Q1 2024 Canadian Imperial Bank of Commerce Earnings Call

Victor G. Dodig: Q1 Results, followed by an update on the progress we're making against key strategic initiatives Building on the growth momentum we've established over the last few years, we delivered a strong start to this fiscal 2024 year. We continue to successfully navigate through a fluid economic backdrop and execute on our client-centric strategy, supported by the addition of 700,000 net new clients over the last 12 months. Our performance this quarter was a reflection of our diversified business model and a strategy that is working. Turning to our adjusted results for the first quarter, we reported net earnings of $1.8 billion and earnings per share of $1.81.

To date on the progress, we're making against our key strategic initiatives.

Building on the growth momentum we've established over the last few years, we delivered a strong start to this fiscal 2024 years.

We continue to successfully navigate through a fluid economic backdrop and execute on our client centric strategy supported by the addition of 700000 net new clients over the last 12 months. Our performance. This quarter was a reflection of our diversified business model.

And a strategy that is working.

Turning to our adjusted results for the first quarter, we reported net earnings of $1 8 billion and earnings per share of $1 81.

Victor G. Dodig: These results were driven by record revenue and prudent expense management, resulting in 8% pre-provisioned pre-tax earnings growth and 2% positive operating levels. Our capital position remains strong, with a CET1 ratio of 13%. This positions us comfortably above regulatory requirements and internal targets, allowing us to continue deploying capital in support of our clients. Our adjusted return on equity was 13.8% during the quarter. Helping your clients realize their ambitions is our North

These results were driven by record revenue and prudent expense management, resulting in 8% pre provision pretax earnings growth.

2% positive operating leverage.

Our capital position remains strong with a C.

Tier one ratio of 13%.

This positions us comfortably above regulatory requirements and internal targets, allowing us to continue deploying capital in support of our clients.

Our adjusted return on equity was 13 813, 8% during the quarter.

Helping our clients realize their ambitions as our north star.

Victor G. Dodig: As we've articulated in the past, our strategy is supported by four key priorities that are aligned to long-term market opportunities and competitive advantages that we have built within our bank. Our first strategic priority is to grow our mass affluent franchise in Canada, as well as our private wealth franchise on both sides of the border to drive growth in deposits, Investments, and Enhanced Returns.

As we've articulated in the past our strategy is supported by four key priorities that are aligned to long term market opportunities and competitive advantages that we have built within our bank.

Our first strategic priority is to grow our mass affluent franchise in Canada as well as our private wealth franchise on both sides of the border to drive growth in deposits.

Investments and enhanced returns.

Victor G. Dodig: To enable this, we've made important investments in our unique imperial service and Private Wealth Businesses to elevate our platform capabilities. As an example, we are leveraging our predictive client analytics to deepen relationships and accelerate high-value client introductions from personal banking to imperial service, resulting in robust inflows of client assets. In Canadian private wealth, financial plans completed by our clients were up 54% year-over-year.

To enable this we've made important investments in our unique imperial service and private wealth businesses to elevate our platform capabilities.

As an example, we're leveraging our predictive client analytics to deepen relationships and accelerate high value client introductions from personal banking to imperial service, resulting in robust inflows of client assets.

And Canadian private wealth financial plans completed by our clients were up 54% year over year. This is a great example of how we're leveraging modern financial planning technology, and our strong advice capabilities to deliver an improved client experience and build deeper longer term relationships.

Victor G. Dodig: This is a great example of how we're leveraging modern financial planning technology and our strong advice capabilities to deliver an improved client experience and build deeper, longer-term relationships. Finally, in the U.S., we're building on our industry-leading CIBC private wealth platform for high-net-worth client segments because, during the quarter, we continue to invest in our talent and our physical presence in strategic growth markets, including Boston, South Florida, and San Francisco

Finally in the U S. We're building out our industry, leading CIBC private wealth platform for high net worth client segments, because during the quarter, we continued to invest in our talent and our physical presence in strategic growth markets, including Boston.

South, Florida and San Francisco.

Victor G. Dodig: Our second priority is to attract and deepen relationships with our personal banking clients by leveraging our CIBC digital capabilities, including through our Simply financial platform. Improvements in our digital channels meet our clients' evolving needs for self-service capabilities. This quarter, we were the first of our competitors to introduce a new digital banking solution bundle, leveraging AI to streamline the application process for newcomers to Canada into a single digital application.

Our second priority is to attract and deepen our relationships with their personal banking clients by leveraging our CIBC digital capabilities, including through our simply financial platform.

Improvements in our digital channels meet our clients' evolving needs for self service capabilities. This quarter. We were the first of our competitors try to reduce our new digital banking solution bundle leveraging AI to streamline the application process for newcomers to Canada into a single digital application.

Victor G. Dodig: In our Canadian personal banking platform, we're seeing a digital adoption rate of 86%, while improvements in our retail offering have resulted in 38% of product sales originated digitally, and Simply Financial, our direct digital bank, we're also seeing strong momentum with 180,000 net new clients added over the last 12 months. We'll continue to expand our digital channels and capabilities to build our pipeline of clients for future growth. The third priority of our strategy centers on a highly connected platform across the bank to drive referrals, generate recurring revenue, and enhance relationship returns. It's something our clients say differentiates us, and it provides us with a competitive advantage in a world where capital requirements and costs... Unknown Speaker, On both sides of the border, we have a unique organizational structure that combines commercial banking with wealth management. In Canada, 31% of our commercial clients have a CIBC private wealth relationship. In the U.S., that number is 17%.

In our Canadian personal banking platform, we're seeing a digital adoption rate of 86% while improvements in our retail offering have resulted in 38% of product sales originated digitally.

And simply financial our direct digital Bank. We're also seeing strong momentum with 180000 net new clients added over the last 12 months.

We will continue to expand our digital channels and capabilities to build our pipeline of clients for future growth.

The third priority of our strategy centers on our highly connected platform across the bank to drive referrals to generate recurring revenue and to enhance relationship returns.

It's something our clients say differentiates us and it provides us with a competitive advantage in a world where capital requirements and costs continue to increase.

On both sides of the border we have a unique organizational structure that combines commercial banking with wealth management.

In Canada, 31% of our commercial clients have a CIBC private wealth relationship in the U S that number is 17% while the government, while we've been making progress on both sides of the border there is room to grow.

Unknown Speaker: While we've been making progress on both sides of the border, there is room to grow. Also core to this strategic priority is our differentiated capital markets, which delivered record revenues in the first quarter. Global markets client activity was seasonally higher this quarter and is likely to normalize.

Also core to this strategic priority is our differentiated capital markets business, which delivered record revenues in the first quarter.

Global markets client activity was seasonally higher this quarter and is likely to normalize, but we expect a continued recovery in M&A activity and a pick up in corporate bond issuances through the year to provide a tailwind to this business.

Unknown Speaker: We expect a continued recovery in M&A activity and a pickup in corporate bond issuances through the year to provide a tailwind to this business. We're excited about the opportunity ahead as we continue to leverage a connected approach across our bank to deliver a seamless and holistic client experience to deepen our relationships and enhance returns. Finally, our fourth priority is to enable, simplify, and protect our bank to ensure that we maintain operational resilience and improve the efficiency with which we deliver for our clients.

We're excited about the opportunity ahead as we continue to leverage a connected approach across our bank to deliver a seamless and holistic client experience to deepen our relationships and enhanced returns.

Finally, our fourth priority is to enable simplify and protect our bank to ensure that we maintain operational resilience and improve the efficiency with which we deliver for our clients.

Victor G. Dodig: Over the past few years, we've made significant technology investments across our businesses to improve client experiences, enhance revenue growth, increase productivity, and generate positive operating leverage. As we look forward, we are increasingly leveraging AI to drive this strategy and have already unlocked high-impact use cases across our banks. This kind of innovation presents tremendous opportunity, and we will continue to be responsible as we adopt these tools to create sustainable benefits for all stakeholders. A review of our strategy would not be complete without highlighting our commitment to supporting a more sustainable world through our focus on the environment, social investment in our communities, and delivering on high standards of governance. During the quarter, we were selected by the Government of Canada as the sole structuring advisor on its recently updated Green Bond Framework. We also issued our own €500 million CIBC Green Bond to fund eligible projects aligned with our sustainability strategy.

Over the past few years, we've made significant technology investments across our businesses to improve client experience and hence revenue growth increased productivity and generate positive operating leverage.

As we look forward, we are increasingly leveraging AI to drive this strategy and have already unlocked high impact use cases across our bank.

This kind of innovation presents tremendous opportunity and we will continue to be responsible as we adopt these tools to create sustainable benefits for all stakeholders.

A review of our strategy would not be complete without highlighting our commitment to supporting a more sustainable world through our focus on the environment social investment in our communities and delivering on high standards of governance.

During the quarter, we were selected by the government of Canada is the sole structuring adviser on its recently updated green bond framework.

We also issued our one 500 million euros CIBC Green bond to fund eligible projects aligned with our sustainability strategy.

Victor G. Dodig: Putting it all together, our disciplined execution will lead to growth in our client franchise and improved returns for our shareholders as we focus on targeted client segments, advance our digital capabilities, and deepen connectivity, all while maintaining a laser focus on efficiency. And we expect the relative outperformance we've demonstrated to continue, supported by the positive outcomes of our strategy. And with that, I'll turn the call over to Hratch.

Putting it all together our disciplined execution will lead to growth in our client franchise and improved returns for our shareholders as we focus on targeted client segments advance our digital capabilities and deepen connectivity all while maintaining a laser focus on efficiency.

And we expect a relatively performance we've demonstrated to continue supported by the positive outcomes of our strategy and with that I'll turn the call over to rush over to you.

Hratch Panossian: Over to you. Thank you, Victor, and good morning to you all. As Victor said, we're pleased to deliver another strong quarter to kick off fiscal 2024, as laid out on slide seven. Our team's consistent and strong execution against the strategic priorities Victor described continues to drive sustainable growth and profitability in line with our targets. This quarter, solid client activity across our diversified business, margin expansion, and productivity gains contributed to diluted earnings per share of $1.77 and ROE of 13.5% on a reported basis. Excluding the items of note, Adjusted EPS was $1.81, and Adjusted ROE was 13.8%.

Thank you Victor and good morning to you all.

As Victor said, we're pleased to deliver another strong quarter to kick off fiscal 'twenty to 'twenty four as laid out on slide seven.

Our team's consistent and strong execution against the strategic priorities. Victor described continues to drive sustainable growth and profitability in line with our targets.

This quarter solid client activity across our diversified business margin expansion and productivity gains contributed to diluted earnings per share of $1 77, and ROE of 13, 5% on a reported basis. Excluding the items of note adjusted EPS was $1 81, and adjusted ROE was 13, 8%.

Hratch Panossian: Strong capital generation and liquidity further bolstered our resilient balance sheet, ending the quarter with a C-to-1 ratio of 13 percent and an average LCR of 137 percent, both of which exceed our normal course or operating target. The balance of my presentation will refer to adjusted results, which exclude items of note, starting with slide 8. Adjusted net income of $1.8 billion decreased 4% year-over-year due to the impact of the credit cycle on credit losses, which Frank will discuss in more detail.

Strong capital generation and liquidity further bolstered our resilient balance sheet ending the quarter with a CET one ratio of 13% an average LCR of 137% both of which exceed our normal course of our operating targets.

The balance of my presentation will refer to adjusted results, which exclude items of note starting with slide eight.

Adjusted net income of $1 8 billion decreased 4% year over year due to the impact of the credit cycle on credit losses, which Frank will discuss in more detail.

Hratch Panossian: Supported by the strategic investments we've made in recent years, we delivered record revenue of $6.2 billion this quarter, up 5% from a year ago. We also continued to successfully balance ongoing investments in our business with efficiency gains to contain expense growth and generate positive operating leverage of over 2%. Resulting record pre-provision pre-tax earnings of $2.9 billion increased 8% year-over-year, aligned with our medium-term earnings growth target. By 9 and 10, we highlight key trends in drivers of net interest income excluding trading, and I was up 6% over the year driven by continued balance sheet growth and improving margins. Total Bank NIM excluding trading was up six basis points from the prior quarter and year, partly helped by classification changes associated with the implementation of FRTB, which contributed three basis points.

Reported by the strategic investments we've made in recent years, we delivered a record revenue of $6 2 billion. This quarter up 5% from a year ago. We also continue to successfully balance the ongoing investments in our business with efficiency gains to contain expense growth and generate positive operating leverage of over 2%.

Resulting record pre provision pretax earnings up $2 9 billion increased 8% year over year aligned with our medium term earnings growth target.

By nine and 10 highlight key trends and drivers of net interest income excluding trading NII was up 6% over the year driven by continued balance sheet growth and improving margins total bank NIM, excluding trading was up six basis points from the prior quarter and year, partly helped by classification changes associated with the implementation.

<unk> TB, which contributed three basis points the balance of the increase was from continued margin expansion consistent with our guidance Canadian P&C NIM of 268 basis points was up one basis points sequentially, largely due to balance sheet repricing to higher rates net of higher interest expense on deposits.

Hratch Panossian: The balance of the increase was from continued margin expansion consistent with our guidance. Canadian PNC's NIM of 268 basis points was up one basis point sequentially, largely due to balance sheet repricing to higher rates, net of higher interest expense on deposits. In the U.S. segment, NIMF 349 basis points was up five basis points from the prior quarter, mainly due to improved loan margins and deposit growth in excess of earning assets. As we've often communicated, we position our balance sheet to stabilize margins and drive sustainable NII growth. While we continue to expect some upward momentum, margins will start stabilizing over the next few quarters based on our current rate forecast. With that, let's turn to further detail on our balance sheet on slide 10. Average client loans and deposits continued to grow, but they slowed in line with industry trends. Average loans and deposits grew 2% year-over-year, and sequentially, our stable, well-diversified deposit base grew 3% and experienced a modest mixed shift to higher-cost term deposits during the quarter.

In the U S segment NIM of 349 basis point was up five basis points from the prior quarter, mainly due to improved rone margins and deposit growth in excess of earning assets.

As we've often communicated we positioned our balance sheet to stabilize margins and drive sustainable NII growth. While we continue to expect some upward momentum margins will start stabilizing over the next few quarters based on current rate forecast.

With that let's turn to further detail on our balance sheet on slide 10.

Average client loans and deposits continued to grow but slowed in line with industry trends average loans and deposits grew 2% year over year and sequentially stable well diversified deposit base grew 3% and experienced a modest mix shift to higher cost term deposits during the quarter.

Hratch Panossian: We expect continued growth in client loans and deposits at healthy margins to support NII going forward. Turning to slide 11, non-interest income of $3 billion was up 9% from the prior year due to growth in trading revenues as well as market-related and transactional fees. Excluding trading, market-related fees increased 3% year-over-year as higher underwriting, advisory, and investment management, and custodial revenues were partly offset by lower mutual fund fees and effects related to Treasury funding activities. Transaction-related fees were up 4% year-over-year driven by growth in credit as well as deposit and payment fees.

We expect continued growth in client loans and deposits at healthy margins to support NII going forward.

Yeah.

Turning to slide 11, noninterest income of 3 billion was up 9% from the prior year due to growth in trading revenues as well as market related and transactional fees, excluding trading market related fees increased 3% year over year as higher underwriting advisory and investment management and custodial revenue were partly.

Offset by lower mutual fund fees and FX related to treasury funding activities.

Transaction related fees were up 4% year over year, driven by growth in credit as well as deposit and payment fees.

Hratch Panossian: Slide 12 highlights our continued success in balancing investments with productivity gains to manage overall expense growth. Year-over-year expense growth of 3% continued to moderate in line with our guidance. Over the last year, we crystallized almost 2% in efficiencies while maintaining a higher level of strategic investment across our bank. This allowed us to deliver positive operating leverage of over 2% as investments made over the last few years supported the revenue growth to a greater extent than our net expense growth. For Fiscal 24, we continue to expect expense growth at the low end of mid-single digits, and we're targeting positive operating leverage, barring a material change in revenue output. But 13 highlights the strength of our balance sheet. We improved our C2N ratio to 13% over the quarter, driven by organic capital generation, share issuance, and RWA reductions driven by the implementation of methodology changes, net of organic growth in the quarter. Methodology changes this quarter included the adoption of the internal ratings-based approach for the majority of our U.S. bank portfolio and the implementation of new regulatory approaches related to FRTB, CVA, and negative amortization mortgages.

Slide 12 highlights our continued success in balancing investments with productivity gains to manage overall expense growth year over year expense growth of 3% continued to moderate in line with our guidance over the last year, we crystallized almost 2% and efficiencies, while maintaining a higher level of strategic investment across our bank.

This allowed us to deliver positive operating leverage of over 2% as investments made over the last few years supported the revenue growth in excess of our net expense growth.

For fiscal 'twenty four we continue to expect expense growth at the low end of mid single digits, and we're targeting positive operating leverage barring a material change in the revenue outlook.

Slide 13 highlights the strength of our balance sheet, we improved our CET one ratio to 13% over the quarter driven by organic capital generation share issuance niwa reductions driven by the implementation of methodology changes net of organic growth in the quarter.

Methodology changes this quarter included the adoption of the internal ratings based approach for the majority of our U S Bank portfolio and the implementation of new regulatory approaches related to F. A R T b CVA and negative amortization mortgages.

Hratch Panossian: Based on the strength of our capital position and current outlook, we intend to eliminate the discount on our DRIP program after the payment of our Q2 dividend on April 29th. Our liquidity position improved further during the quarter, helped by deposit growth and excessive loans, resulting in an average LCR of 137%. With both our capital and liquidity ratios ahead of normal course operating targets, we are well positioned to withstand any potential macro headwinds while deploying our balance sheet to support our clients and drive growth when market activity picks up. Starting on slide 14, we highlight our strategic business unit results. Net income in personal and business banking was $655 million, up 10% year-over-year, supported by core business momentum, offset by higher credit provision.

Based on the strength of our capital position and current outlook, we intend to eliminate the discount on our drip program. After the payment of our Q2 dividend on April 29.

Our liquidity position improved further during the quarter helped by deposit growth in excess of loans, resulting in the average LCR of 137%.

With both our capital and liquidity ratios ahead of normal course operating targets, we are well positioned to withstand any potential macro headwinds, while deploying balance sheet to support our clients and drive growth when market activity picks up.

Starting on slide 14, we highlight our strategic business unit results net income in personal and business banking, what $655 million up 10% year over year supported by core business momentum offset by higher credit provisions.

Hratch Panossian: Benefiting from recent investments and strong execution, this segment delivered a 25% increase in pre-provision pre-tax earnings, supported by revenue momentum and strong operating leverage. Revenues of $2.5 billion were up 10% year-over-year, helped by a 25 basis point increase in margins, along with volume growth on both sides of the balance sheet. Expenses of $1.3 billion were down modestly from the prior year, as the business redirected resources over the last year to support its current strategic priorities.

Benefiting from recent investments and strong execution. This segment delivered a 25% increase in pre provision pretax earnings supported by revenue momentum and strong operating leverage revs.

Revenues of $2 5 billion were up 10% year over year helped by 25 basis point increase in margins along with volume growth on both sides of the balance sheet expensive.

Expenses of $1 3 billion were down modestly from the prior year as the business redirected resources over the last year to support its current strategic priorities.

Hratch Panossian: We expect expenses to increase over the year and maintain our guidance for full year growth in the low to mid single digit range. Turning to slide 15, net income in commercial banking and wealth management for the quarter was $498 million. Pre-provisioned pre-tax earnings of $705 million were up 3% from a year ago, largely supported by the wealth management business.

We expect expenses to increase over the year and maintain our guidance for full year growth in the low to mid single digit range.

Turning to slide 15, net income in commercial banking and wealth management for the quarter was $498 million pre provision pretax earnings of $705 million were up 3% from a year ago, largely supported by the wealth management business revenues of $1 4 billion were up 2% from the prior year as wealth manager.

Hratch Panossian: Revenues of $1.4 billion were up 2% from the prior year, as wealth management revenues increased 3%, while commercial banking revenues were comparable to last year. Our combined Canadian personal and commercial franchise continues to exhibit strong momentum, delivering revenue growth of 8%, operating leverage of 7%, and pre-provision pre-tax earnings growth of 15% over the prior year. Additional details on our Best in Class Canadian franchise have been included in the appendix. Turning to U.S. Commercial Banking and Wealth Management, net income of $48 million U.S. dollars was down from the prior year largely due to higher credit provisions in the office portfolio. Revenues were down 4% from last year, partly due to a lower annual performance in wealth management.

Revenues increased 3%, while commercial banking revenues were comparable to last year.

Our combined Canadian personal and commercial franchise continues to exhibit strong momentum delivering revenue growth of 8% operating leverage of 7% and pre provision pretax earnings growth of 15% over the prior year additional details on our best in class Canadian franchise had been included.

In the appendix.

Turning to U S commercial banking and wealth management net income of $48 million was down from the prior year largely due to higher credit provisions in the office portfolio.

Revenues were down 4% from last year, partly due to a lower annual performance being wealth management. Excluding these performance fees in both periods revenues were up 1% from core business momentum.

Hratch Panossian: Excluding these performance fees in both periods, revenues were up 1% from core business momentum. Expenses were up 4% year over year, reflecting investments across our business and infrastructure, which we expect to sustain. We remain focused on scaling our U.S. business and our position to drive long-term profitable growth across both commercial banking and wealth management. Turning to slide 17, net income of $575 million in capital markets and DFS was down 6% year-over

Expenses were up 4% year over year, reflecting investments across our business and infrastructure, which we expect to sustain.

We remain focused on scaling our U S business and our position to drive long term profitable growth across both commercial banking and wealth management.

Turning to slide 17, net income of $575 million in capital markets in DFS was down 6% year over year.

Hratch Panossian: Revenues of $1.5 billion were up 2% over the prior year, driven by strength across all business lines, which more than offset the impact of the federal budget proposal on our markets business. Excluding the impact of this budget proposal, reported revenues were up 5 percent, supported by a 14 percent increase in corporate and investment banking and a 5 percent increase in direct financial services. Spences of $712 million were up 10% compared to the prior year, largely due to continued investments in growth and higher employee-related compensation. Finally, slide 18 reflects the results of the Corporate and Other Business Unit. A net loss of $23 million compared with a net loss of $47 million in the prior year as higher revenue from a lower TEB offset and lower credit provisions were partly offset by higher expenses.

Revenues of $1 5 billion were up 2% over the prior year driven by strength across all business lines, which more than offset the impact of the federal budget proposal in our markets business.

Excluding the impact of this budget proposal reported revenues were up 5% supported by a 14% increase in corporate and investment banking and a 5% increase indirect financial services.

Expenses of $712 million were up 10% compared to the prior year largely due to continued investments in growth and higher employee related compensation.

Finally, slide 18 reflects the results of the corporate and other business unit.

Net loss was $23 million compared with a net loss of $47 million in the prior year as higher revenue from our lower tab offset and lower credit provisions were partly offset by higher expenses.

Hratch Panossian: This quarter's expenses included one-time costs related to the outsourcing of our check processing operations as we took yet another step to simplify our bank. In closing, we're proud of the results our team delivered this quarter. Record revenues and pre-provision pre-tax earnings reflect strong execution against our strategy and momentum across our diversified but connected franchise. Combined with our strong balance sheet, this momentum positions us well to navigate an environment that continues to be fluid as we remain intensely focused on achieving our medium-term strategic and financial targets. With that, I'll turn the call over to Frank. Thank you, Hratch, and good morning, everyone.

This quarter's expenses included onetime costs related to the outsourcing of our check processing operations as we've taken yet another step to simplify our bank.

In closing we're proud of the results our team delivered this quarter record revenues and pre provision pretax earnings reflect strong execution against our strategy and momentum across our diversified connected franchise.

Combined with our strong balance sheet this momentum positions us well to navigate an environment that continues to be fluid.

We remain intensely focused on achieving our medium term strategic and financial targets with that I'll turn the call over to Frank.

Thank you Raj and good morning, everyone. Our credit portfolios performed within our expectations this quarter and in line with the current macroeconomic environment.

Frank Guse: Our credit portfolio has performed within our expectations this quarter and in line with the current macroeconomic environment. In the U.S., we have made good progress managing through the stressed office environment and are now through the majority of substantive issues in this portfolio. All other commercial real estate sectors within our Canadian and U.S. portfolios have been performing well with no systemic issues. Furthermore, our allowance levels remain robust for expected changes in the economy. Turning to slide 22, our total provision for credit losses was $585 million in Q1, compared to $541 million last quarter.

In the U S. We have made good progress managing through the stressed office environment and are now worked through the majority of sensitivity issues in this portfolio.

All other commercial real estate sectors within our Canadian and U S portfolios have been performing well with no systemic issues our allowance levels remained robust for expected changes in the economy.

Turning to slide 22, our total provision for credit losses was $585 million in Q1 compared to 541 million last quarter.

Frank Guse: Over the past 12 months, our allowance levels have grown by over 800 million, or 14 basis points, creating further resilience for future changes in the macroeconomy. Our performing provision was $93 million in Q1, mainly attributable to an increase in provisions for the U.S. office sector, model parameter updates, and credit migration. Provision on impaired loans was $492 million, which is up slightly, $14 million quarter over quarter, and this was largely due to higher impairments in the Canadian real estate portfolios and was offset by lower impairments in the U.S. commercial portfolio.

The past 12 months, our allowance levels have grown by over 800 million or 14 basis points, creating further resilience for future changes in the macro economy.

Outperforming provision was $93 million in Q1, mainly attributable to an increase in provisions for the U S office sector model parameter updates and credit migration.

Originally unimpaired loans was $492 million, which was up slightly 14 million quarter over quarter.

And this was largely due to a higher impairments in the Canadian real estate portfolios.

All set by lower impairments in the U S commercial portfolios.

Frank Guse: Slide 23 summarizes our gross impaired loans information. Growth-impaired balances were up slightly in Q1, mainly driven by our Canadian retail portfolio as well as the commercial real estate sector in the U.S., partially offset by write-offs in business and government loans. Overall, new formations remained relatively stable quarter over quarter, with the increase in retail offset by a reduction in business and government loans.

Slide 23 summarizes our gross impaired loan formations.

<unk> balances were up slightly in Q1, mainly driven by our Canadian retail portfolio as well as the commercial real estate sector in the U S, partially offset by write offs and business and government loans.

Overall, new formations remained relatively stable quarter over quarter with the increase in retail offset by a reduction in business and government.

Frank Guse: Slide 24 summarizes the net write-off and 90-plus-day delinquency rates of our Canadian consumer portfolio. We've seen 90-plus-day delinquency rates trending higher over the past 12 months, reflecting the impact of higher rates and cost pressures our clients are facing. However, the overall credit quality and portfolio health of our clients remains strong. Our credit card and mortgage delinquency rates continue to remain below 2019 levels. Slide 25 provides an overview of our Canadian real estate secured personal lending portfolio. The 90-plus state delinquency rates trends reflect a continued seasoning of prior vintages coupled with a slower housing market.

Slide 24 summarizes the net write offs and 90 plus day delinquency rates of our Canadian consumer portfolios.

We've seen 90, plus day delinquency rates trending higher over the past 12 months.

<unk> the impact of higher rates and cost pressures our clients are facing.

However, the overall credit quality and portfolio health of our clients remains strong.

Our credit card and mortgage delinquency rates continue to remain below 2019 levels.

Slide 25 provides an overview of all Canadian real estate secured personal lending portfolio.

The 90, plus day delinquency rates trend.

Trends reflect the continued seasoning of prior vintages, coupled with a slower housing market.

Frank Guse: We remain comfortable with this portfolio given the overall reasonable loan-to-value metrics and do not expect to see material losses in this portfolio. Consistent with last quarter, our analysis of clients who are renewing in the next 12 months demonstrates that only 1% of these renewal balances are those at higher risk from a credit perspective. We've included an updated version of the previous stressed mortgage disclosure slide on page 42 of this presentation. Turning to slide 26, we are providing an updated view of our U.S. office portfolio. Our team's focus has reduced the portfolio by more than 10% year over year. This quarter, we also increased the performing allowance from 9.1 to 13.7 percent.

We remain comfortable with this portfolio given the overall reasonable loan to value metrics and do not expect to see material losses in this portfolio.

With last quarter, our analysis from clients, who are renewing in the next 12 months demonstrates that only 1% of the three newer balances our clients at higher risk from a credit perspective.

We've included an updated version of a previous drift mortgage disclosure slide on page 42 of this presentation.

Turning to slide 26, we are providing an updated view of our U S office portfolio.

Our team's focus has reduced the portfolio by more than 10% year over year.

Quarter, we also increase the performing alone from 9.1 to 13, 7%.

Frank Guse: Assuming market conditions don't materially deteriorate, we expect to see more muted P&L and capital impacts in office for the remainder of the year. We've managed to recover the vast majority of stressed loans. In line with the comments made in prior quarters, we expect impaired levels to decline in the back half of 2024.

Do you mean market conditions don't materially deteriorate, we expect to see more muted P&L and capital impacts in office for the remainder of the year.

Two the vast majority of strips loans.

In line with the comments made in prior quarters, we expect impaired levels to decline in the back half of 2024.

Frank Guse: This quarter, we've also included incremental disclosures in the appendix on our multifamily exposures, both in Canada and the U.S. Molle Family continues to exhibit strong credit performance with a very limited watch list and impaired exposures. We've also not seen any losses in this portfolio in the last 12 months. In closing, while loan losses trended marginally higher in Q1, the portfolio continues to perform well within our expectations. As the economy evolves, our allowance levels remain strong and provide us with prudent levels of coverage. We expect our office portfolio to have the vast majority of issues well provisioned with impairment levels reducing in the quarters ahead. I will now turn the call back to the operator. Thank you. We will now take questions from the telephone lines. If you have a question, please press star 1 on your device's keypad. You may cancel the question at any time by pressing star 2.

This quarter. We've also included incremental disclosures in the appendix on our multifamily exposure, both in Canada and the U S.

The family continues to exhibit strong credit performance with very limited watch list and impaired exposures. We've also not seen any losses in this portfolio in the last 12 months.

In closing while loan losses trended marginally higher in Q1, the portfolio continues to perform well within our expectations. The economy evolves, our allowance levels remain strong and provide us prudent levels of coverage, we expect our office portfolio to have the vast majority of issues well provisioned with impairment.

Levels, reducing in the quarter for it and I will now turn the call back to the operator.

Thank you.

We will now take questions from the telephone lines. If you have a question. Please press star one on your devices keypad you may cancel the question at any time by pressing Star two please press star one at this time if you have a question there'll be a brief pause when participants register thank you for your patience.

Operator: Please press star 1 at this time if you have a question. There will be a brief pause while participants register. Thank you for your patience.

Yeah.

Gabriel Dechaine: The first question is from Gabriel Dechaine, National Bank Financial. Please go ahead. Hey, good morning. Yeah, I just want to go back to that CRE commentary.

The first question is from Gabriel the Shane National Bank Financial Please go ahead.

Good morning.

Yeah I just wanted to go back to that CRE commentary. So can you maybe explain a bit more why you believe the most problematic loans have been dealt with or are in the rearview mirror and at a high level.

Frank Guse: So can you maybe explain a bit more, you know, why you believe the most problematic loans have been dealt with or are in the rearview mirror? And at a high level, you know, this portfolio has been about a third of your impaired loan losses over the past four quarters. As that moderates, is it your expectation that the, you know, they'll be not, that'll be a natural offset to higher impaired loans across the rest of the bank portfolios, like the Canadian consumer, etc., so that you're going to stick within your expected loss guidance, loss ratio guidance? Yeah, sure. So I'll take them one by one.

The portfolio has been about a third of your impaired loan losses over the past four quarters.

That moderates.

Is it your expectation that Oh, there'll be no that'll be a natural offset to higher impaired loans across the rest of the bank portfolios like the Canadian consumer et cetera, so that youre going to stick with them your.

The expected loss.

Guidance loss ratio guidance.

Yeah, sure so I'll tackle them.

One by one so on the U S office, specifically, we have done and we've said that in prior quarters. We have done a very thorough assessment of the portfolio. We have a team of specialists working on that portfolio on an ongoing basis.

Frank Guse: So on the US office specifically, we have done, and we've said in prior quarters, we have done a very thorough assessment of the portfolio; we have a team of specialists working on that portfolio on an ongoing basis. And with that, we feel comfortable that we have identified and provisioned all of the stress loans that we expect in that portfolio. And with that, when I said a more muted P&L impact, what we should expect to see is some migration into impaired, but that should be largely offset by a reduction in our performing allowances. Then, if we take one step further, once we get into the recovery and resolution of those files, we should also see a release from an RWA perspective, given the amount of capital we hold from an unexpected loss perspective against those loans.

And with that we feel comfortable that we have identified provisioned all of the stress low and said that we expect in that portfolio.

And with that we're now you've had a more muted P&L impact what we should expect to see some migration into impaired, but then should be largely offset by a reduction in our performing allowances.

And then if we take one step further once we get into the recovery and resolution all of those five we should offer fee relief from an <unk> perspective, given the amount of capital we hold from an unexpected loss perspective against those loans.

Frank Guse: And to your second question, as we always guide it, you know, there will be moderation in that, and that will offset some of the expected gradual increases that we should or could see in other portfolios. And all of that well within our guidance of mid-30s that we provided earlier. Perfect, thanks.

And to your second question as we always guide it yeah, there will be a moderation in that and that will offset some of the expected gradual increases that we should or could see in other portfolios and all of that well within our guidance of mid thirty's that we that we provided earlier.

Unknown Speaker: Thank you. The next question is from a woman from Scotiabank. Please go ahead. Hi, another credit-related question.

Perfect. Thanks.

Yeah.

Thank you. The next question is from.

From Scotiabank. Please go ahead.

Hi, another credit related question, obviously, we're seeing some stress.

Unknown Speaker: Obviously, we're seeing some stress across the group in terms of unsecured credit cards specifically. Frank, I'm curious if you're seeing any sort of interesting patterns in how these portfolios are performing. Specifically, I'm wondering whether the Costco portfolio relative to the other card portfolios that you have is there any divergence in performance there? And then also, in terms of single-product clients versus multi-product clients, anything there that you would note?

Across the group in terms of unsecured credit credit credit cards, specifically, Frank Im curious, if youre seeing any sort of interesting.

Patterns in.

The portfolios are performing specifically I'm wondering the Costco portfolio relative to the other card portfolios that you have is there any divergence in performance. There and then also in terms of single product clients versus multi product line anything there that you would know it well.

Frank Guse: Well, I mean, overall, I would say the portfolio in cards specifically is performing as expected, so well within our expectations. We always expected it to trend upward. We called it normalization.

Well I mean overall I would say the portfolio.

Specifically is it performing as expected so well within our expectations, we always expected it to trend up.

Call. It normalization, we are still favorable to what we would've seen pre pandemic.

Frank Guse: We are still favorable to what we would have seen pre-pandemic. You touched on some of the trends. So our co-brand card portfolio is exhibiting, and we expected that better credit quality. And that is, of course, supporting the overall portfolio. But we also continue to invest in business strategies, and risk strategies to improve those, and those are proving to be quite successful as well. In all of that, I wouldn't say there are any other trends to call out specifically.

You touched on some of the trends so I'm a co brand card portfolio is exhibiting and we expected that better credit quality.

And that is of course supporting the overall portfolio, but we also continue to invest in business strategies risk strategies to improve that.

And those are proving to be to be quite successful as well.

In all of that I wouldn't say, there's any other trends to call out specifically I mean, one maybe we have always talked about a deeper franchise client, it's usually performing better from a credit perspective, but that's something we are seeing and it's something that we continue to expect and that is well in line with our strategy of.

Frank Guse: I mean, one thing we have always talked about is that a deeper franchise client is usually performing better from a credit perspective. So that's something we are seeing and something that we continue to expect. And that is well in line with our strategy of going deeper into client relationships and driving those shares up of those clients that have those relationships. But outside of that, as I said, we continue to be quite happy with the credit performance, and it is well within our expectations. Thanks for that. And then maybe just related, just a bigger picture question in terms of when do we expect to see improvement here? Is it driven by rate cuts? Or is there something else that's important here?

Going deeper off their client relationships and driving those those shares off of those clients that have those relationships, but outside of that as I said, we continue to be.

Quite quite happy with the credit performance and it is well within our expectations.

Thanks for that and then maybe just related just a bigger picture question in terms of.

The when do we expect to see improvement here is it.

Driven by rate cuts or is there something else that's important here, whereas the rate cuts really the key variable that is going to see the pressure on these unsecured portfolio is really starting to ease.

Frank Guse: Or is rate cuts really the key variable that's going to see the pressure on these unsecured portfolios really start to ease? So, it's probably a little bit too early to give you a longer-term outlook. I think we talked about our 24-hour outlook being in the mid-30s and various offsetting pieces in that portfolio. From what is driving that, I would say it's the overall economy driving it. So, a single rate cut or two rate cuts won't have a material impact on the portfolios.

So, it's probably a little bit too early to give you a longer term outlook I think we talked about our our 24 outlook being in the mid thirties, and they're very very of offsetting pieces in that portfolio.

From what is driving that I would say is the overall economy driving it so single rate card or two rate cuts won't have a material impact on the portfolio and it really depends on how unemployment continues to evolve how rates have continued to evolve.

Frank Guse: And it really depends on how unemployment continues to evolve, and how rate cuts continue to evolve. What I would reiterate is everything we are seeing so far is going well within our expectations from a forward-looking information and forecast perspective. So, assuming that everything continues to go within those expectations, we wouldn't expect any material changes to our performance here. Thank you. Thank you. The next question is from Mariel Mendonca of TV Securities. Please go ahead. Good afternoon, or rather morning, rather.

What I would reiterate is everything we are seeing so far is going well within our expectations from our forward looking information.

And forecast perspective.

So assuming that everything continues to go within those expectations, we wouldn't expect any material changes to our performance here.

Thank you.

Thank you.

The next question is from Mario Mendonca from TD Securities. Please go ahead.

Good afternoon or morning, rather.

Mario Mendonca: This might be best for you. So I'm watching CIBC's performance here over the last couple of quarters. May be more than a couple quarters, and there's probably little doubt that, you know, performance has been better than your peers. I think you highlighted that in your opening remarks that you expect to maintain this level of performance. But I can't help observing at the same time that the bank also trades at the lowest multiple in the group. So clearly, there's a disconnect here between your performance and the way the market values it. And I can't help but think that it relates to certain things, a concern that something could go wrong.

This might be best for you so I'm watching cibc's performance here over the last couple of quarters.

Maybe more than a couple of quarters and.

There is probably little doubt that.

Performance has been better than your peers I think you highlighted that in your opening remarks that you had.

To maintain this relative outperformance.

But I can't help observing at the same time that the bank also trades at the lowest multiple in the group. So clearly there's a disconnect here between your performance and the way the market values are.

And I can't help but think that it relates to certain things.

Learn that something could go wrong. So I want to go through a couple of those what could go wrong and get your impression first on U S commercial real estate.

Victor G. Dodig: So I want to go through a couple of those what could go wrong scenarios and get your impression first on US commercial real estate. I think the message here is that the issues are behind you. Domestic mortgages, that always comes up as a particular risk for CIBC if interest rates remain higher. So the broad question for you is, What could go wrong?

I think the message here is that the issues are behind you domestic mortgages that always comes up as a particular risk.

We see if interest rates remain higher so the broad question for you is this.

What could go wrong.

Victor G. Dodig: What do you think investors are worried about? And how would you respond to those concerns? Well, good morning, Mario.

What do you think.

Investors are worried about and how would you respond to those concerns.

Well good morning Mario.

Victor G. Dodig: Two things, just on the specific concerns that you've raised. I think Frank did a very good job. And the team, quite frankly, under Shawn's leadership, has done a very good job rectifying a problem with US real estate that none of us were pleased with. We were disappointed with the performance. When these loans were originated, they were well within our risk tolerance, both in terms of size and the nature of the business. Nobody expected a global pandemic.

Two things just on the specific concerns that you've raised I think Frank did a very good job and the team quite frankly under Sean's leadership has done a very good job and rectifying it problem with U S. Real estate that none of US were pleased with where we were disappointed with the performance. When these loans were originated they're well within our risk tolerance. Both in terms of size in the <unk>.

<unk> of the business nobody expected a global pandemic that happen, we worked through it and not issue as we've outlined is really in the rearview mirror as we work through the rest of the year.

Victor G. Dodig: That happened, we worked through it, and that issue, as we've outlined, is really in the rearview mirror as we work through the rest of the year. On domestic mortgages, we feel very comfortable in the mortgages that we've underwritten and the client relationships that we're building. The overwhelming majority of our clients have deeper relationships with us. They have more deposits than they had pre-pandemic. They're employed; they're working through things. That doesn't mean they're not anxious. But from a bank standpoint, the loan-to-value across the board is about 50%. It varies location by location.

On domestic mortgages, we feel very comfortable in the mortgages that we've underwritten in the client relationships that we're building the overwhelming majority of our clients have deeper relationships with them with us they have more deposits than they had pre pandemic, they're employed they're working through things that doesn't mean, they're anxious.

I'm not anxious, but from a bank standpoint, the loan to value.

Across the board is on average about 50% varies location by location. So that doesn't remain a concern quite frankly, what's really a bigger concern is the lack of housing that's a bigger concern for me that's an issue well what can go wrong for us its really geopolitics capital G capital P. But we don't own that we don't know when the economy.

Victor G. Dodig: So that doesn't remain a concern. Quite frankly, what's really a bigger concern is the lack of housing. That's a bigger concern for me. That's an issue.

Victor G. Dodig: Well, what can go wrong? For us, it's really geopolitics, capital G, capital P. But we don't own that. We don't own the economy. We own our strategy, and what we've committed to our shareholders, Mario, is to deliver on our strategy of growing affluent in the high net worth space and attracting clients to our bank. Clients are running to our bank. There are 700,000 net new clients attracted to our bank.

We own our strategy and what we've committed to our shareholders Mario.

Is to deliver on our strategy of.

Throwing in the affluent and high net worth space, attracting clients to our bank clients are running to our bank. There are 700000 net new clients attracted to our bank building connectivity across our bank and using technology and the technology investments, we've made to drive scale and to drive better operating efficiencies and what you see.

Victor G. Dodig: Building connectivity across our bank and using technology and the technology investments we've made to drive scale and to drive better operating efficiency, and what you see quarter over quarter over time is improved operating leverage. Quarter over quarter, over time, pre-provision, pre-tax earnings growth has been improving, and our goal is just to continue to deliver on that, consistently going forward, to make sure that strategy continues to work. And over time, we will earn the right of more shareholders to invest in our bank. And with that, we will close those multiple gaps and continue to grow and prosper. So, thanks for the question. You know, I'm always worried, but I'm not worried about our strategy. Right? And on your, For the, I can't think of a better term, like your risk dashboard, presumably you have something to that effect, some report that you look at. Is there anything... We have risk appetites, risk dashboards, we look at operational risk, we look at market risk, we look at credit risk, we look at reputational risk, and we manage all of that.

Quarter over quarter over time is improved operating leverage.

Over a quarter overtime pre provision pretax earnings growth improving and our goal is just to continue to deliver on that consistently going forward to make sure that strategy continues to work and over time, we will earn the rights of more shareholders to invest in our bank and with that we will close those mulch.

People gaps and continue to grow and prosper.

So thanks for the question.

I'm always worried but I'm not worried about our strategy.

Right and on your.

I can't think of a better term like your risk dashboard and presumably you have something to that effect. Some report that you're looking at is there anything asked appetite risk dashboards, we look at operational risk we look at market risk. We look at credit risk, we look at Reputational risk and we manage all of that is there anything there on the dashboard today that you would want to highlight for us.

Victor G. Dodig: Is there anything on the dashboard today that you would want to highlight for us? I would want to highlight our capital markets business, which has consistently delivered market-leading return on equity, market-leading VAR in terms of return on low VAR. It's just really the business is highly connected, more than 30% of revenues are connected to the rest of the bank, and the U.S. business is growing. So when I look at all of that, our goal is just to make sure that we continue to deliver and make sure that we have operational resilience. That is something that we need to always continue to focus on. All right, thank you for indulging us. Thanks, Mario. Have a good day.

Oh, I would want to highlight our capital markets business, which has consistently delivered market leading return on equity market, leading all of our in terms of return on low var.

Really the business is highly connected more than 30% of revenues are connected to the rest of the bank. The U S business is growing.

So when I look at all of that our goal is just to make sure that we continue to deliver.

And make sure that we have operational resilience that is something that we need to always continue to focus on.

Alright, thank you for indulgence.

Sohrab Movahedi: Thanks. Thank you. The next question is from Sohrab Movahedi from BMO Capital Markets. Please go ahead. Thank you. Maybe just a quickie for Jon Hountalas.

Mario I know questions have a good day.

Thank you.

The next question is from Sohrab <unk> from BMO capital markets. Please go ahead.

Thank you and maybe just a quickie for John <unk>.

Jon Hountalas: Obviously, a good set of underlying results. I wonder if you could pinpoint any of it on the Costco credit card acquisition or if there's any updates you want to give us on how that vector of growth is performing for you. Thank you.

Obviously, a good setup.

Underlying results I Wonder if you could pinpoint to any update on the Costco credit card acquisition or if theres any updates you want to give us on.

How is that a vector of growth is that.

Performing for you. Thanks.

Jon Hountalas: Thank you for the question. The results were good, Sohrab, you see them. Just at a high level, I'd say the revenue was 50% rates, 25% broad volume, and just 25%, let's call it pricing disappearance.

Thank you for the question.

The results were good sorry, how do you see them just high level I would say the revenue was 50% rates, 25% broad volume and just 25%, let's call it pricing discipline.

Jon Hountalas: The Costco deal has gone well, but it's still a small part of our overall results. I would tell you on the Costco transaction, every key metric we look at, revolve rate, loan losses, outstandings, new clients, every key rate is performing better than the business case. Our franchising efforts are going as well or better than we hoped. So it's performing better than we thought. But I can't tell you that Costco is the key contributor to these results.

The Costco deal has gone well, it's still a small part of our overall results I would tell you on the Costco transaction every key metric we look at revolve rate loan losses Outstandings new clients every key rate is performing better than business case, a franchising effort.

Which are going as well or better than we hoped so it's performing better than we thought.

But I can't tell you that Costco was the key contributor to these results. These results are broad based based on a lot of hard work a lot of execution against many smart investments that have been made over the years.

Jon Hountalas: These results are broad-based, based on a lot of hard work, and a lot of execution against many smart investments that have been made. I hope I have answered your question. You did, thank you very much.

Okay.

I hope I answered your question.

Thank you very much thank you.

Lemar Persaud: Thank you. The next question is from Lemar Persaud from Comark Securities. Please go ahead.

Thank you.

Question is from Lamar Prasad from <unk> Securities. Please go ahead.

Hratch Panossian: Yeah, a bit of a busy morning. So apologies, if you address this in your opening remarks, but for Hratch, the stability of margins in this rising rate environment, can you talk about expectations as you see rates move lower in Canada and the US? And stable rates, I guess, include potential rate cuts? And then moving forward, does this experience with lagging margin gains relative to peers and, you know, weaker stock price performance change how you're going to manage rate sensitivity over the longer term? Perhaps you'd look at making the bank more rate sensitive moving forward? Thank you, Lemar, for the question, and good morning.

Yes, a bit of a busy morning. So apologies if you addressed this in your opening remarks, but for her ACH.

The stability of margins through this rising rate environment can you talk about expectations as you see rates move lower in Canada, and the U S and does stable rates I guess include potential rate cuts and then moving forward does this experience so lagging margin gains.

Relative to peers and weaker stock price performance change, how youre going to manage rate sensitivity over the longer term, perhaps you'd look at making the bank more rate sensitive moving forward.

Thank you Omar for the question and good morning.

Hratch Panossian: So, look, I'll start with the first part of that. We're very pleased with our margin performance, and off the bat, I'll answer your question. We think we have the right approach. We're not changing our approach. Our approach to managing the balance sheet is not to take a position on rates.

So look I'll start with the first part of that we're very pleased with our margin performance in off the bad I'll answer. Your question. We think we have the right approach, we're not changing our approach our approach in managing the balance sheet is not to take a position on rates. We don't believe that's a productive risk to take if you look at it over time and so we manage the margin spread stability we've.

Hratch Panossian: We don't believe that's a productive risk to take if you look at it over time, and so we manage the margins for stability. We've shown you the slide; the stability through unprecedented movements up, you know, down, and now up, and maybe back down on rates has been, we think, remarkable, and we'll continue managing that way. But in terms of what we've done, right, that margin stability has helped us. We've shown a strong track record of keeping that stable overall. We've expanded non-trading NIM by more than 10 basis points since the end of 22 as we've gone on this journey, and that's been supported by all the businesses.

You the slide are.

The stability through unprecedented movements up or down and now up and maybe back down on rates has been we think remarkable.

And we'll continue managing that way, but in terms of what we've done right that margin stability has helped us we've shown the.

Strong track record of keeping that stable overall with expanded non trading them.

By more than 10 basis points since the end of 'twenty two as we've gone on this journey. That's been supported by all of the businesses strong CAD P&C, which is up more than 20 basis points over that time stable NIM in the U S. If you look at it over that entire time period.

Hratch Panossian: The strong CADPNC, which is up more than 20 basis points over that time. Stable NIM in the U.S. If you look at it over that entire time period, despite the dislocations that we saw last March in that market, right, and in both PNC in Canada and in the U.S., you had the unprecedented shift to term deposits from demand, unprecedented increase in deposit costs, a lot more dislocation in the U.S., and through all of that, those business margins have been stable and improving, and We grew NII on a non-trading basis by 10% in 2023. We've got 6% year-over-year growth this quarter, and we think there is continued momentum. In terms of what happens going forward, this stability helps us, right, but rates have plateaued. And so, over time, we've said we benefit a few basis points a quarter from the repricing of the balance sheet. That's helped us offset some of those headwinds.

Despite the dislocations that we saw last March in that market rate in both P&C in Canada and the U S. You had the unprecedented shift to term deposits from demand unprecedented increase in deposit costs a lot more dislocation in the U S and through all of that those business margins had been stable and improving and that's what has allowed us to do.

Drive NII, we grew NII on a non trading basis, 10% in 2023, we've.

We've had 6% year over year this quarter and we think there is continued momentum in terms of what happens going forward is the stability helps us right, but rates have plateaued and so over time, we've said, we benefit a few basis points a quarter from the repricing of the balance sheet that has helped us offset some of those headwinds we will continue to have those benefits going forward.

Hratch Panossian: We will continue to have those benefits going forward. And based on everything we see, including some further pressure on pricing and the mix of deposits and so forth, you know, we expect on the core... stable to upwards trending margins, which will stabilize over time. And I think we'll be more stable going down if rates do drop as expected because of the way we manage things. So no, I wouldn't change anything.

And based on everything we see including some further pressure on pricing and mix of deposits and so forth.

Expect on the core.

Table, two upwards trending margins, which will stabilize over time and I think we will be more stable coming down if rates do drop as expected because of the way we manage things so no I wouldn't change anything.

Lemar Persaud: I appreciate your time. Thank you. The next question is from Nigel D'Souza from Veritas Investment Research. Please go ahead. Thank you. Good morning.

I appreciate your time.

Yeah.

Thank you.

Next question is from Nigel D'souza from Veritas investment Research. Please go ahead.

Unknown Executive: I wanted to touch on U.S. commercial real estate again. We're seeing smaller banks in the U.S. and the CRE portfolio to help with capital relief. There seems to be a disconnect between market bids and carrying values, where the discounts on the market bids are too great of a gap to transact on these asset sales.

Thank you good morning, I wanted to touch on U S. Commercial real estate again, we're seeing smaller banks in the U S.

Look to asset sales and equity portfolio.

To help us a capital relief and.

There seems to be a disconnect between the market based on the carrying value where the discounts on the market.

<unk> S a greater for gap to transact on these asset sales. So is that is that your experience when you explore your institutional.

Frank Guse: Is that your experience when you were exploring your institutional CRE sale? How do you think that gap will eventually be bridged? It doesn't sound like you expect another round of impairments provision.

The sale and how do you think that gap will eventually be because it doesn't sound like you expect another round of impairment provision.

Frank Guse: The Bridge That Gaps Between Market Pricing and Securing Value, Well, thank you. Thank you for the question. I think, I mean, we have reacted to that gap by adjusting our provisions to reflect what we believe a reasonable market value is. And we have been through a couple of successful dispositions in the market, where we actually realized what we expected to realize and what we were provisioned for. So I think we will continue that strategy. And as I said, we believe our current allowances that we have are prudently reflecting that, and we will continue the strategy of working through those those assets, and then again, as I said before, I mean the overall capital impact through those provisions of, sorry, the overall P&L impact through that provision should be more muted on a go-forward basis. Okay, that's all, folks. Thanks. The next question is from Ebrahim Poonawala from Bank of America. Please go ahead. See you later. Good morning.

To bridge that gap.

When market pricing and carrying value.

Thank you. Thank you for the question I think I mean, we have reacted to that gap by adjusting our provisions to reflect what we believe are reasonable market value is and we have been through a couple of successful dispositions in the market.

Well, we actually realized what we expected to realize and what we were provisioned for it. So I think we will continue that strategy and as I said, we believe our current allowances that we have are prudently reflecting.

That and we will continue the strategy of working through those those efforts and then again as I said before I mean, the overall capital impact through those provision or sorry, the overall P&L impact for that provision should be more muted on a go forward basis.

Okay. That's helpful.

Thank you.

Thank you. The next question is from Ebrahim, Pune Wala from Bank of America. Please go ahead.

Hey, good morning.

Ebrahim Huseini Poonawala: I guess I just wanted to follow up maybe to Mario's question about not what could go wrong but what could go right. And Victor, when we look at the ROE, 13.8% this quarter. Your target, I believe, still is 16% plus. Just walk through in terms of where the franchise today is under-earning the most in order to bridge that gap. Is it excess capital, PCLs, or efficiency? Would love to hear your thoughts. Good morning, Ebrahim.

I guess I just wanted to follow up maybe to Marios question about not about what could go wrong what could go right.

Victor when you look at the auto E.

Cooking, one 8% this quarter your target I believe still is 16% plus.

Just walked through in terms of where the franchise today.

<unk> the most in order to bridge that gap is it excess capital Pcl's efficiency would love to hear your thoughts.

Good morning, Ebrahim, so that all kind of goes towards strategy. It goes to our Investor day in June of 2022, where we laid out business by business and for the overall enterprise or we plan on achieving through the cycle.

Victor G. Dodig: That all kind of goes to our strategy. It goes to our investor day in June of 2022, where we laid out business by business and for the overall enterprise that we plan on achieving through the cycle. And, you know, it's been a journey through that cycle.

You know it's been a journey through that cycle. It always is through a cycle, but we're delivering we're delivering on our ROE targets of 13, 8%. We're still we're still far away away from the <unk>, but if you look at our strategy again.

Victor G. Dodig: It always is through a cycle, but we're delivering. We're delivering on our ROE targets at 13.8 percent. But we're still a far way away from 16.

Victor G. Dodig: But if you look at our strategy again, a high net worth, affluent strategy, capital light, it's ROE enhanced. Attracting clients for the future, where we have a leadership position in newcomers and students through our CIBC branded and Simply platforms, a large majority of those become affluent. They tend to become affluent over time, so there's that growth into the future.

High net worth.

On strategy capital light, it's row enhancing.

Attracting clients for the future, where we're a leader we have a leadership position and newcomers and students through our CIBC branded and simply platforms. A large majority of those become affluent they tend to become affluent overtime. So there's that growth into the future.

Victor G. Dodig: The connectivity strategy, Ebrahim, that we have also drives an enhanced ROE because as we do work with our balance sheet to help our clients realize their ambitions, we make sure that they're actually doing business in other parts of our bank. And what you will see from CIBC in the quarters ahead is a continued focus on that connectivity theme, because that connectivity theme is also enhancing its capital. And the last thing I'd say is just the fourth pillar of our strategy, which is the investments that we've made. If you look back over the last number of years, as we were working through more positive operating leverage and improving our earnings profile, it was the result of us investing for the future. We've made a lot of those investments, and we will continue to do so.

Connectivity strategy Ebrahim that we have also drives and enhanced our Roe.

Because as we do work with our balance sheet to help our clients realize their ambitions, we make sure that they're actually doing business in other parts of our bank and what Youll see from CIBC in the quarters ahead is a continued focus on that kind of connectivity theme because that connectivity theme is also enhancing its capital enhancing.

And the last thing I'd say is just the fourth pillar of our strategy, which is invest which are the investments that we've made if you look back over the last number of years as we were working through up more positive operating leverage and improving our earnings profile. It was the result of us investing for the future. We've made a lot of those investments we continue to do so we're not holding back.

Victor G. Dodig: We're not holding back, but we're now trying to scale those investments for returns, all of which should be capital-enhanced. I think when you add all of that up in terms of the quality of the revenue growth, our ability to control expenses, the credit quality, and the overwhelming majority of our book, as Frank has articulated, you'll see that ROE improve over time. You'll see us continue to build capital over time, and you'll see a better return. And I can tell you that the leadership team of our bank is focused on ROE, and it's focused on high-quality earnings per share growth. And just on that building capital, Victor, CEP1 at 13%, give us a thought process. Does that build from your appetite if there are dislocations in the U.S. in terms of capitalizing on M&A in the U.S.? Thank you. I'm going to share the podium here with my colleague, Hratch. So, Hratch, over to you.

But we're not trying to scale those investments for returns all of which should be capital enhancing.

I think when you add all of that up in terms of the quality of the revenue growth our ability to control expenses the credit quality and the overwhelming majority of our book is as Frank has articulated you'll see that ROE improve over time, you'll see us continue to build capital over time, and you'll see a better return and I can tell you that the leadership team of our bank.

<unk> is focused on Roe.

And it's focused on high quality earnings per share growth.

And just on that building capital Victor do you want a 13% give us a cutback because they've got built from here and your appetite.

Location in the U S in terms of capitalizing on M&A in the U S. Thank you I'm going to share the podium here with my colleague garage, so right over to you.

Hratch Panossian: Thanks for the question, Ebrahim, and thanks, Victor. So, we're very pleased with where CT1 has landed this quarter and, frankly, over the last four to five quarters, the progress we've made. And as we said in my remarks, Ebrahim, it is above our operating targets. We've always said what we've managed to do is... to be well clear of regulatory requirements and to be within the peer group if you look at what we've done over the last five quarters. We've built up 130 basis points of CT1, which is the equivalent of over $4 billion of capital. Yes, we've issued some, but we've issued just over $1.5 billion worth.

Thanks for the question Abraham and thanks, Victor So.

We're very pleased with where <unk> has landed.

This quarter and frankly over the last four to five quarters of progress we've made by it and as we said in my remarks Abraham It is above our operating targets. We've always said, what we've managed to is to be well clear of regulatory requirements and to be within the peer group. If you look at what we've done.

Over the last five quarters.

We've built up 130 basis points of CET, one, which is the equivalent of over $4 billion of capital. Yes, we've issued some but we've issued just over $1 five billions worth the rest of it has been organic generation and discipline in our balance sheet and efficiency of the balance sheet, we withstood some headwinds through that we've increased.

Hratch Panossian: The rest of it has been organic generation and discipline in our balance sheet and efficiency in the balance sheet. We've withstood some headwinds through that. We've increased our allowance by about $1 billion while doing that, and we've done all of that without constraining growth. We've delivered pre-tax, pre-provision growth in our target range, and we've protected our ROE by being disciplined. And so when we end up at 13% this quarter, which is above our operating targets, as we said, we feel very comfortable. And as we said, we intend to stop the drip discount so that we can continue to generate that growth while having enough capital for organic generation to fund that growth. And we will stabilize the C2-1 so that there is no reason to keep building the C2-1 from the current levels.

Our allowance by about $1 billion, while doing that and we've done all of that without constraining growth. We've delivered pretax pre provision growth in our target range and we've protected our ROE by being disciplined and so when we ended up at 13% this quarter, which is above our operating targets as we said, we feel very comfortable and as.

We said, we intend to stop the drip discount that we can continue to generate that growth.

Having enough capital through organic generation to fund that growth.

And we will stabilize the CET one around where there is no reason to keep building. This each one from the current levels, we are comfortably where we need to be and so the focus is really generating capital Victor described exactly how we believe <unk> will continue to enhancing overtime in that generation will keep our organic growth going but certainly we're in a position to generate capital in excess of what we need.

Hratch Panossian: We are comfortably where we need to be, and so the focus is really on generating capital. Victor described exactly how we believe ROE will continue to improve over time, and that generation will keep our organic growth going. But certainly, we're in a position to generate capital in excess of what we need to grow. Thank you. Thank you. The next question is from Darko Mihelic of RBC Capital Markets. Please go ahead. Hi, thank you. Just a question for Jon.

To grow organically.

Okay. Thank you.

Thank you. The next question is from Darko <unk> from RBC capital markets. Please go ahead.

Hi, Thank you just a question for John.

Darko Mihelic: I just wanted to sort of revisit mortgages in Canada. I want to just ask, like, when we look at the amount of originations in the quarter, would you say that you would be gaining share or losing share in the mortgage market with the $7 billion in originations? in line, roughly in line with Darko's John, roughly in line with Market. Okay. And so then when I look at slide 32, I see...

I just wanted to sort of revisit the.

Mortgages in Canada.

I wanted to just ask like when we look at.

The amount of originations in the quarter would you say that you would be gaining share or losing share in the mortgage market with the $7 billion of.

Originations.

Roughly in line with a.

Douglas John roughly in line with market.

Okay.

And so then when I look at slide 32.

And I see.

Jon Hountalas: The inflow spread on mortgages. I question why not push for more mortgage origination? Why not compete a little bit, given that that's the highest inflow spread we've seen since Q2? of 2020. Thanks, Darko. I mean, we're in the mix.

The inflows spread.

On mortgage I question, why not push for more.

Mortgage origination why not compete a little bit given that that's the highest inflow spread we've seen.

Since Q2.

Of 2022.

Thanks, Darko I mean, we're in the mix there just isn't a lot of mortgage volume is one to look we don't chase kind of product per se right. We are a relationship bank, where we think we can build deep relationships Trust me, we price to win.

Jon Hountalas: There just isn't a lot of mortgage volume, one. Two, we don't chase any kind of product per se, right? We are a relationship bank where we think we can build deep relationships. Trust me, we price to win. If we think it's going to be a mortgage and three to five years later, it'll be gone. It's not really our thing.

If we think it's going to be a mortgage and <unk>.

Three to five years later it will be gone.

It's not really our thing.

Jon Hountalas: So maybe a little less about market share per se and more about building relationships with people that appreciate what we do and want to do more with us, and that's what we do. I think you'll continue to see us grow roughly in the mix. But we will do it with clients that we think want to do more things with us. We have, I think we have smart people on the front line that can figure that out, and we have a lot of data that helps us realize the potential that we have with clients outside of our bank and what we think we can bring inside our bank. I hope that answers your question. Yeah, it does. Would you argue that today, the credit quality of a mortgage being underwritten is very high given, you know, the strict underwriting rules, and the stress test being where it is?

So maybe a little less about market share per se and more about building relationships with people that appreciate what we do.

I don't want to do more with us.

And that we're doing so.

I think you'll continue to see us grow roughly in the mix, but we will do it with clients that we think want to do more things with US. We have I think we have smart people on the frontline they can figure that out and we have a lot of data.

That helps us realize the potential that we have with clients outside of our bank and what we think we can bring inside our bank I hope that answers your question.

Yes. It does would you argue that today the credit quality of our mortgage being underwritten is very high given.

The strict underwriting rules of stress tests being where it is would you.

Jon Hountalas: Would you say that the credit quality of what's coming in the door is solid? Okay, I mean, this gets back to the whole question that everybody's sort of asking themselves, right? If I look at this very slide, and look at Q3 2022 when spreads were at, you know, almost their worst, your originations in that quarter were 17 billion. And today we're at seven. And you're saying you're roughly in the mix.

Would you say that the credit quality of what's coming in the door is solid.

Okay. I mean this is this gets back to the whole question that everybody's asking themselves right. If I look at this very slight.

And look at Q3 2022 when spreads were at.

Their worst your originations in that quarter was $17 billion.

Today, we're at seven and you're saying you're roughly in the mix I think back then.

Jon Hountalas: I think back then you were leading the pack in terms of mortgage growth. So it's just, I guess, if maybe what you're saying to me is this is the newer, like this is a different sort of view on the mortgage portfolio, and you're roughly going to be in line with the industry, neither leading nor lagging despite profitability metric because it really comes down to a more wholesome relationship, would that be if I'm paraphrasing john, so correct me if I' The next question is from Doug Young from Desjardins Capital Markets. Please go ahead.

You were leading the pack in terms of mortgage growth. So it just.

Yes.

Maybe what you are saying to me is this is the newer like this is a different sort of view on the mortgage portfolio and you're roughly going to be in line with industry, neither leading nor lagging.

Profitability metric because it really comes down to.

A more wholesome relationship would that be if I'm paraphrasing Johnson correct me if I'm wrong I think that's a very fair statement Tucker Okay, alright, Thank you very much.

Thank you. The next question is from Doug Young from Desjardins Capital markets. Please go ahead.

Doug Young: I'll keep this quick. Just maybe back, Hratch, to the U.S. NIMS, and I apologize if you've gone through this, but not many U.S. banks are showing NIM expansion sequentially, and I understand the deposit and the loan part of it. Maybe you can kind of dial into the balance sheet mix and anything else that, you know, you're doing that's maybe different than peers that are giving you a better NIM result in the U.S. Yeah, absolutely. Happy to take that question. And thank you. And I'm going to start, and I'm going to pass it on to Shawn, because I think the business has done an excellent job managing our already strong deposit franchise and strengthening it and managing the margin. So Shawn can elaborate on that.

I'll keep this quick just maybe back to the U S Nims and I apologize if you've gone through this but.

And not many U S banks, you're showing NIM expansion sequentially and against the deposit and alone.

Part of it maybe you can kind of dive into the balance sheet mix.

And anything else that you're doing that maybe different.

Than peers.

That are giving you.

A better NIM result in the U S.

Yes, absolutely happy to happy to take that question and thank you and I'm going to start and I'm going to pass it on to shine because I think the business has done an excellent job managing our already strong deposit franchise and strengthening it and managing the margins. So Sean can elaborate on that but just to start with this slide I think it's a lot of what we've been saying all along right.

Hratch Panossian: But, you know, just to start with this slide, I think it's a lot of what we've been saying all along, right? We do benefit from rising rates; we manage the balance sheet in the US the same as we do Canada. And so you've seen since Q4 of 2022 to now that Canada is fairly stable in margins because what's happened is we've slowly benefited from rising interest rates. What you see this quarter in terms of the negative four basis points impact from deposits is simply the catch-up of some of the deposits are still repricing up to the latest Fed hikes that we had.

Do benefit from rising rates, we manage the balance sheet in the U S. The same as we do Canada and so you've seen since Q4 of 'twenty two to now that is fairly stable and margins because what's happened is we slowly benefited from rising interest rates. What you see this quarter in terms of the negative four basis points impact from there.

Posit is simply the catch up of some of the deposits are still repricing up to the latest fed rate hikes that we had and so that's going to start stabilizing but on the flip side you had the loan portfolio really contribute through higher margins and then in terms of the balance sheet mix the balance sheet makes us simply because we did have to <unk>.

Hratch Panossian: And so that's going to start stabilizing. But on the flip side, you have the loan portfolio really contributing through higher margins. And then in terms of the balance sheet mix, the balance sheet does this simply because we did have deposit growth. And that's one of the areas our business has done an excellent job, deposit growth growing more, providing NII on the numerator, while assets have been more muted on the denominator side. That ends up helping them as more deposits and NII come in. So that's really the balance sheet mix four basis points that you see. But I'll pass it on to Shawn to give you more color.

Is it growth and that's one of the areas of our businesses on an excellent job.

Deposit growth growing more providing NII on the numerator and assets have been more muted on the denominator side that ends up helping them as more deposit NII comes in so that's really that balance sheet makes four basis points that you see but I'll pass it on to Sean to give you more color.

Shawn Beber: Thanks, Hratch, and Doug, thanks for the question. So to Hratch's point, I think it's both sides of the balance sheet that are being reflected here. We've had pricing discipline. We've invested in tools, including ones that are based on AI to help with pricing, to make sure that we are being competitive, but intelligent about how we price on the loan side. There's also been some mixed shift.

Thanks, Roger and Doug. Thanks for the question so to Roger's point I think it's both sides of the balance sheet.

That are being reflected here, we've had pricing discipline, we've invested in tools, including ones that are that are based on an AI to help with pricing to make sure that we are being competitive but intelligent about how we price on the loan side. There's also been some mixed shift we've talked about the fact that we've been D M.

Shawn Beber: We've talked about the fact that we've been de-emphasizing elements of the commercial real estate books, some of that was lower yielding, and we've replaced that with commercial loan growth that's helped on the asset side. And on the deposit side, we're really pleased with our performance this quarter. It's a combination of strategic focus and relationship managers speaking to clients all the time about their deposit needs, our treasury management capabilities, and how we can serve them.

Besides the elements of the of the commercial real estate book some of that was lower yielding and we've replaced that with commercial.

Loan growth that's helped on the asset side and on the deposit side, we're really pleased with our performance. This quarter. We are it's a combination of like it's a strategic focus.

Relationship managers speak to clients all the time about their deposit needs, our treasury management capabilities and how we can serve them. We also have launched a number of different initiatives, including doing some testing and learning in our digital space and.

Shawn Beber: We also have launched a number of different initiatives, including doing some testing and learning in our digital space that has shown we're pleased with the early results around that. And we've done all of that with an eye toward our margin management. So all of that, coupled with our hedging strategies that Hratch has talked about, have all contributed to that new performance. And so from an overall strategy perspective, I mean, this is all aligned with our very high-touch relationship-focused business that we're building in the U.S. And there are really three elements to that. There's the highly connected commercial banking and wealth management franchise, working with clients who really value this wholesome relationship. We're building out our private wealth business, which does provide terrific attributes in and of itself. It also contributes significantly from a capital generation perspective and from a funding perspective.

That is shown we're pleased with the early results around that and we've done all of that with a with an eye towards our margin management.

So all of that coupled with.

Our hedging strategies that are that are out just talked about have all contributed to that that NIM performance.

And so I appreciate it.

From an overall strategy perspective, I mean, this is all aligned with our very high touch relationship focused.

But we're building in the U S and there's really three elements to that.

There's the highly connected commercial banking and wealth management franchise, working with clients, who really value this hole.

Some relationship.

We're building out our private wealth business, which does provide.

Terrific attributes in and of itself. It also contributes significantly from a capital generation perspective, a funding perspective, and again that feeds into our nims.

Shawn Beber: And again, that feeds in through our NIMS and a referral opportunity, all of which supports our commercial banking business at. I appreciate the color. Thank you. Thank you. And the next question is from Sohrab Movahedi from BMO Capital Markets. Please go ahead. Okay, thank you. Get rewarded for following directions here. Harry, everyone's had a chance to talk. You haven't done so.

And our referral opportunity all of which supports our our commercial banking business.

And we're investing in our infrastructure as I said some of that is through pricing tools et cetera, but making us sharper on the on the front side and as well are building up our infrastructure to support that growth ambition in line with regulatory expectations. All of that we expect over time to deliver on our Investor day targets.

Thank you.

I appreciate the color. Thank you.

Yeah.

Thank you.

Sohrab Movahedi: I just wanted to kind of get a feel for you. Obviously, the culture is strong for capital markets, but I just want to get a sense of how you see the year playing out, off of this strong start. Good morning, Sohrab, and thank you for that question. As you know, and you've heard it today, we're really focused on the execution of our strategy, which, as Victor said in earlier remarks, is working well. I'd say it's working very well in capital markets.

And the next question is from Sohrab <unk> from BMO capital markets. Please go ahead.

Okay. Thank you get rewarded for following directions here.

Harry everyone's had a chance to talk you Havent I just wanted to kind of get a feel from you.

The quarter was strong for capital markets, but I just wanted to get a sense of how you see the year playing out.

This strong start.

Hi, good morning, So Rob and thank you for that question.

Yeah.

And you've heard it today, we're really focused on the execution of our strategy, which as Victor said in your earlier remarks, it's working well I'd say, it's working very well in capital markets. We're all really focused on delivering on our investor day targets and Youre seeing that.

Harry K. Culham: We're really focused on delivering on our investor-day targets, and you're seeing that. Excluding the impact of the TEB, we're anticipating year-over-year growth in revenue in 2024 in the mid-to-high single digits, and we're focused on bringing our expense growth in 2024 down to the low-to-mid-single digits area, so that should give you an idea of This, as Victor pointed out, is a really well-diversified business, and you heard Shawn talk about our platform working together; there's a connected franchise. 30% of our revenue comes from servicing commercial wealth and retail clients, so we've got 40% from corporate origination, another 30% from our institutional and trading businesses, so I think that diversification is going to play out very well as we go forward in 2024.

Excluding the impact of the Teva anticipating your over year growth in revenue and 24 in the mid to high single digits, and we're focused on bringing our expense growth and 24 down to the low single low single low to mid single digits area. So that should give you an idea of how we're thinking about the year as Victor pointed out as a really well diversified.

And you heard Sean talk about are our platform working together, there's a connected franchise.

30% of our revenue does come from servicing commercial wealth and retail clients. So we've got 40% from corporate origination another 30% from institutional and trading businesses. So I think that diversification is going to play out very well as we as we go forward in 2024.

Clearly the.

Harry K. Culham: Clearly, there's some seasonality to this business; our clients were very active this quarter. This is a client-driven franchise that really is aligned to longer-term macro trends, so it's working well, you saw that in the results for quarter one. So we're optimistic that we've had a solid start to the year, and it does give us confidence that we're going to achieve our full-year targets that we set out yesterday Okay, thank you.

There is some seasonality to this business our clients were very active this quarter. This is a client driven franchise. It really is aligned to longer term macro trends. So it's working well you saw that in the results in quarter. One. So we're optimistic that we've always had a solid start to the year. It does give us confidence that we're going to achieve our full year targets that we set out at investor.

Hey.

Okay. Thank you.

Harry K. Culham: Thank you. There are no further questions registered at this time. I'd like to turn the call back over to the operator. Thank you, operator, and thanks for all your questions and your interest in our bank. I hope we were able to convey again that our strategy is working, and we continue and plan to deliver against those strategic objectives. So as we move deeper into fiscal 2024, we're going to continue to lean into our purpose. We're going to help our clients achieve their ambitions. We're in a strong position today. We've made the right investments. We have a deep leadership bench.

Thank you there are no further questions registered at this time I would like to turn the call back over to Victor.

Thank you operator, and thanks for all your questions and your interest in our bank and I Hope we were able to convey again that our strategy is working and we continue and plan to deliver against those strategic objectives. So as we move deeper into fiscal 2024, we're going to continue to lean into our purpose to help our clients achieve their.

<unk>, we're in a strong position today, we've made the right investments we have a deep leadership bench, we have a client focused strategy that is delivering results.

Victor G. Dodig: We have a client-focused strategy that is delivering results, and we're going to continue to build on our momentum as we look to the future. We have a tremendous opportunity ahead of us. And, as always, I want to thank our CIBC team for what they do for our clients and what they do for our bank each and every day with great pride and great dedication. I look forward to catching up with all of you one-on-one or on the next call. Take care until then. Thank you. Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation. www.globalonenessproject.org

We're going to continue to build on our momentum as we look to the future. We have a tremendous opportunities ahead of us and as always I want to thank you <unk>.

VC team for what they do for our clients and what they do for a bank each and every day with great Pride and great dedication and I look forward to catching up with all of you one on one or on the next call take care until then thank you.

Thank you. The conference has now ended please disconnect your lines at this time and we thank you for your participation.

Yeah.

Okay.

Okay.