Canadian Imperial Bank of Commerce Q1 2020 Earnings Call Transcript

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

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Just want to follow-up on the capital commentary. At 11.3%, you're still comfortable with the pace of buybacks? Or are you looking at it on a pro forma basis, when you're contemplating capital deployment?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And on the credit side of things, for Laura, I've asked this question of other banks. I'm getting pretty consistent, too-early-to-tell response. But given the balance of factors, you got coronavirus and the indirect impact, the rail blockades that continue to have an impact on the economy, notwithstanding this quarter's better-than-expected credit performance, there's got to be some upward pressure that you could contemplate in Q2, if not beyond, at least from the provisions on performing? No or yes? Laura L. Dottori-Attanasio - Canadian Imperial Bank of Commerce - Senior EVP & Group Head of Personal and Business Banking, Canada Well, I continue to guide to, as I said in my prepared remarks, to below 30 basis points as it relates to provisions on impairs. And as you pointed out, things relating to the coronavirus, rail blockades, we're still sort of in early days. They are 2 important events, and they can certainly impact our economy on a go-forward basis, so we continue to monitor them closely. And dependent upon what happens and length of time, I would expect that we would see that start to represent first in FLI movements and so in our provisions on performing, but it's still early days.

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Just wanted to start off maybe with Harry for a second. I mean very strong quarter, Harry. You had once upon a time said that you think the Capital Markets segment is probably about $1 billion a year type contributor to the total bank. Is there any reason to think that, that yardstick has changed? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FEBRUARY 26, 2020 / 1:00PM, CM.TO - Q1 2020 Canadian Imperial Bank of Commerce Earnings Call

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay. And maybe just credit spreads, obviously, a big factor for everyone this quarter. But even since the quarter end, high-yield spreads have kind of widened. Are you seeing anything noteworthy as far as the trading business is so far this quarter?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Okay. Can I sneak in 1 more?

Question: Sohrab Movahedi - BMO Capital Markets Equity Research - Analyst : Victor or Hratch, lots of talk about the ROE, but also about getting back to that 5% to 10% kind of EPS growth target range. If -- at the margin, which one trumps the other one? Would you pursue growth or would you make the ROE decision?