Canadian Imperial Bank Of Commerce

Strong overall quarter; sustained operating leverage - Adjusted EPS: $2.54 (+24% YoY), 8th consecutive quarter of double-digit EPS growth. - Revenues: $8B (+14% YoY), with double-digit growth in each business. - Expenses: +10% YoY, delivering positive operating leverage of ~4% (11th straight quarter). - Return on equity: 16.4% (+250 bps YoY). - Capital strength: CET1 13.6% (ended Q2 at 13.6% even after repurchasing 6.5M shares).

Forward outlook & margin expectations: constructive but “not expect big step-ups” - Management expects H2 revenues to be above last year’s H2, but below very strong H1, subject to a fluid operating environment. - Net interest margin (NIM): guided to stable to gradually positive bias over time, supported by hedging (“tractoring”) and deposit strategy; however: - They did not frame recent large margin expansion as something to model. - Competition remains intense on pricing; deposits/loan mix and seasonality matter. - Mortgage spread contribution appears positive but less tailwind-y than prior periods; still some positive spread expected with positive mortgage role contributions.

Credit: manageable but slightly worse than earlier expectations - Provision for credit losses: $605M in Q2 vs $568M last quarter (higher impaired provisions). - Allowance coverage: ~80 bps (up 1 bp QoQ). - Impaired provisions rose, mainly due to Canadian Personal & Business Banking pressure (write-offs and higher 90+ day delinquencies), partially offset by lower provisions in U.S. Commercial. - Mortgage portfolio: impaired ratio up; they emphasize mortgages are well secured and well provisioned, with low net write-off history. - Guidance for rest of year: Frank said they expect impaired provisions to be broadly in line with H1 levels through H2 (i.e., not a sharp deterioration, but not a clean rebound either).