Canadian Imperial Bank of Commerce at RBC Capital Markets Global Financial Institutions Conference (Virtual) Transcript

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

Question: Darko Mihelic - RBC Capital Markets - Analyst : And so, I think with you being a Canadian bank, and many listeners listening in from the US, maybe we'll start off with a little bit about -- if you could provide maybe your perspective on Canada's economic situation. In particular, I get a lot of questions on the housing market, if that's a concern? The speed of the reopening of the economy, is it meeting your expectations? And your general view on interest rates and economic growth, please.

Question: Darko Mihelic - RBC Capital Markets - Analyst : Okay, thank you for that. So, with that as the backdrop, why don't we dive into -- a topic that's talked about a lot is credit quality. And one of the things that CIBC has suggested is that -- you are expecting Stage 3 or the impaired provisions for credit losses in the mid-30 basis points range for 2021. Now maybe you can provide some color around that and your thoughts on the timing of those impairments, the reversals of Stage 1 and 2. I get that question a lot. And we saw an uptick in your numbers in particular in past due but not impaired credit cards -- but a little less. So, maybe you can describe why impairments are not becoming hard and fast in other sectors, why they are delayed. There's a lot in this question perhaps. Take your time and maybe just walk us through how you think about all of those questions I just launched at you for 2021. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 09, 2021 / 4:20PM, CM.TO - Canadian Imperial Bank of Commerce at RBC Capital Markets Global Financial Institutions Conference (Virtual)

Question: Darko Mihelic - RBC Capital Markets - Analyst : And it's fair to say I think, some banks have suggested that the early stage delinquency that we can see, what we are seeing so far is within our expectations or actually moderately better than expectations. Is that a fair comment for CIBC?

Question: Darko Mihelic - RBC Capital Markets - Analyst : Okay, great. So, let's shift gears then and think about what I think of anyway as something (inaudible). I kind of think of the CIBC thesis as one that's really tailored around or centered around the Canadian business and momentum and growth. And one of the things you've really been searching for is mortgage growth. And that's sort of been central to the thesis. But there's other parts of it. So, first of all, let's talk about what are the factors that are driving some of the momentum around mortgage growth? Why you expect it to continue? I've got a lot of people saying, hey, it's pricing or what have you. And then once we have a good discussion on mortgages, let's go beyond mortgages and talk about what else you are focusing on in the Canadian franchise. And maybe perhaps talk about areas where you're seeing some sort of green shoots or some other areas of strength. So, let's talk a little bit about that if you could, please.

Question: Darko Mihelic - RBC Capital Markets - Analyst : Okay, all right. That is a pretty comprehensive answer. Thank you very much. And I think earlier you mentioned your economics team had upped the GDP forecast of 4.3. A lot of that growth is happening in the back half of the year. So, one of the questions that I often get -- and you ended up talking a little bit about cards. But I've gotten some pushback from some investors saying, look, when it comes to cards, if there's going to be a big revival in the back half of this year, everybody's vaccinated, we're all going to want to travel. And on the travel rewards card space, when the travel bans are lifted some are saying, look, your competitors are better placed for this travel revival. What would your response be to that criticism? And in fact, how will you compete in the travel reward card space given everything that's happened?

Question: Darko Mihelic - RBC Capital Markets - Analyst : Okay, great. Thank you. And maybe touching on expenses, because in the conference call I think you guys spoke about all the elevated expenses in Q2 and beyond. So, maybe provide a little bit of color and give us an idea on what are these strategic initiatives that you are spending on. I think many investors believe that sometimes CIBC is falling behind on some strategic initiatives and maybe it's catching up. So, maybe you can give us a bit of color on that. And maybe provide some perspective on your expense base and your expense expectations, please.

Question: Darko Mihelic - RBC Capital Markets - Analyst : Okay, all right, excellent answer. Thank you. We've got a minute left, so I wanted to touch on one more question, if I may just sneak it in real quick. High ROE in Q1, but what should we be expecting from CIBC going forward and what does it require on the capital side?

Question: Darko Mihelic - RBC Capital Markets - Analyst : That's excellent. We're out of time, unfortunately. We could keep going, but will have to end it here, Hratch. Thank you very much for participating. We really appreciate you coming on today.