Canadian Imperial Bank of Commerce at TD Cowen Inaugural Financial Services Summit Transcript

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

Question: Mario Mendonca - TD Securities, Inc. - Analyst : I think there was a ton there. Some of it we're going to get into, but it certainly got me thinking. Before we go into -- before we start to drill in a little bit, it would be helpful to know -- like you've transitioned from the CFO role, that's when I first sort of -- I got to know you when you were IR, but got to know you better as CFO. So this is an entirely different lens into the bank now -- from the CFO role to what you're doing now. With that CFO understanding and this new role that you've got, was there anything that sort of surprised you? Anything that was really -- I imagine there were some positive certainly from your opening comments, it sounds like that, but anything else that you noticed as you transitioned into this new role?

Question: Mario Mendonca - TD Securities, Inc. - Analyst : It's good. So let's now drill down a little bit more into the strategy, specifically around the affluent. I'm a little jaded on this because I've heard it many times from a lot of companies that I've covered over many years, that seems to be the focus, affluent and mass affluent. But you had success. So something's working. So maybe talk about how CIBC targets the mass affluent, what tools are in place, presumably this discussions going to segue into Imperial Service because that's the [part I think about when I think about affluent]. So let's talk about CIBC strategy toward the affluent, why you think you've had some success in the near term?

Question: Mario Mendonca - TD Securities, Inc. - Analyst : Now there is a layer beyond Imperial Services as well. Is there any strategy you've seen or you can articulate there, I believe it's called private wealth.

Question: Mario Mendonca - TD Securities, Inc. - Analyst : It's smaller part of the bank, I imagine, but is there a target strategy there as well?

Question: Mario Mendonca - TD Securities, Inc. - Analyst : So it all sounds promising. It sounds like great service to your clients, particularly Imperial Service, but services isn't free. So I want to ask how does this fit into the overall efficiency ratio of the bank and personal bank? I'm talking about Imperial Service specifically. It's a big meaty initiative that the bank has in plate. Does it help, does it hurt the overall efficiency of that business?

Question: Mario Mendonca - TD Securities, Inc. - Analyst : That's helpful. So let's think now switch gears a little bit. No discussion with CIBC would be complete without a discussion of the mortgage market. Mortgages matter to CIBC. There's no doubt, big part of the business, rates have come down, [25 basis points]. We're probably going to get a little more, mostly Canada, maybe some later on in the US. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 07, 2024 / 2:20PM, CM.TO - Canadian Imperial Bank of Commerce at TD Cowen Inaugural Financial Services Summit Let's talk about the mortgage market in this respect. It was in the summer of 2023 had become a sort of game for people to write about how the meltdown of the mortgage market was going to take down the Canadian banks and CIBC with it. And over time that's evolved. We're not hearing that as much now. I think part of it relates to the how proactive the banks were in addressing the issue. So let's talk about your view, CIBC's view of the Canadian mortgage market. What the reduction in rates means? How much more of a rate reduction we're going to need? Why it is? And this is my view, I'm not putting words about -- my view is, the mortgage market isn't going to cause -- isn't going to be the problem, might cause problems in other loans, but won't be the area of concern. So help us think through CIBC and the mortgage market?

Question: Mario Mendonca - TD Securities, Inc. - Analyst : Well you covered what I was going to get to the nonmortgage stuff. So I appreciate that. And that takes us to the end of our time. Hratch, I appreciate doing this and taking meeting with me.