CIBC Announces Second Quarter 2011 Results

TORONTO, May 26, 2011 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today reported net income of $678 million for the second quarter ended April 30, 2011, compared with net income of $660 million for the same period last year. Diluted earnings per share (EPS) were $1.60, compared with diluted EPS of $1.59 a year ago. Cash diluted EPS were $1.62(1), compared with cash diluted EPS of $1.61(1) a year ago. Return on equity for the second quarter was 19.9%.

Results for the second quarter of 2011 were affected by the following item:

    <<
    -   $70 million ($50 million after-tax, or $0.13 per share) loss from the
        structured credit run-off business.
    >>

Net income of $678 million for the second quarter compared with net income of $799 million for the prior quarter. Diluted EPS and cash diluted EPS of $1.60 and $1.62(1), respectively, for the second quarter compared with diluted EPS and cash diluted EPS of $1.92 and $1.94(1), respectively, for the prior quarter, which included items of note aggregating to a negative impact of $0.03 per share.

CIBC's Tier 1 and Tangible Common Equity ratios at April 30, 2011 were 14.7% and 10.6%, respectively, up from 14.3% and 10.2%, respectively, at January 31, 2011.

"CIBC currently exceeds the new regulatory capital requirements for global banks, well ahead of the implementation timelines that have been proposed by the Basel Committee on Banking Supervision and confirmed by the Office of the Superintendent of Financial Institutions," said Gerry McCaughey, CIBC President and Chief Executive Officer.

"CIBC delivered solid results this quarter across our core businesses in Retail Markets and Wholesale Banking," said Mr. McCaughey. "Our strong earnings growth contributed to the further strengthening of our capital position."

Core business performance

CIBC Retail Markets reported net income of $553 million for the second quarter, up $66 million from the same quarter last year.

Revenue of $2.5 billion was up 5% from the second quarter of 2010, primarily due to solid volume growth across business segments, including the impact of the acquisition of the MasterCard portfolio in the fourth quarter of 2010, partially offset by the impact of lower revenue from FirstCaribbean International Bank and narrower spreads.

Provision for credit losses of $279 million was down from $333 million in the same quarter last year due to lower write-offs and bankruptcies in the cards and personal lending portfolios and lower provisions in commercial banking, partially offset by write-offs in the acquired MasterCard portfolio.

In the second quarter of 2011, CIBC's retail business continued to provide greater access and choice to its 11 million clients by investing across the franchise:

    <<
    -   We introduced three new MasterCard credit cards with PayPass
        (contactless tap and go functionality) including the CIBC Aventura
        World MasterCard, CIBC Aventura MasterCard and CIBC Dividend
        Unlimited MasterCard, helping to broaden choice for Canadians within
        CIBC's industry-leading credit card line-up;

    -   We continued to lead in mobile banking by introducing new features
        that provide our clients with expanded access to their accounts
        through CIBC Mobile Banking and introducing more features to the new
        CIBC Home Advisor App;

    -   We continued to outpace our five-year strategic branch investment
        plan by opening, expanding or relocating nine branches in fiscal 2011
        and extending Saturday hours to more than 500 branches and Sunday
        hours to 50 branches in targeted urban locations;

    -   We celebrated National Client Appreciation Day on April 29 across
        CIBC branches, offices and call centres from coast-to-coast to
        recognize and thank our clients for their business; and

    -   We launched a new marketing campaign that offers more reasons for
        clients to switch their banking to CIBC for expert advice, innovative
        products and services and added convenience.
    >>

Wholesale Banking reported net income of $112 million for the second quarter, down $24 million from the prior quarter, mainly due to lower corporate and investment banking revenue partially offset by lower non-interest expenses.

Revenue of $393 million was down from $471 million in the prior quarter, mainly due to lower corporate and investment banking revenue and changes in credit valuation adjustments related to derivative contracts.

Wholesale Banking had several notable achievements during the second quarter:

    <<
    -   We acted as lead manager on a $1.0 billion, 3.20% 5-year bond
        offering for the Province of Ontario;

    -   We were joint bookrunner and joint lead agent on a $225 million,
        6.50% senior unsecured notes issuance for Vermilion Energy;

    -   We were lead arranger in a (pnds stlg)1.375 billion financing for the
        Borealis Infrastructure and Ontario Teachers' Pension Plan
        acquisition of HS1 Limited;

    -   We acted as financial advisor to Equinox Minerals Limited in its $7.3
        billion sale to Barrick Gold; and

    -   We were lead bookrunner on Parallel Energy Trust's initial public
        offering valued at $393 million - the largest IPO year-to-date.
    >>

"CIBC delivered solid performance during the second quarter," said Mr. McCaughey. "The investments we are making in our retail and wholesale businesses are furthering our strength in Canada and positioning us well for the future."

Structured credit run-off progress

CIBC continued to reduce exposures in its structured credit run-off business, completing several transactions that in aggregate reduced the notional amount of underlying positions by approximately US$2.2 billion, resulting in a pre-tax loss of $19 million. We took further action subsequent to the quarter-end to reduce exposures.

While CIBC has taken steps to reduce its exposure, further significant losses could result, depending on the performance of both the underlying assets and the financial guarantors.

CIBC in its communities

CIBC continues to support causes that matter to its clients, employees and communities:

    <<
    -   At its Annual Meeting of Shareholders in Winnipeg in April, CIBC
        announced significant multi-year commitments to a number of important
        community investment projects including donations to the Assiniboine
        Park redevelopment program, the Children's Hospital Foundation of
        Manitoba and the University of Winnipeg's Opportunity Fund;

    -   CIBC donated $100,000 to the Canadian Red Cross and branches across
        the country collected additional funds to support relief efforts in
        Japan following the devastation from the earthquake and subsequent
        tsunami in March;

    -   During the quarter, CIBC supported several regional programs across
        the country including the Canadian Cancer Society, BC and Yukon
        Division to support the building of a new facility in Prince George,
        the 4-H Foundation of Alberta to support development programs for
        young people, and the Fredericton YMCA's Your New Y campaign to
        support the construction of a new facility to address the substantial
        growth in the community; and

    -   Through the CIBC Children's Foundation supported by proceeds raised
        from CIBC Miracle Day, donations were made to the
        Colonie Sainte-Jeanne D'Arc in support of summer camp programs for
        girls in Quebec and to the Breakfast for Learning nutrition program
        offered in schools across Canada.

    -------------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    >>

The information on the following pages forms a part of this press release.

(The board of directors of CIBC reviewed this press release prior to it being issued. CIBC's controls and procedures support the ability of the President and Chief Executive Officer and the Chief Financial Officer of CIBC to certify CIBC's second quarter financial report and controls and procedures. CIBC's CEO and CFO will voluntarily provide to the Securities and Exchange Commission a certification relating to CIBC's second quarter financial information, including the attached unaudited interim consolidated financial statements, and will provide the same certification to the Canadian Securities Administrators.)

    <<
                     MANAGEMENT'S DISCUSSION AND ANALYSIS

    -------------------------------------------------------------------------
    Management's discussion and analysis (MD&A) is provided to enable readers
    to assess CIBC's results of operations and financial condition for the
    quarter ended April 30, 2011, compared with prior quarters. The MD&A
    should be read in conjunction with our 2010 Annual Report and the
    unaudited interim consolidated financial statements included in this
    report, which have been prepared in accordance with Canadian generally
    accepted accounting principles (GAAP). Unless otherwise indicated, all
    amounts in the MD&A are expressed in Canadian dollars. Certain
    comparative amounts have been reclassified to conform with the
    presentation adopted in the current period. This MD&A is current as of
    May 25, 2011. Additional information relating to CIBC is available on
    SEDAR at www.sedar.com and on the U.S. Securities and Exchange
    Commission's (SEC) website at www.sec.gov. No information on CIBC's
    website (www.cibc.com) should be considered incorporated herein by
    reference. A glossary of terms used throughout this quarterly report can
    be found on pages 184 to 187 of our 2010 Annual Report.
    -------------------------------------------------------------------------

    Contents

    4 Second quarter financial highlights

    5 Overview

    5 Financial results
    7 Significant event
    7 Outlook for 2011
    8 Review of quarterly financial information

    9 Non-GAAP measures

    9 Strategic business unit (SBU) overview

    10 CIBC Retail Markets
    12 Wholesale Banking
    14 Corporate and Other

    15 Structured credit run-off business and other selected activities

    15 Structured credit run-off business
    17 Other selected activities

    18 Financial condition

    18 Review of consolidated balance sheet
    19 Capital resources
    20 Off-balance sheet arrangements

    21 Management of risk

    21 Risk overview
    21 Credit risk
    23 Market risk
    25 Liquidity risk
    25 Other risks

    26 Accounting and control matters

    26 Critical accounting policies and estimates
    28 Contingent liabilities
    28 U.S. regulatory developments
    28 Transition to International Financial Reporting Standards (IFRS)
    30 Controls and procedures
    >>

A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this report, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. These statements include, but are not limited to, statements made in the "Structured credit run-off progress", "Overview - Income Taxes", "Overview - Outlook for 2011", "Structured credit run-off business", "Capital Resources", and "Accounting and Control Matters" sections of this report and other statements about our operations, business lines, financial condition, risk management, priorities, targets, ongoing objectives, strategies and outlook for 2011 and subsequent periods. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate" and other similar expressions or future or conditional verbs such as "will", "should", "would" and "could". By their nature, these statements require us to make assumptions, including the economic assumptions set out in the "Overview - Outlook for 2011" section of this report, and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: credit, market, liquidity, strategic, operational, reputation and legal, regulatory and environmental risk; legislative or regulatory developments in the jurisdictions where we operate; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions; the resolution of legal proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; the accuracy and completeness of information provided to us by clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates; intensifying competition from established competitors and new entrants in the financial services industry; technological change; global capital market activity; changes in monetary and economic policy; currency value fluctuations; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations; changes in market rates and prices which may adversely affect the value of financial products; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. We do not undertake to update any forward-looking statement that is contained in this report or in other communications except as required by law.

    <<
                     SECOND QUARTER FINANCIAL HIGHLIGHTS
    -------------------------------------------------------------------------
                                        As at or for the    As at or for the
                                      three months ended    six months ended
                            ---------------------------- --------------------
                                2011      2011      2010      2011      2010
    Unaudited                Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ---------------------------------------------------- --------------------
    Financial results
     ($ millions)
    Net interest income     $  1,528  $  1,610  $  1,497  $  3,138  $  3,011
    Non-interest income        1,361     1,491     1,424     2,852     2,971
    ---------------------------------------------------- --------------------
    Total revenue              2,889     3,101     2,921     5,990     5,982
    Provision for credit
     losses                      194       209       316       403       675
    Non-interest expenses      1,794     1,822     1,678     3,616     3,426
    ---------------------------------------------------- --------------------
    Income before taxes
     and non-controlling
     interests                   901     1,070       927     1,971     1,881
    Income tax expense           221       268       261       489       547
    Non-controlling interests      2         3         6         5        22
    ---------------------------------------------------- --------------------
    Net income              $    678  $    799  $    660  $  1,477  $  1,312
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Financial measures
    Efficiency ratio           62.1%     58.8%     57.5%     60.4%     57.3%
    Cash efficiency ratio,
     taxable equivalent
     basis (TEB)(1)            60.8%     57.7%     57.0%     59.2%     56.8%
    Return on equity           19.9%     23.3%     22.2%     21.6%     21.8%
    Net interest margin        1.70%     1.80%     1.84%     1.75%     1.80%
    Net interest margin
     on average
     interest-earning
     assets(2)                 1.94%     2.08%     2.16%     2.01%     2.12%
    Return on average assets   0.76%     0.89%     0.81%     0.82%     0.78%
    Return on average
     interest-earning
     assets(2)                 0.86%     1.03%     0.95%     0.94%     0.93%
    Total shareholder return   8.52%    (1.40)%   18.00%     6.96%    23.20%
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Common share
     information
    Per share
      - basic earnings      $   1.61  $   1.92  $   1.60  $   3.53  $   3.18
      - cash basic
         earnings(1)            1.63      1.95      1.61      3.57      3.22
      - diluted earnings        1.60      1.92      1.59      3.52      3.17
      - cash diluted
         earnings(1)            1.62      1.94      1.61      3.56      3.21
      - dividends               0.87      0.87      0.87      1.74      1.74
      - book value             33.47     32.98     30.00     33.47     30.00
    Share price
      - high                   85.49     81.05     77.19     85.49     77.19
      - low                    76.75     75.12     63.16     75.12     61.96
      - closing                81.91     76.27     74.56     81.91     74.56
    Shares outstanding
     (thousands)
      - average basic        395,373   393,193   386,865   394,265   385,634
      - average diluted      396,394   394,195   387,865   395,276   386,713
      - end of period        396,978   394,848   388,462   396,978   388,462
    Market
     capitalization
     ($ millions)           $ 32,516  $ 30,115  $ 28,964  $ 32,516  $ 28,964
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Value measures
    Dividend yield
     (based on closing
      share price)              4.4%      4.5%      4.8%      4.3%      4.7%
    Dividend payout ratio      54.1%     45.2%     54.5%     49.3%     54.7%
    Market value to book
     value ratio                2.45      2.31      2.49      2.45      2.49
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits with
     banks and securities   $121,486  $102,990  $ 74,930  $121,486  $ 74,930
    Loans and
     acceptances,
     net of allowance        188,169   185,261   183,736   188,169   183,736
    Total assets             384,106   363,219   336,001   384,106   336,001
    Deposits                 278,602   258,983   226,793   278,602   226,793
    Common
     shareholders'
     equity                   13,286    13,021    11,654    13,286    11,654
    Average assets           368,058   354,267   333,589   361,048   337,265
    Average
     interest-earning
     assets(2)               323,969   307,606   283,589   315,652   286,124
    Average common
     shareholders'
     equity                   13,102    12,870    11,415    12,984    11,341
    Assets under
     administration(3)     1,348,229 1,344,843 1,219,054 1,348,229 1,219,054
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Balance sheet
     quality measures
    Risk-weighted
     assets ($ billions)    $  106.3  $  107.0  $  108.3  $  106.3  $  108.3
    Tangible common
     equity ratio(1)           10.6%     10.2%      8.9%     10.6%      8.9%
    Tier 1 capital ratio       14.7%     14.3%     13.7%     14.7%     13.7%
    Total capital ratio        18.9%     18.4%     18.8%     18.9%     18.8%
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Other information
    Retail/wholesale
     ratio(1)(4)             76%/24%   75%/25%   76%/24%   76%/24%   76%/24%
    Full-time equivalent
     employees                41,928    42,078    42,018    41,928    42,018
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) Average interest-earning assets include interest-bearing deposits
        with banks, securities, securities borrowed or purchased under resale
        agreements, and loans.
    (3) Includes assets under administration or custody of CIBC Mellon
        Global Securities Services Company, which is a 50/50 joint venture
        between CIBC and The Bank of New York Mellon.
    (4) The ratio represents the amount of economic capital attributed to
        the SBUs as at the end of the period.


                                   OVERVIEW
    >>

Financial results

Net income for the quarter was $678 million, compared to net income of $660 million for the same quarter last year and net income of $799 million for the prior quarter. Net income for the six months ended April 30, 2011 was $1,477 million, compared to $1,312 million for the same period in 2010.

Our results for the current quarter were impacted by the following item:

    <<
    -   $70 million ($50 million after-tax) loss from the structured credit
        run-off business.
    >>

Net interest income

Net interest income was up $31 million or 2% from the same quarter last year, largely due to solid volume growth across most retail products, including the impact of the acquisition of the MasterCard portfolio completed on September 1, 2010, partially offset by narrower spreads. Trading-related net interest income was higher in the quarter while interest income on tax reassessments and treasury-related net interest income was lower.

Net interest income was down $82 million or 5% from the prior quarter as the impact of three fewer days in the quarter and narrower spreads were partially offset by higher treasury-related net interest income. The prior quarter benefited from higher interest income on tax reassessments.

Net interest income for the six months ended April 30, 2011 was up $127 million or 4% from the same period in 2010, mainly due to solid volume growth across most retail products, including the impact of the acquisition of the MasterCard portfolio, partially offset by narrower spreads. The current period benefited from higher trading-related net interest income, partially offset by lower net interest income from FirstCaribbean International Bank (FirstCaribbean), lower treasury-related net interest income, and lower interest income on tax reassessments.

Non-interest income

Non-interest income was down $63 million or 4% from the same quarter last year. The structured credit run-off business had losses in the current quarter compared to gains in the same quarter last year. Gains net of write-downs on available-for-sale (AFS) securities, trading revenue, and income from equity-accounted investments were all lower during the quarter. Credit card fees were lower due to the impact of securitization activities. These factors were partially offset by higher income from securitized assets, and higher fees from mutual funds and underwriting and advisory activities.

Non-interest income was down $130 million or 9% from the prior quarter, mainly due to lower underwriting and advisory fees, and lower gains net of write-downs on AFS securities. Credit card fees were lower largely due to the impact of securitization activities. These factors were partially offset by higher income from securitized assets. Losses in the structured credit run-off business were at a similar level as the prior quarter. A gain on the sale of CIBC Mellon Trust Company's (CMT) Issuer Services business was included in the prior quarter.

Non-interest income for the six months ended April 30, 2011 was down $119 million or 4% from the same period in 2010. The structured credit run-off business had losses in the current period compared to gains in the same period last year. The current period also had lower trading revenue and lower gains net of write-downs on AFS securities. Credit card fees were lower due to the impact of securitization activities. These factors were partially offset by higher income from securitized assets, and higher fees from underwriting and advisory activities, and mutual funds.

Provision for credit losses

The total provision for credit losses was down $122 million or 39% from the same quarter last year. The specific provision for credit losses in the consumer portfolios was down $66 million, primarily due to lower write-offs and bankruptcies in the credit card and personal lending portfolios and the favourable impact from the credit card securitization that took place in the first quarter of 2011, partially offset by expected losses arising from the MasterCard portfolio. The specific provision for credit losses in the business and government lending portfolio decreased $56 million, largely due to improvements in our portfolios in Canada and in our U.S. real estate finance business. The change in the general provision in the current quarter was minimal compared with the same quarter last year, as the impact of an increased allowance for the acquired MasterCard portfolio due to seasoning to normal delinquency levels was mostly offset by higher reversals in the business and government portfolios.

The total provision for credit losses was down $15 million or 7% from the prior quarter. The specific provision for credit losses in the consumer portfolios was down $23 million, mainly attributable to the favourable impact of the credit card securitization noted above and lower write-offs and bankruptcies in the credit card and personal lending portfolios, partially offset by expected losses arising from the acquired MasterCard portfolio as the portfolio seasons to normal levels of delinquency. The specific provision for credit losses in the business and government lending portfolio was up $7 million. The change in the general provision in the current quarter was minimal compared with the prior quarter, as an increase in provision in the credit card portfolio was mostly offset by reversals in the business and government and personal portfolios.

The total provision for credit losses was down $272 million or 40% for the six months ended April 30, 2011, compared with the same period last year. The specific provision for credit losses in consumer portfolios was down $138 million. The decrease was mainly due to lower write-offs and bankruptcies across products and the favourable impact of the credit card securitization noted above, partially offset by expected losses arising from the acquired MasterCard portfolio. The specific provision for credit losses in the business and government lending portfolio was down $115 million, primarily due to the improvement in our portfolios in Canada and U.S. real estate finance business. The change in the general provision for credit losses was favourable by $19 million from the same period last year, primarily due to lower provisions in the personal and credit card portfolios, partially offset by lower reversals in the business and government portfolios and the establishment of an allowance for the acquired MasterCard portfolio.

Non-interest expenses

Non-interest expenses were up $116 million or 7% from the same quarter last year, mainly due to higher employee compensation and benefits, pension expense, and servicing fees related to the acquired MasterCard portfolio. The harmonized sales tax (HST) which was implemented in Ontario and British Columbia on July 1, 2010, also contributed to higher expenses in a number of categories.

Non-interest expenses were down $28 million or 2% from the prior quarter, primarily due to lower performance-based compensation, partially offset by higher costs related to advertising and business development, occupancy, and professional fees.

Non-interest expenses for the six months ended April 30, 2011 were up $190 million or 6% from the same period in 2010, primarily due to higher employee compensation and benefits, pension expense, and servicing fees related to the acquired MasterCard portfolio. The current period included the impact of HST noted above. These factors were partially offset by lower business and capital taxes. The prior period included a settlement with the Ontario Securities Commission relating to our participation in the asset-backed commercial paper (ABCP) market.

Income taxes

Income tax expense was down $40 million or 15% from the same quarter last year, primarily due to higher tax-exempt income and a lower statutory tax rate.

Income tax expense was down $47 million or 18% from the prior quarter, mainly due to lower income.

Income tax expense for the six months ended April 30, 2011 was down $58 million or 11% from the same period in 2010. The current period benefited from higher tax-exempt income and a lower statutory tax rate. The prior year period included a future tax asset write-down of $25 million related to the enactment of lower Ontario corporate tax rates.

At the end of the quarter, our future income tax asset was $418 million, net of a $63 million (US$67 million) valuation allowance. Included in the future income tax asset were $69 million related to Canadian non-capital loss carryforwards that expire in 18 years, $54 million related to Canadian capital loss carryforwards that have no expiry date, and $196 million related to our U.S. operations. Accounting standards require a valuation allowance when it is more likely than not that all, or a portion of, a future income tax asset will not be realized prior to its expiration. Although realization is not assured, we believe that based on all available evidence, it is more likely than not that all of the future income tax asset, net of the valuation allowance, will be realized.

In prior years, the Canada Revenue Agency (CRA) issued reassessments disallowing the deduction of approximately $3.0 billion of the 2005 Enron settlement payments and related legal expenses. In 2010, we filed Notices of Appeal with the Tax Court of Canada. On September 30 and November 12, 2010, we received Replies from the Department of Justice which confirmed CRA's reassessments. The matter is currently in litigation. We believe that we will be successful in sustaining at least the amount of the accounting tax benefit recognized to date. Should we successfully defend our tax filing position in its entirety, we would be able to recognize an additional accounting tax benefit of $214 million and taxable refund interest of approximately $171 million. Should we fail to defend our position in its entirety, additional tax expense of approximately $862 million and non-deductible interest of approximately $123 million would be incurred.

Foreign exchange

The estimated impact of U.S. dollar translation on the interim consolidated statement of operations was as follows:

    <<
    -------------------------------------------------------------- ----------
                                                                     For the
                                                                         six
                                                  For the three       months
                                                   months ended        ended
    -------------------------------------------------------------- ----------
                                           Apr. 30,     Apr. 30,     Apr. 30,
                                              2011         2011         2011
                                                vs.          vs.          vs.
    $ millions                             Apr. 30,     Jan. 31,     Apr. 30,
                                              2010         2011         2010
    -------------------------------------------------------------- ----------
    Estimated decrease in:
      Total revenue                       $    (21)    $    (15)    $    (39)
      Provision for credit losses               (1)          (1)          (2)
      Non-interest expense                     (11)          (7)         (19)
      Income taxes and non-controlling
       interest                                 (1)          (1)          (3)
      Net income                                (8)          (6)         (15)
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    C$ vs. US$ - average appreciation           6%           4%           6%
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    >>

Our results for the prior quarters were affected by the following items:

    <<
    -------------------------------------------------------------------------
    Q1, 2011
    -   $68 million ($49 million after-tax) loss from the structured credit
        run-off business; and
    -   $43 million ($37 million after-tax) gain on sale of CMT's Issuer
        Services business.

    Q2, 2010
    -   $58 million ($40 million after-tax) gain from the structured credit
        run-off business; and
    -   $30 million ($17 million after-tax) reversal of interest expense
        related to the favourable conclusion of prior years' tax audits.

    Q1, 2010
    -   $25 million ($17 million after-tax) gain from the structured credit
        run-off business;
    -   $25 million future tax asset write-down resulting from the enactment
        of lower Ontario corporate tax rates; and
    -   $17 million ($12 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging programs.
    -------------------------------------------------------------------------
    >>

Significant event

Sale of CIBC Mellon Trust Company's Issuer Services business

Effective November 1, 2010, CMT, a 50/50 joint venture between CIBC and The Bank of New York Mellon, sold its Issuer Services business (stock transfer and employee share purchase plan services). As a result of the sale, CIBC recorded an after-tax gain of $37 million in the first quarter of 2011, which is net of estimated claw-back and post-closing adjustments that will be settled effective November 1, 2011. CMT's Issuer Services business results were reported in CIBC's Corporate and Other reporting segment and the results of its operations were not considered significant to CIBC's consolidated results.

Outlook for 2011

Both the Canadian and U.S. economies are expected to continue on a moderate path to recovery in 2011. The drag of higher oil prices and spending cuts enacted in April 2011 has trimmed our outlook for U.S. growth by a half percentage point to 2.5%. A strong start to the year raised our outlook for Canadian growth slightly to 2.8%, with the resource sector helped by firm commodity prices, but the pace of recovery will be held back by a strong Canadian dollar. The domestic economy should see stronger business capital spending but a slower pace to home building and government spending. The absence of core inflation risks and the Canadian dollar strength should keep interest rates rising only gradually over the remainder of the year, leading to a moderation in growth in consumer and housing demand.

CIBC Retail Markets is expected to face slower growth in demand for mortgages and household credit, and modest improvements in demand for business credit. The lagged impacts of the earlier recession on credit quality will continue to fade, allowing for an improvement in delinquencies and a reduction in personal bankruptcies. Demand for investment products should increase as confidence gradually improves.

Wholesale Banking should benefit from a healthier pace of issuance of equities and bonds, with governments remaining heavy borrowers and businesses taking advantage of stronger capital markets. Merger and acquisition activity could increase as confidence improves. Corporate credit demand should be supported by growth in capital spending, although the public debt market and internal cash flows will be a competitive source of funding. U.S. real estate finance could remain slow given an excess of vacant properties. Corporate default rates could remain contained as we move further from the prior recession.

Review of quarterly financial information

    <<
                                                  2011                  2010
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Apr. 30    Jan. 31    Oct. 31    Jul. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets          $  2,452   $  2,536   $  2,480   $  2,472
      Wholesale Banking                 393        471        238        315
      Corporate and Other                44         94        536         62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total revenue                     2,889      3,101      3,254      2,849
    Provision for credit losses         194        209        150        221
    Non-interest expenses             1,794      1,822      1,860      1,741
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests          901      1,070      1,244        887
    Income tax expense                  221        268        742        244
    Non-controlling interests             2          3          2          3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income                     $    678   $    799   $    500   $    640
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share
      - basic                      $   1.61   $   1.92   $   1.17   $   1.54
      - diluted                    $   1.60   $   1.92   $   1.17   $   1.53
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                  2010                  2009
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended             Apr. 30    Jan. 31    Oct. 31    Jul. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets          $  2,334   $  2,402   $  2,356   $  2,318
      Wholesale Banking                 548        613        503        552
      Corporate and Other                39         46         29        (13)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total revenue                     2,921      3,061      2,888      2,857
    Provision for credit losses         316        359        424        547
    Non-interest expenses             1,678      1,748      1,669      1,699
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests          927        954        795        611
    Income tax expense                  261        286        145        172
    Non-controlling interests             6         16          6          5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income                     $    660   $    652   $    644   $    434
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share
      - basic                      $   1.60   $   1.59   $   1.57   $   1.02
      - diluted                    $   1.59   $   1.58   $   1.56   $   1.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Our quarterly results are modestly affected by seasonal factors. The first quarter is normally characterized by increased credit card purchases over the holiday period. The second quarter has fewer days as compared with the other quarters, generally leading to lower earnings. The summer months (July - third quarter and August - fourth quarter) typically experience lower levels of capital markets activity, which affects our brokerage, investment management, and wholesale banking activities.

CIBC Retail Markets revenue was up over the period starting the third quarter of 2009, mainly reflecting volume growth, offset to some extent by spread compression. The acquisition of the MasterCard portfolio in September 2010 benefited revenue starting in the fourth quarter of 2010. Wholesale Banking revenue is influenced to a large extent by capital market conditions. In the second half of 2010 and the first half of 2011, Wholesale Banking revenue was adversely affected by losses in the structured credit run-off business. Corporate and Other revenue included foreign exchange gains on capital repatriation activities in the fourth quarter of 2010. The gain on sale of CMT's Issuer Services business was included in the first quarter of 2011.

The provision for credit losses is dependent upon the credit cycle in general and on the credit performance of the loan portfolios. Retail lending provisions were higher in the third quarter of 2009 largely due to higher losses in the credit card and personal lending portfolios. This was the result of both volume growth as well as economic deterioration in the consumer sector. Losses in the credit card and personal lending portfolios improved in 2010 and 2011. Starting in the fourth quarter of 2010, we had loan losses on the acquired MasterCard portfolio. Wholesale Banking provisions also declined in 2010 and 2011, reflecting improved economic conditions in both the U.S. and Europe.

Non-interest expenses have fluctuated over the period largely due to changes in employee compensation and benefits, pension expense, and the implementation of HST in Ontario and British Columbia in July 2010.

Income taxes vary with changes in income subject to tax, and the jurisdictions in which the income is earned. Taxes can also be affected by the impact of significant items. Tax-exempt income has been trending higher since the fourth quarter of 2010. Income tax expense on capital repatriation activities was included in the fourth quarter of 2010, and a write-down of future tax assets was included in the first quarter of 2010. The fourth quarter of 2009 included a tax benefit, primarily from a positive revaluation of future tax assets.

The first quarter of 2010 included the minority interest related to the gain on the sale of a U.S. investment.

    <<
                              NON-GAAP MEASURES
    >>

We use a number of financial measures to assess the performance of our SBUs. Some measures are calculated in accordance with GAAP, while other measures do not have a standardized meaning under GAAP, and accordingly, these measures may not be comparable to similar measures used by other companies. Investors may find these non-GAAP financial measures useful in analyzing financial performance. For a more detailed discussion on our non-GAAP measures, see page 42 of the 2010 Annual Report.

The following table provides a reconciliation of non-GAAP to GAAP measures related to CIBC on a consolidated basis. The reconciliations of the non-GAAP measures of our SBUs are provided in their respective sections.

    <<
    -------------------------------------------------------------------------
                                        As at or for the    As at or for the
                                      three months ended    six months ended
                            ---------------------------- --------------------
    $ millions, except          2011      2011      2010      2011      2010
     per share amounts       Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ---------------------------------------------------- --------------------
    Net interest income     $  1,528  $  1,610  $  1,497  $  3,138  $  3,011
    Non-interest income        1,361     1,491     1,424     2,852     2,971
    ---------------------------------------------------- --------------------
    Total revenue per
     interim financial
     statements                2,889     3,101     2,921     5,990     5,982
    TEB adjustment                45        39         8        84        16
    ---------------------------------------------------- --------------------
    Total revenue
     (TEB)(1)            A  $  2,934  $  3,140  $  2,929  $  6,074  $  5,998
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Trading revenue         $     91  $    139  $    225  $    230  $    604
    TEB adjustment                44        39         7        83        14
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Trading revenue
     (TEB)(1)               $    135  $    178  $    232  $    313  $    618
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Non-interest
     expenses per
     interim financial
     statements             $  1,794  $  1,822  $  1,678  $  3,616  $  3,426
    Less: amortization
     of other
     intangible assets             9        11         9        20        19
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Cash non-interest
     expenses(1)         B  $  1,785  $  1,811  $  1,669  $  3,596  $  3,407
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Net income
     applicable to
     common shares          $    636  $    757  $    617  $  1,393  $  1,227
    Add: after-tax
     effect of
     amortization of
     other intangible
     assets                        7         9         7        16        15
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Cash net income
     applicable to
     common shares(1)    C  $    643  $    766  $    624  $  1,409  $  1,242
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Basic
     weighted-average
     common shares
     (thousands)         D   395,373   393,193   386,865   394,265   385,634
    Diluted
     weighted-average
     common shares
     (thousands)         E   396,394   394,195   387,865   395,276   386,713
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Cash efficiency
     ratio (TEB)(1)     B/A    60.8%     57.7%     57.0%     59.2%     56.8%
    Cash basic
     earnings per
     share(1)           C/D $   1.63  $   1.95  $   1.61  $   3.57  $   3.22
    Cash diluted
     earnings per
     share(1)           C/E $   1.62  $   1.94  $   1.61  $   3.56  $   3.21
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    (1) Non-GAAP measure.

                                 SBU OVERVIEW
    >>

CIBC has two SBUs: CIBC Retail Markets and Wholesale Banking. These SBUs are supported by six functional groups - Technology and Operations; Corporate Development; Finance; Treasury; Administration; and Risk Management. The activities of these functional groups are included within Corporate and Other, with their revenue, expenses, and balance sheet resources generally being allocated to the business lines within the SBUs.

Beginning in the first quarter of 2011, general allowance for credit losses related to FirstCaribbean has been included within Corporate and Other. This was previously reported within CIBC Retail Markets. Prior period information was restated.

Besides the change noted above, the key methodologies and assumptions used in reporting financial results of our SBUs remain unchanged from October 31, 2010. These are periodically reviewed by management to ensure they remain valid. For further details, see page 43 of the 2010 Annual Report.

New organizational structure

On March 28, 2011 we announced a new organizational structure that included the separation of the management of CIBC Wealth Management and FirstCaribbean from CIBC Retail Markets. The manner in which we have reported our SBU results has not changed in the current quarter as we are currently finalizing our future segment reporting structure which may impact the allocation of certain revenues and expenses to the SBUs. We expect to commence reporting on the revised basis beginning in the third quarter of 2011.

CIBC RETAIL MARKETS

CIBC Retail Markets comprises CIBC's personal banking, business banking and wealth management businesses. We provide a full range of financial products, services and advice to nearly 11 million personal, business and wealth management clients in Canada and the Caribbean, as well as investment management services globally to retail and institutional clients in Hong Kong, Singapore and the Caribbean.

    <<
    Results (1)
    -------------------------------------------------------------------------
                                                 For the             For the
                                      three months ended    six months ended
                            ---------------------------- --------------------
                                                    2010                2010
                                2011      2011    Apr.30      2011    Apr.30
    $ millions               Apr. 30   Jan. 31       (2)   Apr. 30       (2)
    ---------------------------------------------------- --------------------
    Revenue
    Personal banking        $  1,614  $  1,682  $  1,554  $  3,296  $  3,155
    Business banking             337       348       324       685       655
    Wealth management            397       393       345       790       691
    FirstCaribbean               116       129       165       245       322
    Other                        (12)      (16)      (54)      (28)      (87)
    ---------------------------------------------------- --------------------
    Total revenue(a)           2,452     2,536     2,334     4,988     4,736
    Provision for credit
     losses                      279       275       333       554       700
    Non-interest expenses(b)   1,419     1,413     1,330     2,832     2,644
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Income before taxes and
     non-controlling interests   754       848       671     1,602     1,392
    Income tax expense           199       218       179       417       368
    Non-controlling interests      2         3         5         5        10
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Net income(c)           $    553  $    627  $    487  $  1,180  $  1,014
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Efficiency ratio(b/a)      57.9%     55.7%     57.0%     56.8%     55.8%
    Amortization of other
     intangible assets(d)   $      8  $      9  $      7  $     17  $     14
    Cash efficiency
     ratio(3)((b-d)/a)         57.5%     55.4%     56.7%     56.4%     55.5%
    Return on equity(3)        41.8%     46.2%     38.3%     44.0%     40.2%
    Charge for economic
     capital(3)(e)          $   (177) $   (183) $   (176) $   (360) $   (349)
    Economic profit(3)(c+e) $    376  $    444  $    311  $    820  $    665
    Full-time equivalent
     employees                28,889    29,097    28,944    28,889    28,944
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) Certain prior period information has been restated to conform to the
        presentation of the current period.
    (3) For additional information, see the "Non-GAAP measures" section.
    >>

Financial overview

Net income for the quarter was $553 million, an increase of $66 million or 14% from the same quarter last year. Revenue increased by 5% as a result of solid volume growth across business segments, including the impact of the acquisition of the MasterCard portfolio in the fourth quarter of 2010, higher fees and commissions, and higher treasury revenue allocations, partially offset by the impact of lower revenue from FirstCaribbean and narrower spreads. Provision for credit losses was down 16% from the same quarter last year while non-interest expenses were up 7%.

Net income was down $74 million or 12% compared with the prior quarter as revenue decreased by 3% due to three fewer days in the quarter and lower revenue from FirstCaribbean. Non-interest expenses were comparable to the prior quarter.

Net income for the six months ended April 30, 2011 was $1,180 million, an increase of $166 million or 16% from the same period in 2010. Revenue increased by 5% as a result of volume growth across business segments, including the impact of the MasterCard portfolio, higher fees and commissions, and higher treasury allocations, partially offset by lower revenue from FirstCaribbean and narrower spreads. Provision for credit losses was down 21% from the same period last year while non-interest expenses were up 7%.

Revenue

Revenue was up $118 million or 5% from the same quarter last year.

Personal banking revenue was up $60 million or 4%, primarily driven by solid volume growth across most products, including the impact of the MasterCard portfolio, and higher fees, partially offset by narrower spreads on lending products.

Business banking revenue was up $13 million or 4%, primarily due to solid volume growth across most products, partially offset by narrower spreads.

Wealth management revenue was up $52 million or 15%, primarily due to market-driven increases in asset values and higher trading volumes.

FirstCaribbean revenue was down $49 million or 30%, primarily due to lower gains on sales of AFS securities and the impact of a stronger Canadian dollar. In addition, the current quarter included a foreign exchange loss, compared to a gain in the same quarter last year, on customer deposits which did not qualify as foreign exchange hedges of AFS securities.

Other revenue was up $42 million mainly due to higher treasury allocations.

Revenue was down $84 million from the prior quarter.

Personal banking revenue was down $68 million, primarily due to the impact of three fewer days.

Business banking revenue was down $11 million, primarily due to the impact of three fewer days.

Wealth management revenue was up $4 million.

FirstCaribbean revenue was down $13 million, primarily due to the foreign exchange losses on customer deposits as noted above, the impact of a stronger Canadian dollar, and three fewer days.

Other revenue was up $4 million mainly due to higher treasury allocations.

Revenue for the six months ended April 30, 2011 was up $252 million or 5% from the same period last year.

Personal banking revenue was up $141 million or 4%, primarily driven by solid volume growth across most products, including the impact of the MasterCard portfolio, and higher fee income partially offset by narrower spreads.

Business banking revenue was up $30 million or 5%, primarily due to solid volume growth across most products, partially offset by narrower spreads.

Wealth management revenue was up $99 million or 14%, primarily due to market-driven increases in asset values and higher trading volumes.

FirstCaribbean revenue was down $77 million or 24%, primarily due to lower gains on sales of AFS securities, foreign exchange losses on customer deposits as noted above, and the impact of a stronger Canadian dollar.

Other revenue was up $59 million mainly due to higher treasury allocations.

Provision for credit losses

Provision for credit losses was down $54 million or 16% from the same quarter last year due to lower write-offs and bankruptcies in the credit card and personal lending portfolios, and lower provisions in commercial banking, partially offset by write-offs in the acquired MasterCard portfolio.

Provision for credit losses was up $4 million from the prior quarter. The continued improvements in write-offs and bankruptcies in the credit card and personal lending portfolios were more than offset by the expected increases in the acquired MasterCard portfolio as the portfolio seasons to normal levels of delinquency.

Provision for credit losses for the six months ended April 30, 2011 was down $146 million or 21%, largely due to lower write-offs and bankruptcies across products, partially offset by losses in the acquired MasterCard portfolio.

Non-interest expenses

Non-interest expenses were up $89 million or 7% from the same quarter last year primarily due to higher pension expenses, performance-based compensation, the impact of HST, servicing fees related to the MasterCard portfolio, and corporate support costs.

Non-interest expenses were up $6 million from the prior quarter.

Non-interest expenses for the six months ended April 30, 2011 were up $188 million or 7% from the same period last year primarily due to higher pension expenses, performance-based compensation, corporate support costs, servicing fees related to the MasterCard portfolio, and the impact of HST.

Income taxes

Income taxes were up $20 million from the same quarter last year mainly due to higher income, partially offset by a lower Canadian statutory tax rate.

Income taxes were down $19 million from the prior quarter due to lower income.

Income taxes for the six months ended April 30, 2011 were up $49 million due to higher income, partially offset by a lower Canadian statutory tax rate.

WHOLESALE BANKING

Wholesale Banking provides a wide range of credit, capital markets, investment banking, merchant banking and research products and services to government, institutional, corporate and retail clients in Canada and in key markets around the world.

    <<
    Results (1)
    -------------------------------------------------------------------------
                                                 For the             For the
                                      three months ended    six months ended
                            ---------------------------- --------------------
                                2011      2011      2010      2011      2010
    $ millions               Apr. 30   Jan. 31    Apr.30   Apr. 30   Apr. 30
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Revenue (TEB)(2)
      Capital markets       $    301  $    304  $    275  $    605  $    552
      Corporate and
       investment banking        151       196       132       347       344
      Other                      (14)       10       149        (4)      281
    ---------------------------------------------------- --------------------
    Total revenue
     (TEB)(2)(a)                 438       510       556       948     1,177
    TEB adjustment                45        39         8        84        16
    ---------------------------------------------------- --------------------
    Total revenue(b)             393       471       548       864     1,161
    Provision for
     (reversal of)
      credit losses                1        (2)       27        (1)       51
    Non-interest expenses(c)     271       303       244       574       562
    ---------------------------------------------------- --------------------
    Income before taxes
     and non-controlling
     interests                   121       170       277       291       548
    Income tax expense             9        34        87        43       163
    Non-controlling
     interests                     -         -         1         -        12
    ---------------------------------------------------- --------------------
    Net income(d)           $    112  $    136  $    189  $    248  $    373
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Efficiency ratio (c/b)     69.0%     64.3%     44.5%     66.4%     48.4%
    Amortization of other
     intangible assets(e)   $      -  $      -  $      -  $      -  $      1
    Cash efficiency ratio
     (TEB)(2)((c-e)/a)         62.0%     59.3%     43.9%     60.6%     47.7%
    Return on equity(2)        25.8%     29.1%     43.3%     27.5%     39.2%
    Charge for economic
     capital(2)(f)          $   (57)  $   (62)  $   (61)  $  (119)  $  (132)
    Economic profit(2)(d+f) $    55   $    74   $   128   $   129   $   241
    Full-time equivalent
     employees                1,144     1,149     1,068     1,144     1,068
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    >>

Financial overview

Net income for the quarter was $112 million, down $77 million from the same quarter last year, mainly due to losses in the structured credit run-off business compared to gains in the prior year quarter, partially offset by higher capital markets and corporate and investment banking revenue.

Net income was down $24 million from the prior quarter, mainly due to lower corporate and investment banking revenue and credit valuation adjustment (CVA) charges against credit exposures to derivative counterparties, other than financial guarantors, partially offset by lower non-interest expenses. The prior quarter had CVA related reversals.

Net income for the six months ended April 30, 2011 was $248 million compared to $373 million from the same period in 2010, mainly due to losses in the structured credit run-off business compared to gains in the same period last year, partially offset by higher capital markets revenue and lower credit losses. The prior year period included a reversal of interest expense on tax reassessments.

Revenue (TEB)(2)

Revenue was down $118 million from the same quarter last year.

Capital markets revenue was up $26 million, primarily due to higher equity issuances and sales revenue, and higher global derivatives revenue, partially offset by lower fixed income revenue.

Corporate and investment banking revenue was up $19 million, mainly due to higher corporate lending and equity issuances revenue, partially offset by lower gains in the core merchant banking portfolio and lower U.S. real estate finance revenue.

Other revenue was down $163 million, primarily due to losses in the structured credit run-off business compared to gains in the same quarter last year. The prior year quarter included the reversal of interest expense on tax reassessments.

Revenue was down $72 million from the prior quarter.

Capital markets revenue was down $3 million, mainly due to lower revenue from equity issuances.

Corporate and investment banking revenue was down $45 million, primarily due to lower advisory revenue and lower gains from the core merchant banking portfolio.

Other revenue was down $24 million due to the CVA charges on derivative counterparties, other than financial guarantors, in the current quarter compared to reversals in the prior quarter, as well as lower gains from the legacy merchant banking portfolio, partially offset by lower MTM losses on corporate loan hedges.

Revenue for the six months ended April 30, 2011 was down $229 million from the same period in 2010.

Capital markets revenue was up $53 million, primarily due to higher revenue from equity sales and issuances, and higher global derivatives revenue, partially offset by lower fixed income revenue.

Corporate and investment banking revenue was up $3 million, primarily due to higher revenue from corporate lending, equity issuances, and advisory fees, offset by lower gains from the core merchant banking portfolio and lower U.S. real estate finance revenue.

Other revenue was down $285 million, mainly due to losses in the structured credit run-off business compared to gains in the prior year period, as well as lower gains in the legacy merchant banking portfolio. The same period last year also had the reversal of interest expense on tax reassessments.

Provision for (reversal of) credit losses

Provision for credit losses was down $26 million from the same quarter last year, mainly due to lower credit losses in the U.S. real estate finance portfolio as a result of relative stabilization in the U.S. commercial real estate market.

Reversal of credit losses was $1 million for the six months ended April 30, 2011 compared to a provision of $51 million in the same period in 2010, due to lower credit losses in the U.S. real estate finance portfolio as a result of relative stabilization in the U.S. commercial real estate market.

Non-interest expenses

Non-interest expenses were up $27 million or 11% from the same quarter last year, primarily due to higher performance-based compensation and salaries.

Non-interest expenses were down $32 million or 11% from the prior quarter, primarily due to lower performance-based compensation.

Non-interest expenses for the six months ended April 30, 2011 were up $12 million from the same period in 2010, primarily due to higher performance-based compensation, salaries, and communication expenses, partially offset by the ABCP settlement in the prior year period.

Income taxes

Income tax expense was down $78 million from the same quarter last year, primarily due to the impact of the losses in the structured credit run-off business and higher tax-exempt income.

Income tax expense was down $25 million from the prior quarter due to lower income.

Income tax expense for the six months ended April 30, 2011 was down $120 million from the same period in 2010, primarily due to the impact of the losses in the structured credit run-off business and higher tax-exempt income in the current year period.

CORPORATE AND OTHER

Corporate and Other comprises the six functional groups - Technology and Operations; Corporate Development; Finance; Treasury; Administration; and Risk Management - that support CIBC's SBUs. It also includes the CIBC Mellon joint ventures, and other income statement and balance sheet items, including the general allowance, not directly attributable to the business lines. The impact of securitization is retained within Corporate and Other. The remaining revenue and expenses are generally allocated to the SBUs.

    <<
    Results (1)
    -------------------------------------------------------------------------
                                                 For the             For the
                                      three months ended    six months ended
                            ---------------------------- --------------------
                                                    2010                2010
                                2011      2011    Apr.30      2011    Apr.30
    $ millions               Apr. 30   Jan. 31       (2)   Apr. 30       (2)
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Total revenue           $     44  $     94  $     39  $    138  $     85
    Reversal of credit
     losses                      (86)      (64)      (44)     (150)      (76)
    Non-interest expenses        104       106       104       210       220
    ---------------------------------------------------- --------------------
    Income (loss) before
     taxes                        26        52       (21)       78       (59)
    Income tax expense
     (benefit)                    13        16        (5)       29        16
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Net income (loss)       $     13  $     36  $    (16) $     49  $    (75)
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    Full-time equivalent
     employees                11,895    11,832    12,006    11,895    12,006
    ---------------------------------------------------- --------------------
    ---------------------------------------------------- --------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) Certain prior period information has been restated to conform to the
        presentation of the current period.
    >>

Financial overview

Net income for the quarter was $13 million compared to a net loss of $16 million in the same quarter last year, mainly due to higher unallocated treasury income. The favourable impact of the reversal of credit losses on securitized cards was offset by lower revenue from treasury securitization activities.

Net income for the quarter was down $23 million from the prior quarter, mainly due to the gain on sale of CMT's Issuer Services business in the prior quarter and lower interest income on tax reassessments. The favourable impact of the reversal of credit losses on securitized cards was partly offset by lower revenue from treasury securitization activities.

Net income for the six months ended April 30, 2011 was $49 million compared to a net loss of $75 million for the same period in 2010, mainly due to higher unallocated treasury income, the gain on sale of CMT's Issuer Services business, higher interest income on tax reassessments, lower provision for credit losses in the general allowance, and a lower write-down of future tax assets. In addition, the favourable impact of the reversal of credit losses on securitized cards was offset by lower revenue from treasury securitization activities.

Revenue

Revenue was up $5 million from the same quarter last year.

Revenue was down $50 million from the prior quarter. The current quarter had lower interest income on tax reassessments. The prior quarter included the gain on sale of CMT's Issuer Services business.

Revenue for the six months ended April 30, 2011 was up $53 million from the same period in 2010, mainly due to the gain on sale of CMT's Issuer Services business and higher interest income on tax reassessments.

Reversal of credit losses

Reversal of credit losses was up $42 million from the same quarter last year, and up $22 million from the prior quarter as a result of asset securitization.

Reversal of credit losses for the six months ended April 30, 2011 was up $74 million from the same period in 2010, primarily as a result of asset securitization. Lower provision for credit losses in the general allowance was attributable to the personal and credit card portfolios, partially offset by lower reversals in the business and government portfolios.

Non-interest expenses

Non-interest expenses were down $2 million from the prior quarter, and down $10 million for the six months ended April 30, 2011 from the same period in 2010, primarily due to lower unallocated corporate support costs.

Income taxes

Income tax expense was $13 million compared with an income tax benefit of $5 million in the same quarter last year mainly due to higher income in the current quarter.

Income tax expense was down $3 million from the prior quarter. The prior quarter included a lower tax rate on the gain on sale of CMT's Issuer Services business.

Income tax expense for the six months ended April 30, 2011 was up $13 million from the same period in 2010, mainly due to higher income, partially offset by a lower write-down of future tax assets.

    <<
                     STRUCTURED CREDIT RUN-OFF BUSINESS
                        & OTHER SELECTED ACTIVITIES
    >>

In response to the recommendations of the Financial Stability Board (previously Financial Stability Forum), this section provides information on our structured credit run-off business and other selected activities within our continuing and exited businesses that may be of particular interest to investors based on their risk characteristics and the current market environment. The activities are discussed in further detail on pages 50 to 57 of our 2010 Annual Report.

Structured credit run-off business

Results (pre-tax basis)

The loss for the quarter was $70 million (US$72 million), compared with income of $58 million (US$59 million) for the same quarter last year and a loss of $68 million (US$68 million) for the prior quarter.

The loss for the quarter was mainly due to a reduction in the value of receivables related to protection purchased from financial guarantors (on loan assets that are carried at amortized cost) resulting from an improvement in the MTM of the underlying positions, expenses related to the limited recourse note (issued to a third-party investor in 2008), and losses from sales and terminations which were completed to reduce our positions.

These were partially offset by gains on unhedged positions, and a decrease in CVA relating to financial guarantors driven by MTM recoveries on certain underlying assets. The total CVA gain for financial guarantors was $19 million (US$20 million) for the quarter.

During the quarter, our notional positions reduced by US$2.2 billion. Sales and terminations resulted in notional reductions in securities of US$1.3 billion, written credit derivatives of US$24 million, and purchased credit derivatives of US$919 million. The completion of these transactions resulted in an aggregate pre-tax loss of $19 million (US$20 million).

Subsequent to the quarter end, we sold certain securities positions, terminated unmatched protection purchased from financial guarantors, and agreed in principle to sell the residual value of the USRMM positions hedged by the limited recourse note. These transactions resulted in a combined pre-tax gain of $24 million (US$25 million) and lower capital requirements, for a net positive impact on our Tier 1 capital ratio of approximately 9 basis points. This will be reported in the third quarter of 2011.

Position summary

The following table summarizes our positions within our structured credit run-off business:

    <<
    -------------------------------------------------------------------------
                                                              Written credit
                                                                 derivatives,
    US$ millions, as at                                        liquidity and
     April 30, 2011            Investments and loans(1)    credit facilities
    --------------------------------------------------- ---------------------
                            Fair       Fair   Carrying                  Fair
                        value of   value of   value of              value of
                         trading securities securities               written
                         and AFS classified classified                credit
             Notional securities   as loans   as loans  Notional derivatives
    -------------------------------------------------------------------------
    USRMM -
     CDO     $  2,949   $    213   $      -   $      -   $ 1,692    $  1,337
    CLO         5,731         30      5,311      5,314     4,022         140
    Corporate
     debt           -          -          -          -     7,837         135
    Other       1,295        531        379        438       862          79
    Unmatched       -          -          -          -         -           -
    -------------------------------------------------------------------------
             $  9,975   $    774   $  5,690   $  5,752   $14,413    $  1,691
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2010    $ 12,006   $    855   $  7,284   $  7,428   $15,163    $  1,997
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ---------------------------------------------------
    US$               Credit protection purchased from:
     millions, ----------------------------------------
     as at
     April 30,       Financial                  Other
     2011             guarantors       counterparties
    ----------------------------- ---------------------
                      Fair value            Fair value
                          net of                net of
             Notional        CVA   Notional        CVA
    ---------------------------------------------------
    USRMM -
     CDO     $      -   $      -   $    377   $    322
    CLO         8,333        236        447         19
    Corporate
     debt           -          -      7,841        138
    Other         484         75         27          4
    Unmatched   2,811        186          -          -
    ---------------------------------------------------
             $ 11,628   $    497   $  8,692   $    483
    ---------------------------------------------------
    ---------------------------------------------------
    Oct. 31,
     2010    $ 13,102   $    719   $  8,469   $    574
    ---------------------------------------------------
    ---------------------------------------------------
    (1) Excluded from the table above are certain trading securities with a
        fair value of US$750 million that are held in consolidated variable
        interest entities (VIEs), as any change in fair value of these
        securities is offset by a change in fair value of liabilities in the
        consolidated VIEs. Also excluded from this table are equity and
        surplus notes that we obtained in consideration for commutation of
        our USRMM contracts with financial guarantors with a notional of US
        $239 million and a carrying value of US$17 million.
    >>

U.S. residential mortgage market (USRMM) - collateralized debt obligation (CDO)

Our net USRMM positions, comprising trading securities and written credit derivatives, amounted to US$568 million. A significant portion of our USRMM positions represents commercial mortgage-backed securities (CMBS) collateral that comprised a relatively small percentage of the notional at the inception of these positions. As at April 30, 2011, approximately 90% of the positions were hedged by a fully cash collateralized limited recourse note (issued in 2008). The limited recourse note is not included in the table above. Approximately 10% of the positions were hedged through protection purchased from a large U.S.-based diversified multinational insurance and financial services company with which we have market-standard collateral arrangements. None of our USRMM positions were hedged with financial guarantors.

Collateralized loan obligation (CLO)

Our CLO positions consist of super senior tranches of CLOs backed by diversified pools of U.S. (70%) and European-based (27%) non-investment grade senior secured leveraged loans. As at April 30, 2011, approximately 5% of the total notional amount of the CLO tranches was rated equivalent to AAA, 58% was rated between the equivalent of AA+ and AA-, and the remainder was rated between the equivalent of A+ and A-. For positions hedged with financial guarantors as at April 30, 2011, approximately 13% of the underlying collateral was rated equivalent to BB- or higher, 59% was rated between the equivalent of B+ and B-, 14% was rated equivalent to CCC+ or lower, with the remainder unrated. The CLO positions that are hedged with financial guarantors have a weighted average life of 3.0 years and average subordination of 32%.

Corporate debt

Our corporate debt positions consist of super senior synthetic CDO tranches referencing diversified indices of corporate loans and bonds. Approximately 33% of the corporate debt underlyings were rated equivalent to A- or higher, 46% were rated between the equivalent of BBB+ and BBB-, 18% were rated equivalent to BB+ or lower, and the remainder were unrated. The corporate debt positions mature within two to six years and have original attachment points of 20% to 30%.

Other

Our significant positions in Other, as at April 30, 2011, include:

    <<
    -   US$361 million notional value of CDOs consisting of trust preferred
        securities collateral, which are Tier I Innovative Capital
        Instruments issued by U.S. regional banks and insurers. These
        securities are classified as loans and had a fair value of
        US$253 million and carrying value of US$309 million;
    -   US$223 million notional value of trading securities with a fair value
        of US$167 million, and US$442 million notional value of written
        protection with a fair value of US$76 million, on inflation-linked
        notes and CDO tranches with collateral consisting of high yield
        corporate debt portfolios, trust preferred securities and non-U.S.
        residential mortgage-backed securities (RMBS), with 54% rated the
        equivalent of AA- or higher and the remaining rated equivalent of B-
        or lower;
    -   A trading security with a notional and fair value of US$118 million,
        with underlying collateral comprised of Canadian residential
        mortgages insured under the National Housing Act;
    -   US$85 million notional value of an asset-backed security (ABS)
        classified as a loan, with fair value of US$71 million and carrying
        value of US$74 million;
    -   Variable rate Class A-1/A-2 notes classified as trading securities
        with a fair value of US$236 million and a notional value of
        US$306 million, and tracking notes classified as AFS with a fair
        value and carrying value of $8 million and a notional value of
        $83 million. These notes were originally received in exchange for our
        non-bank sponsored ABCP in January 2009, upon the ratification of the
        Montreal Accord restructuring;
    -   US$317 million of undrawn Margin Funding Facility related to the
        Montreal Accord restructuring; and
    -   Liquidity and credit related facilities to third-party non-bank
        sponsored ABCP conduits. Of the US$124 million facilities mostly
        relating to U.S. CDOs, US$34 million was drawn.
    >>

Unmatched

The underlying in our unmatched positions are super senior synthetic CDO tranches referencing diversified indices of corporate loans and bonds, a loan backed by film receivables, and a CLO tranche.

Credit protection purchased from financial guarantors and other counterparties

The following table presents the notional amounts and fair values of credit protection purchased from financial guarantors and other counterparties by counterparty credit quality, based on external credit ratings (Standard & Poor's and/or Moody's Investors Service), and the underlying referenced assets. Excluded from the table below are certain performing loans and tranched securities positions in our continuing businesses, with a total notional amount of approximately US$62 million, which are partly secured by direct guarantees from financial guarantors or by bonds guaranteed by financial guarantors.

    <<
    -------------------------------------------------------------------------
                             Notional amounts of referenced assets
    US$ millions, -----------------------------------------------------------
     as at April           Corporate     CDO -                         Total
     30, 2011          CLO      debt     USRMM    Other  Unmatched  notional
    -------------------------------------------------------------------------
    Financial
     guarantors(1)
      Investment
       grade      $  5,051  $      -  $      -  $    113  $    210  $  5,374
      Non-invest-
       ment grade       75         -         -       267     2,400     2,742
      Unrated        3,207         -         -       104       201     3,512
    -------------------------------------------------------------------------
                     8,333         -         -       484     2,811    11,628
    -------------------------------------------------------------------------
    Other
     counter-
     parties(1)
      Investment
       grade           447        22       377        27         -       873
      Unrated            -     7,819         -         -         -     7,819
    -------------------------------------------------------------------------
                  $    447  $  7,841  $    377  $     27  $      -  $  8,692
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total         $  8,780  $  7,841  $    377  $    511  $  2,811  $ 20,320
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2010 $ 10,355  $  8,242  $    402  $    747  $  1,825  $ 21,571
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                   Credit protection purchased
                    from financial guarantors
                     and other counterparties
                  -----------------------------
                      Fair                Fair
    US$ millions,    value               value
     as at April    before              net of
     30, 2011          CVA       CVA       CVA
    -------------------------------------------
    Financial
     guarantors(1)
      Investment
       grade      $    449  $    (77) $    372
      Non-invest-
       ment grade       86       (35)       51
      Unrated          145       (71)       74
    -------------------------------------------
                       680      (183)      497
    -------------------------------------------
    Other
     counter-
     parties(1)
      Investment
       grade           345         2       347
      Unrated          138        (2)      136
    -------------------------------------------
                  $    483  $      -  $    483
    -------------------------------------------
    -------------------------------------------
    Total         $  1,163  $   (183) $    980
    -------------------------------------------
    -------------------------------------------
    Oct. 31, 2010 $  1,587  $   (294) $  1,293
    -------------------------------------------
    -------------------------------------------
    (1) In cases where one credit rating agency does not provide a rating,
        the classification in the table is based on the rating provided by
        the other agency. Where ratings differ between agencies, we use the
        lower rating.

    >>

The unrated other counterparties are Canadian conduits (Great North Trust and MAV I). These conduits are in compliance with their collateral posting arrangements and have posted collateral exceeding current market exposure. The fair value of the collateral as at April 30, 2011 was US$704 million.

Gain on reduction of unfunded commitment on a variable funding note (VFN)

In 2008, we recognized a gain of $895 million (US$841 million), resulting from the reduction to zero of our unfunded commitment on a VFN issued by a CDO. Refer to "Contingent liabilities" section for additional details.

Other selected activities

Securitization business

As at April 30, 2011, the underlying collateral for various asset types in our multi-seller conduits amounted to $1.5 billion (October 31, 2010: $2.1 billion). The estimated weighted average life of these assets was 1.2 years (October 31, 2010: 1.5 years). Our holdings of ABCP issued by our non-consolidated sponsored multi-seller conduits that offer ABCP to external investors were $5 million (October 31, 2010: $110 million). Our committed backstop liquidity facilities to these conduits were $1.9 billion (October 31, 2010: $2.6 billion). We also provided credit facilities of $40 million (October 31, 2010: $40 million) to these conduits as at April 30, 2011.

We also participated in a syndicated facility for a 364-day commitment of $475 million to a CIBC-sponsored single-seller conduit that provides funding to franchisees of a major Canadian retailer. Our portion of the commitment is $95 million. As at April 30, 2011, we funded $73 million (October 31, 2010: $72 million) by the issuance of bankers' acceptances.

We also securitize our mortgages and credit card receivables. Details of our consolidated VIEs and securitization transactions during the quarter are provided in Note 5 to the interim consolidated financial statements. Further details of our securitization activities are provided on pages 63 to 65 of our 2010 Annual Report.

U.S. real estate finance

As at April 30, 2011, the drawn and undrawn exposures, net of write-downs and allowance for credit losses, amounted to $1.9 billion (October 31, 2010: $1.8 billion) and $699 million (October 31, 2010: $885 million), respectively. The allowance for credit losses on these loans was $78 million (October 31, 2010: $76 million).

As at April 30, 2011, we had $170 million (October 31, 2010: $149 million) of net impaired loans. In addition, $296 million of drawn loans (October 31, 2010: $276 million) and $5 million of undrawn commitments (October 31, 2010: $4 million) were included in the credit watch list. Net provision for credit losses of $4 million and $8 million were recognized during the quarter and six months ended April 30, 2011, respectively (provision for credit losses of $26 million and $55 million for the quarter and six months ended April 30, 2010, respectively).

As at April 30, 2011, we had CMBS inventory with a notional amount of $9 million and a fair value of less than $1 million (October 31, 2010: fair value of less than $1 million).

Leveraged finance

The exposures in our leveraged finance activities in Europe and the U.S. are discussed below.

European leveraged finance

In 2008, management made a decision to exit our European leveraged finance business where we participated or originated non-investment grade leveraged loans and syndicated the majority of the loans, earning a fee during the process.

As at April 30, 2011, the drawn and undrawn exposures of our European leveraged loans, net of write-downs and allowance for credit losses, amounted to $476 million (October 31, 2010: $721 million) and $104 million (October 31, 2010: $140 million), respectively. Our exposure has declined primarily due to repayments during the period. The allowance for credit losses on the drawn loans was $22 million (October 31, 2010: $25 million).

As at April 30, 2011, we had net impaired loans of $29 million (October 31, 2010: $51 million). In addition, $347 million of drawn loans (October 31, 2010: $336 million) and $42 million of undrawn commitments (October 31, 2010: $43 million) were included in the credit watch list. Net reversals of credit losses of $2 million were recognized during the quarter and six months ended April 30, 2011 (nil and $3 million for the quarter and six months ended April 30, 2010, respectively).

U.S. leveraged finance

We sold our U.S. leveraged finance business, where we provided leveraged loans to non-investment grade customers to facilitate their buyout, acquisition and restructuring activities, as part of the sale of some of our U.S. businesses to Oppenheimer Holdings Inc. (Oppenheimer) in 2008. Under the transaction, the leveraged loans in existence at the time of the sale remained with us. These loans are being managed to maturity. In addition, under the current terms of our agreement with Oppenheimer, we agreed to provide a loan warehouse facility of up to $2.0 billion to finance and hold syndicated loans to non-investment grade customers, originated for U.S. middle market companies by Oppenheimer, to facilitate their buyout, acquisition and restructuring activities. Underwriting of any loan for inclusion in this facility is subject to joint credit approval by Oppenheimer and CIBC.

As at April 30, 2011, the drawn and undrawn exposures of our U.S. leveraged loans, including loans originated through Oppenheimer, net of write-downs and allowance for credit losses, amounted to $167 million (October 31, 2010: $232 million) and $211 million (October 31, 2010: $321 million), respectively. Our exposure has declined primarily due to repayments during the period. The allowance for credit losses on these loans was $11 million (October 31, 2010: $16 million).

As at April 30, 2011, we had $5 million (October 31, 2010: $13 million) of net impaired loans. In addition, $117 million of drawn loans (October 31, 2010: $127 million) and $21 million of undrawn commitments (October 31, 2010: $31 million) were included in the credit watch list. Net reversals of credit losses of $1 million and $6 million were recognized during the quarter and six months ended April 30, 2011, respectively (nil and $3 million for the quarter and six months ended April 30, 2010, respectively).

    <<
                             FINANCIAL CONDITION


    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                        $  37,405  $  12,052
    Securities                                             84,081     77,608
    Securities borrowed or purchased under
     resale agreements                                     38,853     37,342
    Loans, net of allowance                               179,804    176,892
    Derivative instruments                                 21,248     24,682
    Other assets                                           22,715     23,464
    -------------------------------------------------------------------------
    Total assets                                        $ 384,106  $ 352,040
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                            $ 278,602  $ 246,671
    Derivative instruments                                 22,446     26,489
    Obligations related to securities lent or
     sold short or under repurchase agreements             40,569     37,893
    Other liabilities                                      20,741     20,256
    Subordinated indebtedness                               5,150      4,773
    Non-controlling interests                                 156        168
    Shareholders' equity                                   16,442     15,790
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity          $ 384,106  $ 352,040
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Assets

As at April 30, 2011, total assets were up $32.1 billion or 9% from October 31, 2010.

Cash and deposits with banks increased by $25.4 billion mainly due to higher treasury deposit placements.

Securities were up $6.5 billion or 8%, due to an increase in trading securities, partially offset by decreases in designated at fair value (FVO) and AFS securities. Trading securities increased mainly in the equity and government portfolios. FVO securities decreased due to the sale of mortgage-backed securities and AFS securities decreased largely in government-issued short-term notes.

Securities borrowed or purchased under resale agreements were up $1.5 billion or 4%, primarily due to client demand.

Loans increased by $2.9 billion or 2%. Residential mortgages were up $3.6 billion due to mortgage originations, partially offset by securitizations, principal repayments, and liquidations. Credit card loans were down $1.6 billion primarily due to securitizations. Business and government loans were up $1.0 billion primarily due to the purchase of all the retained interests, in the form of notes, relating to the credit card securitizations.

Derivative instruments decreased by $3.4 billion or 14%, primarily due to a decrease in valuation of interest rate derivatives partially offset by an increase in valuation of foreign exchange derivatives.

Other assets decreased by $749 million or 3%, mainly due to lower collateral pledged, partially offset by higher banker's acceptances.

Liabilities

As at April 30, 2011, total liabilities were up $31.4 billion or 9% from October 31, 2010.

Deposits increased by $31.9 billion or 13% due to funding requirements.

Derivative instruments decreased by $4.0 billion or 15%, due to the same reasons noted above for derivative assets.

Obligations related to securities lent or sold short or under repurchase agreements increased by $2.7 billion or 7%, reflecting our funding requirements and client-driven activities.

Other liabilities increased by $485 million or 2%, largely due to higher banker's acceptances.

Subordinated indebtedness increased by $377 million or 8%, reflecting the net issuance and redemption activities, as explained in the "Significant capital management activity" section below.

Shareholders' equity

Shareholders' equity increased by $652 million or 4%, primarily due to a net increase in retained earnings, and the issuance of common shares pursuant to the stock option, shareholder investment, and employee share purchase plans. These were offset in part by a decrease in accumulated other comprehensive income (AOCI) due to foreign exchange losses net of hedges on investments in self-sustaining foreign operations.

Capital resources

We actively manage our capital to maintain a strong and efficient capital base, to maximize risk-adjusted returns to shareholders, and to meet regulatory requirements. For additional details, see pages 59 to 63 of the 2010 Annual Report.

Recent revisions to regulatory capital requirements

In order to promote a more resilient banking sector and strengthen global capital standards, the Basel Committee on Banking Supervision (BCBS) proposed significant enhancements and capital reforms to the current framework. The revised framework, referred to as Basel III, will be effective January 1, 2013 and provides lengthy periods for transitioning numerous new requirements.

Significant Basel III reforms include the following:

    <<
    -   Introducing a new minimum common equity ratio (the Common Equity
        Tier 1 ratio). Items such as goodwill and intangible assets will be
        deducted from common equity for the purpose of calculating this new
        ratio. The deductions will be phased-in commencing January 1, 2013.
        Banks will be required to meet the new Common Equity Tier 1 ratio
        standard during a transition period beginning January 1, 2013 and
        ending on January 1, 2019. The minimum requirement, including a
        conservation buffer, increases during the transition period.
    -   Increasing the minimum Tier 1 capital and Total capital ratios. These
        increases will also be phased-in commencing January 1, 2013 with
        banks expected to meet the new standards through a transition period
        ending on January 1, 2019.
    -   Amending the rules on instruments that can be considered qualifying
        capital instruments for the purposes of calculating regulatory
        capital. In particular, Basel III requires that capital instruments
        be capable of absorbing loss at the point of non-viability of a
        financial institution. The inclusion of non-qualifying capital
        instruments in regulatory capital calculations will be phased-out
        between January 1, 2013 and January 1, 2022.
    -   Introducing a new global leverage ratio to address balance sheet
        leverage. The BCBS will be monitoring and refining this new ratio
        between 2011 and 2017 before its final implementation in 2018.
    >>

In February 2011, the Office of the Superintendent of Financial Institutions (OSFI) issued advisories confirming the adoption of Basel III in Canada and clarifying the treatment of non-qualifying capital instruments. Non-qualifying capital instruments are subject to a 10% phase-out per annum commencing 2013. Banks are expected to develop and maintain a redemption schedule for non-qualifying capital instruments that gives priority to redeeming instruments at their regular par redemption dates before exercising any regulatory event redemption rights. CIBC expects to exercise its regulatory event redemption rights in fiscal 2022 in respect of the $300 million 10.25% CIBC Tier 1 Notes - Series B due June 30, 2108 issued by CIBC Capital Trust.

We maintain prudent capital planning practices to ensure CIBC is adequately capitalized and continues to exceed minimum standards and internal targets. Based on our current understanding of the revised capital requirements, we expect to exceed the new requirements ahead of implementation timelines that have been proposed by BCBS and confirmed by OSFI, while continuing to invest for future growth.

Regulatory capital

Regulatory capital is determined in accordance with guidelines issued by OSFI.

The following table presents our regulatory capital measures:

    <<
    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Capital
    Tier 1 capital                                      $  15,656  $  14,851
    Total regulatory capital                               20,047     18,966
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Risk-weighted assets (RWAs)
    Credit risk                                         $  85,405  $  86,782
    Market risk                                             2,575      1,625
    Operational risk                                       18,356     18,256
    -------------------------------------------------------------------------
    Total risk-weighted assets                          $ 106,336  $ 106,663
    -------------------------------------------------------------------------
    Capital ratios
    Tier 1 capital ratio                                     14.7%      13.9%
    Total capital ratio                                      18.9%      17.8%
    Assets-to-capital multiple                               18.2x      17.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Tier 1 capital ratio was up 0.8% and the total capital ratio was up 1.1% from October 31, 2010. The capital ratios benefited from an increase in both Tier 1 and total regulatory capital and a slight decrease in RWAs.

Tier 1 and total regulatory capital increased from October 31, 2010 mainly due to internal capital generation and the issuance of common shares, offset in part by the foreign currency translation losses component of AOCI. The change in total regulatory capital also reflected the $1,500 million 3.15% Debentures issued on November 2, 2010 and the redemption of all $1,080 million of our remaining 4.55% Medium Term Notes on March 28, 2011 noted below.

RWAs were down marginally by $327 million from October 31, 2010 as a decrease in credit risk RWAs, partly due to the effect of a strengthening Canadian dollar on foreign currency denominated assets, was largely offset by an increase in market risk RWAs.

Market risk RWAs increased in part due to the implementation of incremental sensitivity-based enhancements to our Value-at-Risk (VaR) model in the first quarter of 2011 (refer to "Market risk" section for additional details). Also during the first quarter, we migrated our remaining structured credit run-off business exposures to the banking book for regulatory capital purposes, which resulted in a decrease in trading-related counterparty credit risk RWAs and corresponding increases in securitization-related RWAs, corporate RWAs, and regulatory capital deductions.

Significant capital management activity

On November 2, 2010, we issued $1,500 million principal amount of 3.15% Debentures (subordinated indebtedness) due November 2, 2020. The Debentures qualify as Tier 2 capital.

On March 28, 2011, we redeemed all $1,080 million of our remaining 4.55% Medium Term Notes (subordinated indebtedness) due March 28, 2016. In accordance with their terms, the Medium Term Notes were redeemed at 100% of their principal amount, plus accrued and unpaid interest thereon.

On April 28, 2011, we redeemed all 2,000 of the remaining outstanding Non-cumulative Class A Series 28 Preferred Shares at a price of $10.00 per share for cash.

Off-balance sheet arrangements

We enter into several types of off-balance sheet arrangements in the normal course of our business. These include securitization-related sales, derivatives, credit-related arrangements, and guarantees. Details of our off-balance sheet arrangements are provided on pages 63 to 65 of the 2010 Annual Report.

The following table summarizes our exposures to non-consolidated entities involved in the securitization of third-party assets (both CIBC-sponsored/structured and third-party structured). Investment and loans are stated at carrying value. Undrawn liquidity and credit facilities are notional amounts net of any investment and loans to the entities. Written credit derivatives are notional amounts of written options and total return swaps under which we assume exposures.

    <<
    -------------------------------------------------------------------------
                                                                        2011
    $ millions, as at                                                Apr. 30
    -------------------------------------------------------------------------
                                                         Undrawn     Written
                                                       liquidity      credit
                                          Investment  and credit      deriva-
                                         and loans(1) facilities     tives(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits                $      78   $   1,526   $       -
    CIBC-structured CDO vehicles                 390          33         332
    Third-party structured vehicles -
     structured credit run-off                 5,622         525       4,486
    Third-party structured vehicles -
     continuing                                2,305           9           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2010
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                         Undrawn     Written
                                                       liquidity      credit
                                          Investment  and credit      deriva-
                                         and loans(1) facilities     tives(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits                $     182   $   2,182   $       -
    CIBC-structured CDO vehicles                 448          50         389
    Third-party structured vehicles -
     structured credit run-off                 7,696         585       5,128
    Third-party structured vehicles -
     continuing                                1,778           -           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by, retained in, and derivatives with
        entities established by Canada Mortgage and Housing Corporation,
        Federal National Mortgage Association (Fannie Mae), Federal Home Loan
        Mortgage Corporation (Freddie Mac), Government National Mortgage
        Association (Ginnie Mae), Federal Home Loan Banks, Federal Farm
        Credit Bank, and Student Loan Marketing Association (Sallie Mae).
        $4.8 billion (October 31, 2010: $6.4 billion) of the exposures
        related to CIBC-structured CDO and third-party structured vehicles
        were hedged by credit derivatives.
    (2) The negative fair value recorded on the interim consolidated balance
        sheet was $0.8 billion (October 31, 2010: $1.1 billion). Notional of
        $4.1 billion (October 31, 2010: $4.7 billion) were hedged with credit
        derivatives protection from third parties. The fair value of these
        hedges net of CVA was $0.4 billion (October 31, 2010: $0.5 billion).
        Accumulated fair value losses amount to $0.4 billion (October 31,
        2010: $0.5 billion) on unhedged written credit derivatives.
    >>

Additional details of our own asset securitization activities and our exposures to VIEs are provided in Note 5 to the interim consolidated financial statements.

    <<
                             MANAGEMENT OF RISK
    >>

Our approach to management of risk has not changed significantly from that described on pages 66 to 85 of the 2010 Annual Report.

Risk overview

We manage risk and related balance sheet resources within tolerance levels established by our management committees and approved by the Board of Directors and its committees. Key risk management policies are approved or renewed by the applicable Board and management committees annually. Further details on the Board and management committees, as applicable to the management of risk, are provided on pages 66 and 67 of the 2010 Annual Report.

The five key groups within Risk Management, independent of the originating businesses, contribute to our management of risk:

    <<
    -   Capital Markets Risk Management - This unit provides independent
        oversight of the measurement, monitoring and control of market risks
        (both trading and non-trading), trading credit risk and trading
        operational risk across CIBC's portfolios.
    -   Card Products Risk Management - This unit oversees the management of
        credit risk in the card products portfolio, including the
        optimization of lending profitability.
    -   Retail Lending and Wealth Risk Management - This unit primarily
        oversees the management of credit and fraud risk in the retail lines
        of credit and loans, residential mortgage, and small business loan
        portfolios, including the optimization of lending profitability. This
        unit is also responsible for overall risk management oversight of
        wealth management activities.
    -   Wholesale Credit and Investment Risk Management - This unit is
        responsible for the adjudication and oversight of credit risks
        associated with our commercial and wholesale lending activities
        globally, management of the risks of our investment portfolios, as
        well as management of the special loans portfolios.
    -   Risk Services - This unit is responsible for regulatory and economic
        capital reporting, operational risk management, and enterprise-wide
        risk and stress analysis and reporting. Risk Services is also
        responsible for policies associated with credit and operational
        risks, including reputation and legal risks.
    >>

Liquidity and funding risks are managed by Treasury. The measurement, monitoring and control of liquidity and funding risk is addressed in collaboration with Risk Management with oversight provided by the Asset Liability Committee.

Credit risk

Credit risk primarily arises from our direct lending activities, and from our trading, investment and hedging activities. Credit risk is defined as the risk of financial loss due to a borrower or counterparty failing to meet its obligations in accordance with contractual terms.

Exposure to credit risk

Our gross credit exposure measured as exposure at default (EAD) for on- and off-balance sheet financial instruments was $541.2 billion as at April 30, 2011 (October 31, 2010: $500.4 billion). Overall exposure was up $40.7 billion, primarily due to an increase in drawn exposures in the business and government portfolios, as well as the increase in securitization exposures resulting from the migration of the remaining exposures in the structured credit run-off business in the first quarter of 2011, from the trading book to the banking book, for regulatory capital purposes. The following table shows the gross EAD, before credit risk mitigation:

    <<
    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Business and government portfolios-AIRB approach
    Drawn                                               $ 117,407  $  92,190
    Undrawn commitments                                    27,514     27,256
    Repo-style transactions                                81,015     81,065
    Other off-balance sheet                                49,639     47,031
    OTC derivatives                                        13,985     14,580
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gross EAD on business and government portfolios     $ 289,560  $ 262,122
    -------------------------------------------------------------------------
    Retail portfolios-AIRB approach
    Drawn                                                 141,492    137,562
    Undrawn commitments                                    71,136     68,188
    Other off-balance sheet                                   400        399
    -------------------------------------------------------------------------
    Gross EAD on retail portfolios                      $ 213,028  $ 206,149
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Standardized portfolios                                13,868     14,571
    Securitization exposures                               24,694     17,592
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gross EAD                                           $ 541,150  $ 500,434
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Included in the business and government portfolios-advanced internal ratings based (AIRB) approach is EAD of $496 million in the probability of default band considered watch list as at April 30, 2011 (October 31, 2010: $607 million). The decrease in watch list exposures was across the portfolio, but particularly within our structured credit run-off business.

Exposure to certain countries and regions

Several European countries especially Greece, Ireland, Italy, Portugal, and Spain have continued to experience credit concerns. We have no direct sovereign exposure to any of these countries (October 31, 2010: $43 million). We have no direct non-sovereign exposure to Greece and Portugal. Our direct non-sovereign exposure to borrowers within the other countries is materially all to investment grade banks, with $88 million (October 31, 2010: $232 million) in deposits with banks, $192 million (October 31, 2010: $185 million) in derivative MTM receivables (before any collateral held), and $2 million (October 31, 2010: $12 million) in letters of credit.

Our exposure to counterparties in selected countries in the Middle East and North Africa (Algeria, Bahrain, Egypt, Jordan, Lebanon, Libya, Morocco, Oman, Saudi Arabia, Syria, Tunisia, and Yemen) that have either experienced or may be at risk of unrest is $5 million (October 31, 2010: $4 million) in letters of credit and $4 million (October 31, 2010: $5 million) in derivative MTM receivables (before any collateral held).

We also have indirect exposures through CLO securities in our structured-credit run-off portfolio (where we benefit from significant subordination to our position) to the European countries noted above. These amounted to $564 million (October 31, 2010: $640 million). We have no exposure to the Middle East and North African countries noted above through these CLO securities.

Counterparty credit exposure

We have counterparty credit exposure that arises from our interest rate, foreign exchange, equity, commodity, and credit derivatives trading, hedging, and portfolio management activities, as explained in Note 14 to the consolidated financial statements in our 2010 Annual Report.

We establish a CVA for expected future credit losses from each of our derivative counterparties. As at April 30, 2011, the CVA for all derivative counterparties was $191 million (October 31, 2010: $325 million).

The following tables show the rating profile of derivative MTM receivables (after CVA and derivative master netting agreements but before any collateral), impaired loans, and allowance for credit losses.

    <<
    -------------------------------------------------------------------------
                                                  2011                  2010
    $ billions, as at                          Apr. 30               Oct. 31
    -------------------------------------------------------------------------
                                                   Exposure
                                  -------------------------------------------
    Standard & Poor's rating
     equivalent
      AAA to BBB-                  $   6.34       87.9%  $   6.45       86.7%
      BB+ to B-                        0.85       11.8       0.82       11.0
      CCC+ to CCC-                     0.01        0.1       0.01        0.1
      Below CCC-                       0.01        0.2       0.02        0.3
      Unrated                             -          -       0.14        1.9
    -------------------------------------------------------------------------
                                   $   7.21      100.0%  $   7.44      100.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                             $    704   $    756
    Business and government(1)                              1,038      1,080
    -------------------------------------------------------------------------
    Total gross impaired loans                           $  1,742   $  1,836
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Allowance for credit losses
    Consumer(2)                                          $    969   $  1,034
    Business and government(1)(2)                             717        686
    -------------------------------------------------------------------------
    Total allowance for credit losses                    $  1,686   $  1,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
    Specific allowance for loans                         $    618   $    631
    General allowance for loans(3)                          1,068      1,089
    -------------------------------------------------------------------------
    Total allowance for credit losses                    $  1,686   $  1,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    (2) During the first quarter, we securitized $1.7 billion of credit card
        receivables and purchased all of the retained interests, in the form
        of notes, relating to the securitization, which have been included
        within business and government loans. Accordingly, we reclassified a
        related general allowance of $61 million from credit card to business
        and government loans.
    (3) Excludes allowance on undrawn credit facilities of $49 million
        (October 31, 2010: $64 million).
    >>

Gross impaired loans were down $94 million or 5% from October 31, 2010. Consumer gross impaired loans were down $52 million or 7% due to lower new classifications in residential mortgages and personal lending. Business and government gross impaired loans were down $42 million or 4%, attributable to a decrease in the manufacturing, transportation, publishing, printing, and broadcasting sectors.

The total allowance for credit losses was down $34 million or 2% from October 31, 2010. Canadian and U.S. allowances for credit losses make up 78% and 9%, respectively, of the total allowance. The specific allowance was down $13 million or 2% from October 31, 2010, mainly driven by personal lending, reflective of improving delinquencies. The general allowance for credit losses was down $21 million, or 2% from October 31, 2010. Improvement in the business and government and Visa portfolios have been offset somewhat by a build up of the general allowance applicable to the acquired MasterCard portfolio. Since we acquired only performing accounts, the build up in general allowance is due to the portfolio seasoning to normal levels of delinquency.

For details on the provision for credit losses, see the "Overview" section.

Market risk

Market risk arises from positions in currencies, securities and derivatives held in our trading portfolios, and from our retail banking business, investment portfolios, and other non-trading activities. Market risk is defined as the potential for financial loss from adverse changes in underlying market factors, including interest and foreign exchange rates, credit spreads, and equity and commodity prices.

In June 2010, the BCBS announced the delay of the implementation of revisions to the Basel II market risk framework until December 2011. We are working on a series of enhancements to our VaR models in order to meet the new regulatory requirements and ensure more complete risk capture, which will increase our VaR measure. In the first quarter of 2011, we implemented incremental sensitivity-based (ISB) enhancements to our VaR. The ISB risk measures included in our internal VaR model are equity skew vega risk, commodity skew vega risk, interest rate basis risk, dividend risk, and correlation risk.

Trading activities

The following table shows VaR by risk type for CIBC's trading activities.

The VaR for the three months ended April 30, 2011 and comparative periods, disclosed in the table and backtesting chart below, exclude our exposures in our structured credit run-off business as described on pages 50 to 56 of the 2010 Annual Report. Commencing in the first quarter of 2011, the structured credit run-off business is reported as part of our non-trading business for regulatory capital purposes. Previously these positions were reported in our trading business.

Total average risk was comparable to the prior quarter.

Actual market loss experience may differ from that implied by the VaR measure for a variety of reasons. Fluctuations in market rates and prices may differ from those in the past that are used to compute the VaR measure. Additionally, the VaR measure does not account for any losses that may occur beyond the 99% confidence level.

    <<
    VaR by risk type - trading portfolio
    -------------------------------------------------------------------------
                                                            As at or for the
                                                          three months ended
                                 --------------------------------------------
                                                                        2011
                                                                   Apr. 30(1)
                                 --------------------------------------------
    $ millions                       High(2)     Low(2)     As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     6.7  $     2.6  $     4.8  $     4.3
    Credit spread risk                  1.5        0.6        1.1        1.1
    Equity risk                         6.2        3.3        3.5        4.4
    Foreign exchange risk               2.4        0.3        0.5        1.2
    Commodity risk                      1.9        1.0        1.4        1.4
    Debt specific risk                  3.5        1.3        2.4        2.5
    Diversification effect (3)          n/m        n/m       (6.4)      (7.2)
    -------------------------------------------------------------------------
    Total risk                    $     9.4  $     6.0  $     7.3  $     7.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                            As at or for the
                                                          three months ended
                                 --------------------------------------------
                                                  2011                  2010
                                             Jan. 31(1)              Apr. 30
                                 --------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     4.1  $     3.5  $     5.0  $     4.1
    Credit spread risk                  0.7        0.9        0.7        0.4
    Equity risk                         4.1        3.8        1.2        1.3
    Foreign exchange risk               1.3        1.2        1.6        1.4
    Commodity risk                      1.0        0.8        0.7        0.4
    Debt specific risk                  1.8        2.4        1.8        1.5
    Diversification effect (3)         (4.5)      (5.0)      (5.4)      (4.0)
    -------------------------------------------------------------------------
    Total risk                    $     8.5  $     7.6  $     5.6  $     5.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ---------------------------------------------------
                                           For the six
                                          months ended
                                 ----------------------
                                       2011       2010
                                  Apr. 30(1)   Apr. 30
                                 ----------------------
    $ millions                      Average    Average
    ---------------------------------------------------
    Interest rate risk            $     3.9  $     3.4
    Credit spread risk                  1.0        0.4
    Equity risk                         4.1        1.3
    Foreign exchange risk               1.2        1.1
    Commodity risk                      1.1        0.5
    Debt specific risk                  2.4        1.5
    Diversification effect (3)         (6.1)      (3.8)
    ---------------------------------------------------
    Total risk                    $     7.6  $     4.4
    ---------------------------------------------------
    ---------------------------------------------------
    (1) Commencing in the first quarter of 2011, reflects ISB risk measures
        including equity skew vega risk, commodity skew vega risk, interest
        rate basis risk, dividend risk, and correlation risk relating to
        trading activities. Comparative information for these measures prior
        to the first quarter of 2011 is not available.
    (2) Balances for respective risk types were calculated on different
        business days during the quarter.
    (3) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    >>

Trading revenue

The trading revenue (TEB)(1) and VaR backtesting graph below compares the current quarter and the three previous quarters' actual daily trading revenue (TEB)(1) with the previous day's VaR measures.

Trading revenue (TEB)(1) was positive for 95% of the days in the quarter. Trading losses did not exceed VaR during the quarter. Average daily trading revenue (TEB)(1) was $3 million during the quarter.

The trading revenue (TEB)(1) for the current quarter excludes a loss of $51 million related to changes in exposures and fair values of assets in the structured credit run-off business due to their booking as part of non-trading business.

Backtesting of trading revenue (TEB)(1) versus VaR

    <<
    (image appears here)

    (1) For additional information, see the "Non-GAAP measures" section.
    >>

Non-trading activities

Interest rate risk

Non-trading interest rate risk consists primarily of risk inherent in Asset Liability Management activities and the activities of domestic and foreign subsidiaries. Interest rate risk results from differences in the maturities or repricing dates of assets and liabilities, both on- and off-balance sheet, as well as from embedded optionality in retail products. A variety of cash instruments and derivatives, principally interest rate swaps, futures and options, are used to manage and control these risks.

The following table shows the potential impact over the next 12 months, adjusted for estimated prepayments, of an immediate 100 and 200 basis points increase or decrease in interest rates. In addition, we have a floor in place in the downward shock to accommodate for the current low interest rate environment.

    <<
    Interest rate sensitivity - non-trading (after-tax)
    -------------------------------------------------------------------------
                                                2011                    2011
    $ millions, as at                        Apr. 30                 Jan. 31
    -------------------------------------------------------------------------
                                  C$     US$   Other      C$     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
      Increase (decrease)
       in net income           $ 181   $  (2)  $   5   $  95   $  (3)  $   2
      Decrease in present
       value of shareholders'
       equity(1)                 (12)   (154)    (30)    (70)    (89)    (19)
    100 basis points decrease
     in interest rates
      Increase (decrease)
       in net income            (198)     10      (5)   (165)      6      (2)
      Decrease (increase) in
       present value of
       shareholders' equity(1)   (28)    148      30     (75)     76      16
    -------------------------------------------------------------------------
    200 basis points increase
     in interest rates
      Increase (decrease)
       in net income           $ 358   $  (5)  $  10   $ 183   $  (6)  $   4
      Increase (decrease) in
       present value of
       shareholders' equity(1)   (33)   (308)    (59)   (181)   (177)    (38)
    200 basis points decrease
     in interest rates
      Increase (decrease)
       in net income            (345)     21     (10)   (252)     10      (1)
      Decrease (increase) in
       present value of
       shareholders' equity(1)   (77)    288      49    (193)    141      30
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                                2010
    $ millions, as at                        Apr. 30
    -------------------------------------------------
                                  C$     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
      Increase (decrease)
       in net income           $  50   $ (54)  $   6
      Decrease in present
       value of shareholders'
       equity(1)                 (15)   (115)      -
    100 basis points decrease
     in interest rates
      Increase (decrease)
       in net income             (64)     35      (5)
      Decrease (increase) in
       present value of
       shareholders' equity(1)    63      95       -
    -------------------------------------------------
    200 basis points increase
     in interest rates
      Increase (decrease)
       in net income           $  97   $(109)  $  12
      Increase (decrease) in
       present value of
       shareholders' equity(1)   (29)   (231)      1
    200 basis points decrease
     in interest rates
      Increase (decrease)
       in net income             (28)     51      (5)
      Decrease (increase) in
       present value of
       shareholders' equity(1)   195     152       4
    -------------------------------------------------
    -------------------------------------------------
    (1) Commencing the third quarter of 2010, amounts reported exclude the
        impact of structural assumptions relating to shareholders' equity.
    >>

Liquidity risk

Liquidity risk arises from our general funding activities and in the course of managing our assets and liabilities. It is the risk of having insufficient cash resources to meet current financial obligations without raising funds at unfavourable rates or selling assets on a forced basis.

Our liquidity risk management strategies seek to maintain sufficient liquid financial resources to continually fund our balance sheet under both normal and stressed market environments.

We obtain funding through both wholesale and retail sources. Core personal deposits remain a primary source of retail funding and totalled $108.9 billion as at April 30, 2011 (October 31, 2010: $108.6 billion).

Strategies for managing liquidity risk include maintaining diversified sources of wholesale term funding, asset securitization initiatives, and maintenance of segregated pools of high-quality liquid assets that can be sold or pledged as security to provide a ready source of cash. Collectively, these strategies result in lower dependency on short-term wholesale funding.

Balance sheet liquid assets are summarized in the following table:

    <<
    -------------------------------------------------------------------------
                                                             2011       2010
    $ billions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Cash                                                $     1.2  $     1.3
    Deposits with banks                                      36.2       10.7
    Securities issued by Canadian governments(1)              6.4        5.4
    Mortgage-backed securities(1)                            18.0       20.1
    Other securities(2)                                      48.0       40.9
    Securities borrowed or purchased under resale
     agreements                                              38.9       37.3
    -------------------------------------------------------------------------
    Total assets                                        $   148.7  $   115.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represent securities with residual term to contractual maturity of
        more than one year.
    (2) Comprise of AFS and FVO securities with residual term to contractual
        maturity within one year and trading securities.
    >>

In the course of our regular business activities, certain assets are pledged as part of collateral management, including those necessary for day-to-day clearing and settlement of payments and securities. Pledged assets, including those for covered bonds and securities borrowed or financed through repurchase agreements, as at April 30, 2011 totalled $34.4 billion (October 31, 2010: $33.5 billion).

Access to wholesale funding sources and the cost of funds are dependent on various factors including credit ratings. On December 15, 2010, Fitch changed CIBC's outlook from negative to stable. During the quarter, there were no changes to our credit ratings or outlook at the major credit rating agencies.

Our funding and liquidity levels remained stable and sound over the period and we do not anticipate any events, commitments or demands that will materially impact our liquidity risk position.

Contractual obligations

Contractual obligations give rise to commitments of future payments affecting our short- and long-term liquidity and capital resource needs. These obligations include financial liabilities, credit and liquidity commitments, and other contractual obligations.

Details of our contractual obligations are provided on pages 83 to 84 of the 2010 Annual Report. There were no significant changes to contractual obligations that were not in the ordinary course of our business.

Other risks

We also have policies and processes to measure, monitor and control other risks, including operational, reputation and legal, regulatory, strategic, and environmental risks.

For additional details, see pages 84 to 85 of the 2010 Annual Report.

    <<
                       ACCOUNTING AND CONTROL MATTERS
    >>

Critical accounting policies and estimates

A summary of significant accounting policies is presented in Note 1 to the consolidated financial statements of the 2010 Annual Report. Certain accounting policies of CIBC are critical to understanding the results of operations and financial condition of CIBC. These critical accounting policies require management to make certain judgments and estimates, some of which may relate to matters that are uncertain. For a description of the judgments and estimates involved in the application of critical accounting policies and assumptions, see pages 86 to 91 of the 2010 Annual Report.

Valuation of financial instruments

Debt and equity trading securities, obligations related to securities sold short, all derivative contracts, AFS securities other than private equities, and FVO financial instruments are carried at fair value. FVO financial instruments include debt securities, business and government loans, and business and government deposits.

The determination of fair value requires judgment and is based on market information, where available and appropriate. Fair value is defined as the amount at which a financial instrument could be exchanged between knowledgeable and willing parties in an orderly arm's length transaction motivated by normal business considerations. Fair value measurements are categorized into levels within a fair value hierarchy based on the nature of the valuation inputs (Level 1, 2 or 3) as outlined below. Fair value is best evidenced by an independent quoted market price for the same instrument in an active market (Level 1).

If a market price in an active market is not available, the fair value is estimated on the basis of valuation models. Observable market inputs are utilized for valuation purposes to the extent possible and appropriate.

Valuation models may utilize predominantly observable market inputs (Level 2), including: interest rates, foreign currency rates, equity and equivalent synthetic instrument prices, index levels, credit spreads, counterparty credit quality, corresponding market volatility levels, and other market-based pricing factors, as well as any appropriate, highly correlated proxy market valuation data. Valuation models may also utilize predominantly non-observable market inputs (Level 3).

The following table presents amounts, in each category of financial instruments, which are fair valued using valuation techniques based on non-observable market inputs (Level 3), for the structured credit run-off business and consolidated CIBC:

    <<
    -------------------------------------------------------------------------
                                     Structured credit
    $ millions, as at                          run-off      Total      Total
     April 30, 2011                           business       CIBC     CIBC(1)
    -------------------------------------------------------------------------
    Assets
      Trading securities                     $ 1,436(2) $   1,441        3.9%
      AFS securities                               7        3,023       11.7
      FVO securities and loans                     -           11        0.1
      Derivative instruments                     942        1,087        5.1
    -------------------------------------------------------------------------
    Liabilities
      FVO deposits                         $   1,028    $   1,324       38.9%
      Derivative instruments                   1,614        2,375       10.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents percentage of Level 3 assets and liabilities in each
        reported category on our interim consolidated balance sheet.
    (2) Includes $710 million (US$750 million) of trading securities that are
        held in consolidated VIEs. Any change in fair value of these
        securities is offset by a change in fair value of liabilities in the
        consolidated VIEs.
    >>

Sensitivity of Level 3 financial assets and liabilities

Much of our structured credit run-off business requires the application of valuation techniques using non-observable market inputs. In an inactive market, indicative broker quotes, proxy valuation from comparable financial instruments, and other internal models using our own assumptions of how market participants would price a market transaction on the measurement date (all of which we consider to be non-observable market inputs), are predominantly used for the valuation of these positions. We also consider whether a CVA is required to recognize the risk that any given counterparty to which we are exposed may not ultimately be able to fulfill its obligations.

For credit derivatives purchased from financial guarantors, our CVA is driven off market-observed credit spreads, where available and appropriate. For financial guarantors that do not have observable credit spreads or where observable credit spreads are available but do not reflect an orderly market (i.e., not representative of fair value), a proxy market credit spread is used. The proxy market credit spread is based on our internal credit rating for the particular financial guarantor. Credit spreads contain information on market (or proxy market) expectations of probability of default as well as loss given default. The credit spreads are applied in relation to the weighted-average life of our exposure to the counterparties. For financial guarantor counterparties where a proxy market credit spread is used, we also make an adjustment to reflect additional financial guarantor risk over an equivalently rated non-financial guarantor counterparty. The amount of the adjustment is dependent on all available internal and external market information for financial guarantors. The final CVA takes into account the expected correlation between the future performance of the underlying reference assets and that of the counterparties, except for high-quality reference assets where we have neither experienced nor expect future credit losses.

Where appropriate, on certain financial guarantors, we determined the CVA based on estimated recoverable amounts.

Interest-only strips from the sale of securitized assets are valued using prepayment rates, which we consider to be a non-observable market input.

Swap arrangements related to the sale of securitized assets are valued using liquidity rates, which we consider to be a non-observable market input.

ABS are sensitive to credit and liquidity spreads, which we consider to be non-observable market inputs.

FVO deposits that are not managed as part of our structured credit run-off business are sensitive to non-observable credit spreads, which are derived using extrapolation and correlation assumptions.

Certain bifurcated embedded derivatives, due to the complexity and unique structure of the instruments, require significant assumptions and judgment to be applied to both the inputs and valuation techniques, which we consider to be non-observable.

The effect of changing one or more of the assumptions to fair value these instruments to reasonably possible alternatives would impact net income or other comprehensive income (OCI) as described below.

Our unhedged structured credit positions (USRMM and non-USRMM) are sensitive to changes in MTM, generally as derived from indicative broker quotes and internal models as described above. A 10% adverse change in MTM of the underlyings would result in losses of approximately $49 million in our unhedged USRMM portfolio and $101 million in our non-USRMM portfolio, excluding unhedged non-USRMM positions classified as loans which are carried at amortized cost, and before the impact of a limited recourse note hedge. The fair value of the limited recourse note, which is a hedge of positions classified as USRMM, is expected to reasonably offset any changes in the fair value of the underlying positions.

For our hedged positions, there are two categories of sensitivities, the first relates to our hedged loan portfolio and the second relates to our hedged fair valued exposures. Since on-balance sheet hedged loans are carried at amortized cost whereas the related credit derivatives are fair valued, a 10% increase in the MTM of credit derivatives in our hedged structured credit positions would result in a net gain of approximately $19 million, assuming current CVA ratios remain unchanged. A 10% reduction in the MTM of our on-balance sheet fair valued exposures and a 10% increase in the MTM of all credit derivatives in our hedged structured credit positions would result in a net loss of approximately $8 million, assuming current CVA ratios remain unchanged.

The impact of a 10% increase in the MTM of unmatched credit derivatives, where we have purchased protection but do not have exposure to the underlying, would result in a net gain of approximately $1 million, assuming current CVA ratios remain unchanged.

The impact of a 10% reduction in receivables, net of CVA from financial guarantors, would result in a net loss of approximately $47 million.

A 10% increase in prepayment rates pertaining to our retained interests related to the interest-only strip, resulting from the sale of securitized assets, would result in a net loss of approximately $21 million.

A 20 basis point decrease in liquidity rates used to fair value our derivatives related to the sale of securitized assets would result in a loss of approximately $92 million.

A 10% reduction in the MTM of our on-balance sheet ABS that are valued using non-observable credit and liquidity spreads would result in a decrease in OCI of approximately $200 million.

A 10% reduction in the MTM of certain FVO deposits which are not managed as part of our structured credit run-off business and are valued using non-observable inputs, including correlation and extrapolated credit spreads, would result in a gain of approximately $4 million.

A 10% reduction in the MTM of certain bifurcated embedded derivatives, valued using internally vetted valuation techniques, would result in a gain of approximately $25 million.

A net loss of $58 million and a net gain of $63 million, for the quarter and six months ended April 30, 2011, respectively (net gain of $378 million and $384 million for the quarter and six months ended April 30, 2010, respectively) were recognized in the interim consolidated statement of operations, on the financial instruments for which fair value was estimated using valuation techniques requiring non-observable market parameters.

The following table summarizes our valuation adjustments:

    <<
    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Trading securities
      Market risk                                       $       2  $       2
    Derivatives
      Market risk                                              61         64
      Credit risk                                             191        325
      Administration costs                                      6          6
    -------------------------------------------------------------------------
    Total valuation adjustments                         $     260  $     397
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Risk factors related to fair value adjustments

We believe that we have made appropriate fair value adjustments and have taken appropriate write-downs to date. The establishment of fair value adjustments and the determination of the amount of write-downs involve estimates that are based on accounting processes and judgments by management. We evaluate the adequacy of the fair value adjustments and the amount of write-downs on an ongoing basis. Fair value adjustments and write-downs may change as events warrant and may not reflect ultimate realizable amounts.

Contingent liabilities

CIBC is a party to a number of legal proceedings, including regulatory investigations, in the ordinary course of its business. While it is inherently difficult to predict the outcome of such matters, based on current knowledge and consultation with legal counsel, we do not expect that the outcome of any of these matters, individually or in aggregate, would have a material adverse effect on our consolidated financial position. However, the outcome of any such matters, individually or in aggregate, may be material to our operating results for a particular period.

In the fourth quarter of 2008, we recognized a gain of $895 million (US$841 million), resulting from the reduction to zero of our unfunded commitment on a VFN issued by a CDO. This reduction followed certain actions of the indenture trustee for the CDO following the September 15, 2008 bankruptcy filing of Lehman Brothers Holdings, Inc. (Lehman), the guarantor of a related credit default swap agreement with the CDO.

In September 2010, just prior to the expiration of a statute of limitations, the Lehman Estate instituted an adversary proceeding against numerous financial institutions, indenture trustees and note holders, including CIBC, related to this and more than 40 other CDOs. The Lehman Estate seeks a declaration that the indenture trustee's actions were improper and that CIBC remains obligated to fund the VFN. In October 2010, the bankruptcy court issued an order, at the request of the Lehman Estate, staying all proceedings in the action for a period of nine months.

Although there can be no certainty regarding any eventual outcome, we believe that the CDO indenture trustee's actions in reducing the unfunded commitment on our VFN to zero, were fully supported by the terms of the governing contracts and the relevant legal standards and CIBC intends to vigorously contest the adversary proceeding.

U.S. regulatory developments

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) was enacted in the U.S. in July 2010. The Dodd-Frank Act contains financial reforms, including increased consumer protection, regulation of the over-the-counter (OTC) derivative markets, heightened capital and prudential standards, and restrictions on proprietary trading by banks. The Dodd-Frank Act will affect every financial institution in the U.S., and many financial institutions that operate outside the U.S. As many aspects of the Dodd-Frank Act are subject to rulemaking and will be implemented over several years, the impact on CIBC is difficult to anticipate until the implementing regulations are finalized and released. At this point, we do not expect the Dodd-Frank Act to have a significant impact on our results.

Transition to International Financial Reporting Standards (IFRS)

Canadian publicly accountable enterprises must transition to IFRS for fiscal years beginning on or after January 1, 2011. As a result, we will adopt IFRS commencing November 1, 2011 and will publish our first interim consolidated financial statements, prepared in accordance with IFRS, for the quarter ending January 31, 2012. Upon adoption, we will provide fiscal 2011 comparative financial information, also prepared in accordance with IFRS, including an opening IFRS consolidated balance sheet as at November 1, 2010.

The transition to IFRS represents a significant initiative for CIBC and is supported by a formal governance structure with an enterprise view and a dedicated project team. Our IFRS transition program has been divided into three phases: (i) discovery; (ii) execution; and (iii) conversion. The discovery phase included an accounting diagnostic, which identified the accounting standards that are relevant to CIBC, and the identification and planning for the execution phase. The execution phase, which we are currently in, commenced with a detailed analysis of the IFRS standards and continues through to the preparation of the policies, processes, technologies, strategies, and reporting for the upcoming transition. The final conversion phase will report on the new IFRS standards in 2012 and reconcile Canadian GAAP to IFRS with fiscal 2011 comparative information under IFRS.

Our IFRS transition project continues to progress on track with our transition plan. We have appropriately engaged our external and internal auditors to review key milestones and activities as we progress through the transition. The opening IFRS consolidated balance sheet is in the process of being audited, which will be completed during the remainder of fiscal 2011.

Process, financial reporting controls, and technology

Consistent with our work effort in the last two quarters of fiscal 2010, we completed a significant amount of the development of the business processes and internal controls over financial reporting to enable us to prepare our comparative opening November 1, 2010 consolidated balance sheet and restate our comparative fiscal 2011 consolidated financial statements to IFRS, while at the same time preparing normal course fiscal 2011 Canadian GAAP financial information. Our technology-based comparative year reporting facility is currently being utilized to track 2011 comparative IFRS financial information.

In the first and second quarters of the fiscal 2011 comparative year, the focus was on preparing the IFRS opening November 1, 2010 consolidated balance sheet. In the second quarter, we also focused on the preparation of the statement of operations for the first comparative quarter of 2011 and the preparation of the IFRS 1, "First-Time Adoption of International Financial Reporting Standards", transition note with the accompanying financial statement reconciliations that will be included in our first published IFRS financial statements for the quarter ending January 31, 2012. We used our comparative year reporting facility together with our surrounding controls and processes to prepare these IFRS financial statement reconciliations.

We continue to develop the business processes and controls related to transactional level accounting, including those related to the greater use of on-balance sheet accounting as a result of IFRS differences concerning the derecognition of financial assets. While we identified additional resource and process requirements during fiscal 2010 as part of our assessment and execution work, we do not require any significant modifications to our supporting information technology systems, nor do we expect any significant changes to our business activities. Identified technology impacts continue to include the realignment of system feeds to more efficiently report our securitized mortgages on the consolidated balance sheet. More detailed work associated with streamlining the system feeds will continue to occur during fiscal 2011 in line with our plans.

Concurrent with preparing for the impact of IFRS on our financial reporting, we have also continued to focus on preparing CIBC for impacts that IFRS will have on the financial statements of our clients and counterparties, including impacts to our loan management processes, controls, and risk rating system.

Communications and training

Information regarding the progress of the project continued to be communicated to internal stakeholders during the first half of fiscal 2011, including our Audit Committee, senior executives and the Program Steering Committee, and to external stakeholders including our external auditor. Communications to external stakeholders will continue through the quarterly and annual reports. We also participated in an industry-sponsored IFRS education event to communicate the broad impacts of IFRS on the banking industry to analysts and investors. We have also communicated IFRS impacts to rating agencies.

We believe we have the financial reporting expertise to support our transition to IFRS. We have accounting policy staff dedicated to assessing the impact of IFRS and consulting with external advisors as necessary. In 2009, we launched an enterprise-wide training program to raise the level of awareness of IFRS throughout CIBC, and to prepare staff to perform in an IFRS environment. We completed the delivery of our training program during fiscal 2010, which included separate learning paths for: (i) groups that need to understand and execute on the impact of IFRS on CIBC and its subsidiaries; and (ii) groups, such as Risk Management and the businesses, that need to understand the impact of transitioning away from Canadian GAAP on CIBC as well as our Canadian clients and counterparties.

While the training was completed during fiscal 2010, refresh sessions were delivered during the first quarter of fiscal 2011, and will continue to be provided in 2011 as required.

Financial impacts

The requirements concerning the transition to IFRS are set out in IFRS 1, which generally requires that changes from Canadian GAAP be applied retroactively and reflected in our opening November 1, 2010 comparative IFRS consolidated balance sheet. However, there are a number of transitional elections, some of which entail an exemption from full restatement, available under the transitional rules that we continue to evaluate. We did finalize the transitional election related to the November 1, 2010 classification of financial instruments, including the designation of $350 million carrying value of Canadian GAAP loans and receivables (fair value of $270 million) as fair value through profit and loss under IFRS.

IFRS is expected to result in accounting policy differences in many areas. Based on existing IFRS and the assessment of our transitional elections to date, the areas that have the potential for the most significant impact to our financial and capital reporting include derecognition of financial instruments and the accounting for employment benefits. Other areas include, but are not limited to, consolidations, accounting for share-based compensation, measurement and impairment of equity instruments, accounting for foreign exchange, accounting for joint ventures, and measurement of loss contingencies. For more information on financial impacts, refer to pages 94 and 95 of our 2010 Annual Report.

Future changes

Proposed changes to the IFRS accounting standards which may be significant for us include changes in the areas of employee benefits, loan loss provisioning, the classification and measurement of financial instruments, and hedge accounting. We expect that the changes arising from the proposed standards will not be effective for us until the years following our IFRS transition in fiscal 2012. During the first half of fiscal 2011, we continued to monitor these proposed changes to IFRS, as well as potential changes in the interpretation of existing IFRS on our assessment of the financial, capital, and business implications of the transition to IFRS.

The impact of IFRS to us at transition will ultimately depend on the IFRS standards and capital reporting rules in effect at the time, transition elections that have not yet been finalized, and the prevailing business and economic facts and circumstances. The evolving nature of IFRS will likely also result in additional accounting changes, some of which may be significant, in the years following our initial transition. We continue to monitor changes in the standards and to adjust our plans accordingly.

Controls and procedures

Disclosure controls and procedures

CIBC's management, with the participation of the President and Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness, as at April 30, 2011, of CIBC's disclosure controls and procedures (as defined in the rules of the SEC and the Canadian Securities Administrators) and has concluded that such disclosure controls and procedures were effective.

Changes in internal control over financial reporting

There have been no changes in CIBC's internal control over financial reporting during the quarter ended April 30, 2011, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

    <<
                         CONSOLIDATED BALANCE SHEET
    -------------------------------------------------------------------------
                                                            2011        2010
    Unaudited, $ millions, as at                         Apr. 30     Oct. 31
    ------------------------------------------------------------- -----------
    ASSETS
    Cash and non-interest-bearing deposits with banks  $   2,133   $   2,190
    ------------------------------------------------------------- -----------
    Interest-bearing deposits with banks                  35,272       9,862
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
    Securities (Note 3)
    Trading                                               37,337      28,557
    Available-for-sale (AFS)                              25,861      26,621
    Designated at fair value (FVO)                        20,883      22,430
    ------------------------------------------------------------- -----------
                                                          84,081      77,608
    ------------------------------------------------------------- -----------
    Securities borrowed or purchased under resale
     agreements                                           38,853      37,342
    ------------------------------------------------------------- -----------
    Loans
    Residential mortgages                                 97,123      93,568
    Personal                                              34,270      34,335
    Credit card                                           10,501      12,127
    Business and government                               39,596      38,582
    Allowance for credit losses (Note 4)                  (1,686)     (1,720)
    ------------------------------------------------------------- -----------
                                                         179,804     176,892
    ------------------------------------------------------------- -----------
    Other
    Derivative instruments                                21,248      24,682
    Customers' liability under acceptances                 8,365       7,684
    Land, buildings and equipment                          1,593       1,660
    Goodwill                                               1,847       1,913
    Software and other intangible assets                     609         609
    Other assets (Note 9)                                 10,301      11,598
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
                                                          43,963      48,146
    ------------------------------------------------------------- -----------
                                                       $ 384,106   $ 352,040
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                           $ 114,282   $ 113,294
    Business and government                              153,548     127,759
    Bank                                                  10,772       5,618
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
                                                         278,602     246,671
    ------------------------------------------------------------- -----------
    Other
    Derivative instruments                                22,446      26,489
    Acceptances                                            8,365       7,684
    Obligations related to securities sold short          12,669       9,673
    Obligations related to securities lent or sold
     under repurchase agreements                          27,900      28,220
    Other liabilities                                     12,376      12,572
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
                                                          83,756      84,638
    ------------------------------------------------------------- -----------
    Subordinated indebtedness (Note 6)                     5,150       4,773
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
    Non-controlling interests                                156         168
    ------------------------------------------------------------- -----------
    Shareholders' equity
    Preferred shares                                       3,156       3,156
    Common shares (Note 7)                                 7,116       6,804
    Contributed surplus                                       90          96
    Retained earnings                                      6,801       6,095
    Accumulated other comprehensive income (AOCI)           (721)       (361)
    ------------------------------------------------------------- -----------
                                                          16,442      15,790
    ------------------------------------------------------------- -----------
                                                       $ 384,106   $ 352,040
    ------------------------------------------------------------- -----------
    ------------------------------------------------------------- -----------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.



                    CONSOLIDATED STATEMENT OF OPERATIONS
    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Interest income
    Loans                   $  1,865  $  1,971  $  1,720  $  3,836  $  3,481
    Securities borrowed or
     purchased under resale
     agreements                   87        96        32       183        62
    Securities                   493       502       353       995       724
    Deposits with banks           14        18        11        32        20
    ----------------------------------------------------- -------------------
                               2,459     2,587     2,116     5,046     4,287
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                     690       722       496     1,412       998
    Other liabilities            186       200        72       386       176
    Subordinated indebtedness     55        55        43       110        86
    Preferred share liabilities    -         -         8         -        16
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
                                 931       977       619     1,908     1,276
    ----------------------------------------------------- -------------------
    Net interest income        1,528     1,610     1,497     3,138     3,011
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and
     advisory fees               128       162        87       290       231
    Deposit and payment fees     183       186       184       369       374
    Credit fees                   93        92        77       185       164
    Card fees                     17        56        83        73       170
    Investment management
     and custodial fees          122       119       117       241       227
    Mutual fund fees             214       207       185       421       368
    Insurance fees, net of
     claims                       73        79        66       152       133
    Commissions on securities
     transactions                138       139       120       277       241
    Trading income (Note 8)       10        53       178        63       511
    AFS securities gains, net     40        64        65       104       158
    FVO losses, net (Note 1)     (81)      (98)      (88)     (179)     (293)
    Income from securitized
     assets                      270       215       120       485       271
    Foreign exchange other
     than trading                 32        70        65       102       143
    Other                        122       147       165       269       273
    ----------------------------------------------------- -------------------
                               1,361     1,491     1,424     2,852     2,971
    ----------------------------------------------------- -------------------
    Total revenue              2,889     3,101     2,921     5,990     5,982
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 4)             194       209       316       403       675
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation
     and benefits (Note 10)      995     1,057       923     2,052     1,904
    Occupancy costs              165       161       163       326       314
    Computer, software and
     office equipment            246       244       241       490       483
    Communications                76        75        76       151       145
    Advertising and business
     development                  51        47        47        98        89
    Professional fees             42        36        48        78        91
    Business and capital taxes    10        12        24        22        44
    Other                        209       190       156       399       356
    ----------------------------------------------------- -------------------
                               1,794     1,822     1,678     3,616     3,426
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Income before income
     taxes and non-controlling
     interests                   901     1,070       927     1,971     1,881
    Income tax expense           221       268       261       489       547
    ----------------------------------------------------- -------------------
                                 680       802       666     1,482     1,334
    Non-controlling interests      2         3         6         5        22
    ----------------------------------------------------- -------------------
    Net income                   678       799       660     1,477     1,312
    Preferred share dividends
     and premiums                 42        42        43        84        85
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net income applicable
     to common shares       $    636  $    757  $    617  $  1,393  $  1,227
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)
      - Basic                395,373   393,193   386,865   394,265   385,634
      - Diluted              396,394   394,195   387,865   395,276   386,713
    Earnings per share
     (in dollars) (Note 11)
      - Basic               $   1.61  $   1.92  $   1.60  $   3.53  $   3.18
      - Diluted             $   1.60  $   1.92  $   1.59  $   3.52  $   3.17
    Dividends per common
     share (in dollars)     $   0.87  $   0.87  $   0.87  $   1.74  $   1.74
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.



               CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net income              $    678  $    799  $    660  $  1,477  $  1,312
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Other comprehensive
     income (OCI), net of tax
      Net foreign currency
       translation
       adjustments
      Net gains (losses) on
       investments in self-
       sustaining foreign
       operations               (273)      (94)     (257)     (367)     (314)
      Net gains (losses) on
       hedges of investments
       in self-sustaining
       foreign operations         84        29        77       113        94
    ----------------------------------------------------- -------------------
                                (189)      (65)     (180)     (254)     (220)
    ----------------------------------------------------- -------------------
      Net change in
       available-for-sale
       (AFS) securities
      Net unrealized gains
       (losses) on AFS
       securities                 22       (68)     (158)      (46)      (46)
      Net (gains) losses
       on AFS securities
       reclassified to
       net income                (16)      (29)       (6)      (45)      (42)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
                                   6       (97)     (164)      (91)      (88)
    ----------------------------------------------------- -------------------
      Net change in cash
       flow hedges
      Net gains (losses) on
       derivatives designated
       as cash flow hedges       (10)      (16)        8       (26)       (2)
      Net (gains) losses on
       derivatives designated
       as cash flow hedges
       reclassified to
       net income                  7         4        14        11        18
    ----------------------------------------------------- -------------------
                                  (3)      (12)       22       (15)       16
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Total OCI               $   (186) $   (174) $   (322) $   (360) $   (292)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Comprehensive income    $    492  $    625  $    338  $  1,117  $  1,020
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    The income tax allocated to each component of OCI is presented in the
    table below:

    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Income tax (expense)
     benefit
      Net foreign currency
       translation
       adjustments
      Net gains (losses) on
       investments in self-
       sustaining foreign
       operations           $      1  $      -  $      3  $      1  $      5
      Net gains (losses) on
       hedges of investments
       in self-sustaining
       foreign operations        (18)       (7)      (18)      (25)      (22)
    ----------------------------------------------------- -------------------
                                 (17)       (7)      (15)      (24)      (17)
    ----------------------------------------------------- -------------------
      Net change in AFS
       securities
      Net unrealized gains
       (losses) on AFS
       securities                  2        22        64        24        19
      Net (gains) losses
       on AFS securities
       reclassified to
       net income                  8        13         2        21        20
    ----------------------------------------------------- -------------------
                                  10        35        66        45        39
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
      Net change in cash
       flow hedges
      Net gains (losses) on
       derivatives designated
       as cash flow hedges         2         8        (4)       10         -
      Net (gains) losses on
       derivatives designated
       as cash flow hedges
       reclassified to
       net income                  -        (3)       (2)       (3)       (2)
    ----------------------------------------------------- -------------------
                                   2         5        (6)        7        (2)
    ----------------------------------------------------- -------------------
                            $     (5) $     33  $     45  $     28  $     20
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.



          CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning
     and end of period      $  3,156  $  3,156  $  3,156  $  3,156  $  3,156
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at beginning
     of period              $  6,951  $  6,804  $  6,372  $  6,804  $  6,241
    Issue of common shares       165       147       137       312       268
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  7,116  $  6,951  $  6,509  $  7,116  $  6,509
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $     96  $     96  $     94  $     96  $     92
    Stock option expense           1         2         3         3         6
    Stock options exercised       (7)       (2)       (1)       (9)       (2)
    Other                          -         -        (2)        -        (2)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $     90  $     96  $     94  $     90  $     94
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period              $  6,509  $  6,095  $  5,432  $  6,095  $  5,156
    Net income                   678       799       660     1,477     1,312
    Dividends
      Preferred                  (42)      (42)      (43)      (84)      (85)
      Common                    (344)     (342)     (336)     (686)     (671)
    Other                          -        (1)        -        (1)        1
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  6,801  $  6,509  $  5,713  $  6,801  $  5,713
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    AOCI, net of tax
    Net foreign currency
     translation adjustments
    Balance at beginning
     of period              $   (640) $   (575) $   (535) $   (575) $   (495)
    Net losses on
     translation of net
     foreign operations         (189)      (65)     (180)     (254)     (220)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $   (829) $   (640) $   (715) $   (829) $   (715)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net unrealized gains
     (losses) on AFS
     securities
    Balance at beginning
     of period              $    100  $    197  $    200  $    197  $    124
    Net change in
     unrealized gains
     (losses) on AFS
     securities                    6       (97)     (164)      (91)      (88)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $    106  $    100  $     36  $    106  $     36
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Net gains (losses) on
     cash flow hedges
    Balance at beginning
     of period              $      5  $     17  $     (5) $     17  $      1
    Net change in
     unrealized gains
     (losses) on cash
     flow hedges                  (3)      (12)       22       (15)       16
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $      2  $      5  $     17  $      2  $     17
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Total AOCI, net of tax  $   (721) $   (535) $   (662) $   (721) $   (662)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
     and AOCI               $  6,080  $  5,974  $  5,051  $  6,080  $  5,051
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity
     at end of period       $ 16,442  $ 16,177  $ 14,810  $ 16,442  $ 14,810
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these interim consolidated
    financial statements.



                    CONSOLIDATED STATEMENT OF CASH FLOWS
    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income              $    678  $    799  $    660  $  1,477  $  1,312
    Adjustments to
     reconcile net income
     to cash flows provided
     by (used in) operating
     activities:
      Provision for credit
       losses                    194       209       316       403       675
      Amortization(1)             87        90        94       177       188
      Stock option expense         1         2         3         3         6
      Future income taxes        129       231       207       360       435
      AFS securities
       gains, net                (40)      (64)      (65)     (104)     (158)
      (Gains) losses on
       disposal of land,
       buildings and
       equipment                  (1)       (3)        2        (4)        2
      Other non-cash
       items, net                 56      (101)      (21)      (45)     (237)
      Changes in operating
       assets and liabilities
        Accrued interest
         receivable              (65)      146        20        81        84
        Accrued interest
         payable                 136      (301)        5      (165)      (78)
        Amounts receivable
         on derivative
         contracts            (1,797)    5,161     1,670     3,364     2,756
        Amounts payable on
         derivative
         contracts             1,791    (5,404)   (1,351)   (3,613)   (2,743)
        Net change in
         trading securities   (5,431)   (3,349)      984    (8,780)   (2,729)
        Net change in FVO
         securities            1,386       161     1,192     1,547     3,567
        Net change in other
         FVO assets and
         liabilities            (326)      223      (787)     (103)     (954)
        Current income taxes      39      (103)     (121)      (64)     (229)
        Other, net               410     1,019     1,536     1,429     1,749
    ----------------------------------------------------- -------------------
                              (2,753)   (1,284)    4,344    (4,037)    3,646
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) financing
     activities
    Deposits, net of
     withdrawals              20,006    12,808     3,545    32,814     4,967
    Obligations related to
     securities sold short     1,259     1,018     2,364     2,277     3,596
    Net obligations related
     to securities lent or
     sold under repurchase
     agreements               (2,289)    1,969    (5,696)     (320)   (1,044)
    Issue of subordinated
     indebtedness                  -     1,500     1,100     1,500     1,100
    Redemption/repurchase
     of subordinated
     indebtedness             (1,080)        -       (90)   (1,080)      (95)
    Redemption of preferred
     share liabilities             -      (604)        -      (604)        -
    Issue of common
     shares, net                 165       147       137       312       268
    Dividends                   (386)     (384)     (379)     (770)     (756)
    Other, net                   144      (232)     (588)      (88)   (2,624)
    ----------------------------------------------------- -------------------
                              17,819    16,222       393    34,041     5,412
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) investing
     activities
    Interest-bearing
     deposits with banks     (15,996)   (9,414)        -   (25,410)   (1,178)
    Loans, net of repayments  (6,218)   (3,971)   (7,494)  (10,189)  (16,136)
    Proceeds from
     securitizations           3,580     3,019     3,117     6,599     5,584
    Purchase of AFS
     securities               (7,629)   (9,348)  (10,144)  (16,977)  (27,613)
    Proceeds from sale of
     AFS securities            5,127     2,646    10,605     7,773    22,521
    Proceeds from maturity
     of AFS securities         4,501     5,232     6,137     9,733    14,637
    Net securities borrowed
     or purchased under
     resale agreements         2,158    (3,669)   (6,969)   (1,511)   (6,715)
    Net cash provided by
     dispositions                  -        54      (297)       54      (297)
    Purchase of land,
     buildings and equipment     (54)      (27)      (11)      (81)      (68)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
                             (14,531)  (15,478)   (5,056)  (30,009)   (9,265)
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks         (41)      (11)      (35)      (52)      (42)
    ----------------------------------------------------- -------------------
    Net increase (decrease)
     in cash and non-
     interest-bearing
     deposits with banks
     during period               494      (551)     (354)      (57)     (249)
    Cash and non-interest-
     bearing deposits with
     banks at beginning
     of period                 1,639     2,190     1,917     2,190     1,812
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash and non-interest-
     bearing deposits with
     banks at end of
     period(2)              $  2,133  $  1,639  $  1,563  $  2,133  $  1,563
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash interest paid      $    795  $  1,278  $    614  $  2,073  $  1,354
    Cash income taxes paid  $     54  $    139  $    175  $    193  $    342
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes amortization of buildings, furniture, equipment, leasehold
        improvements, software and other intangible assets.
    (2) Includes restricted cash balances of $238 million (January 31, 2011:
        $227 million; April 30, 2010: $252 million).

    The accompanying notes are an integral part of these interim consolidated
    financial statements.



           NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

    The unaudited interim consolidated financial statements of Canadian
    Imperial Bank of Commerce (CIBC) have been prepared in accordance with
    Canadian generally accepted accounting principles (GAAP). These financial
    statements follow the same accounting policies and their methods of
    application as CIBC's consolidated financial statements for the year
    ended October 31, 2010. CIBC's interim consolidated financial statements
    do not include all disclosures required by Canadian GAAP for annual
    financial statements and accordingly, should be read in conjunction with
    the consolidated financial statements for the year ended October 31,
    2010, as set out on pages 104 to 179 of the 2010 Annual Report.

    1.  Fair value of financial instruments

    The table below presents the level in the fair value hierarchy into which
    the fair values of financial instruments that are carried at fair value
    on the interim consolidated balance sheet are categorized:

    -------------------------------------------------------------------------
                                           Level 1                   Level 2
                             ----------------------   -----------------------
                                                       Valuation technique -
                                            Quoted                observable
                                      market price             market inputs
                             ----------------------   -----------------------
                                 2011         2010         2011         2010
    $ millions, as at         Apr. 30      Oct. 31      Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Financial assets
    Trading securities
    ------------------
    Government issued or
     guaranteed securities   $  7,380     $  4,158     $  7,887     $  8,463
    Corporate equity           16,835       11,818        1,565        1,090
    Corporate debt                  -            -        1,415        1,039
    Mortgage- and asset-
     backed securities              -            -          814          342
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             $ 24,215     $ 15,976     $ 11,681     $ 10,934
    -------------------------------------------------------------------------
    AFS securities
    --------------
    Government issued or
     guaranteed securities   $  2,188     $  7,398     $ 12,565     $  9,310
    Corporate equity              122          108            -            5
    Corporate debt                  -            -        3,913        2,713
    Mortgage- and asset-
     backed securities              -            -        3,574        3,656
    -------------------------------------------------------------------------
                             $  2,310     $  7,506     $ 20,052     $ 15,684
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FVO securities and loans $    107     $    307     $ 20,776     $ 22,124
    Derivative instruments        232          272       19,929       22,949
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total financial assets   $ 26,864     $ 24,061     $ 72,438     $ 71,691
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial liabilities
    Deposits                 $      -     $      -     $ (2,079)    $ (2,397)
    Derivative instruments       (376)        (265)     (19,695)     (23,148)
    Obligations related to
     securities sold short     (6,016)      (3,793)      (6,653)      (5,880)
    -------------------------------------------------------------------------
    Total financial
     liabilities             $ (6,392)    $ (4,058)    $(28,427)    $(31,425)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                           Level 3
                             ----------------------   -----------------------
                             Valuation technique -
                                    non-observable
                                     market inputs     Total        Total
                             ----------------------  -----------------------
                                 2011         2010      2011         2010
    $ millions, as at         Apr. 30      Oct. 31   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Financial assets
    Trading securities
    ------------------
    Government issued or
     guaranteed securities   $      -     $      -  $ 15,267     $ 12,621
    Corporate equity                -            -    18,400       12,908
    Corporate debt                  5           20     1,420        1,059
    Mortgage- and asset-
     backed securities          1,436        1,627     2,250        1,969
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                             $  1,441     $  1,647  $ 37,337     $ 28,557
    -------------------------------------------------------------------------
    AFS securities
    --------------
    Government issued or
     guaranteed securities   $      -     $      -  $ 14,753     $ 16,708
    Corporate equity                -            -       122          113
    Corporate debt                  9           23     3,922        2,736
    Mortgage- and asset-
     backed securities          3,014        2,826     6,588        6,482
    -------------------------------------------------------------------------
                             $  3,023     $  2,849  $ 25,385     $ 26,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FVO securities and loans $     11     $     20  $ 20,894     $ 22,451
    Derivative instruments      1,087        1,461    21,248       24,682
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total financial assets   $  5,562     $  5,977  $104,864     $101,729
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial liabilities
    Deposits                 $ (1,324)    $ (1,428)  $(3,403)(1)  $(3,825)(1)
    Derivative instruments     (2,375)      (3,076)  (22,446)     (26,489)
    Obligations related to
     securities sold short          -            -   (12,669)      (9,673)
    -------------------------------------------------------------------------
    Total financial
     liabilities             $ (3,699)    $ (4,504) $(38,518)    $(39,987)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises FVO deposits of $3,056 million (October 31, 2010:
        $3,530 million) and bifurcated embedded derivatives of $347 million
        (October 31, 2010: $295 million).


    There were no transfers of financial instruments between the levels
    during the quarter and six months ended April 30, 2011.

    The net loss recognized in the interim consolidated statement of
    operations on the financial instruments, for which fair value was
    estimated using valuation techniques requiring non-observable market
    parameters, for the quarter was $58 million and a net gain of $63 million
    for the six months ended April 30, 2011 (a net gain of $378 million and
    $384 million for the quarter and six months ended April 30, 2010,
    respectively).

    The following table presents the changes in fair value of assets,
    liabilities, and the net derivative assets and liabilities in Level 3.
    These instruments are measured at fair value utilizing non-observable
    market inputs. We often hedge positions with offsetting positions that
    may be classified in a different level. As a result, the gains and losses
    for assets and liabilities in the Level 3 category presented in the table
    below do not reflect the effect of offsetting gains and losses on the
    related hedging instruments that are classified in Level 1 and Level 2.

    -------------------------------------------------------------------------
                                    Net gains/(losses)
                                    included in income
                                   --------------------
                                                              Net
                                                       unrealized
                                                            gains/
    $ millions, as at                                     (losses)  Transfer
     or for the three    Opening      Reali-   Unreali-  included      in to
     months ended        balance      zed(1)  zed(1)(2)    in OCI    Level 3
    -------------------------------------------------------------------------
    Apr. 30, 2011
    --------------
    Trading securities  $  1,538   $     13   $    (23)  $      -   $      -
    AFS securities         2,646         26          -        (15)         -
    FVO securities
     and loans                11          -          -          -          -
    -------------------------------------------------------------------------
    Total financial
     assets             $  4,195   $     39   $    (23)  $    (15)  $      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Deposits(3)         $ (1,439)  $    (10)  $     41   $      -   $      -
    Derivative
     instruments (net)    (1,254)       (68)       (37)         -          -
    -------------------------------------------------------------------------
    Total financial
     liabilities        $ (2,693)  $    (78)  $      4   $      -   $      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2010
    --------------
    Trading securities  $  1,518   $     70   $    129   $      -   $      -
    AFS securities         3,239         16          1        (56)         2
    FVO securities
     and loans                39          9         (5)         -          -
    -------------------------------------------------------------------------
    Total financial
     assets             $  4,796   $     95   $    125   $    (56)  $      2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Deposits(3)         $   (925)  $    (57)  $   (141)  $      -   $(203)(4)
    Derivative
     instruments (net)    (2,014)       (32)      (302)         -      (6)
    -------------------------------------------------------------------------
    Total financial
     liabilities        $ (2,939)  $    (89)  $   (443)  $      -   $   (209)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------------------------
    $ millions, as at   Transfer  Purchases  Sales and
     or for the three     out of        and     settle-   Closing
     months ended        Level 3  issuances      ments    balance
    --------------------------------------------------------------
    Apr. 30, 2011
    --------------
    Trading securities  $      -   $      2   $    (89)  $  1,441
    AFS securities             -        773       (407)     3,023
    FVO securities
     and loans                 -          -          -         11
    --------------------------------------------------------------
    Total financial
     assets             $      -   $    775   $   (496)  $  4,475
    --------------------------------------------------------------
    --------------------------------------------------------------
    Deposits(3)         $      -   $    (31)  $    115   $ (1,324)
    Derivative
     instruments (net)         -         (1)        72     (1,288)
    --------------------------------------------------------------
    Total financial
     liabilities        $      -   $    (32)  $    187   $ (2,612)
    --------------------------------------------------------------
    --------------------------------------------------------------
    Oct. 31, 2010
    --------------
    Trading securities  $      -   $    342   $   (412)  $  1,647
    AFS securities            (1)       326       (678)     2,849
    FVO securities
     and loans                 -          -        (23)        20
    --------------------------------------------------------------
    Total financial
     assets             $     (1)  $    668   $ (1,113)  $  4,516
    --------------------------------------------------------------
    --------------------------------------------------------------
    Deposits(3)         $      -   $   (119)  $     17   $ (1,428)
    Derivative
     instruments (net)       (14)         4        749     (1,615)
    --------------------------------------------------------------
    Total financial
     liabilities        $    (14)  $   (115)  $    766   $ (3,043)
    --------------------------------------------------------------
    --------------------------------------------------------------
    (1) Includes foreign currency gains and losses.
    (2) Unrealized gains/losses relating to these assets and liabilities held
        at the end of the reporting period.
    (3) Comprises FVO deposits of $1,072 million (October 31, 2010:
        $1,188 million) and bifurcated embedded derivatives of $252 million
        (October 31, 2010: $240 million).
    (4) Transfer-in pertains to structured deposit notes containing
        bifurcated embedded derivatives carried at fair value.


    Sensitivity of Level 3 financial assets and liabilities

    Our approach for fair valuation of financial instruments is presented in
    Note 2 to the 2010 consolidated financial statements.

    Valuation techniques using non-observable market inputs are used for a
    number of financial instruments including our structured credit run-off
    business.

    Interest-only strips from the sale of securitized assets are valued using
    prepayment rates, which we consider to be a non-observable market input.

    Swap arrangements related to the sale of securitized assets are valued
    using liquidity rates, which we consider to be a non-observable market
    input.

    Asset-backed securities (ABS) are sensitive to credit and liquidity
    spreads, which we consider to be non-observable market inputs.

    FVO deposits that are not managed as part of our structured credit
    run-off business are sensitive to non-observable credit spreads, which
    are derived using extrapolation and correlation assumptions.

    Certain bifurcated embedded derivatives, due to the complexity and unique
    structure of the instruments, require significant assumptions and
    judgment to be applied to both the inputs and valuation techniques, which
    we consider to be non-observable.

    The effect of changing one or more of the assumptions to fair value these
    instruments to reasonably possible alternatives would impact net income
    or other comprehensive income (OCI) as described below.

    Our unhedged structured credit positions (U.S. residential mortgage
    market (USRMM) and non-USRMM) are sensitive to changes in mark-to-market
    (MTM), generally as derived from indicative broker quotes or internal
    models. A 10% adverse change in MTM of the underlyings would result in
    losses of approximately $49 million in our unhedged USRMM portfolio and
    $101 million in our non-USRMM portfolio, excluding unhedged non-USRMM
    positions classified as loans which are carried at amortized cost, and
    before the impact of a limited recourse note hedge. The fair value of the
    limited recourse note, which is a hedge of positions classified as USRMM,
    is expected to reasonably offset any changes in the fair value of the
    underlying positions.

    For our hedged positions, there are two categories of sensitivities; the
    first relates to our hedged loan portfolio and the second relates to our
    hedged fair valued exposures. Since on-balance sheet hedged loans are
    carried at amortized cost whereas the related credit derivatives are fair
    valued, a 10% increase in the MTM of credit derivatives in our hedged
    structured credit positions would result in a net gain of approximately
    $19 million, assuming current credit valuation adjustment (CVA) ratios
    remain unchanged. A 10% reduction in the MTM of our on-balance sheet fair
    valued exposures and a 10% increase in the MTM of all credit derivatives
    in our hedged structured credit positions would result in a net loss of
    approximately $8 million, assuming current CVA ratios remain unchanged.

    The impact of a 10% increase in the MTM of unmatched credit derivatives,
    where we have purchased protection but do not have exposure to the
    underlying, would result in a net gain of approximately $1 million,
    assuming current CVA ratios remain unchanged.

    The impact of a 10% reduction in receivables, net of CVA from financial
    guarantors, would result in a net loss of approximately $47 million.

    A 10% increase in prepayment rates pertaining to our retained interests
    related to the interest-only strip, resulting from the sale of
    securitized assets, would result in a net loss of approximately
    $21 million.

    A 20 basis point decrease in liquidity rates used to fair value our
    derivatives related to the sale of securitized assets would result in a
    loss of approximately $92 million.

    A 10% reduction in the MTM of our on-balance sheet ABS that are valued
    using non-observable credit and liquidity spreads would result in a
    decrease in OCI of approximately $200 million.

    A 10% reduction in the MTM of certain FVO deposits which are not managed
    as part of our structured credit run-off business and are valued using
    non-observable inputs, including correlation and extrapolated credit
    spreads, would result in a gain of approximately $4 million.

    A 10% reduction in the MTM of certain bifurcated embedded derivatives,
    valued using internally vetted valuation techniques, would result in a
    gain of approximately $25 million.

    Fair value option

    FVO designated assets and liabilities are those that (i) would otherwise
    cause measurement inconsistencies with hedging derivatives and securities
    sold short that are carried at fair value; or (ii) are managed on a fair
    value basis in accordance with a documented trading strategy and reported
    to key management personnel on that basis.

    The fair values of the FVO designated assets and liabilities (excluding
    hedges) were $20,894 million and $3,056 million, respectively, as at
    April 30, 2011 ($22,451 million and $3,530 million, respectively, as at
    October 31, 2010).

    The impact on the interim consolidated statement of operations from FVO
    designated instruments and related hedges and the impact of changes in
    credit spreads on FVO designated loans and liabilities are provided in
    the following table:

    -------------------------------------------------------------------------
                                                          Cumulative for the
                              For the three months ended      period ended(1)
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Impact of FVO
     designated instruments
     and related hedges
      Net interest income   $     59  $     54  $     68  $    113  $    136
      Non-interest income
       - FVO loss                (81)      (98)      (88)     (179)     (293)
    ----------------------------------------------------- -------------------
      Net loss              $    (22) $    (44) $    (20) $    (66) $   (157)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Gain (loss) from changes
     in credit spreads
      FVO designated loans  $      -  $      -  $      8  $      -  $     18
      FVO designated loans,
       net of related hedges       -         -         8         -         8
      FVO designated
       liabilities                 1         -        (1)        1        (1)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Change in the fair value of FVO financial instruments, held by CIBC
        at the end of the reporting period, since they were designated as
        FVO.


    2.  Significant disposition

    Sale of CIBC Mellon Trust Company's Issuer Services business

    Effective November 1, 2010, CIBC Mellon Trust Company (CMT), a 50/50
    joint venture between CIBC and The Bank of New York Mellon, sold its
    Issuer Services business (stock transfer and employee share purchase plan
    services). As a result of the sale, CIBC recorded an after-tax gain of
    $37 million in the first quarter of 2011 which is net of estimated
    clawback and post-closing adjustments that will be settled effective
    November 1, 2011. CMT's Issuer Services business results were reported in
    CIBC's Corporate and Other reporting segment and the results of its
    operations were not considered significant to CIBC's consolidated
    results.

    3.  Securities

    Fair value of AFS securities

    -------------------------------------------------------------------------
                                                                        2011
    $ millions, as at                                                Apr. 30
    -------------------------------------------------------------------------
                                                  Gross       Gross
                                  Amortized  unrealized  unrealized     Fair
                                       cost       gains      losses    value
    -------------------------------------------------------------------------
    AFS securities
    Securities issued or
     guaranteed by:
      Canadian federal government  $  3,984   $      4   $    (16)  $  3,972
      Other Canadian governments      4,544          7        (13)     4,538
      U.S. Treasury                   2,394         27         (8)     2,413
      Other foreign governments       3,799         40         (9)     3,830
    Mortgage-backed securities        4,538         64        (12)     4,590
    Asset-backed securities           1,976         23         (1)     1,998
    Corporate public debt             3,886          7         (4)     3,889
    Corporate public equity             115         13         (6)       122
    Corporate private debt               33          1         (1)        33
    Corporate private equity(1)         476        336         (5)       807
    -------------------------------------------------------------------------
                                   $ 25,745   $    522   $    (75)  $ 26,192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2010
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                  Gross       Gross
                                  Amortized  unrealized  unrealized     Fair
                                       cost       gains      losses    value
    -------------------------------------------------------------------------
    AFS securities
    Securities issued or
     guaranteed by:
      Canadian federal government  $  5,385   $      8   $     (2)  $  5,391
      Other Canadian governments      4,602         86          -      4,688
      U.S. Treasury                   3,343          5          -      3,348
      Other foreign governments       3,251         47        (17)     3,281
    Mortgage-backed securities        4,627        103         (3)     4,727
    Asset-backed securities           1,758         34        (37)     1,755
    Corporate public debt             2,659         18         (1)     2,676
    Corporate public equity             114          8         (9)       113
    Corporate private debt               52          9         (1)        60
    Corporate private equity(1)         582        337         (9)       910
    -------------------------------------------------------------------------
                                   $ 26,373   $    655   $    (79)  $ 26,949
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Carried at cost on the interim consolidated balance sheet as these do
        not have quoted market values in an active market.


    As at April 30, 2011, the amortized cost of 185 AFS securities that are
    in a gross unrealized loss position (October 31, 2010: 170 securities)
    exceeded their fair value by $75 million (October 31, 2010: $79 million).
    The securities that have been in a gross unrealized loss position for
    more than a year include 13 AFS securities (October 31, 2010: nine AFS
    securities), with a gross unrealized loss of $6 million (October 31,
    2010: $13 million). We have determined that the unrealized losses on
    these AFS securities are temporary in nature.

    Reclassification of financial instruments

    In October 2008, amendments made to the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement" and 3862 "Financial
    Instruments - Disclosures" permitted certain trading financial assets to
    be reclassified to held-to-maturity (HTM) and AFS in rare circumstances.
    In July 2009, amendments made to section 3855 resulted in the
    reclassification of these HTM securities to loans effective November 1,
    2008. During the six months period ended April 30, 2011, we have not
    reclassified any securities.

    The following tables show the carrying values, fair values, and income or
    loss impact of the assets reclassified in prior years to date:

    -------------------------------------------------------------------------
                                                  2011                  2010
    $ millions, as at                          Apr. 30               Oct. 31
    -------------------------------------------------------------------------
                                       Fair   Carrying       Fair   Carrying
                                      value      value      value      value
                                   ------------------------------------------
    Trading assets previously
     reclassified to HTM
     (currently in loans)          $  4,460   $  4,537   $  5,525   $  5,699
    Trading assets previously
     reclassified to AFS                 46         46         55         55
    -------------------------------------------------------------------------
    Total financial assets
     reclassified                  $  4,506   $  4,583   $  5,580   $  5,754
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2011      2011      2010      2011      2010
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net income (loss) before
     taxes, recognized on
     securities reclassified
    Gross income recognized
     in income statement    $     15  $      8  $     41  $     23  $     82
    Funding related
     interest expense            (14)      (18)      (17)      (32)      (42)
    ----------------------------------------------------- -------------------
    Net income (loss)
     recognized, before
     taxes                  $      1  $    (10) $     24  $     (9) $     40
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Impact on net income
     (loss) if
     reclassification had
     not been made
    On trading assets
     previously reclassified
     to HTM (currently
     in loans)              $     46  $     51  $    (70) $     97  $   (195)
    On trading assets
     previously reclassified
     to AFS                        2         -         3         2         2
    ----------------------------------------------------- -------------------
    Increase (decrease) in
     income, before taxes   $     48  $     51  $    (67) $     99  $   (193)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    4.  Loans

    Allowance for credit losses

    -------------------------------------------------------------------------
                                                            As at or for the
                                                          three months ended
                       ------------------------------------------------------
                                                  2011       2011       2010
                                               Apr. 30    Jan. 31    Apr. 30
                       ------------------------------------------------------
                        Specific    General      Total      Total      Total
    $ millions         allowance  allowance  allowance  allowance  allowance
    -------------------------------------------------------------------------
    Balance at
     beginning of
     period             $    628   $  1,135   $  1,763   $  1,784   $  2,039
    Provision for
     (reversal of)
     credit losses           210        (16)       194        209        316
    Write-offs              (230)         -       (230)      (255)      (301)
    Recoveries                27          -         27         31         32
    Other                    (17)        (2)       (19)        (6)       (16)
    -------------------------------------------------------------------------
    Balance at end of
     period             $    618   $  1,117   $  1,735   $  1,763   $  2,070
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans             $    618   $  1,068   $  1,686   $  1,700   $  2,002
      Undrawn credit
       facilities(1)           -         49         49         63         68
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ----------------------------------------
                           As at or for the
                           six months ended
                       ---------------------
                            2011       2010
                         Apr. 30    Apr. 30
                       ---------------------
                           Total      Total
    $ millions         allowance  allowance
    ----------------------------------------
    Balance at
     beginning of
     period             $  1,784   $  2,043
    Provision for
     (reversal of)
     credit losses           403        675
    Write-offs              (485)      (689)
    Recoveries                58         64
    Other                    (25)       (23)
    ----------------------------------------
    Balance at end of
     period             $  1,735   $  2,070
    ----------------------------------------
    ----------------------------------------
    Comprises:
      Loans             $  1,686   $  2,002
      Undrawn credit
       facilities(1)          49         68
    ----------------------------------------
    ----------------------------------------
    (1) Included in Other liabilities.


    Impaired loans
    -------------------------------------------------------------------------
                                             2011                       2010
    $ millions, as at                     Apr. 30                    Oct. 31
    -------------------------------------------------------------------------
                          Gross  Specific     Net    Gross  Specific     Net
                         amount allowance   total   amount allowance   total
    -------------------------------------------------------------------------
    Residential
     mortgages          $   418  $    31  $   387  $   452  $    30  $   422
    Personal                286      213       73      304      224       80
    Business and
     government           1,038      374      664    1,080      377      703
    -------------------------------------------------------------------------
    Total impaired
     loans(1)           $ 1,742  $   618  $ 1,124  $ 1,836  $   631  $ 1,205
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Average balance of gross impaired loans for the quarter ended
        April 30, 2011 totalled $1,769 million (for the quarter ended
        October 31, 2010: $1,994 million).


    Contractually past due loans but not impaired
    -------------------------------------------------------------------------
                                                              2011      2010
                                                           Apr. 30   Oct. 31
                           --------------------------------------------------
                           Less than     31 to      Over
    $ millions, as at        31 days   90 days   90 days     Total     Total
    -------------------------------------------------------------------------
    Residential mortgages   $  1,455  $    446  $    173  $  2,074  $  2,375
    Personal                     434       129        20       583       591
    Credit card                  570       169       112       851     1,021
    Business and government      254       216        26       496       555
    -------------------------------------------------------------------------
                            $  2,713  $    960  $    331  $  4,004  $  4,542
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    5.  Securitizations and variable interest entities

    Securitizations

    The following table summarizes our securitization and sales activity:

    -------------------------------------------------------------------------
                                                   For the three months ended
                                ---------------------------------------------
                                       2011                  2011        2010
                                    Apr. 30               Jan. 31     Apr. 30
                                ----------- --------------------- -----------
                                Residential Residential    Credit Residential
    $ millions                    mortgages   mortgages card(1)(2)  mortgages
    -------------------------------------------------------------------------
    Securitized(3)                 $  2,992   $  4,308   $  1,671   $  2,353
    Sold(3)                           3,598      3,013      1,671      3,120
    Net cash proceeds                 3,580      3,019      1,671      3,117
    Retained interests                  143        122      1,671        126
    Gain on sale, net of
     transaction costs                   72         65          -         57
    -------------------------------------------------------------------------
    Retained interest
     assumptions (%)(4)
    Weighted-average remaining
     life (in years)                    2.8        2.8        n/a        3.5
    Prepayment/payment rate          15.0 -     15.0 -        n/a     15.0 -
                                       18.0       18.0                  18.0
    Internal rate of return           2.4 -      1.4 -        n/a      1.6 -
                                        9.1        9.3                   9.3
    Expected credit losses            0.0 -      0.0 -        n/a      0.0 -
                                        0.4        0.4                   0.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------------------------
                                          For the six months ended
                                 ---------------------------------
                                                  2011        2010
                                               Apr. 30     Apr. 30
                                 --------------------- -----------
                                 Residential    Credit Residential
    $ millions                     mortgages card(1)(2)  mortgages
    --------------------------------------------------------------
    Securitized(3)                 $  7,300   $  1,671   $  3,704
    Sold(3)                           6,611      1,671      5,564
    Net cash proceeds                 6,599      1,671      5,584
    Retained interests                  265      1,671        244
    Gain on sale, net of
     transaction costs                  137          -        115
    --------------------------------------------------------------
    Retained interest
     assumptions (%)(4)
    Weighted-average remaining
     life (in years)                    2.8        n/a        3.4
    Prepayment/payment rate          15.0 -        n/a     15.0 -
                                       18.0                  18.0
    Internal rate of return           1.4 -        n/a      1.6 -
                                        9.3                   9.3
    Expected credit losses            0.0 -        n/a      0.0 -
                                        0.4                   0.4
    --------------------------------------------------------------
    --------------------------------------------------------------

    (1) Reinvestment in revolving securitizations is not included.
    (2) During the first quarter, we securitized $1.7 billion of credit card
        receivables and purchased all of the retained interests, in the form
        of notes, relating to the securitization.
    (3) Includes $51 million (January 31, 2011: $85 million; April 30, 2010:
        $68 million) of uninsured fixed-rate mortgages securitized to a
        qualifying special purpose entity (QSPE).
    (4) These retained interest assumptions are applicable only to
        interest-only strips.
    n/a Not applicable. The retained interest is in the form of notes to
        which these assumptions do not apply.


    The following table provides details on our securitization exposures:

    -------------------------------------------------------------------------
                                             Residential mortgages
                                ---------------------------------------------
                                                 Prime
                                              and Near
                                    CMB/NHA     Prime/
                                    auction      Alt-A    Credit Commercial
    $ millions, as at             program(1) program(2)     Card  mortgages
    -------------------------------------------------------------------------
    Apr. 30, Retained interests
     2011     in securitized
              assets sold(3)       $    916   $    141   $  2,138   $      5
             Assets securitized
              and not sold           18,222          -          -          -
             Liquidity facilities(4)      -        874          -          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, Retained interests
     2010     in securitized
              assets sold(3)       $    961   $    331   $    591   $      5
             Assets securitized
              and not sold           19,651          -          -          -
             Liquidity facilities(4)      -        772          -          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes balances related to Canada Mortgage Bond and Government of
        Canada National Housing Act MBS Auction process and other Canada
        Mortgage and Housing Corporation (CMHC) and mortgage-backed
        securities (MBS) programs. Credit losses are not expected as the
        mortgages are insured.
    (2) The Near-Prime/Alt-A mortgages have an average loss rate over the
        past five years of 38 basis points (October 31, 2010: 37 basis
        points) and an average loan-to-value ratio of 74% (October 31, 2010:
        74%). Total assets in the QSPE were $943 million (October 31, 2010:
        $1,019 million), which include $316 million (October 31, 2010:
        $352 million) of Prime mortgages and $577 million (October 31, 2010:
        $586 million) of Near-Prime/Alt-A mortgages.
    (3) Includes retained interest purchased subsequent to the initial
        securitization.
    (4) Net of investments in our securitization vehicles.


    Variable interest entities (VIEs)

    The details of our VIEs are provided on pages 135 and 136 of the 2010
    Annual Report.

    VIEs that are consolidated

    The table below provides details on the assets that support the
    obligations of the consolidated VIEs:

    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Trading securities                                     $  710     $  818
    AFS securities                                             74         85
    Residential mortgages                                      75         62
    Other assets                                                2          1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total assets                                           $  861     $  966
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    VIEs that are not consolidated

    Our on-balance sheet amounts and maximum exposure to loss related to VIEs
    that are not consolidated are set out in the table below. The maximum
    exposure comprises the carrying value for investments, the notional
    amounts for liquidity and credit facilities, and the notional amounts
    less accumulated fair value losses for written credit derivatives on VIE
    reference assets less hedged positions excluding the impact of CVA.

    -------------------------------------------------------------------------
                                      CIBC-           Third-party
                           CIBC- structured   structured vehicles
    $ millions, as at  sponsored        CDO  ---------------------
     April 30, 2011   conduits(1)  vehicles    Run-off Continuing      Total
    -------------------------------------------------------------------------
    On-balance sheet
     assets(2)
    Trading securities $       5  $       -   $    560  $     305  $     870
    AFS securities             -          5          2      1,832      1,839
    FVO                        -          -          -        130        130
    Loans                     73        385      5,060         38      5,556
    Derivatives(3)             -          -          -         74         74
    -------------------------------------------------------------------------
    Total assets       $      78  $     390   $  5,622  $   2,379  $   8,469
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2010      $     182  $     448   $  7,696  $   1,962  $  10,288
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    On-balance sheet
     liabilities
    Derivatives(3)     $       -  $      30   $    811  $      24  $     865
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total liabilities  $       -  $      30   $    811  $      24  $     865
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2010      $       -  $      36   $  1,084  $       2  $   1,122
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Maximum exposure to loss, net of hedges
    Maximum exposure to loss before hedge positions                $  14,502
    Less: notional of protection purchased on hedges relating to
     written credit derivatives, less gross receivable on those
     hedges                                                           (3,659)
    Less: carrying value of hedged securities and loans               (5,441)
    -------------------------------------------------------------------------
    Maximum exposure to loss, net of hedges                        $   5,402
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2010                                                  $   6,164
    -------------------------------------------------------------------------
    (1) Includes several multi-seller conduits and a single-seller conduit.
        Total assets of multi-seller conduits amounted to $1.6 billion
        (October 31, 2010: $2.3 billion) which includes the underlying
        collateral amounts of $1.5 billion (October 31, 2010: $2.1 billion).
        Certain of our multi-seller conduits also hold commercial paper
        issued by our other conduits. Total assets of our single-seller
        conduit amounted to $410 million (October 31, 2010: $403 million).
    (2) Excludes securities issued by, retained interests in, and derivatives
        with entities established by CMHC, Federal National Mortgage
        Association (Fannie Mae), Federal Home Loan Mortgage Corporation
        (Freddie Mac), Government National Mortgage Association (Ginnie Mae),
        Federal Home Loan Banks, Federal Farm Credit Bank, and Student Loan
        Marketing Association (Sallie Mae).
    (3) Comprises credit derivatives (written options and total return swaps)
        under which we assume exposures and excludes all other derivatives.


    6.  Subordinated indebtedness

    On November 2, 2010, we issued $1,500 million principal amount of 3.15%
    Debentures (subordinated indebtedness) due November 2, 2020. The
    Debentures qualify as Tier 2 capital.

    On March 28, 2011, we redeemed all $1,080 million of our remaining 4.55%
    Medium Term Notes (subordinated indebtedness) due March 28, 2016. In
    accordance with their terms, the Medium Term Notes were redeemed at 100%
    of their principal amount, plus accrued and unpaid interest thereon.

    7.  Share capital

    Common shares

    -------------------------------------------------------------------------
                                                  For the three months ended
    -------------------------------------------------------------------------
                                   2011              2011               2010
                                Apr. 30           Jan. 31            Apr. 30
                     --------------------------------------------------------
                          Number            Number            Number
                       of shares         of shares         of shares
    $ millions         (millions) Amount (millions) Amount (millions) Amount
    -------------------------------------------------------------------------
    Balance at
     beginning of
     period                394.8 $ 6,951     392.7 $ 6,804     386.5 $ 6,372
    Issuance pursuant
     to:
      Stock option
       plans                 0.6      40       0.5      26       0.4      21
      Shareholder
       Investment
       Plan(1)               1.3     105       1.3      99       1.4     101
      Employee Share
       Purchase Plan         0.2      20       0.3      22       0.2      15
    -------------------------------------------------------------------------
    Balance at end of
     period                396.9 $ 7,116     394.8 $ 6,951     388.5 $ 6,509
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------

                                 For the six months ended
    -------------------------------------------------------
                                   2011              2010
                                Apr. 30           Apr. 30
                     --------------------------------------
                          Number            Number
                       of shares         of shares
    $ millions         (millions) Amount (millions) Amount
    -------------------------------------------------------
    Balance at
     beginning of
     period                392.7 $ 6,804     384.0 $ 6,241
    Issuance pursuant
     to:
      Stock option
       plans                 1.1      66       1.5      64
      Shareholder
       Investment
       Plan(1)               2.6     204       2.8     189
      Employee Share
       Purchase Plan         0.5      42       0.2      15
    -------------------------------------------------------
    Balance at end of
     period                396.9 $ 7,116     388.5 $ 6,509
    -------------------------------------------------------
    -------------------------------------------------------
    (1) Commencing with dividends paid on April 28, 2011, the participants in
        the Dividend Reinvestment Option and Stock Dividend Option of the
        Shareholder Investment Plan receive a 2% discount from average market
        price on the reinvested dividends in additional common shares.
        Previously, the shares were issued at a 3% discount.


    Preferred shares

    On April 28, 2011, we redeemed all 2,000 of the remaining outstanding
    Non-cumulative Class A Series 28 Preferred Shares at a price of $10.00
    per share for cash.

    Regulatory capital and ratios

    Our capital ratios and assets-to-capital multiple are presented in the
    following table:


    -------------------------------------------------------------------------
                                                             2011       2010
    $ millions, as at                                     Apr. 30    Oct. 31
    -------------------------------------------------------------------------
    Capital
    Tier 1 capital                                      $  15,656  $  14,851
    Total regulatory capital                               20,047     18,966
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Risk-weighted assets
    Credit risk                                         $  85,405  $  86,782
    Market risk                                             2,575      1,625
    Operational risk                                       18,356     18,256
    -------------------------------------------------------------------------
    Total risk-weighted assets                          $ 106,336  $ 106,663
    -------------------------------------------------------------------------
    Capital ratios
    Tier 1 capital ratio                                    14.7%      13.9%
    Total capital ratio                                     18.9%      17.8%
    Assets-to-capital multiple                              18.2x      17.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the quarter and six months ended April 30, 2011, we have complied
    in full with all of our regulatory capital requirements.


    8.  Financial guarantors

    We have derivative contracts with financial guarantors to hedge our
    exposure on various reference assets. During the quarter and six months
    ended April 30, 2011, we recorded a net gain of $19 million and
    $46 million, respectively (net gain of $330 million and $718 million for
    the quarter and six months ended April 30, 2010, respectively) on the
    hedging contracts provided by financial guarantors in trading revenue.
    Separately, we recorded a net loss of $39 million on termination of
    contracts with financial guarantors for the quarter and six months ended
    April 30, 2011 (net loss of $106 million and $161 million for the quarter
    and six months ended April 30, 2010, respectively).

    The related valuation adjustments were $173 million as at April 30, 2011
    (October 31, 2010: $291 million).

    The fair value of derivative contracts with financial guarantors, net of
    valuation adjustments, was $470 million as at April 30, 2011 (October 31,
    2010: $734 million).

    We believe that we have made appropriate fair value adjustments to date.
    The establishment of fair value adjustments involves estimates that are
    based on accounting processes and judgments by management.

    We evaluate the adequacy of the fair value adjustments on an ongoing
    basis. Market and economic conditions relating to these counterparties
    may change in the future, which could result in significant future
    losses.

    9.  Income taxes

    Future income tax asset

    As at April 30, 2011, our future income tax asset was $418 million
    (October 31, 2010: $767 million), net of a $63 million valuation
    allowance (October 31, 2010: $66 million). Included in the future income
    tax asset as at April 30, 2011 were $69 million (October 31, 2010:
    $385 million) related to Canadian non-capital loss carryforwards that
    expire in 18 years, $54 million (October 31, 2010: $54 million) related
    to Canadian capital loss carryforwards that have no expiry date, and
    $196 million (October 31, 2010: $267 million) related to our U.S.
    operations.

    Accounting standards require a valuation allowance when it is more likely
    than not that all or a portion of a future income tax asset will not be
    realized prior to its expiration. Although realization is not assured, we
    believe that based on all available evidence, it is more likely than not
    that all of the future income tax asset, net of the valuation allowance,
    will be realized.

    Enron

    In prior years, the Canada Revenue Agency (CRA) issued reassessments
    disallowing the deduction of approximately $3.0 billion of the 2005 Enron
    settlement payments and related legal expenses. In 2010, we filed Notices
    of Appeal with the Tax Court of Canada. On September 30 and November 12,
    2010, we received Replies from the Department of Justice which confirmed
    CRA's reassessments. The matter is currently in litigation. We believe
    that we will be successful in sustaining at least the amount of the
    accounting tax benefit recognized to date.

    Should we successfully defend our tax filing position in its entirety, we
    would be able to recognize an additional accounting tax benefit of
    $214 million and taxable refund interest of approximately $171 million.
    Should we fail to defend our position in its entirety, additional tax
    expense of approximately $862 million and non-deductible interest of
    approximately $123 million would be incurred.

    10. Employee future benefit expenses

    -------------------------------------------------------------------------
                                                          For the six months
                          For the three months ended                   ended
                        -------------------------------  --------------------
                            2011       2011       2010       2011       2010
    $ millions           Apr. 30    Jan. 31    Apr. 30    Apr. 30    Apr. 30
    ---------------------------------------------------  --------------------
    Defined benefit plans
      Pension benefit
       plans              $   65     $   65     $   44     $  130     $   88
      Other benefit plans      9         10          9         19         19
    ---------------------------------------------------  --------------------
    Total defined benefit
     expense              $   74     $   75     $   53     $  149     $  107
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    Defined contribution
     plans
      CIBC's pension
       plans              $    3     $    3     $    3     $    6      $   6
      Government pension
       plans(1)               19         20         19         39         37
    ---------------------------------------------------  --------------------
    Total defined
     contribution expense $   22     $   23     $   22     $   45      $  43
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    11. Earnings per share (EPS)

    -------------------------------------------------------------------------
                                                          For the six months
                          For the three months ended                   ended
    $ millions,         -------------------------------  --------------------
     except per share      2011       2011       2010       2011       2010
     amounts             Apr. 30    Jan. 31    Apr. 30    Apr. 30    Apr. 30
    ---------------------------------------------------  --------------------
    Basic EPS
    Net income            $  678     $  799     $  660     $1,477     $1,312
    Preferred share
     dividends and
     premiums                (42)       (42)       (43)       (84)       (85)
    ---------------------------------------------------  --------------------
    Net income applicable
     to common shares     $  636     $  757     $  617     $1,393     $1,227
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    Weighted-average
     common shares
     outstanding
     (thousands)         395,373    393,193    386,865    394,265    385,634
    ---------------------------------------------------  --------------------
    Basic EPS             $ 1.61     $ 1.92     $ 1.60     $ 3.53     $ 3.18
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    Diluted EPS
    Net income applicable
     to common shares     $  636     $  757     $  617     $1,393     $1,227
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    Weighted-average
     common shares
     outstanding
     (thousands)         395,373    393,193    386,865    394,265    385,634
    Add: stock options
     potentially
     exercisable(1)
     (thousands)           1,021      1,002      1,000      1,011      1,079
    ---------------------------------------------------  --------------------
    Weighted-average
     diluted common
     shares
     outstanding(2)
     (thousands)         396,394    394,195    387,865    395,276    386,713
    ---------------------------------------------------  --------------------
    Diluted EPS           $ 1.60     $ 1.92     $ 1.59     $ 3.52     $ 3.17
    ---------------------------------------------------  --------------------
    ---------------------------------------------------  --------------------
    (1) Excludes average options outstanding of 346,600 with a weighted-
        average exercise price of $96.00; average options outstanding of
        1,180,974 with a weighted-average exercise price of $84.21; and
        average options outstanding of 1,635,786 with a weighted-average
        exercise price of $80.85 for the quarter ended April 30, 2011,
        January 31, 2011, and April 30, 2010, respectively, as the options'
        exercise prices were greater than the average market price of CIBC's
        common shares.
    (2) Convertible preferred shares and preferred share liabilities have not
        been included in the calculation because in the past either we have
        settled preferred shares for cash or we have not exercised our
        conversion right.


    12. Guarantees

    -------------------------------------------------------------------------
                                                  2011                  2010
    $ millions, as at                          Apr. 30               Oct. 31
    -------------------------------------------------------------------------
                                    Maximum               Maximum
                                  potential             potential
                                     future   Carrying     future   Carrying
                                  payment(1)    amount  payment(1)    amount
    -------------------------------------------------------------------------
    Securities lending with
     indemnification(2)        $  44,773     $       -  $  42,527     $    -
    Standby and performance
     letters of credit             6,163            25      5,721         25
    Credit derivatives
      Written options             10,434         1,499     12,080      1,884
      Swap contracts written
       protection                  2,811           102      2,982        156
    Other derivative written
     options                             (3)     1,484           (3)   1,593
    Other indemnification
     agreements                          (3)         -           (3)       -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $47.8 billion (October 31, 2010: $45.5 billion).
    (2) Securities lending with indemnification is the full contract amount
        of custodial client securities lent by CIBC Mellon Global Securities
        Services Company, which is a 50/50 joint venture between CIBC and The
        Bank of New York Mellon.
    (3) See narrative on page 163 of the 2010 consolidated financial
        statements for further information.


    13. Contingent liabilities

    CIBC is a party to a number of legal proceedings, including regulatory
    investigations, in the ordinary course of its business. While it is
    inherently difficult to predict the outcome of such matters, based on
    current knowledge and consultation with legal counsel, we do not expect
    that the outcome of any of these matters, individually or in aggregate,
    would have a material adverse effect on our consolidated financial
    position. However, the outcome of any such matters, individually or in
    aggregate, may be material to our operating results for a particular
    period.

    In the fourth quarter of 2008, we recognized a gain of $895 million
    (US$841 million), resulting from the reduction to zero of our unfunded
    commitment on a variable funding note (VFN) issued by a collateralized
    debt obligation (CDO). This reduction followed certain actions of the
    indenture trustee for the CDO following the September 15, 2008 bankruptcy
    filing of Lehman Brothers Holdings, Inc. (Lehman), the guarantor of a
    related credit default swap agreement with the CDO.

    In September 2010, just prior to the expiration of a statute of
    limitations, the Lehman Estate instituted an adversary proceeding against
    numerous financial institutions, indenture trustees and note holders,
    including CIBC, related to this and more than 40 other CDOs. The Lehman
    Estate seeks a declaration that the indenture trustee's actions were
    improper and that CIBC remains obligated to fund the VFN. In October
    2010, the bankruptcy court issued an order, at the request of the Lehman
    Estate, staying all proceedings in the action for a period of nine
    months.

    Although there can be no certainty regarding any eventual outcome, we
    believe that the CDO indenture trustee's actions in reducing the unfunded
    commitment on our VFN to zero, were fully supported by the terms of the
    governing contracts and the relevant legal standards and CIBC intends to
    vigorously contest the adversary proceeding.

    14. Segmented information

    CIBC has two strategic business units (SBUs): CIBC Retail Markets and
    Wholesale Banking. These SBUs are supported by six functional groups -
    Technology and Operations; Corporate Development; Finance; Treasury;
    Administration; and Risk Management. The activities of these functional
    groups are included within Corporate and Other, with their revenue,
    expenses, and balance sheet resources generally being allocated to the
    business lines within the SBUs. The impact of securitization is retained
    within Corporate and Other. The nature of transfer pricing and treasury
    allocation methodologies is such that the presentation of certain line
    items in segmented results is different compared to consolidated CIBC
    results.

    Beginning in the first quarter of 2011, general allowance for credit
    losses related to FirstCaribbean International Bank (FirstCaribbean) has
    been included within Corporate and Other. This was previously reported
    within CIBC Retail Markets. Prior period information was restated.

    On March 28, 2011, we announced a new organizational structure that
    included the separation of the management of CIBC Wealth Management and
    FirstCaribbean from CIBC Retail Markets. The manner in which we have
    reported our SBU results has not changed in the current quarter as we are
    currently finalizing our future segment reporting structure which may
    impact the allocation of certain revenues and expenses to the SBUs. We
    expect to commence reporting on the revised basis beginning in the third
    quarter of 2011.

    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the              Retail  Wholesale  Corporate       CIBC
     three months ended             Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Apr. 30,  Net interest
     2011      income (expense)   $   1,576  $     172  $    (220)  $  1,528
              Non-interest income       876        221        264      1,361
    -------------------------------------------------------------------------
              Total revenue           2,452        393         44      2,889
              Provision for
               (reversal of)
               credit losses            279          1        (86)       194
              Amortization(1)            32          1         54         87
              Other non-interest
               expenses               1,387        270         50      1,707
    -------------------------------------------------------------------------
              Income before
               income taxes
               and non-
               controlling
               interests                754        121         26        901
              Income tax expense        199          9         13        221
              Non-controlling
               interests                  2          -          -          2
    -------------------------------------------------------------------------
              Net income          $     553  $     112  $      13  $     678
    -------------------------------------------------------------------------
              Average assets(2)   $ 273,299  $ 111,879  $ (17,120) $ 368,058
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31,  Net interest income
     2011      (expense)          $   1,596  $     180  $    (166) $   1,610
              Non-interest income       940        291        260      1,491
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              Total revenue           2,536        471         94      3,101
              Provision for
               (reversal of)
               credit losses            275         (2)       (64)       209
              Amortization(1)            33          1         56         90
              Other non-interest
               expenses               1,380        302         50      1,732
    -------------------------------------------------------------------------
              Income before
               income taxes
               and non-
               controlling
               interests                848        170         52      1,070
              Income tax expense        218         34         16        268
              Non-controlling
               interests                  3          -          -          3
    -------------------------------------------------------------------------
              Net income          $     627  $     136  $      36  $     799
    -------------------------------------------------------------------------
              Average assets(2)   $ 260,414  $ 107,672  $ (13,819) $ 354,267
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30,  Net interest
     2010(3)   income (expense)   $   1,440  $     172  $    (115) $   1,497
              Non-interest income       894        376        154      1,424
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              Total revenue           2,334        548         39      2,921
              Provision for
               (reversal of)
               credit losses            333         27        (44)       316
              Amortization(1)            28          1         65         94
              Other non-interest
               expenses               1,302        243         39      1,584
    -------------------------------------------------------------------------
              Income (loss)
               before income taxes
               and non-
               controlling
               interests                671        277        (21)       927
              Income tax expense
               (benefit)                179         87         (5)       261
              Non-controlling
               interests                  5          1          -          6
    -------------------------------------------------------------------------
              Net income (loss)   $     487  $     189  $     (16) $     660
    -------------------------------------------------------------------------
              Average assets(2)   $ 261,165  $  99,462  $ (27,038) $ 333,589
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the              Retail  Wholesale  Corporate       CIBC
     six months ended               Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Apr. 30,  Net interest
     2011      income (expense)   $   3,172  $     352  $    (386) $   3,138
              Non-interest income     1,816        512        524      2,852
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              Total revenue           4,988        864        138      5,990
              Provision for
               (reversal of)
               credit losses            554         (1)      (150)       403
              Amortization(1)            65          2        110        177
              Other non-interest
               expenses               2,767        572        100      3,439
    -------------------------------------------------------------------------
              Income before income
               taxes and non-
               controlling
               interests              1,602        291         78      1,971
              Income tax expense        417         43         29        489
              Non-controlling
               interests                  5          -          -          5
    -------------------------------------------------------------------------
              Net income          $   1,180  $     248  $      49  $   1,477
    -------------------------------------------------------------------------
              Average assets(2)   $ 266,749  $ 109,741  $ (15,442) $ 361,048
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30,  Net interest
     2010(3)   income (expense)   $   2,947  $     319  $    (255) $   3,011
              Non-interest income     1,789        842        340      2,971
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
              Total revenue           4,736      1,161         85      5,982
              Provision for
               (reversal of)
               credit losses            700         51        (76)       675
              Amortization(1)            57          2        129        188
              Other non-interest
               expenses               2,587        560         91      3,238
    -------------------------------------------------------------------------
              Income (loss)
               before income
               taxes and non-
               controlling
               interests              1,392        548        (59)     1,881
              Income tax expense        368        163         16        547
              Non-controlling
               interests                 10         12          -         22
    -------------------------------------------------------------------------
              Net income (loss)   $   1,014  $     373  $     (75) $   1,312
    -------------------------------------------------------------------------
              Average assets(2)   $ 263,894  $ 100,694  $ (27,323) $ 337,265
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes amortization of buildings, furniture, equipment, leasehold
        improvements, software and other intangible assets.
    (2) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.
    (3) Certain prior period information has been restated to conform to the
        presentation in the current period.


    15. Accounting developments

    Transition to International Financial Reporting Standards (IFRS)

    Canadian publicly accountable enterprises must transition to IFRS for
    fiscal years beginning on or after January 1, 2011. As a result, we will
    adopt IFRS commencing November 1, 2011 and will publish our first interim
    consolidated financial statements, prepared in accordance with IFRS, for
    the quarter ending January 31, 2012. Upon adoption, we will provide
    fiscal 2011 comparative financial information, also prepared in
    accordance with IFRS.

    The transition to IFRS represents a significant initiative for us and is
    supported by a formal governance structure with an enterprise-wide view
    and a dedicated project team.

    The requirements concerning the transition to IFRS are set out in IFRS 1,
    "First-Time Adoption of International Financial Reporting Standards",
    which generally requires that changes from Canadian GAAP be applied
    retroactively and reflected in our opening November 1, 2010 comparative
    IFRS consolidated balance sheet. However, there are a number of
    transitional elections, some of which entail an exemption from
    retroactive application, available under the transitional rules that we
    continue to evaluate.

    IFRS is expected to result in accounting policy differences in many
    areas. Based on existing IFRS and the assessment of our transitional
    elections to date, the areas that have the potential for the most
    significant impact to our financial and capital reporting include
    derecognition of financial instruments and the accounting for post-
    employment benefits as described on page 179 of our 2010 Annual Report.

    Future changes

    Proposed changes to the IFRS accounting standards may introduce
    additional significant accounting differences, although we expect that
    most of the changes arising from the proposed standards will not be
    effective for us until the years following our initial IFRS transition in
    fiscal 2012.

    The impact of IFRS to us at transition will ultimately depend on the IFRS
    standards and capital reporting rules in effect at the time, transition
    elections that have not yet been finalized, and the prevailing business
    and economic facts and circumstances.
    >>

SOURCE CIBC

For further information: Investor and analyst inquiries should be directed to Geoff Weiss, Vice-President, Investor Relations, at 416-980-5093. Media inquiries should be directed to Rob McLeod, Senior Director, Communications and Public Affairs, at 416-980-3714, or to Mary Lou Frazer, Senior Director, Investor & Financial Communications, at 416-980-4111


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