Canadian Imperial Bank Of Commerce (CM)

Canadian Imperial Bank of Commerce (CIBC) Overview:

Company Profile:

History and Background:

• Founded in 1867 as The Canadian Bank of Commerce.
• Merged with Imperial Bank of Canada in 1961, forming Canadian Imperial Bank of Commerce.
• Headquartered in Toronto, Canada.
• Fifth largest bank in Canada by assets.
• Operates in Canada, the United States, and other international markets.

Core Business Areas:

• Retail and business banking: Serving individuals and small businesses with chequing and savings accounts, loans, mortgages, credit cards, and investment products.
• Wealth Management: Offering investment and financial planning services to high-net-worth individuals and families.
• Capital Markets: Providing investment banking, trading, and research services to corporations and institutional investors.
• US Commercial Banking and Wealth Management: Serving mid-market and multinational corporations in the United States.

Leadership Team and Corporate Structure:

• Victor Dodig, President and CEO.
• Hratch Panossian, Chief Financial Officer.
• Board of Directors with extensive experience in finance, business, and technology.
• Decentralized organizational structure with business units focused on specific market segments.

Top Products and Market Share:

Top Products:

• Personal chequing and savings accounts.
• Mortgages.
• Credit cards.
• Investment products.
• Business loans and lines of credit.
• Wealth management services.

Market Share:

• Canada:
  • Retail banking: 10.5% market share.
  • Mortgages: 10.2% market share.
  • Business banking: 9.8% market share.
• United States:
  • Commercial banking: 0.5% market share.
  • Wealth management: 0.3% market share.

Comparison to Competitors:

• Canadian Banks:
  • Royal Bank of Canada (RY).
  • Toronto-Dominion Bank (TD).
  • Bank of Montreal (BMO).
  • Scotiabank (BNS).
• US Banks:
  • JPMorgan Chase (JPM).
  • Bank of America (BAC).
  • Wells Fargo (WFC).
  • Citigroup (C).

CIBC generally has a smaller market share than its Canadian competitors but has a strong presence in specific segments like wealth management. In the US, it focuses on serving mid-market and multinational corporations.

Total Addressable Market:

Global Banking Market:

• Estimated at USD 31.4 trillion in 2023.
• Expected to grow at a CAGR of 6.3% between 2023 and 2028.

Financial Performance:

Recent Financial Statements:

• Revenue: C$16.4 billion in 2022.
• Net Income: C$6.1 billion in 2022.
• Profit Margin: 37.4% in 2022.
• Earnings per Share (EPS): C$15.39 in 2022.

Year-over-Year Performance:

• Revenue increased by 7.5% in 2022.
• Net income increased by 11.6% in 2022.
• EPS increased by 11.9% in 2022.

Cash Flow and Balance Sheet:

• Strong cash flow from operations.
• Healthy capital adequacy ratios.

Dividends and Shareholder Returns:

Dividend History:

• Dividend yield of 4.3% in 2022.
• Payout ratio of 42.5% in 2022.
• Consistent dividend growth over the past decade.

Shareholder Returns:

• Total shareholder return of 10.2% in 2022.
• Outperformed the S&P/TSX composite index in 2022.

Growth Trajectory:

Historical Growth:

• Revenue and net income have grown steadily over the past 5 years.
• EPS has grown at a CAGR of 7.4% over the past 5 years.

Future Growth Projections:

• Expected to benefit from rising interest rates and strong economic growth in Canada.
• Targeting mid-single-digit earnings growth in the coming years.

Market Dynamics:

Industry Trends:

• Digital transformation and innovation.
• Increased competition from fintech companies.
• Regulatory changes and compliance costs.

CIBC's Positioning:

• Investing in digital capabilities.
• Expanding US commercial banking operations.
• Focusing on customer experience and relationship management.

Competitors:

Key Competitors:

• Canadian Banks: RY, TD, BMO, BNS.
• US Banks: JPM, BAC, WFC, C.

**Market Share: