1	%		1.9	%		3.1	%		3.0	%		0.0	%		0.6	%
Unemployment rate
Canada (2)		6.2	%		5.9	%		5.3	%		5.3	%		7.2	%		6.9	%
United States		4.1	%		3.9	%		3.3	%		3.3	%		5.6	%		5.0	%
Canadian Housing Price Index year-over-year growth (2)		0.2	%		3.5	%		2.3	%		5.0	%		(4.8	)%		1.9	%
S&P 500 Index year-over-year growth rate		5.9	%		5.9	%		10.8	%		10.2	%		(8.4	)%		(4.6	)%
Canadian household debt service ratio		15.4	%		14.6	%		14.9	%		14.3	%		15.9	%		15.0	%
West Texas Intermediate Oil Price (US$)	$	73		$	76		$	97		$	129		$	71		$	57
As at October 31, 2023
Real GDP year-over-year growth
Canada (2)		0.6	%		1.9	%		2.0	%		2.7	%		(0.7	)%		1.3	%
United States		0.9	%		1.7	%		3.0	%		3.1	%		(0.8	)%		0.9	%
Unemployment rate
Canada (2)		6.1	%		5.8	%		5.3	%		5.4	%		7.1	%		6.9	%
United States		4.1	%		4.0	%		3.2	%		3.2	%		5.4	%		4.9	%
Canadian Housing Price Index year-over-year growth (2)		0.8	%		3.0	%		4.4	%		5.4	%		(7.8	)%		0.4	%
S&P 500 Index year-over-year growth rate		5.5	%		5.9	%		12.5	%		11.1	%		(2.5	)%		(0.5	)%
Canadian household debt service ratio		15.5	%		14.8	%		14.9	%		14.5	%		16.1	%		15.0	%
West Texas Intermediate Oil Price (US$)	$	84		$	76		$	97		$	110		$	70		$	58

(1) The remaining forecast period is generally four years.

(2) National-level forward-looking forecasts are presented in the tables above, which represent the aggregation of the provincial-level forecasts used to estimate our ECL. Housing Price Index growth rates are also forecasted at the municipal level in some cases. As a result, the forecasts for individual provinces or municipalities reflected in our ECL will differ from the national forecasts presented above.

As required, the forward-looking information used to estimate ECLs reflects our expectations as at April 30, 2024, January 31, 2024, and October 31, 2023, respectively, and does not reflect changes in expectation as a result of economic forecasts that may have subsequently emerged. The base case, upside case and downside case amounts shown represent the average value of the forecasts over the respective projection horizons.

Our underlying base case projection as at April 30, 2024 is characterized by relatively slow real GDP growth in Canada as households continue to refinance mortgages at higher interest rates and cut back on discretionary purchases, and moderate growth in the U.S. which has been much more resilient to higher interest rates. Our base case continues to assume that interest rates will decline in the second half of calendar 2024, but remain at higher than pre-pandemic levels.

The downside case forecast continues to assume a recession and higher unemployment rates in Canada driven by a correction in the housing market and lower consumer spending resulting from past interest rate hikes. The downside case forecast for the U.S. assumes slow growth until the third calendar quarter of 2024 followed by a mild recession. The downside forecasts also reflect slower recoveries thereafter to lower levels of sustained economic activity and unemployment rates persistently above where they stood pre-pandemic. The upside scenario continues to reflect a better economic environment than the base case forecast.

As indicated above, forecasting forward-looking information for multiple scenarios and determining the probability weighting of the scenarios involves a high degree of management judgment. Assumptions concerning measures used by governments to combat inflation, the economic impact from higher levels of interest rates, the events in the U.S. banking sector, and geopolitical events are material to these forecasts. To address the uncertainties inherent in the current environment, we continue to utilize management overlays with respect to the impact of certain forward-looking information and credit metrics that are not expected to be as indicative of the credit condition of the portfolios as the historical experience in our models would have otherwise suggested. The use of management overlays requires the application of significant judgment that impacts the amount of ECL allowances recognized.

CIBC SECOND QUARTER 2024 71

If we were to only use our base case scenario for the measurement of ECL for our performing loans, our ECL allowance would be $259 million lower than the recognized ECL as at April 30, 2024 (October 31, 2023: $284 million). If we were to only use our downside case scenario for the measurement of ECL for our performing loans, our ECL allowance would be $851 million higher than the recognized ECL as at April 30, 2024 (October 31, 2023: $926 million). This sensitivity is isolated to the measurement of ECL and therefore did not consider changes in the migration of exposures between stage 1 and stage 2 from the determination of the significant increase in credit risk that would have resulted in a 100% base case scenario or a 100% downside case scenario. As a result, our ECL allowance on performing loans could exceed the amount implied by the 100% downside case scenario from the migration of additional exposures from stage 1 to stage 2. Actual credit losses could differ materially from those reflected in our estimates.

The following tables provide the gross carrying amount of loans, and the contractual amounts of undrawn credit facilities and other off-balance sheet exposures based on our risk management probability of default (PD) bands for retail exposures, and based on our internal risk ratings for business and government exposures. Refer to the “Credit risk” section of our 2023 Annual Report for details on the CIBC risk categories.

Loans(1)

$ millions, as at								2024 Apr. 30									2023 Oct. 31
		Stage 1		Stage 2		Stage 3	(2)		Total		Stage 1		Stage 2		Stage 3	(2)		Total
Residential mortgages
– Exceptionally low	$	151,026	$	11,933	$	–		$	162,959	$	150,022	$	14,999	$	–		$	165,021
– Very low		76,647		8,733		–			85,380		74,149		9,107		–			83,256
– Low		9,998		4,119		–			14,117		10,817		5,112		–			15,929
– Medium		781		6,123		–			6,904		322		4,980		–			5,302
– High		–		1,339		–			1,339		–		1,100		–			1,100
– Default		–		–		725			725		–		–		585			585
– Not rated		2,702		213		205			3,120		2,630		219		202			3,051
Gross residential mortgages (3)(4)		241,154		32,460		930			274,544		237,940		35,517		787			274,244
ECL allowance		92		151		256			499		90		142		224			456
Net residential mortgages		241,062		32,309		674			274,045		237,850		35,375		563			273,788
Personal
– Exceptionally low		18,907		5		–			18,912		18,785		3		–			18,788
– Very low		4,392		13		–			4,405		4,389		12		–			4,401
– Low		11,158		4,029		–			15,187		11,031		4,311		–			15,342
– Medium		1,387		3,115		–			4,502		1,165		3,062		–			4,227
– High		218		1,738		–			1,956		211		1,624		–			1,835
– Default		–		–		259			259		–		–		214			214
– Not rated		734		24		31			789		723		24		33			780
Gross personal (4)		36,796		8,924		290			46,010		36,304		9,036		247			45,587
ECL allowance		146		713		196			1,055		141		695		181			1,017
Net personal		36,650		8,211		94			44,955		36,163		8,341		66			44,570
Credit card
– Exceptionally low		4,492		–		–			4,492		4,279		–		–			4,279
– Very low		1,138		–		–			1,138		1,061		–		–			1,061
– Low		6,840		1		–			6,841		6,642		35		–			6,677
– Medium		3,251		2,780		–			6,031		2,626		2,953		–			5,579
– High		6		894		–			900		6		777		–			783
– Default		–		–		–			–		–		–		–			–
– Not rated		151		7		–			158		153		6		–			159
Gross credit card		15,878		3,682		–			19,560		14,767		3,771		–			18,538
ECL allowance		168		576		–			744		166		519		–			685
Net credit card		15,710		3,106		–			18,816		14,601		3,252		–			17,853
Business and government
– Investment grade		98,950		794		–			99,744		99,322		512		–			99,834
– Non-investment grade		92,438		9,928		–			102,366		91,920		7,190		–			99,110
– Watchlist		58		3,648		–			3,706		101		4,478		–			4,579
– Default		–		–		1,629			1,629		–		–		1,956			1,956
– Not rated		212		24		–			236		192		15		–			207
Gross business and government (3)(5)		191,658		14,394		1,629			207,681		191,535		12,195		1,956			205,686
ECL allowance		261		906		433			1,600		253		824		667			1,744
Net business and government		191,397		13,488		1,196			206,081		191,282		11,371		1,289			203,942
Total net amount of loans	$	484,819	$	57,114	$	1,964		$	543,897	$	479,896	$	58,339	$	1,918		$	540,153

(1) The table excludes debt securities measured at FVOCI, for which ECL allowances of $20 million (October 31, 2023: $22 million) were recognized in AOCI. In addition, the table excludes debt securities classified at amortized cost, for which ECL allowances of $18 million were recognized as at April 30, 2024 (October 31, 2023: $20 million). Other financial assets classified at amortized cost were also excluded from the table above as their ECL allowances were immaterial as at April 30, 2024 and October 31, 2023. Financial assets other than loans that are classified at amortized cost are presented on our interim consolidated balance sheet net of ECL allowances.

(2) Excludes foreclosed assets of $16 million (October 31, 2023: $13 million) which were included in Other assets on our interim consolidated balance sheet.

(3) Includes $3 million (October 31, 2023: $3 million) of residential mortgages and $647 million (October 31, 2023: $270 million) of business and government loans that are measured and designated at FVTPL.

(4) The internal risk rating grades presented for residential mortgages and certain personal loans do not take into account loan guarantees or insurance issued by the Canadian government (federal or provincial), Canadian government agencies, or private insurers, as the determination of whether a significant increase in credit risk has occurred for these loans is based on relative changes in the loans’ lifetime PD without considering collateral or other credit enhancements.

(5) Includes customers’ liability under acceptances of $6,130 million (October 31, 2023: $10,816 million).

72 CIBC SECOND QUARTER 2024

Undrawn credit facilities and other off-balance sheet exposures

$ millions, as at							2024 Apr. 30								2023 Oct. 31
	Stage 1		Stage 2		Stage 3		Total		Stage 1		Stage 2		Stage 3		Total
Retail
– Exceptionally low	$	163,179	$	23	$	–	$	163,202	$	159,254	$	7	$	–	$	159,261
– Very low		15,743		44		–		15,787		15,367		26		–		15,393
– Low		11,146		1,209		–		12,355		10,723		1,405		–		12,128
– Medium		1,508		810		–		2,318		1,256		986		–		2,242
– High		171		721		–		892		118		763		–		881
– Default		–		–		46		46		–		–		37		37
– Not rated		523		7		–		530		506		6		–		512
Gross retail		192,270		2,814		46		195,130		187,224		3,193		37		190,454
ECL allowance		45		43		–		88		48		86		–		134
Net retail		192,225		2,771		46		195,042		187,176		3,107		37		190,320
Business and government
– Investment grade		145,963		610		–		146,573		147,206		361		–		147,567
– Non-investment grade		62,619		3,034		–		65,653		56,707		2,097		–		58,804
– Watch list		13		856		–		869		7		1,000		–		1,007
– Default		–		–		220		220		–		–		161		161
– Not rated		776		65		–		841		614		30		–		644
Gross business and government		209,371		4,565		220		214,156		204,534		3,488		161		208,183
ECL allowance		51		47		2		100		41		40		–		81
Net business and government		209,320		4,518		218		214,056		204,493		3,448		161		208,102
Total net undrawn credit facilities and other off-balance sheet exposures	$	401,545	$	7,289	$	264	$	409,098	$	391,669	$	6,555	$	198	$	398,422

Note 7. Deposits(1)(2)

$ millions, as at							2024 Apr. 30		2023 Oct. 31
	Payable on demand	(3)	Payable after notice	(4)	Payable on a fixed date	(5)(6)		Total		Total
Personal	$  13,424		$  127,950		$  107,022		$	248,396	$	239,035
Business and government (7)	97,167		99,492		211,904			408,563		412,561
Bank	13,927		178		11,743			25,848		22,296
Secured borrowings (8)	–		–		49,145			49,145		49,484
	$  124,518		$  227,620		$  379,814		$	731,952	$	723,376
Comprises:
Held at amortized cost							$	693,617	$	687,737
Designated at fair value								38,335		35,639
							$	731,952	$	723,376
Total deposits include (9):
Non-interest-bearing deposits
Canada							$	81,163	$	84,165
U.S.								11,498		12,816
Other international								6,182		5,821
Interest-bearing deposits
Canada								501,314		488,490
U.S.								94,627		95,109
Other international								37,168		36,975
							$	731,952	$	723,376

(1) Includes deposits of $264.2 billion (October 31, 2023: $258.4 billion) denominated in U.S. dollars and deposits of $51 billion (October 31, 2023: $53.6 billion) denominated in other foreign currencies.

(2) Net of purchased notes of $0.6 billion (October 31, 2023: $1.6 billion).

(3) Includes all deposits for which we do not have the right to require notice of withdrawal. These deposits are generally chequing accounts.

(4) Includes all deposits for which we can legally require notice of withdrawal. These deposits are generally savings accounts.

(5) Includes all deposits that mature on a specified date. These deposits are generally term deposits, guaranteed investment certificates, and similar instruments.

(6) Includes $57.7 billion (October 31, 2023: $60.8 billion) of deposits which are subject to the bank recapitalization (bail-in) conversion regulations issued by the Department of Finance Canada. These regulations provide certain statutory powers to the Canada Deposit Insurance Corporation (CDIC), including the ability to convert specified eligible shares and liabilities of CIBC into common shares in the event that CIBC is determined to be non-viable.

(7) Includes $14.9 billion (October 31, 2023: $14.6 billion) of structured note liabilities that were sold upon issuance to third-party financial intermediaries, who may resell the notes to retail investors in foreign jurisdictions.

(8) Comprises liabilities issued by, or as a result of, activities associated with the securitization of residential mortgages, Covered Bond Programme, and consolidated securitization vehicles.

(9) Classification is based on geographical location of the CIBC office.

Note 8. Subordinated indebtedness

On January 16, 2024, we issued $1.25 billion principal amount of 5.30% Debentures due January 16, 2034. The Debentures bear interest at a fixed rate of 5.30% per annum (paid semi-annually) until January 16, 2029, and at Daily Compounded Canadian Overnight Repo Rate Average (CORRA) plus 2.02% per annum (paid quarterly) thereafter until maturity on January 16, 2034.

Subsequent to quarter end, on May 14, 2024, we announced the redemption of $1.5 billion of our 2.95% Debentures due June 19, 2029. In accordance with their terms, the Debentures will be redeemed at 100% of their principal amount, plus accrued and unpaid interest thereon.

CIBC SECOND QUARTER 2024 73

Note 9. Share capital

Common shares

	For the three months ended										For the six months ended
$ millions, except number of shares				2024 Apr. 30			2023 Apr. 30							2024 Apr. 30					2023 Apr. 30
	Number of shares			Amount			Number of shares		Amount		Number of shares			Amount			Number of shares		Amount
Balance at beginning of period		937,223,345		$	16,447			911,628,796	$	15,046		931,098,941		$	16,082			906,040,097	$	14,726
Issuance pursuant to:
Equity-settled share-based compensation plans		313,852			17			61,493		3		692,877			37			192,824		9
Shareholder investment plan (1)		4,693,884			299			5,337,388		296		9,811,613			607			10,083,813		568
Employee share purchase plan		786,615			51			708,052		42		1,457,807			90			1,448,566		86
		943,017,696		$	16,814			917,735,729	$	15,387		943,061,238		$	16,816			917,765,300	$	15,389
Treasury shares		(15,277	)		(1	)		33,634		2		(58,819	)		(3	)		4,063		–
Balance at end of period		943,002,419		$	16,813			917,769,363	$	15,389		943,002,419		$	16,813			917,769,363	$	15,389

(1) Commencing with the dividends paid on January 27, 2023, the participants in the Dividend Reinvestment Option and Stock Dividend Option of the Shareholder Investment Plan received a 2% discount from average market price on dividends reinvested in additional common shares issued from Treasury.

Preferred shares and other equity instruments

Non-cumulative Rate Reset Class A Preferred Shares Series 57 (NVCC) (Series 57 shares)

On March 12, 2024, we issued 500,000 Non-cumulative Rate Reset Class A Preferred Shares Series 57 (NVCC) (Series 57 shares) with a par value of $1,000.00 per share, for gross proceeds of $500 million. For the initial five-year period to April 12, 2029, the Series 57 shares pay semi-annual cash dividends on the 12th day of April and October in each year, as declared, at a rate of 7.337%. The first dividend, if declared, will be payable on October 12, 2024. On April 12, 2029, and on April 12 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 3.90%.

Subject to regulatory approval and certain provisions of the shares, we may redeem all or any part of the then outstanding Series 57 shares at par during the period from March 12, 2029 to and including April 12, 2029 and during the period from March 12 to and including April 12 every five years thereafter.

Non-cumulative Rate Reset Class A Preferred Shares Series 49 (NVCC) (Series 49 shares)

On April 30, 2024, we redeemed all 13 million Non-cumulative Rate Reset Class A Preferred Shares Series 49 (NVCC) (Series 49 shares), at a redemption price of $25.00 per Series 49 share, for a total redemption cost of $325 million.

Regulatory capital, leverage and total loss absorbing capacity (TLAC) ratios

Our capital, leverage and TLAC ratios are presented in the table below:

$ millions, as at		2024 Apr. 30			2023 Oct. 31
Common Equity Tier 1 (CET1) capital		$	42,728		$	40,327
Tier 1 capital	A		47,845			45,270
Total capital			55,478			52,119
Total risk-weighted assets (RWA)	B		326,514			326,120
CET1 ratio			13.1	%		12.4	%
Tier 1 capital ratio			14.7	%		13.9	%
Total capital ratio			17.0	%		16.0	%
Leverage ratio exposure	C	$	1,112,411		$	1,079,103
Leverage ratio	A/C		4.3	%		4.2	%
TLAC available	D	$	95,890		$	100,176
TLAC ratio	D/B		29.4	%		30.7	%
TLAC leverage ratio	D/C		8.6	%		9.3	%

Our regulatory capital ratios are determined in accordance with the Capital Adequacy Requirements Guideline issued by OSFI, which are based on the capital standards developed by the Basel Committee on Banking Supervision. CIBC has been designated by OSFI as a domestic systemically important bank (D-SIB) in Canada, and is subject to a CET1 surcharge equal to 1.0% of RWA. OSFI also expects D-SIBs to hold a Domestic Stability Buffer (DSB) of 3.5%, which was increased from 3.0% effective November 1, 2023. The resulting targets established by OSFI for D-SIBs, including all buffer requirements, for the CET1, Tier 1, and Total capital ratios are 11.5%, 13.0%, and 15.0%, respectively.

To supplement risk-based capital requirements, OSFI expects federally regulated deposit-taking institutions to have a leverage ratio, which is a non-risk-based capital metric, that meets or exceeds 3.5%, including a 0.5% D-SIB buffer.

Under the TLAC guideline, OSFI also requires D-SIBs to maintain a supervisory target TLAC ratio (which builds on the risk-based capital ratios) and a minimum TLAC leverage ratio (which builds on the leverage ratio). OSFI expects D-SIBs to have a minimum risk-based TLAC ratio of 21.5% plus the then applicable DSB requirement (3.5% as noted above), and a minimum TLAC leverage ratio of 7.25%.

These targets may be higher for certain institutions at OSFI’s discretion. During the quarter ended April 30, 2024, we have complied with OSFI’s regulatory capital, leverage ratio, and TLAC requirements.

74 CIBC SECOND QUARTER 2024

Note 10. Post-employment benefits

The following tables provide details on the post-employment benefit expense recognized in the interim consolidated statement of income and on the remeasurements recognized in the interim consolidated statement of comprehensive income:

Defined benefit plan expense

	For the three months ended															For the six months ended
$ millions	2024 Apr. 30			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30		2024 Jan. 31		2023 Apr. 30		2024 Apr. 30			2023 Apr. 30			2024 Apr. 30		2023 Apr. 30
				Pension plans						Other post-employment plans						Pension plans						Other post-employment plans
Current service cost	$	47		$	48		$	53		$	1	$	1	$	1	$	95		$	106		$	2	$	2
Net interest (income) expense		(15	)		(16	)		(20	)		6		6		6		(31	)		(41	)		12		12
Plan administration costs		2			2			2			–		–		–		4			4			–		–
Net defined benefit plan expense (income) recognized in net income	$	34		$	34		$	35		$	7	$	7	$	7	$	68		$	69		$	14	$	14

Defined contribution plan expense

	For the three months ended						For the six months ended
$ millions	2024 Apr. 30		2024 Jan. 31		2023 Apr. 30		2024 Apr. 30		2023 Apr. 30
Defined contribution pension plans	$	16	$	22	$	13	$	38	$	32
Government pension plans (1)		52		43		51		95		99
Total defined contribution plan expense	$	68	$	65	$	64	$	133	$	131

(1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal Insurance Contributions Act.

Remeasurement of employee defined benefit plans(1)

	For the three months ended																	For the six months ended
$ millions	2024 Apr. 30 (2)			2024 Jan. 31			2023 Apr. 30			2024 Apr. 30		2024 Jan. 31			2023 Apr. 30			2024 Apr. 30 (2)			2023 Apr. 30			2024 Apr. 30			2023 Apr. 30
				Pension plans						Other post-employment plans								Pension plans						Other post-employment plans
Net actuarial gains (losses) on defined benefit obligations	$	267		$	(699	)	$	(67	)	$	12	$	(35	)	$	(3	)	$	(432	)	$	(515	)	$	(23	)	$	(26	)
Net actuarial gains (losses) on plan assets		(262	)		626			(9	)		–		–			–			364			333			–			–
Changes in asset ceiling excluding interest income		1			(1	)		–			–		–			–			–			(1	)		–			–
Net remeasurement gains (losses) recognized in OCI	$	6		$	(74	)	$	(76	)	$	12	$	(35	)	$	(3	)	$	(68	)	$	(183	)	$	(23	)	$	(26	)

(1)	The Canadian post-employment defined benefit plans are remeasured on a quarterly basis for changes in the discount rate and for actual asset returns. All other Canadian plans’ actuarial assumptions and foreign plans’ actuarial assumptions are updated at least annually.
(2)	Net of the transfer of the accumulated actuarial losses of $5 million to retained earnings upon the settlement of a pension plan for one of our subsidiaries.

Note 11. Income taxes

The Canada Revenue Agency (CRA) has reassessed CIBC’s 2011–2018 taxation years for approximately $1,772 million of income taxes and proposed to reassess the 2019 taxation year for approximately $75 million related to the denial of deductions of certain dividends. Subsequent taxation years may also be similarly reassessed. CIBC filed a Notice of Appeal in respect of its 2011 taxation year to put the matter in litigation. CIBC is confident that its tax filing positions are appropriate and intends to defend itself vigorously. Accordingly, no amounts have been accrued in the interim consolidated financial statements.

In November 2021, the Tax Court of Canada decided against CIBC on its claim of a foreign exchange capital loss and CIBC appealed the decision to the Federal Court of Appeal. In May 2023, CIBC lost its appeal at the Federal Court of Appeal. The impact of the Federal Court of Appeal decision was recognized in the second quarter of 2023, as were offsets from other adjustments. In August 2023, CIBC filed a leave to appeal application with the Supreme Court of Canada. In February 2024, the Supreme Court of Canada dismissed our application, with no further impact to our reported results, and the matter is now considered closed. The potential aggregate exposure in respect of other similar matters is approximately $74 million, and no amounts have been accrued in the interim consolidated financial statements.

In prior years, the CRA issued reassessments disallowing the deduction of Enron settlement payments and related legal expenses (the Enron expenses). The CRA later entered into a settlement agreement with CIBC in respect to the portion of the Enron expenses deductible in Canada. CIBC has been working with the Internal Revenue Service to settle the portion of the Enron expenses deductible in the U.S. It is possible that adjustments may be required to the amount of tax benefits recognized in the U.S.

On November 28, 2023, the Canadian federal government tabled Bill C-59 in Parliament, which includes certain tax measures from the 2023 fall economic statement and 2023 federal budget. Bill C-59 includes the denial of the dividends received deduction in respect of Canadian shares held as mark-to-market property, as well as a 2% tax on certain share buy backs. The application date for these measures is January 1, 2024. Bill C-59 was not substantively enacted as at April 30, 2024, and is therefore not reflected in the reported income tax expense for the quarter and six months ended April 30, 2024.

CIBC SECOND QUARTER 2024 75

On May 28, 2024, Parliament completed third reading of Bill C-59. As a result, the proposal to deny the dividends received deduction for banks was substantively enacted as of that date and will be reflected in the reported income tax expense for the third quarter ended July 31, 2024.

On May 2, 2024, the Canadian federal government tabled Bill C-69 for first reading in Parliament. Bill C-69 includes certain provisions of the Canadian federal budget tabled on April 16, 2024, as well as a revised Global Minimum Tax Act (GMTA), which differs in part from the GMTA released by the Canadian federal government on August 4, 2023. The GMTA will implement rules in Canada for a 15% global minimum tax regime as part of Canada’s agreement to adopt the Organisation for Economic Co-operation and Development (OECD) Pillar Two regime for a global minimum tax. Pillar Two rules are in different stages of adoption globally. Certain countries in which CIBC operates have enacted Pillar Two legislation, however, the legislation is not yet in effect in those countries. The GMTA is expected to be enacted in 2024 and with application as of CIBC’s 2025 fiscal year. CIBC is currently reviewing the latest draft of the GMTA in Bill C-69 and evaluating its impact on our global operations, which impact is not yet reasonably estimable at this time.

Note 12. Earnings per share

	For the three months ended						For the six months ended
$ millions, except number of shares and per share amounts	2024 Apr. 30		2024 Jan. 31		2023 Apr. 30 (1)		2024 Apr. 30		2023 Apr. 30 (1)
Basic earnings per share
Net income attributable to equity shareholders	$	1,739	$	1,716	$	1,678	$	3,455	$	2,102
Less: Preferred share dividends and distributions on other equity instruments		61		67		67		128		139
Net income attributable to common shareholders	$	1,678	$	1,649	$	1,611	$	3,327	$	1,963
Weighted-average common shares outstanding (thousands)		937,849		931,775		912,297		934,779		909,488
Basic earnings per share	$	1.79	$	1.77	$	1.77	$	3.56	$	2.16
Diluted earnings per share
Net income attributable to common shareholders	$	1,678	$	1,649	$	1,611	$	3,327	$	1,963
Weighted-average common shares outstanding (thousands)		937,849		931,775		912,297		934,779		909,488
Add: Stock options potentially exercisable (2) (thousands)		1,964		555		665		1,201		706
Add: Equity-settled consideration (thousands)		–		–		257		–		250
Weighted-average diluted common shares outstanding (thousands)		939,813		932,330		913,219		935,980		910,444
Diluted earnings per share	$	1.79	$	1.77	$	1.76	$	3.55	$	2.16

(1) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

(2) Excludes average options outstanding of 2,553,244 (January 31, 2024: 7,202,031; April 30, 2023: 6,839,822) with a weighted-average exercise price of $70.05 (January 31, 2024: $63.27; April 30, 2023: $63.23) for the quarter ended April 30, 2024, and average options outstanding of 2,553,244 (April 30, 2023: 6,295,949) with a weighted-average price of $70.05 (April 30, 2023: $63.56) for the six months ended April 30, 2024, as the options’ exercise prices were greater than the average market price of CIBC’s common shares.

Note 13. Contingent liabilities and provisions

Legal proceedings and other contingencies

In the ordinary course of its business, CIBC is a party to a number of legal proceedings, including regulatory investigations, in which claims for substantial monetary damages are asserted against CIBC and its subsidiaries. Legal provisions are established if, in the opinion of management, it is both probable that an outflow of economic benefits will be required to resolve the matter, and a reliable estimate can be made of the amount of the obligation. If the reliable estimate of probable loss involves a range of potential outcomes within which a specific amount appears to be a better estimate, that amount is accrued. If no specific amount within the range of potential outcomes appears to be a better estimate than any other amount, the mid-point in the range is accrued. In some instances, however, it is not possible either to determine whether an obligation is probable or to reliably estimate the amount of loss, in which case no accrual can be made.

While there is inherent difficulty in predicting the outcome of legal proceedings, based on current knowledge and in consultation with legal counsel, we do not expect the outcome of these matters, individually or in aggregate, to have a material adverse effect on our interim consolidated financial statements. However, the outcome of these matters, individually or in aggregate, may be material to our operating results for a particular reporting period. We regularly assess the adequacy of CIBC’s litigation accruals and make the necessary adjustments to incorporate new information as it becomes available.

The provisions disclosed in Note 22 to the consolidated financial statements included in our 2023 Annual Report included all of CIBC’s accruals for legal matters as at that date, including amounts related to the significant legal proceedings described in that note and to other legal matters, except for income tax examinations and disputes, which are addressed in Note 19 to the consolidated financial statements included in our 2023 Annual Report and Note 11 to our interim consolidated financial statements.

CIBC considers losses to be reasonably possible when they are neither probable nor remote. It is reasonably possible that CIBC may incur losses in addition to the amounts recorded when the loss accrued is the mid-point of a range of reasonably possible losses, or the potential loss pertains to a matter in which an unfavourable outcome is reasonably possible but not probable.

CIBC believes the estimate of the aggregate range of reasonably possible losses, in excess of the amounts accrued, for its significant legal proceedings, where it is possible to make such an estimate, is from nil to approximately $0.6 billion as at April 30, 2024. This estimated aggregate range of reasonably possible losses is based upon currently available information for those significant proceedings in which CIBC is involved, taking into account CIBC’s best estimate of such losses for those cases for which an estimate can be made. CIBC’s estimate involves significant judgment, given the varying stages of the proceedings and the existence of multiple defendants in many of such proceedings whose share of the liability has yet to be determined. The range does not include potential punitive damages. The matters underlying the estimated range as at April 30, 2024, consist of the significant legal matters disclosed in Note 22 to the consolidated financial statements included in our 2023 Annual Report as updated below. The matters underlying the estimated range will change from time to time, and actual losses may vary significantly from the current estimate. For certain matters, CIBC does not believe that an estimate can currently be made as many of them are in preliminary stages and certain matters have no specific amount claimed. Consequently, these matters are not included in the range.

76 CIBC SECOND QUARTER 2024

The following developments related to our significant legal proceedings occurred since the issuance of our 2023 annual consolidated financial statements:

• Order Execution Only class actions: Pozgaj was certified as a class action in January 2024. In January 2024, the Ontario Divisional Court dismissed the plaintiff’s appeal of the decision denying certification in Frayce. In February 2024, the plaintiff filed leave to appeal the decision in Frayce. The Ciardullo and Ciardullo and Aggarwal actions have been discontinued. The temporary stay of the Woodard action has been lifted.

• Salko v. CIBC Investor Services Inc., et al.: The plaintiffs’ appeal of the certification decision was heard in December 2023. The Court reserved its decision.

• Campbell v. CIBC: The certification motion scheduled for February 2024 has been adjourned.

Other than the items described above, there are no significant developments in the matters identified in Note 22 to the consolidated financial statements included in our 2023 Annual Report, and no new significant legal proceedings have arisen since the issuance of our 2023 annual consolidated financial statements.

Note 14. Interest income and expense

The table below provides the consolidated interest income and expense by accounting category.

	For the three months ended												For the six months ended
$ millions			2024 Apr. 30				2024 Jan. 31				2023 Apr. 30				2024 Apr. 30				2023 Apr. 30
	Interest income		Interest expense		Interest income		Interest expense		Interest income		Interest expense		Interest income		Interest expense		Interest income		Interest expense
Measured at amortized cost (1)(2)	$	11,032	$	8,974	$	11,056	$	8,938	$	9,440	$	7,148	$	22,088	$	17,912	$	18,488	$	13,884
Debt securities measured at FVOCI (1)		905		n/a		867		n/a		659		n/a		1,772		n/a		1,258		n/a
Other (3)		836		518		811		547		584		348		1,647		1,065		1,197		667
Total	$	12,773	$	9,492	$	12,734	$	9,485	$	10,683	$	7,496	$	25,507	$	18,977	$	20,943	$	14,551

(1) Interest income for financial instruments that are measured at amortized cost and debt securities that are measured at FVOCI is calculated using the effective interest rate method.

(2) Includes interest income on sublease-related assets and interest expense on lease liabilities under IFRS 16.

(3) Includes interest income and expense and dividend income for financial instruments that are mandatorily measured and designated at FVTPL and equity securities designated at FVOCI.

n/a Not applicable.

Note 15. Segmented information

CIBC has four strategic business units (SBUs) – Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets and Direct Financial Services. These SBUs are supported by Corporate and Other.

Canadian Personal and Business Banking provides personal and business clients across Canada with financial advice, services and solutions through banking centres, as well as mobile and online channels, to help make their ambitions a reality.

Canadian Commercial Banking and Wealth Management provides high-touch, relationship-oriented banking and wealth management services to middle-market companies, entrepreneurs, high-net-worth individuals and families across Canada, as well as asset management services to institutional investors.

U.S. Commercial Banking and Wealth Management provides tailored, relationship-oriented banking and wealth management solutions across the U.S., focusing on middle-market and mid-corporate companies, entrepreneurs, high-net-worth individuals and families, as well as operating personal and small business banking services in six U.S. markets.

Capital Markets and Direct Financial Services provides integrated global markets products and services, investment banking and corporate banking solutions, and top-ranked research to our clients around the world, and leverages CIBC’s digital capabilities to provide a cohesive set of direct banking, direct investing and innovative multi-currency payment solutions for CIBC’s clients.

Corporate and Other includes the following functional groups – Technology, Infrastructure and Innovation, Risk Management, People, Culture and Brand, and Finance, as well as other support groups. The expenses of these functional and support groups are generally allocated to the business lines within the SBUs. Corporate and Other also includes the results of CIBC FirstCaribbean and other portfolio investments, as well as other income statement and balance sheet items not directly attributable to the business lines.

CIBC SECOND QUARTER 2024 77

$ millions, for the three months ended		Canadian Personal and Business Banking		Canadian Commercial Banking and Wealth Management		U.S. Commercial Banking and Wealth Management			Capital Markets and Direct Financial Services		Corporate and Other			CIBC Total
2024	Net interest income (1)	$	1,899	$	442	$	458		$	420	$	62		$	3,281
Apr. 30	Non-interest income (2)		577		942		208			1,068		88			2,883
	Total revenue (1)		2,476		1,384		666			1,488		150			6,164
	Provision for credit losses		270		37		186			16		5			514
	Amortization and impairment (3)		58		1		25			2		202			288
	Other non-interest expenses		1,261		719		371			704		158			3,213
	Income (loss) before income taxes		887		627		84			766		(215	)		2,149
	Income taxes (1)		238		171		(9	)		206		(206	)		400
	Net income (loss)	$	649	$	456	$	93		$	560	$	(9	)	$	1,749
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–	$	–		$	–	$	10		$	10
	Equity shareholders		649		456		93			560		(19	)		1,739
	Average assets (4)(5)	$	322,626	$	93,490	$	60,417		$	315,144	$	198,345		$	990,022
2024	Net interest income (1)	$	1,927	$	449	$	465		$	358	$	50		$	3,249
Jan. 31	Non-interest income (2)		570		925		216			1,203		58			2,972
	Total revenue (1)		2,497		1,374		681			1,561		108			6,221
	Provision for (reversal of) credit losses		329		20		244			8		(16	)		585
	Amortization and impairment (3)		58		–		23			2		193			276
	Other non-interest expenses		1,222		669		455			710		133			3,189
	Income (loss) before income taxes		888		685		(41	)		841		(202	)		2,171
	Income taxes (1)		238		187		(32	)		229		(179	)		443
	Net income (loss)	$	650	$	498	$	(9	)	$	612	$	(23	)	$	1,728
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–	$	–		$	–	$	12		$	12
	Equity shareholders		650		498		(9	)		612		(35	)		1,716
	Average assets (4)(5)	$	323,080	$	92,335	$	59,152		$	312,583	$	195,171		$	982,321
2023	Net interest income (loss) (1)	$	1,732	$	453	$	460		$	562	$	(20	)	$	3,187
Apr. 30 (6)	Non-interest income (2)		550		883		188			800		96			2,517
	Total revenue (1)		2,282		1,336		648			1,362		76			5,704
	Provision for credit losses		123		46		248			19		2			438
	Amortization and impairment (3)		61		–		31			1		189			282
	Other non-interest expenses		1,213		673		323			663		(14	)		2,858
	Income (loss) before income taxes		885		617		46			679		(101	)		2,126
	Income taxes (1)		247		165		(9	)		182		(148	)		437
	Net income	$	638	$	452	$	55		$	497	$	47		$	1,689
	Net income attributable to:
	Non-controlling interests	$	–	$	–	$	–		$	–	$	11		$	11
	Equity shareholders		638		452		55			497		36			1,678
	Average assets (4)(5)	$	317,531	$	91,708	$	61,440		$	273,196	$	188,900		$	932,775
$ millions, for the six months ended
2024	Net interest income (1)	$	3,826	$	891	$	923		$	778	$	112		$	6,530
Apr. 30	Non-interest income (2)		1,147		1,867		424			2,271		146			5,855
	Total revenue (1)		4,973		2,758		1,347			3,049		258			12,385
	Provision for (reversal of) credit losses		599		57		430			24		(11	)		1,099
	Amortization and impairment (3)		116		1		48			4		395			564
	Other non-interest expenses		2,483		1,388		826			1,414		291			6,402
	Income (loss) before income taxes		1,775		1,312		43			1,607		(417	)		4,320
	Income taxes (1)		476		358		(41	)		435		(385	)		843
	Net income (loss)	$	1,299	$	954	$	84		$	1,172	$	(32	)	$	3,477
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–	$	–		$	–	$	22		$	22
	Equity shareholders		1,299		954		84			1,172		(54	)		3,455
	Average assets (4)(5)	$	322,855	$	92,906	$	59,778		$	313,849	$	196,741		$	986,129
2023	Net interest income (1)	$	3,441	$	917	$	936		$	1,097	$	1		$	6,392
Apr. 30 (6)	Non-interest income (2)		1,103		1,770		418			1,746		204			5,241
	Total revenue (1)		4,544		2,687		1,354			2,843		205			11,633
	Provision for credit losses		281		92		346			9		5			733
	Amortization and impairment (3)		120		1		61			3		374			559
	Other non-interest expenses		2,444		1,337		673			1,311		1,278			7,043
	Income (loss) before income taxes		1,699		1,257		274			1,520		(1,452	)		3,298
	Income taxes (1)		471		336		18			411		(60	)		1,176
	Net income (loss)	$	1,228	$	921	$	256		$	1,109	$	(1,392	)	$	2,122
	Net income (loss) attributable to:
	Non-controlling interests	$	–	$	–	$	–		$	–	$	20		$	20
	Equity shareholders		1,228		921		256			1,109		(1,412	)		2,102
	Average assets (4)(5)	$	317,739	$	90,793	$	60,414		$	285,074	$	189,118		$	943,138

(1) Capital Markets and Direct Financial Services net interest income and income taxes includes a TEB adjustment of $71 million for the three months ended April 30, 2024 (January 31, 2024: $68 million; April 30, 2023: $64 million) and $139 million for the six months ended April 30, 2024 (April 30, 2023: $126 million) with an equivalent offset in Corporate and Other.

(2) Includes intersegment revenue, which represents internal sales commissions and revenue allocations under the Product Owner/Customer Segment/Distributor Channel allocation management model.

(3) Comprises amortization and impairment of buildings, right-of-use assets, furniture, equipment, leasehold improvements, and software and other intangible assets.

(4) Assets are disclosed on an average basis as this measure is most relevant to a financial institution and is the measure reviewed by management.

(5) Average balances are calculated as a weighted average of daily closing balances.

(6) Certain comparative amounts have been restated to reflect the adoption of IFRS 17 in the first quarter of 2024. See Note 1 to the interim consolidated financial statements for additional details.

78 CIBC SECOND QUARTER 2024

TO REACH US:

Corporate Secretary: Shareholders may e-mail: corporate.secretary@cibc.com

Investor Relations: Financial analysts, portfolio managers and other investors requiring financial information may call 416-813-3743, or e-mail: Mailbox.InvestorRelations@cibc.com

Communications and Public Affairs: Financial, business and trade media may e-mail: corpcommmailbox@cibc.com

CIBC Telephone Banking: As part of our commitment to our clients, information about CIBC products and services is available by calling 1-800-465-2422 toll-free across Canada.

Online Investor Presentations: Supplementary financial information, Pillar 3 Report and Supplementary regulatory capital disclosure, and a presentation to investors and analysts are available at www.cibc.com; About CIBC.

Earnings Conference Call: CIBC’s second quarter conference call with analysts and investors will take place on Thursday, May 30, 2024 at 7:30 a.m. (ET). The call will be available in English (416-340-2217, or toll-free 1-800-806-5484, passcode 1073773#) and French (514-392-1587, or toll-free 1-800-898-3989, passcode 5601311#). A telephone replay of the conference call will be available in English and French until 11:59 p.m. (ET) June 13, 2024. To access the replay in English, call 905-694-9451 or 1-800-408-3053, passcode 8797228#. To access the replay in French, call 514-861-2272 or 1-800-408-3053, passcode 6432963#.

Audio Webcast: A live audio webcast of CIBC’s second quarter results conference call will take place on Thursday, May 30, 2024 at 7:30 a.m. (ET) in English and French. To access the audio webcast, go to www.cibc.com; About CIBC. An archived version of the audio webcast will also be available in English and French following the call on www.cibc.com; About CIBC.

Annual Meeting: CIBC’s next Annual Meeting of Shareholders will be held on April 3, 2025.

Regulatory Capital: Information on CIBC’s regulatory capital instruments and regulatory capital position may be found at www.cibc.com; About CIBC; Investor Relations; Regulatory Capital Instruments.

Bail-in Debt: Information on CIBC’s bail-in debt and total loss absorbing capacity instruments may be found at www.cibc.com; About CIBC; Investor Relations; Debt Information; Bail-in Debt.

Nothing in CIBC’s website www.cibc.com should be considered incorporated herein by reference.

DIRECT DIVIDEND DEPOSIT SERVICE

Canadian-resident holders of common shares may have their dividends deposited directly into their account at any financial institution which is a member of Payments Canada. To arrange, please write to TSX Trust Company (Canada), P.O. Box 700 Postal Station B, Montreal, QC H3B 3K3 or e-mail: shareholderinquiries@tmx.com.

SHAREHOLDER INVESTMENT PLAN

Registered holders of CIBC common shares wishing to acquire additional common shares may participate in the Shareholder Investment Plan and pay no brokerage commissions or service charges.

For a copy of the offering circular, contact TSX Trust Company (Canada) at 416-682-3860, toll-free at 1-800-258-0499, or by e-mail at shareholderinquiries@tmx.com.

PURCHASE PRICE OF COMMON SHARES

UNDER THE

SHAREHOLDER INVESTMENT PLAN

Date	Share purchase option		Dividend reinvestment & stock dividend options
Feb. 1/24		$61.56
Mar. 1/24		$63.47
Apr. 1/24		$68.37
Apr. 29/24			$63.70

Canadian Imperial Bank of Commerce

Head Office: CIBC Square, Toronto, Ontario, M5J 0E7, Canada

www.cibc.com