Canadian Imperial Bank of Commerce at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Brain Martin - Barclays Capital - Analyst : Good morning. Thanks for coming. Let's just start off with the health of the Canadian consumer. At the start of the year, there are some concerns, slowing economy, rising unemployment impact and mortgage renewal cycle. So consumers pay much of a better than expected. So we expect this to continue. And are there any pursuit of specific and geographic areas of concerns or segments of concern?

Question: Brain Martin - Barclays Capital - Analyst : Excellent. And let me tell you specifically in the Canadian part of the business, the Canadian loan portfolio is focused on residential real estate, secured personal lending. How you looking to expand into other segments of the consumer to diversify and to add diversity to portfolio. And you remain comfortable with your residential mortgage exposure.

Question: Brain Martin - Barclays Capital - Analyst : Excellent. Thanks. Last week, we saw the third rate cut from the Bank of Canada, and we've still got a few more effective before the end of the year. Do you think customers are starting to see a benefit from lower rates? Or is that going to come through more in 2025. And with the outlook for route to becoming down, you're seeing customers starting to move towards like a variable-rate mortgage to take advantage of that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 12:15PM, CM.TO - Canadian Imperial Bank of Commerce at Barclays Global Financial Services Conference

Question: Brain Martin - Barclays Capital - Analyst : The longer-term. Great. And then maybe tougher due to how the impact of declining rates ease, the need to generate some modest margin expansion, excluding the kind of trading piece with interest rates continuing to decline, you believe we can still maintain a stable NIM outlook?

Question: Brain Martin - Barclays Capital - Analyst : Great. Thanks. A little more important drivers to me, and that's kind of the funding strategy. So maybe can you provide a little bit more color on your funding strategy and kind of where you're seeing the best opportunities for deposit growth. Do you think you need to be more aggressive on rates to attract deposits? Or is that kind of line issue in Canada?

Question: Brain Martin - Barclays Capital - Analyst : I really like talking a little bit about your company more than some of your fee revenue businesses. And despite increased economic uncertainty, revenues in the financial markets business, both investment banking and trading have been relatively steady last few quarters.

Question: Brain Martin - Barclays Capital - Analyst : And as long as our clients are active, we should be able to continue with the performance of the bank thinks meaning moving to much more like the expenses and the efficiency in terms of operating leverage of our levers, you have to continue generating positive operating leverage? And how do you balance that against making additional investments? And maybe kind of also when you talk about investments, how do you think you compare maybe with competitors on investing in technology.

Question: Brain Martin - Barclays Capital - Analyst : Moving a little more color on kind of credit trends, particularly within US commercial banking and would you think about maybe executing as we've done some like sales of office [CRE], which you can think about maybe doing more sales to reduce exposure?

Question: Brain Martin - Barclays Capital - Analyst : Okay. Great, thanks. And quick question on capital. Your capital levels and continue to accrete CET1 ratio moving higher over the past few quarters, what kind of CET1 ratio are you targeting for your business and where you're looking to deploy incremental capital?

Question: Brain Martin - Barclays Capital - Analyst : Okay. And then my last question is that over the past year, we've seen the kind of ROE in personal and Canadian Personal and Business Banking and Canadian Commercial Banking, Wealth Management. It's been under pressure, but what steps are you taking to improve returns in these businesses? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 12:15PM, CM.TO - Canadian Imperial Bank of Commerce at Barclays Global Financial Services Conference

Question: Brain Martin - Barclays Capital - Analyst : Thanks, Rob. Can we just pause this here and open it up to any questions. There's a mic going around. We could start in the front row, please. Unidentified Particpant Hello. Thank you. Some of your larger competitors have been more aggressive in pursuing a kind of US retail acquisition strategy. How do you feel about that net debt, if you were going to go down that path, what are the kind of criteria that you would look for? Thank you.

Question: Brain Martin - Barclays Capital - Analyst : Okay. Second question? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 12:15PM, CM.TO - Canadian Imperial Bank of Commerce at Barclays Global Financial Services Conference Unidentified Particpant Thank you. Thank you very much for the presentation. You talked about the international opportunity, think about those businesses and business lines. Are you talking about more capital intensive lending business or more of a service. Right? Advisory business. When you -- because international [summit] more outside of the US?

Question: Brain Martin - Barclays Capital - Analyst : Great. Thanks. Another question on front? Unidentified Particpant Thank you. You mentioned energy infrastructure and energy transition is an attractive area several times. Can you possibly just give us a bit more detail, so you understand that like your kind of scale, competitive environment, what kinds of renewables you're lending to and infrastructure and also what your competitive advantages?

Question: Brain Martin - Barclays Capital - Analyst : Great. Anything else we haven't covered you want to leave us with any closing remarks.

Question: Brain Martin - Barclays Capital - Analyst : Great. Well, thank you very much, Rob. Let's now please join me in thanking Rob for his presentation.