CIBC Announces Third Quarter 2010 Results

Toronto, Aug. 25 – CIBC (CM: TSX; NYSE) today reported net income of $640 million for the third quarter ended July 31, 2010, compared with net income of $434 million for the same period last year. Diluted earnings per share (EPS) were $1.53, compared with diluted EPS of $1.02 a year ago. Cash diluted EPS were $1.55(1), compared with cash diluted EPS of $1.04(1) a year ago.Results for the third quarter of 2010 were affected by the following items aggregating to a negative impact of $0.11 per share:

– $138 million ($96 million after-tax, or $0.25 per share) loss from the structured credit run-off business; and

– $76 million ($53 million after-tax, or $0.14 per share) reversal of provision for credit losses in the general allowance.

Net income of $640 million for the third quarter compared with net income of $660 million for the prior quarter. Diluted EPS and cash diluted EPS of $1.53 and $1.55(1), respectively, for the third quarter compared with diluted EPS and cash diluted EPS of $1.59 and $1.61(1), respectively, for the prior quarter, which included items of note aggregating to a positive impact of $0.15 per share.

CIBC’s capital position remains strong. CIBC’s Tier 1 and Tangible Common Equity ratios at July 31, 2010 were 14.2% and 9.5%, respectively, up from 13.7% and 8.9%, respectively, at April 30, 2010.

Return on equity for the third quarter was 19.8%.

Core business performance

CIBC delivered solid performance and progress during the third quarter.

“The investments we are making in our retail and wholesale businesses are furthering our strength in Canada and positioning us well for the future,” says Gerry McCaughey, President and Chief Executive Officer. “Given the uncertainty related to the economic recovery and the regulatory environment, we will continue to grow our businesses cautiously while maintaining balance sheet strength and expense discipline.”

CIBC Retail Markets reported net income of $599 million.

Revenue of $2.5 billion was up 7% from the third quarter of 2009, the highest growth since the first quarter of 2008, supported by strong results across our personal banking, business banking and wealth management businesses, as well as higher treasury allocations.

Credit quality in CIBC’s retail portfolios continued to improve. Provision for credit losses of $304 million was down from $334 million in the prior quarter and a peak of $417 million in the third quarter of 2009. Lower losses in domestic commercial banking, cards and personal lending portfolios were partially offset by higher losses in CIBC’s FirstCaribbean International Bank subsidiary.

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