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2008
Thursday 09 October 2008 (CM : TSX : $56.08)No rush to buy financial services stocks
RBC Capital Markets maintains a "sector perform", lowers target to $60.00
Tuesday 07 October 2008 CIBC (CM : TSX : $57.35)
Cerberus' investment in CIBC's USRMM portfolio - CIBC buys expensive insurance
Credit Suisse maintains "neutral", 12-month target price is $70.00
Desjardins Securities maintains "hold", 12-month target price is $71.50
Scotia Capital Markets maintains "sector perform", 12-month target price is $80.00
Saturday, October 4, 2008CIBC turns to U.S. vulture fund
Canadian Imperial Bank of Commerce has turned to a U.S. vulture fund to protect the capital base of the country's sixth-... Gets $1.05 billion Cerberus Capital pays cash and takes on risks related to U.S. mortgages
Friday 03 October 2008 Canadian Imperial Bank of Commerce (CM) said Cerberus Capital Management will invest US$1.05 billion in its U.S. residential real estate portfolio. According to the company, the move will “significantly limit” CIBC's U.S. real estate exposure.
Tuesday 30 September 2008 CIBC (CM : TSX : $61.06)
Introduction of TARP could lead to stabilization in value of assets; retail markets key
RBC Capital Markets upgrades to "sector perform", 12-month target price is raised to $65.00
TD Newcrest maintains; "buy", 12-month target price is $77.00
Wednesday 17 September 2008 CIBC (CM : TSX : $58.99)
Marked-to-market exposure to Lehman is $25 million
BMO Nesbitt Burns maintains a "market perform", target of $68.00
Credit Suisse maintains "neutral", target of $72.00
RBC Capital Markets maintains an "underperform", target of $62.00
Scotia Capital maintains a "sector perform", target of $80.00
Tuesday 16 September 2008 CIBC (CM) - $61.11 - Investor Day Provides Very Little Information
Underperform, Average Risk, Price Target: $62.00
CIBC is looking to leverage its distribution, loyalty rewards programs and advisory services to grow revenues in 2009. However, RBC CM believes that generating attractive revenue growth will prove challenging given the bank's focus on expense control, and a slowing economic environment. Visibility on wholesale revenues is cloudier than for peers due to its risk reduction initiatives and focus on earnings stability. The bank is targeting an earnings range of $300 - 500 million a year through a cycle for its ongoing businesses. RBC CM believes that the management changes and downsizing of businesses (including selling businesses and letting go of 15% of its employees) has been disruptive to operations and it will take time to get a consistent earnings base. Key capital markets-related risks remain, particularly following recent events (such as the LEH bankruptcy and uncertainty related to the health of AIG). CIBC's key risks in order of our perceived riskiness, include: $2.9 billion in fair value of hedges with financial guarantors; an additional notional $1.2 billion in CDOs of RMBS hedged with financial guarantors; an additional $22.2 billion in structured finance exposures that relate mainly to corporate debt/CLOs, that are hedged with financial guarantors; and $2.2 billion in of various other unhedged holdings of structured credit. RBC CM continues to believe that the bank has enough capital. CIBC's stock is cheap relative to bank peers on a forward P/E basis (8.8x versus 9.9x) and RBC CM does not expect CIBC to need to raise capital or cut its dividend, but RBC CM does not believe that the stock will necessarily perform well against bank peers in the next 6 months. CIBC's exposures to structured finance assets and financial guarantors remain material, with little visibility on ultimate mark to market valuations.
Thursday 31 July 2008 CIBC (CM : TSX : $58.74)
Counterparty credit risks continue to rise
Blackmont Capital maintains "hold", 12-month target price is $74.00
Thursday Jul 24, 2008 CIBC faces suit over subprime exposure
The Canadian Imperial Bank of Commerce is the first Canadian bank to face legal action over investments tied to plunging...
Wednesday 16 July 2008 (CM : TSX : $49.40) No end in sight for write-downs
Dundee Securities maintains "sell", 12-month target price decreased to $49.00
Thursday 26 June 2008 CIBC (CM : TSX : $59.95 | NYSE : US$59.53)
CIBC likely to increase markdowns on hedges with financial guarantors
Dundee Securities maintains "sell", 12-month target price is $55.00
RBC Capital Markets maintains "underperform", 12-month target price is $62.00
Tuesday 24 June 2008 CIBC (CM : TSX : $60.88)
Minimum $1b Pre-tax Loss after SCA's Downgrade
Blackmont Capital maintains "hold", 12-month target price is $74.00
Wednesday 11 June 2008 (CM : TSX : $64.83) Share prices sufficiently punished
Dundee Securities maintains "neutral", 12-month target price is $67.00
Wednesday 04 June 2008 CIBC (CM : TSX : $68.69) Weak industry to weigh on company
RBC Capital Markets downgrades to "sector underperform", 12-month target price is cut to $64.00
Tuesday 03 June 2008 CIBC (CM : TSX : $69.12)
Core earnings in line with expectations but well below consensus
Dundee Securities maintains "sell", 12-month target price is $67.00
Monday 02 June 2008 CIBC (CM : TSX : $69.15)
Q2/08 well short of expectations, big credit losses
Blackmont Capital maintains "hold", 12-month target price is $74.00
Credit Suisse First Boston maintains "neutral", 12-month target price is cut to $77.00
RBC Capital Markets continues "sector perform", 12-month target price is cut to $67.00
Friday 30 May 2008 TORONTO: CIBC LOSES BECAUSE OF U.S. MORTGAGE DEBACLE
The Canadian Imperial Bank of Commerce reports having lost $1.11 billion in the second quarter, and that much of the loss is due to its involvement in the U.S. residential mortgage market, a loss that amounted to $3.00 a share.
Friday 30 May 2008 CIBC (CM : TSX : $69.46), Net Change: -1.39, % Change: -1.96%, Volume: 3,253,109
National Bank (NA : TSX : $53.08), Net Change: 0.68, % Change: 1.30%, Volume: 1,594,153
Royal Bank of Canada (RY : TSX : $50.53), Net Change: 1.07%, Volume: 4,028,245
A glass of warm water to wash down your sauce-less pasta and skinless baked chicken breast? Three Canadian banks reported their quarterlies yesterday and the numbers weren’t pretty. In particular, CIBC earned $1.63 per share (excluding one time items), well below the Street consensus of $1.78. The bank also recorded $2.5 billion in pre tax writedowns, primarily a result of its exposure to the U.S. sub-prime mortgage market and bond insurers, while analysts had been expecting writedowns of $1.0- $2.5 billion. After the writedowns, CIBC had a loss of $1.1 billion, down from a profit of $807 million a year ago. Larger rival Royal Bank only wrote down $855 million but still saw its profit fall 27% to $928 million, which was short of estimates.
National Bank meanwhile said net income declined 29% to $165 million, or $1 per share versus the consensus of $1.28, due to $73 million loss for its holdings in asset-backed commercial paper. For the first time in six years, Canada’s six largest banks failed to increase their quarterly profits and each of their quarterly results missed analysts’ expectations. In total, the banks have taken nearly $10 billion in writedowns over the past four quarters, reflecting their exposure to the troubled U.S. credit market and losses in asset-backed commercial paper. Is the nightmare over? Perhaps not. This year, Canada’s economy is expected to grow at the slowest pace in 16 years due to weak exports to the U.S.
Thursday 22 May 2008 (CM : TSX : $72.74)
Monoline CIFG's downgrade increases likelihood of loss development
Blackmont Capital maintains "hold", 12-month target price is $74.00
Monday 12 May 2008 CIBC (CM : TSX : $72.93)
Losses continue with Monoline Counterparty
Blackmont Capital Inc. maintains "hold", 12-month target price is $74.00
Monday 05 May 2008 CIBC (CM : TSX : $76.53)
Stock has recovered, expect inline returns going forward
TD Newcrest downgrades to "hold", 12-month target price is $80.00
Tuesday 29 April 2008
CIBC (CM : TSX : $73.21) Best upside potential among cheaper banks
RBC Capital Markets maintains "sector perform", 12-month target price is raised to $69.00
Tuesday 01 April 2008 CIBC (CM : TSX : $65.89)
S&P downgraded monoline insurer FGIC
Blackmont Capital maintains "hold", 12-month target price is $74.00
Monday 31 March 2008 CIBC (CM : TSX : $65.57 | NYSE : US$64.39)
$1.5 billion write-down expected in Q2
RBC Capital Markets maintains "sector perform", 12-month target price is $65.00
Friday 28 March 2008 (CM) - $66.20 - Continue To Expect $1.5 Billion Write-downs in Q2
Sector Perform, Average Risk, Price Target: $65.00
The downgrades of SCA and FGIC, announced after the close yesterday by Fitch, as well as comments made by CIBC's CEO at a conference, confirmed RBC CM’s view that more writedowns should be expected in Q2/08 related to structured products hedged with monolines. RBC CM has been estimating $1.5 billion in pre-tax writedowns in Q2/08. This would leave CIBC with a Tier 1 ratio of 10.8%, down from 11.4% at the end of Q1/08. Fitch downgraded SCA's financial strength rating from A to BB with a negative outlook and FGIC's financial strength rating from AA to BBB with a negative outlook. Other rating agencies have higher ratings on both SCA and FGIC. Of CIBC's hedged CDO of RMBS exposure, RBC CM believes US$3.2 billion of notional value is hedged with SCA and FGIC. The current value of the CDOs was US$1.3 billion at Jan 31/08, which means there is US$1.9 billion of fair value that is owed by SCA and FGIC to CIBC. RBC CM estimates that CIBC took a valuation allowance of around $310 million against the US$1.9 billion in Q1/08. Of CIBC's hedged CLO exposure, RBC CM believes US$5.0 billion of notional value is hedged with SCA and FGIC. The current value of the CLOs was US$4.8 billion at Jan 31/08, which means there is US$123 million of fair value that is owed by SCA and FGIC to CIBC. CIBC also provided greater disclosure on its portfolio of non US RMBS structured products hedged with monolines. The notional exposure is $25.1 billion versus RBC CM’s estimated range of $18-25 billion. The marks as at Jan 31 imply 3.5% deterioration in asset prices. Positively, the riskier monolines (SCA, FGIC, CIFG) account for $6.2 billion of $25.1 billion in notionals insured (25%), which is better than the average monoline quality in the CDO of RMBS portfolio.
CIBC (CM : TSX : $66.97 | NYSE : US$65.92)
Non-subprime CDS hedge exposure higher than expected
Blackmont Capital upgrades to "hold", 12-month target price is raised to $74.00
TD Newcrest reiterates "buy", 12-month target price is $80.00
Monday 03 March 2008 CIBC (CM : TSX : $67.95), Net Change: -1.05, % Change: -1.52%, Volume: 1,436,555
TD Bank (TD : TSX : $67.06), Net Change: -0.68, % Change: -1.00%, Volume: 1,820,777
National Bank (NA : TSX : $50.73), Net Change: -0.37, % Change: -0.72%, Volume: 453,556
As funny as The Tree Amigos. CIBC posted Q1 loss of $1.5 billion versus a $770 million profit last year. The company took a
wide range of losses in the quarter, including a $2.3 billion pre-tax charge because of exposure to troubled bond insurer ACA
Financial (ACAH); a $626 million charge relating to other guarantors; a $473 million of losses on the U.S. mortgage market;
and a $108 million loss on the sale of some of its U.S. business to Oppenheimer. Special charges totalled $3.49 billion, which
were offset in part by $227 million in one-time gains. Unfortunately, the company warned that these charges may not be the
last, as “market and economic conditions relating to the financial guarantors may change in the future, which could result in
significant future losses.” While the challenges continue at CIBC, Toronto-Dominion showed much better execution, as
earnings increased by 5.3%, almost reaching a billion dollars ($970 million to be exact) versus $921 million last year. The
results appeared to be as a result from its strong retail operations. As well, the company raised its quarterly dividend by 3.5% to
$0.59 per share. But despite this positive news, the company said it would be “challenged” to meet the low end of its 7-10%
EPS growth goal. Meanwhile at National Bank, the company posted a record profit of $255 million for the quarter, compared to
$240 million last year. Excluding special items, the company earned $237 million, compared with $240 million last year. Their
CEO stated, “Unless there is a severe U.S. recession, or a disorderly liquidation of the market,” there would be no more ABCP
writedowns. Phew!
Sunday 02 March 2008 TORONTO: CIBC, RBC SUFFER SUBPRIME LOSSES
One of Canada's largest chartered banks, the Canadian Imperial Bank of Commerce, has reported a loss of $1.5 billion over the past three months. The loss is attributed to the bank's involvement in the debt turmoil in the United States market. The bank says it is working to manage risks better this year. However, the bank warned that its future losses could be as much as $5.1 billion. CIBC is the Canadian bank hit the hardest by the rising cost of credit in the United States. There was similar distress at Royal Bank of Canada, the country's biggest, as CEO Gord Nixon told shareholders that quarterly profit was down 17 per cent because of a big writedown related to U.S. credit losses. RBC earned $1.25 million, compared with $1.49 million a year earlier. Mr. Nixon compared the situation to "...an extended party with far too much excess [followed by] ...a long and painful hangover."
Tuesday 12 February 2008 CIBC (CM : TSX : $66.84)
Difficult capital markets environment and weakening credit conditions
Credit Suisse maintains "neutral", 12-month target price is cut to $79.00
Monday 11 February 2008 CIBC (CM : TSX : $67.47)
SCA rating cut by Moody's
Blackmont Capital maintains a "sell", 12-month target price is $66.00
Friday 08 February 2008 (CM : TSX : $68.40 | NYSE : US$67.77) Scenario analysis
RBC Capital Markets maintains "sector perform", 12-month target price is $73.00
Thursday 07 February 2008 (CM : TSX : $73.48)
Three potential value creating scenarios
Dundee Securities maintains "underperform", 12-month target price is $73.00
Monday 28 January 2008 (CM : TSX : $67.25 | NYSE : US$66.79)
Caution going forward
Blackmont Capital maintains a "sell", 12-month target price is cut to $66.00
BMO Nesbitt Burns maintains a "market perform", target price cut to $72.50
Dundee Securities rates a "market underperform", 12-month target price is raised to $73.00
RBC Capital Markets reinstates coverage with a "sector perform", target price is $73.00
Tuesday 22 January 2008 RBC CM Canadian Financial Services Beacon - Assessing The Downside Risk
Two questions from investors are: (1) with Canadian bank shares down 24% from their 52 week highs and lifeco shares down 15%, are these levels where the stocks should be bought; and (2) if a recession hits the North America, what kind of downside risk could there be in bank and lifeco stocks? RBC CM would not add to Canadian financial services positions at this time as it sees increased downside risk to earnings and the economy, and does not believe valuations are at "back up the truck" levels. Bank and lifeco stocks may trade higher in a year if the economy avoids a recession, but it is still too early to buy the stocks, in RBC CM’s view. The next set of earnings will be difficult for lifecos given the high Canadian dollar, shaky equity markets and declining long term interest rates. For banks, net interest income margins are likely to remain pressured this quarter, wealth management and capital market earnings growth may be weaker than in past years and we believe that companies with exposure to CDOs and AAA-rated monolines are at risk of further writedowns. Higher loan losses are expected for those with U.S. exposure in Q1/08, while normalization of loan losses may hit all banks as the year progresses. For banks, RBC CM believes that investors default to price to book in times of economic stress, a period in which credit losses rise rapidly and wealth management and capital market earnings become difficult to predict. The banks traded at an average 1.65x book at the last trough (fall of 2002), which coincided with rapidly rising loan losses and difficult equity markets. A decline from current multiples to 1.65x book would suggest 20-25% of downside risk.
Tuesday 08 January 2008 CIBC (CM : TSX : $69.02), Net Change: 1.02, % Change: 1.50%, Volume: 2,185,159
TSX Group (X : TSX : $52.02), Net Change: 0.17, % Change: 0.33%, Volume: 461,049
“Heads will roll and rock tonight. For those about to rock, we salute you.” – AC/DC. CIBC announced that some very senior
heads were rolling. The company revealed that two senior officers were leaving the firm: CEO of CIBC World Markets and CIBC’s Chief Risk Officer. Tom Woods, the company’s CFO, is being moved to the role of Chief Risk Officer, while David
Wililamson, formerly President and CEO of Atlas Cold Storage and CFO of Clarica Life Insurance, is being appointed CFO,
and Richard Nesbitt, CEO of the TSX Group from 2004 to 2007, will be joining CIBC as CEO of CIBC World Markets
(effective February 29, 2008). Given the recent challenges and substantial mortgage-related write-downs this is hardly a
surprising shake-up. It was reported that David Williamson (the new CFO) was possibly being brought on given his substantial
experience in buying and selling corporate assets, implying that significant divestitures (or acquisitions) could be anticipated,
including media speculation that even CIBC World Markets could end up on the auction block.
2007
Saturday 22 December 2007 (CM : TSX : $70.50 | NYSE : US$70.73)
Warns of large charge to come in first quarter because of ACA downgrade
Blackmont Capital maintains "sell", 12-month target price is $76.00
Desjardins Securities maintains a "hold", target price cut to $84.50
Dundee Securities downgrades to "underperform", 12-month target price is cut to $65.00
Thursday Dec 20, 2007 CIBC losses could exceed $3-billion
...The bank's book of investments tied to the U.S. housing market is already down about $1-billion and CIBC now says it is "highly probable" there will be another "large charge," possibly US$2-billion.
Monday 17 December 2007 (CM : TSX : $73.72 | NYSE : US$72.50)
Continues to be hurt by credit crunch
Desjardins Securities maintains "hold", 12-month target price is $89.00
Friday 14 December 2007 CIBC (CM : TSX : $76.59), Net Change: -3.00, % Change: -3.77%, Volume: 4,576,889
The sale just got better. Canada’s fifth-largest lender said it would cut about 500 jobs in London, closing its European
leveraged finance operations. The risk-rewards were out of whack as they would make risky loans to clients that didn’t
reciprocate with investment banking business (it’s London, they have plenty of other investment bankers to go to for advice).
And less risk is what CIBC is craving these days. More job cuts are expected which is pretty much the opposite with what some
of its rival banks are doing. Worries continue to mount that at least one of CIBC’s CDO insurers may not be able to pay CIBC
what it owes them. It is no value to have insurance through an insurer that is potentially close to insolvency. ACA Financial is
widely believed to be the counterparty in trouble. Its parent company, ACA Capital, had a shareholder deficit of $883.3 million
as of September 30 and, if what Lehman Brothers (LEH) said about November being their worst month in credit markets so
far, that deficit is likely something uglier today.
Monday 10 December 2007 (CM : TSX : $79.80 | NYSE : US$79.48)
Concerns surrounding exposure to U.S. structured credit
Blackmont Capital downgrades to "sell", 12-month target price is cut to $76.00
Credit Suisse maintains a "neutral", target price cut to $98.00
Desjardins Securities maintains a "hold", target price cut to $89.00
RBC Capital Markets maintains a "sector perform", target price cut to $95.00
Friday 07 December 2007(CM): $82.40 – Expect CDO/RMBS Writedowns to Rise
Sector Perform, Average Risk, Price Target: $95.00 (prev. $105.00)
RBC CM is lowering its 12 month Price Target from $105 to $95 based on lower valuation multiples and lower estimated excess capital. Furthermore, RBC CM has modeled $2.3 billion in pre-tax writedowns in Q1/08 related to unhedged and hedged exposures to US CDOs and RMBS – a scenario that is believed to be conservative but not unfathomable. RBC CM does believe that if losses are limited to the unhedged exposures as well as CIBC’s exposure to an A-rated financial guarantor, that it will remain adequately capitalized. RBC CM believes that CIBC’s stock will remain cheap relative to peers while the environment surrounding US residential lending and financial guarantors remains clouded. The sector perform rating is being maintained for CIBC on the following positive characteristics: (1) Expenses are being aggressively managed; (2) The bank has lower exposure to deteriorating business credit quality given the size of its loan portfolio; and (3) The dividend has upside potential as it currently only represents 40% of RBC CM’s estimated earnings for the next 12 months, which is the lower limit of the bank's target payout range is 40-50%.
Bad old days are back at CIBC
McCaughey delivers a record year, but $9.8-billion in exposure to subprime market shows risk-prone culture hasn't been erased
CIBC (CM : TSX : $81.33) Q4 beats expectations
Blackmont Capital maintains "hold", 12-month target price is $103.00
Thursday 15 November 2007
CIBC (CM : TSX : $92.30 | NYSE : US$95.61)
Several negative factors will affect performance
RBC Capital Markets downgrades to "sector perform", 12-month target price is cut to $105.00
Wednesday 14 November 2007 CIBC (CM : TSX : $94.80)
VISA restructuring expected to produce $456 million gain
Scotia Capital Markets rates a "sector perform", 1-year target price is $115.00
Wednesday 14 November 2007 CIBC (CM) - $95.02 - Downgraded To Sector Perform
Sector Perform, Average Risk, Price Target: $105.00 (was $108.00)
RBC CM downgrade CM from Outperform to Sector Perform as part of its review of the Canadian banks. The revision reflects heightened risk to securities portfolio, backstop liquidity lines and capital markets revenues in general. CM continues to offer investors some attractive characteristics including an expected increase to the dividend, lower exposure to deteriorating business credit quality given the size of its loan portfolio, and aggressive management of expenses. However, domestic retail revenue growth lags the industry and sub-prime risk remains. CM is currently trading in-line with its Canadian peers on a P/E basis, while over the past 5 years it has averaged a 0.5x discount, leading to the belief that the shares are slightly expensive at this time.
Wednesday 07 November 2007 CIBC (CM : TSX : $98.20)
Selling portion of U.S. capital markets operations
Blackmont Capital maintains a "hold", 12-month target price is $103.00
Monday 05 November 2007 CIBC (CM) - $98.10 - Sells Some US Businesses
Outperform, Average Risk - Price Target: $108.00
CIBC announced an agreement to sell to Oppenheimer (OPY) some of its capital markets businesses, including the US domestic investment banking, equities, leveraged finance and related debt capital markets businesses. The transaction also includes CIBC's Israeli investment banking and equities business, and certain parts of other US capital markets-related businesses located in the UK and Asia. CIBC will retain its other US wholesale businesses, which include real estate finance, equity and commodity structured products, merchant banking and oil and gas advisory, as well as the balance of its US debt capital markets, Asia and U.K businesses. CIBC is attempting to realize value from a business that was not reflected in its stock price, but the payment structure is heavy on contingent payments. The businesses sold account for about $400 million in annualized revenues, or just over 3% of CIBC's revenue base. Management noted that the transaction is not expected to have a material impact on its earnings per share or Tier 1 capital ratio. One-time costs of $175 million or $0.35 per share after tax are expected.
Wednesday 19 September 2007 VANCOUVER: CIBC TO OPEN ON SUNDAY
The Canadian Imperial Bank of Commerce, the country's fifth-biggest, says six of its branches in Vancouver and Toronto will be open on Sundays starting later this year, which CIBC describes as a first in Canadian banking history. A senior executive vice-president, Sonia Baxendale, says by offering Sunday banking hours, CIBC wants to offer clients "greater flexibility, access and choice that will allow them to better meet their banking needs."
Tuesday 04 September 2007
CIBC (CM :
TSX : $95.56 | NYSE : US$90.53)
No surprises from third-quarter
results; dividend increase somewhat surprising
Blackmont Capital maintains a
"hold", 12-month target price is $103.00
BMO Nesbitt Burns maintains a
"outperform", target price is $110.00
Desjardins Securities maintains a
"buy", target price raised to $108.00
RBC Capital Markets maintains a
"outperform", target price is $108.00
Sunday 02 September 2007 CIBC stock follows profit higher
Third-quarter profit rises to $835-million; hikes dividend by 10 cents a share; but, subprime mortgages continue to take toll Shares of Canadian Imperial Bank of Commerce [CM-T] jumped Thursday after the bank reported strong earnings despite continuing troubles from investments related to the U.S. subprime mortgage market.
The stock was up 1.42 per cent, or $1.33, to $95.30 on the Toronto stock exchange in mid-morning trading.
Monday 13 August 2007 CIBC (CM) - $87.51 - Pre-Releases Stronger Than Expected Results
Outperform, Average Risk - Price Target: $108.00
CIBC pre-released its Q3 earnings. The company expects approximately EPS to come in at $2.30, well ahead of RBC CM’s estimate of $1.90. These results include mark-to-market write-downs of approximately $290 million, or $190 million after tax, in collateralized debt obligations and residential mortgage backed securities related to the US residential mortgage market. That figure is higher than RBC CM’s estimate of $50-100 million as the value of assets backed by US sub-prime real estate market weakened further. The major earnings offsets came from higher than normal gains on securities and credit derivative hedges, and reversals of litigation and income tax accruals. The magnitude of each item has not been quantified. CIBC's unhedged exposure to the U.S. residential mortgage market before write-downs is approximately US$1.7 billion, a larger figure than expected. Less than 60% of the US$1.7 billion exposure relates to underlying sub-prime mortgages, while the remainder is mid-prime and higher grade assets. The majority continues to be AAA-rated, and the bank has sub-prime index hedges of approximately US$300 million. The announcement is overall positive in RBC CM’s view, in spite of the larger than expected exposure to US real estate. CIBC's stock is down 17% since May 22 versus a median decline of 10% for the 5 other banks. The relative underperformance of 7% appears to be mostly due to exposure to US sub-prime real estate and represents about $2.3 billion in market capitalization. RBC CM continues to rate CIBC Outperform, but cautions that the shares, like the other Canadian banks, are more likely to trade on news than fundamentals in the near term, and the stock remains susceptible to concerns over the health of financial markets. CIBC will report full results on August 30th.
Friday 03 August 2007 Subprime not a concern here, CIBC says
Canadian investors overreacted. Nervousness driven by 'unwarranted fears' stemming from situation in United States
CIBC (CM) – $96.87 – Lowering Estimates on Sub-Prime Concerns
Outperform, Average Risk, Target Price: $114.00
RBC CM believes CIBC will have to mark down some of its securities due to continued weakness in US sub-prime housing markets. A $50-100 million mark down is possible, however RBC CM believes it would be offset by lower income taxes and incentive compensation. The majority of the bank’s exposure is in AAA-rated securities, which have seen only moderate price weakness. CIBC has stated that its unhedged exposure to the market is well below the US$2.6 billion estimated by media reports. In addition, CIBC has not issued a press release on its quarterly results, which suggests that the bank’s exposure will not cause a material shortfall to earnings estimates. RBC CM believes that losses so far have been limited by mark to market adjustments, and points out that loss rates in the underlying assets need to rise higher before holders of AAA tranches begin to make substantial losses.
SUIT SEEKS OVERTIME PAY FOR CIBC TELLERS
A $600-million lawsuit filed against the Canadian Imperial Bank of
Commerce alleges the bank does not pay its tellers and some other
front-line workers for overtime, lawyers said Tuesday.
Monday 04 June 2007 CIBC (CM) - $102.40 - Downgrading to Outperform From Top Pick
Outperform, Average Risk, $114.00
RBC CM is downgrading CIBC from Top Pick to Outperform. Following the appreciation of CIBC’s stock since May 1, 2007 RBC CM’s forecast for CIBC’s total returns (appreciation in stock prices plus dividends) of 13-14% in the next 12 months is similar to that of TD. CIBC trades at 12.5x estimated 2007E earnings versus a peer average of 13.0 times. In spite of a lower revenue growth profile RBC CM believes that the relative multiple makes CIBC's stock attractive hence the Outperform rating.
Sunday 03 June 2007 CIBC (CM) - $106.14 - Headline EPS Better than Underlying Performance
Top Pick, Average Risk, Price Target $114.00
CIBC reported Q2 core cash EPS of $1.98, in line with RBC CM’s estimate and higher than the consensus of $1.89. This core cash EPS figure excludes $0.32 in tax-related gains and the reversal of part of the bank's general allowance. The bank's improving retail growth on flat expenses, lower exposure to wholesale banking, lower credit risk profile relative to peers and a material increase in dividend expected in Q3/07 should provide share price upside from current levels.
CIBC(CM)$102.67 – A NOTIONAL MISS – DOWNGRADING TO SECTOR PERFORM. RATING: SECTOR PERFORM (WAS OUTPERFORM). TARGET: $107.00. RISK RATING: LOW. INDUSTRY RATING: MARKET WEIGHT. >br>
CM reported Core Cash EPS of $1.95. This result was well above our estimate of $1.81 and consensus of $1.91, and compares with Q1 2007 of $2.12 (down 8%) and Q2 2006 of $1.52 (up 28%). However, normalizing for abnormally high securities gains, we would estimate C-EPS was no better than $1.85 – a notional miss. Specific provisions increased 17% Y/Y (and 33% Q/Q) to $190 million, owing to higher retail PCLs and a move from recovery to positive provisions in CIBC WM. Net CMRR was $162 mln, equal to the weak quarter a year ago, but down 20% Q/Q as trading declined 28% compared to Q1 and the compensation ratio increased. CM experienced a decline of $100 mln in excess to $500 mln, although we note that all banks saw their excess decline this quarter. The tangible common equity ratio ended the quarter at 6.9%, slightly below the average of its peers. We are adjusting our EPS estimates as follows: f2007E is $7.99 (was $7.85); f2008E is $8.32 (unchanged). After some very big improvements in earnings, this quarter the bank exceeded consensus with the benefit of abnormally high securities gains. CM trades at 12.8x and 12.3x our f2007 and f2008 estimates, respectively. We are downgrading CM to Sector Perform and have left our target unchanged at $107.00. A detailed note will be available on our website later this morning.
31/08/06 globe CIBC reverses loss
Reports profit of $662-million for the third quarter of 2006
Thu 31/08/2006 The Canadian Imperial Bank of Commerce, Canada's fifth-biggest bank, has announced a third-quarter profit of $662 million, or $1.86 a share. The result is a sea change from the $191-million loss it had recorded a year earlier, mostly due to is involvement in the Enron scandal in the U.S.
Wednesday Mar 8, 2006 ts Tangled tale another mess for CIBC
CIBC is at the centre of another fax mishap, this one a bizarre tale involving the brother of one-time hockey enforcer Marty McSorley. Rick Westhead reports.
Friday Mar 3, 2006 globe CIBC profit falls 18%
Canadian Imperial Bank of Commerce aims to cut $250-million in costs this year
2005
Thursday Dec 15, 2005 ts CIBC unit settles U.S. donation case
CIBC World Markets Corp. will pay nearly $500,000 (U.S.) to settle claims the investment bank violated political donation rules, U.S. regulators say.
Friday Dec 2, 2005 ts CIBC posts loss, cuts 950 jobs
Canadian Imperial Bank of Commerce is responding to a 2005 loss of $32 million with a thinning of its ranks by 950 people, reports Stuart Laidlaw.
Friday Dec 2, 2005 rci The Canadian Imperial Bank of Commerce has announced a yearly loss of $32 million. CIBC also announced on Thursday that it has laid off 15 per cent of its executives and intends to cut 900 other jobs to bring its cost structure into line with its competitors. The bank says the elimination of 50 executive jobs during the last two quarters led to an expenditure of $100 million in severance expenses.
Tuesday Nov 22, 2005 nyt In Rarity, Spitzer Drops Case
By JENNY ANDERSON
The New York attorney general is dropping charges against a former Canadian Imperial Bank of Commerce trader who was accused of aiding illegal trading in mutual funds.
Saturday Sep 10, 2005 rci CALGARY: $100 OIL BARREL FORECAST
The Canadian Imperial Bank of Commerce predicts that the price of a barrel of oil will reach $100 US by the end of 2007. CIBC World Markets predicts that a barrel of West Texas Intermediate crude oil will average $84 next year, before rising to $100 in the following year. CIBC's chief economist, Jeff Rubin, says that planned increases of production in the Gulf of Mexico will be cut by half because of hurricane damage, depriving markets of 300,000 barrels a day. Mr. Rubin says oil prices also will be driven upwards by stagnant production in Russia and the inability of the international oil cartel to raise production. see Wed1226
Thursday Aug 25, 2005 rci The Canadian Imperial Bank of Commerce has reported a company-record third-quarter loss of $1.91 billion, much of which is due to its losses through involvement in the Enron debacle in the U.S. The loss compares with the previous third-quarter profit of $596 million. CIBC had announced a $2.6-billion US settlement in a class-action suit brought by Enron investors. Another $250 million US went to settle the claimed filed by Enron against 10 banks, including CIBC, for having "abetted and abetted" wrongdoing at the American energy trader. The charges wiped out a profit of 15 per cent for the Canadian bank's retail division and a 13-per cent profit for its wealth management division.
Sunday Aug 7, 2005 rci CIBC said Friday it will pay $250 million US to Enron in order to settle its part of the "Megaclaims" lawsuit filed by the energy trader against 10 banks, alleging that they "aided and abetted fraud." The settlement comes just days after the Toronto-based bank announced a $2.4 billion US settlement in a class-action case launched by Enron shareholders. Also on Friday, CIBC said that it will pay $24 million US to Enron so that the US company will remove its opposition to $81 million US in claims that the bank has filed against the Enron bankruptcy estate. Enron said those claims have been transferred to third parties. CIBC also agreed to fully subordinate about $40 million US in claims it holds, moving them down on the list of creditors that will receive payment from the Enron estate.
Friday Aug 5, 2005 CIBC (CM : TSX : $74.55)
Net Change: -6.09, % Change: -7.55%, Volume: 8,216,000
Second day on the job and new CEO Gerry McCaughey sees his company lose
about $2 billion in market cap. Late Tuesday night, CIBC announced it would
pay US$2.4 billion to settle a lawsuit brought by former Enron
shareholders. CIBC's settlement was the largest so far in a massive class
action lawsuit led by the University of California, eclipsing much bigger
U.S. banks Citigroup's (C) and JP Morgan Chase's (JPM) June settlements of
US$2 billion and US$2.2 billion, respectively. The size of the settlement
blind-sided investors who were expecting it to be only a fraction of the
announced amount. Brand spanking new CIBC CEO Gerry McCaughey, who took
over the corner office of the bank on August 1, insisted that CIBC would
maintain its quarterly dividend and that the company was still on track to
accomplish 10% EPS growth. McCaughey also emphasized that a longer wait to
settle would have risked a larger payout and the view of the board was that
a resolution was needed to reduce uncertainties and possible further
litigation expenses. CIBC will take a charge of approximately $2.1 billion
in the third quarter, which will pull the bank's Tier 1 capital ratio down
to 7.5%, below its 8.5% objective, and prompting CIBC to temporarily
suspend its share buyback program. On the heels of the enormous downside
settlement surprise, analysts slashed their ratings and target prices on
the stock. At least CIBC is out of the woods now, right? Nope. A further
settlement estimated to be hundreds of millions of dollars between CIBC and
Enron itself is apparently being finalized as we speak and should be
announced very soon.
Wednesday Aug 3, 2005 nyt CIBC Pays to Settle Enron Case
By JEFF BAILEY
Canadian Imperial Bank of Commerce agreed to pay $2.4 billion to settle claims that it helped hide losses at the Enron Corporation.
Wednesday Aug 3, 2005 ts Enron costs CIBC $2.4 billion U.S.
Canadian Imperial Bank of Commerce agreed yesterday to pay $2.4 billion (U.S.) to settle class-action claims related to the collapse of Enron Corp., the largest single payment to date in a series of settlements among major financial institutions.
Thursday Jun 30, 2005 ts New CIBC boss stays on course
The newly named CEO of the Canadian Imperial Bank of Commerce says he`ll stick to the bank`s strategy of growth through expanding consumer services, rather than more risky corporate lending.
Thursday May 26, 2005 ts CIBC profit down 13%
bank's profit in the three months ended April 30 dropped to $440-million or $1.20 a share from $507-million or $1.33 a year ago.
rbc CIBC (TSX: CM) Sector Perform Above Average Price: $70.17 Target: $74.00
Q1/05 EPS of $1.95 was $1.46 core excluding gains, and while in line with our cash EPS estimate of $1.46, was actually lower using an expected loan loss. There was no dividend increase, as anticipated.
Scotia Strong Q1 Earnings
Rating: 1-SO Risk: Low Target: 1-Yr $84.00 2-Yr $100.00
td Target: C$70.50 (prior: C$68.50)
CIBC Q1/05: Still Need to Execute on Retail
rbc Wednesday Feb 23, 2005 CIBC (TSX: CM) Sector Perform Above Average
Price: $70.08 Target: $73.25 CIBC reports Q1/05 earnings on February 24. Our cash EPS estimate of $1.46 is 1¢ above the Thomson First Call mean estimate.
Friday Jan 14, 2005 ts Li had a `long, good run` here
If not for Canada`s restrictive bank-ownership laws, the richest man in Asia would long ago have gained control of Canadian Imperial Bank of Commerce. Billionaire Li Ka-shing of Hong Kong would have preferred to increase his CIBC stake well beyond Ottawa`s 10 per cent limit for individual owners of the Big Five banks.
Friday Jan 14, 2005 From TD Newcrest CM-T, BCM-N; C$71.17) REDUCE ; Target: C$68.50
Short Term Overhang
From RBC DS (NYSE: NT) Sector Perform Speculative Price: $3.48 Target: $5.50
Cisco to Acquire Airespace; Nortel Likely To Look For New OEM Partner
Cisco's intentions to acquire wireless LAN switching vendor Airespace is an incremental near-term negative for Nortel, in our view. Yesterday Cisco agreed to pay $450M for San Jose, CA-based Airespace and outbid Nortel in the process, we believe. Currently, Nortel has an OEM partnership with Airespace, and we believe this deal is likely to come to a close quickly. An investment in Nortel may be appropriate for long-term minded investors. Our 2-year price target of $5.50 is 2.2x our CY06 revenues or 25x our 2006E earnings. Our rating is Sector Perform with Speculative Risk.
RBC Monday Dec 6, 2004 CIBC (TSX: CM) Sector Perform Above Average Price: $71.32 Target: $73.25
We now have added disclosure regarding ACG-13 hedge gains and losses. Our price target of $73.25 factors our core value set at ~12.5x our 1-year forward cash EPS estimate of $5.85. Our price target is indicated at 2.2x our estimated book value of $33.41 in a year’s time.
Friday Dec 3, 2004 ts
It`s strike three for CIBC
The Canadian Imperial Bank of Commerce capped a bad week by reporting a 14 per cent drop in fourth-quarter earnings yesterday as failed forays into the U.S. market dragged down earnings.
RBC Saturday Dec 4, 2004 CIBC (TSX: CM) Sector Perform Above Average Price: $71.32 Target: $73.25
CIBC reported Q4/04 cash EPS of $1.07 versus our $1.38 estimate and the Thomson First Call mean estimate of $1.35.
NS Rating: 1-Sector Outperform Target: $84.00
Friday Dec 3, 2004 cbc CIBC POSTS LOWER Q4 PROFITS, NAMES NEW PRESIDENT
CIBC reported lower fourth-quarter profits Thursday after taking a
$300-million provision for lawsuits related to its dealings with failed
U.S. energy trading firm Enron.
TD n REDUCE ¯ (prior: HOLD); Target: C$68.50 ¯ (prior: C$74.50)
Q4/04 Results: Dropping Rating to REDUCE
Thursday May 27, 2004 Canadian Imperial Bank of Commerce
(CM - $65.05) Rating: 1-Sector Outperform Target: $84.00
Weak Q2 Earnings
CIBC reported relatively weak Q2/04 cash operating earnings of $1.34 per share, versus $0.99 per share a year earlier. Weak earnings in retail banking were a major disappointment, down 15%. World Markets and Wealth Management both performed strongly, with earnings up 125% and 34% YOY respectively. Cash ROE was 18.2% in the quarter. Loan loss provisions (LLPs) were up sharply (34%) versus the previous quarter, due to agricultural and personal loan concerns. Our LLP estimate for 2004 is unchanged at $750 million, or 0.54% of loans (less repos). Our 2004 and 2005 earnings estimates are unchanged at $5.75 and $6.40 per share, respectively. Our one-year share price target is unchanged at $84 per share per share, representing 14.6x our 2004 earnings estimate and 13.1x our 2005 estimate. Kevin Choquette
Thursday May 27, 2004 cbc
CIBC PROFIT UP, CAUTIOUS ON OUTLOOK
The Canadian Imperial Bank of Commerce turned a more cautious loan policy and strong equity markets into a 66
per cent or $211 million gain in second-quarter profit, compared with
the 2003 quarter. see Banks
May 22, 2004 cbc
CIBC OVERCHARGED CUSTOMERS $24M
Canadian Imperial Bank of Commerce said Thursday it would refund to customers $24 million in overdraft and
mortgage charges it had made in "error".
Disgraced Investment Manager Facing Call for Lifetime Ban After Clients Burned: Former broker Harutyun Migirdicoglu, commonly known as Harry Migirdic, yesterday leaves an Investment Dealers Association hearing on submissions for a suitable penalty for him.
Wednesday May 26, 2004 cbc
Widow 'didn't trust banks'
Two years ago, after her investment account had been emptied by CIBC World Markets Inc. to pay for somebody else's trading losses, 76-year-old widow Kiganouchi (Ketty) Papazian put her house in north-end Montreal on the market.
Monday 15 Mar 2004 pc
CIBC signs $90 million document management deal
The bank hands over design, distribution and fulfillment for a host of paper and electronic forms to a Quebec company. Find out why more firms are taking the business process outsourcing route
Wednesday 10 Mar 2004 TORONTO: CALIF. WARNS CIBC
The government of the American state of California has warned
Canadian Imperial Bank of Commerce World Markets investment bank and
two other investment banks that they must comply quickly with the
state's new code of financial conduct. California's state treasurer,
Phil Angelides, says the compliance must come in time to meet a
deadline of March 31, or else CIBC will be banned from doing business
with the state. Mr. Angelides says the changes are intended to
prevent the marketplace abuses that have rocked financial markets in
the U.S. Among the impending changes are a separation between
research and investment banking. CIBC World Markets underwrites
California state bonds and invests its Pooled Money Investment
Account, which holds $54 billion US. The Canadian bank says it's
confident it will meet California's deadline.
Friday 27 Feb 2004 ts
Court says investors can sue CIBC
MONTREAL—A day after reporting a big profit increase and saying it is putting its legal and regulatory woes behind it, the Canadian Imperial Bank of Commerce faces a class-action lawsuit in Quebec over an American index mutual fund.
Friday 27 Feb 2004 ts
CIBC soars despite ethical stumbles
Blessed with higher profits but beset by scandal, CIBC chief executive John Hunkin acknowledged yesterday the bank has "stumbled" and made restoring its reputation his "top priority." Earnings hit $609 million but reputation takes a beating Toronto Dominion posts dramatic 74% rise to $603 million
Tuesday 24 Feb 2004 cbc
REPUTATION IS JOB 1 AT CIBC, HUNKIN SAYS
The Canadian Imperial Bank of Commerce says it's going to spend another
$50 million on "comprehensive governance and reputational risk
initiatives," such an ethics hotline where employees can anonymously
report business "irregularities" by colleagues.
Friday Feb 6, 2004 cbc
KASSIE QUITS AS CEO OF CIBC WORLD MARKETS
David Kassie, one of the most successful and best paid investment
bankers in Canada, has suddenly resigned as head of CIBC World Markets
"to focus on other interests", CIBC announced Thursday.
Friday Feb 6, 2004 ts
CIBC replaces senior executive
Investment bank gets new chief
Stock stumbles as scandal continues
Saturday Jan 10, 2004 ts
CIBC must settle fate of embattled director
Black's intentions are still not clear
Expert warns of PR disaster
2003
Tuesday Dec 23, 2003 (CM - $64.05) Rating: 1-Sector Outperform Target: $75.00
Resolution of Enron-related Investigations
CIBC has reached agreements with the U.S. Securities and Exchange Commission (SEC), U.S. Department of Justice, OSFI, and the Federal Reserve Bank of New York in Enron-related investigations. In connection with the SEC investigation, CIBC will pay US$80 million, consisting of disgorgement, penalties and interest, and consent to certain injunctions. The U.S. Department of Justice has agreed not to prosecute CIBC with respect to certain CIBC-Enron transactions, subject to certain understandings, including CIBC's agreement to exit certain businesses, adopt and implement new policies and procedures related to ensuring the integrity of clients and counter-party financial statements, retention of a law firm to monitor its compliance with these new policies for a period of three years, and continued cooperation with the department. CIBC agreed with the Federal Reserve Bank of New York and OSFI to implement the policies and procedures outlined in CIBC's agreement with the U.S. Department of Justice in an attempt to continue to strengthen internal controls. The bank took reserves totaling C$109 million in the final two quarters of this year with respect to these Enron-related matters. No further reserves are expected. Our 2004 and 2005 cash EPS estimates are unchanged at $5.00 and $5.70 per share, respectively. We maintain our $75 one-year share price target and 1-Sector Outperform rating on CIBC shares. –– Kevin Choquette
Tuesday Dec 23, 2003 cbc
CIBC AGREES TO $80 MILLION US PENALTY OVER ENRON ACCOUNTING FRAUD
Canadian Imperial Bank of Commerce will
pay $80 million US to settle charges of aiding and abetting the Enron
Corp. accounting fraud, the U.S. Securities and Exchange Commission said
Monday.
Friday Nov 28, 2003 cbc
CIBC UPS DIVIDEND 22 PER CENT; YEARLY PROFIT TOPS $2 BILLION
CIBC has reported a return to profitability in the fourth-quarter, raised its
dividend 22 per cent, and announced a major share buy-back in a bid to
keep shareholders happy.
Canadian Imperial Bank of Commerce (CM - $64.23) Rating: 1-Sector Outperform Target: $75.00
Strong Q4 Earnings
CIBC reported strong Q4 results with underlying cash operating earnings of $1.18 per share versus $0.60 per share a year earlier, in line with our estimate. Cash ROE was 16.4%. CIBC world markets delivered solid results while retail banks earnings declined reflecting higher loan loss provisions and the change in equity accounting or the West Indies Business. For the year as a whole, Retail Bank earnings rose a modest 3%. CIBC announced a very significant dividend increase of 22% in its annual dividend to $2.00 per share, from $1.64 per share, the first dividend increase for the bank since the beginning of 2002. CIBC also increased its target dividend payout ratio to 40%-50%, from 30%-40%, making CIBC the first bank to make the move to this level. We expect all the major banks to eventually adopt this target range. CIBC also announced its intention to commence a share buyback program for 18 million shares, or 5% of outstanding shares. The increased dividend, higher payout ratio and share buyback program are reflective of the bank's solid earnings base and strong capital position as the banks financial position has recovered. The bank's Tier 1 capital ratio substantially increased to 10.8% at quarter end, up significantly from 8.7% a year earlier. Our 2004 and 2005 earnings estimates remain unchanged at $5.00 and $5.70 per share, respectively. We maintain our 1-Sector Outperform rating on the shares and have increased our 12-month share price target to $75 from $72. –– Kevin Choquette
Friday Aug 22, 2003 Canadian Imperial Bank of Commerce
(CM - $55.05) Rating: 1-Sector Outperform Target: $65.00
Strong Q3 Earnings
We reiterate our 1-Sector Outperform recommendation and one-year target of $65.00 for CIBC following the release of the bank’s third quarter results. Cash operating earnings per share were reported at $1.09 although this included $0.05 of unsustainable contributions and $0.10 in net security losses. Thus, earnings before security losses were $1.14, beating our estimate of $1.05 and the consensus estimate of $1.02. Cash operating ROE was stronger than expected at 16.1%, up from 15.8% in the previous quarter and the bank’s financial flexibility improved as its Tier 1 Capital ratio rose to 10.1%, comparing favourably to the industry average of about 9.5%. CIBC benefited from stronger results in its retail and wealth management business lines. We believe that CIBC’s results will be the strongest of the group for this quarter and continue to look to its exposure to lower loan loss provisions as a key earnings growth driver. Its strong financial flexibility and improving profitability put the bank in a position to increase its dividend, perhaps as early as in the upcoming fourth quarter. –– Kevin Choquette
Thursday Aug 21, 2003 cbcCIBC EARNINGS RISE FOR THIRD QUARTER
Canadian Imperial Bank of Commerce kicked off the parade of bank
earnings by posting a profit of $788 million for its third quarter.
Wednesday Aug 13, 2003 Why doesn't CIBC ban coffee too? CIBC World Markets is banning e-mail between its analysts and investment bankers, and other brokerage firms are said to be considering similar moves to shore up the "Chinese wall" between the two departments. But why stop there? Why not give analysts their own washrooms, so they don't run into bankers accidentally? Better yet, segregate the two in separate buildings, monitor their telephone calls, and comb the in-house baseball league for any illicit relationships.
Wednesday Jul 30, 2003 TORONTO: CIBC DENIES WRONGDOING IN ENRON DEBACLE
One of Canada's five big banks has denied any wrongdoing in the
downfall of the U.S. energy trader Enron Corp. The Canadian Imperial
Bank of Commerce says it disagrees with the report made public on
Monday by an examiner named by the U.S. Bankruptcy Court. The
examiner's report said there is evidence that several banks,
including CIBC, knew that Enron was lying to investors about its huge
debts. CIBC's executive vice-president, Michael Capatides, said in a
statement on Tuesday that the bank had no reason to doubt Enron's
financial performance at the time it loaned the company more than
$200 million. Mr. Capatides says that based upon bond agency ratings,
Enron was one of the most successful American corporations. An
financial expert cited by the Canadian Press on Tuesday suggested
it's unlikely that CIBC will recover any of the money it was owed by
Enron. see w-n on Enron
Wednesday Jul 9, 2003 Canadian Imperial (CM) rose to a 52-week high after the government’s tax
agency ruled CIBC won’t have to pay $689 million in taxes this year,
boosting fiscal third-quarter profit by $395 million.
CIBC (CM : TSX : $55.42)
Net Change: 1.62, % Change: 3.01%, Volume: 3,847,500
Sometimes the tax man ain't so bad. Shares hit the highest levels since
April of last year, as the company is expecting a tax return windfall of
$689 million, which is expected to reduce their risk profile. As a result,
they have been upgrade by the likes of BMO Nesbitt Burns and Morgan
Stanley. CIBC admitted to overestimating the amount of taxes it needed to
pay on foreign-based transactions between 1996-2000. This is great news to
current shareholders and grate news for former ones. Remember folks,
always check your monthly bank statements as they clearly aren't perfect.
Thu, 22 May 2003 cbc
CIBC EARNINGS GROW IN SECOND QUARTER
Canadian Imperial Bank of Commerce
posted a higher second-quarter profit despite taking a $81 million
after-tax writedown related to its Aerogold credit card contract with
Air Canada.
Thursday May 15, 2003 sm Canadian Imperial Bank of Commerce (CM - $47.35) Rating: 1-Sector Outperform Target: $60.00
Aeroplan Resolution
After the market close on May 14, the Court approved a revised agreement between CIBC and Air Canada with regards to the Aeroplan contract. Under the terms of the new contract, exclusivity has been relaxed to permit another card provider, which CIBC has approved, to participate in Aeroplan, and CIBC will pay 24% more (versus the 19% increase under the previous agreement) for points. The contract will extend CIBC's Aeroplan relationship to 2013 and CIBC will make a $350 million loan to Air Canada as a prepayment for Aeroplan miles. The earnings impact was originally expected to be neutral, but with the altered terms, it is expected to be negative to earnings by less than $0.10 per share per annum. The Court's approval of this agreement is positive for CIBC, as we believe the market had been discounting a loss of business or a significant negative earnings impact. –– Kevin Choquette
Thursday May 15, 2003 CIBC (CM : TSX : $49.10)
Net Change: 1.75, % Change: 3.70%, Volume: 2,631,000
Shares took off Wednesday after the bank announced that it has reached a
new agreement with Air Canada (AC) to renew the contract for the CIBC
Aerogold VISA program. Ammendments include: the price per mile paid by
CIBC will be raised by an additional 4%, the $350 million credit facility
will remain in place, and Air Canada will be allowed to add a second
credit card provider, subject to court approval.
Thursday May 15, 2003 ts
CIBC may have to share Aerogold
Air Canada monitor endorses bank and American Express
Credit card companies will pay more for points program
Thursday Apr 3, 2003 CIBC (CM : TSX : $46.10)
Net Change: -0.6, % Change: -1.28%, Volume: 4,029,100
AND BMO SAID TO CIBC… BMO Nesbitt Burns downgraded CIBC to MARKET PERFORM
from OUTPERFORM in wake of Air Canada's (AC) bankruptcy. BMO estimates
the bank's exposure to AC debt to be in the $50-$75 million range. CIBC's
Aerogold credit card is the most profitable in the country, earning an
estimated $350 million net of taxes (almost $1 per share). Though the
Aeroplan expires in 2008 for the bank, AC's woes thrusts the future status
of this profit center into flux.
Sunday Mar 9, 2003 TORONTO: CIBC LOPS OFF BRANCHES
One of Canada's five big banks says it will close 150 branches over
the next three years. That will be a reduction of four per cent of
the number of branches of the Canadian Imperial Bank of Commerce.
CIBC says the closings will save $10 million in occupancy costs. The
bank says 58 underperforming banks will close this year. However,
CIBC says it will open 10 new modern branches, one of them in west
Toronto. Despite the closings, CIBC says it is putting more emphasis
on retail banking, after losing heavily in 2002 on bad loans to
telecommunications firms.
Sunday Mar 2, 2003 CIBC (CM - $45.90) Rating: 1-Sector Outperformer Target: $55.00
Earnings Rebound
CIBC reported underlying cash earnings of $1.03 per share, better than expected. Cash ROE was 15.6% for the quarter. CIBC World Markets earnings rebounded with a profit of $118 million in the quarter compared with losses in the previous two quarters. Retail earnings were $253 million (54% of earnings in the quarter), an increase of 8% from a year earlier. Wealth management earnings increased 4% YOY to $99 million. Loans loss provisions were $339 million versus $540 million a year earlier. We are increasing our 2003 cash earnings estimate to $4.15 per share from $3.80 per share, due to profitability improvement at CIBC World Markets. We upgraded our rating to a 1-Sector Outperform from 3-Sector Underperform based on an earnings rebound driven by CIBC World Markets. Kevin R. Choquette
2002
Friday May 23, 2003 CIBC (CM : TSX : $49.60)
Net Change: -0.62, % Change: -1.23%, Volume: 1,129,100
Shares sold off Wednesday after reporting quarterly financial results. Net
income for the April quarter was $320 million, or $0.76 per share, down
28% from the prior quarter, but up 40.9% from the same quarter last year.
This fell short of the First Call estimate of $0.95 per share. The
shortfall was due to an $81 million, or $0.22 per share writedown related
to the renegotiation of its contract with Air Canada (AC) for the CIBC
Aerogold Program.
Saturday Mar 1, 2003 cbc
CIBC TO CUT 1,500 MORE JOBS, POSTS $445 MILLION Q1 PROFIT
Canadian Imperial Bank of Commerce posted a $445 million first-quarter profit Thursday, but the bank said
it is still aiming to cut 1,500 more jobs this year - mostly in the
U.S. :
Feb. 28, 2003 ts
CIBC unit pays $100,000 in conflict case
Brokerage arm agrees to review of practices Analyst reports didn't fully reveal Shoppers interests
Monday Feb 3, 2003 cbc
MORTGAGE RATES HEADING UP
CIBC kicked off what's expected to be a new round of across-the-board
mortgage rate increases Friday, when it boosted the cost of home loans
by up to 3/10ths of a percentage point.
Tuesday Jan 28, 2003 cbc
STOCK REGULATORS SETTLE CONFLICT ALLEGATIONS WITH CIBC WORLD MARKETS
Stock market regulators in Ontario and Quebec said they have settled
allegations of conflict of interest with CIBC World Markets over
research reports the investment dealer's analysts wrote recommending
shares of Shoppers Drug Mart Corp.
Dec 11, 2002 CIBC (CM - $43.89) Rating: 3-Sector Underperformer Target: $50.00
Oppenheimer Sale
CIBC announced the sale of U.S.-based Oppenheimer private client and asset management business to Fahnestock Viner Holdings (FVH-N) for U$275 million or C$401 million. The transaction is expected to close on January 2, 2003. We expect CIBC will report a modest gain of $12 million after tax or $0.03 per share in Q1/03 on this sale. In conjunction with this transaction, CIBC has the right to acquire up to 35% of the issued stock of Fahnestock and the right to nominate two directors to Fahnestock's Board of Directors. We view the transaction positively as it shows that the bank is trying to focus on its World Markets business; however, the actual strategic positioning of that business going forward is uncertain. CIBC in our view remains the highest risk Canadian bank stock in our opinion due to earnings volatility and expect its share price to lag the rest of the bank group. –– Kevin R. Choquette
Saturday Dec 14, 2002 CIBC (CM - $43.89) Rating: 3-Sector Underperformer Target: $50.00
Oppenheimer Sale
CIBC announced the sale of U.S.-based Oppenheimer private client and asset management business to Fahnestock Viner Holdings (FVH-N) for U$275 million or C$401 million. The transaction is expected to close on January 2, 2003. We expect CIBC will report a modest gain of $12 million after tax or $0.03 per share in Q1/03 on this sale. In conjunction with this transaction, CIBC has the right to acquire up to 35% of the issued stock of Fahnestock and the right to nominate two directors to Fahnestock's Board of Directors. We view the transaction positively as it shows that the bank is trying to focus on its World Markets business; however, the actual strategic positioning of that business going forward is uncertain. CIBC in our view remains the highest risk Canadian bank stock in our opinion due to earnings volatility and expect its share price to lag the rest of the bank group. –– Kevin R. Choquette
Dec 10, 2002 cbc CIBC SELLS OPPENHEIMER UNIT FOR $400 MILLION
CIBC World Markets is selling its U.S. Oppenheimer private client and
asset management division to New York brokerage house Fahnestock Viner
Holdings in a $400 million deal that will give CIBC the right to acquire
more than a third of Fahnestock.
Friday Nov 29, 2002 CIBC (CM - $43.60) Recommendation: 3-Hold Target: $50.00
Disappointing Results
CIBC reported a loss of $0.31 per share on a net cash basis for its fourth quarter. Excluding all charges and writedowns, the bank reported cash operating earnings of $0.60 per share. Return on equity on a reported cash earnings basis was 5.7%. The bank took significant writedowns with a net charge to earnings on an after-tax basis of $