CIBC Announces First Quarter 2007 Results



    HIGHLIGHTS
    -   Cash diluted EPS(1) of $2.12
    -   Return on equity of 27.1%
    -   Cash efficiency ratio (TEB)(1) of 61.5%
    -   Tier 1 capital ratio of 9.6%
    -   Common share dividend increase of 7 cents to 77 cents per quarter

    TORONTO, March 1 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of
$770 million for the first quarter ended January 31, 2007, up from
$580 million for the same period last year. Diluted earnings per share (EPS)
were $2.11, up from $1.62 a year ago. Cash diluted EPS(1) were $2.12, up from
$1.63 a year ago.

    Return on equity for the first quarter was 27.1%, up from 25.6% for the
    same period last year.
    CIBC's Tier 1 capital ratio at January 31, 2007 was 9.6%, up from 9.0% a
    year ago.
    Diluted EPS of $2.11 and cash diluted EPS(1) of $2.12 for the first
    quarter of 2007 were decreased by:

    -   $16 million ($16 million after-tax) premium paid on preferred share
        redemptions ($0.05 per share).
    -   $6 million ($4 million after-tax, or $0.01 per share) due to the
        impact of changes in credit spreads on the mark-to-market of
        corporate loan credit derivatives.

    CIBC's net income, diluted EPS and cash diluted EPS(1) for the first
quarter of 2007 were down from $819 million, $2.32 and $2.34, respectively,
for the prior quarter, which included items of note aggregating to earnings of
$0.32 per share.

    Update on business priorities
    "Our first quarter results were strong, and reflect continued progress
against our priorities and objective of consistent and sustainable
performance," says Gerald T. McCaughey, President and Chief Executive Officer.

    Business strength
    CIBC's first priority is to sustain and enhance the strength of its core
businesses.
    CIBC Retail Markets reported revenue of $2,151 million, up from
$2,046 million for the prior quarter and $2,068 million for the same period
last year. Net income for the first quarter was $530 million, up 21% from a
year ago. Volume growth, as well as improvements in loan losses and taxes,
contributed to this result.
    While the environment in Canada remains competitive, CIBC's retail
businesses continue to perform well overall and remain strongly positioned in
the market. Retail brokerage had a strong quarter, with revenue of
$314 million. CIBC Wood Gundy's assets under administration grew to
$117.6 billion. CIBC's cards portfolio continues to grow in line with
expectations and with stable and predictable loss rates. Cards loans
administered were up 10.6% from the first quarter of last year. CIBC had
market share increases during the quarter in key areas such as deposits and
fixed term investments.
    In the area of personal lending, CIBC's focus on credit quality has been
reflected in improving loan loss performance over the past year, but lower
revenue growth than the market. As the actions CIBC has taken to improve its
risk profile run their course, CIBC expects its personal lending business to
resume overall revenue growth converging on industry levels.
    CIBC's retail strategy in Canada is to become the primary financial
institution for more of its clients. During the quarter, CIBC continued to
invest in the areas of advice, access and financial solutions to further its
relationships with clients:

    -   The cards business launched a new no-annual-fee CIBC Platinum Visa
        card and a new advertising campaign in support of enhancements to the
        CIBC Aerogold Visa card, the leading premium travel rewards credit
        card in Canada.
    -   CIBC Investor's Edge announced the most flexible and competitive
        pricing offer available to Canadian online investors with the
        introduction of Edge Advantage(TM).

    CIBC Retail Markets' results for the first quarter of 2007 include the
results of FirstCaribbean International Bank ("FirstCaribbean") from
December 22, 2006. On December 22, 2006 CIBC announced the purchase of
599.4 million shares of FirstCaribbean from Barclays Bank PLC for
US$988.7 million. On February 2, 2007 CIBC announced the subsequent purchase
of 129.8 million shares of FirstCaribbean under its tender offer to all
shareholders that closed on January 30, 2007. Together, these purchases
increase CIBC's ownership of FirstCaribbean to approximately 91.5%.
    CIBC World Markets reported another strong quarter. Revenue of
$784 million was up from $697 million in the prior quarter and $679 million
for the same period last year. Net income for the first quarter was
$210 million, up 64% from a year ago.
    Capital markets revenue was up from the prior quarter, while investment
banking and credit products revenue was lower. Merchant banking revenue was up
slightly from the fourth quarter and up significantly from the same period
last year.
    CIBC's wholesale business continues to demonstrate strength and market
leadership in Canada. During the quarter, CIBC World Markets was named
Canada's top equity underwriter and M&A advisor for 2006 in The Globe and
Mail's annual Top Deal Makers report. This is the sixth consecutive year CIBC
World Markets has been named top equity underwriter in Canada.
    Throughout the remainder of 2007, CIBC World Markets will maintain its
focus on balanced growth in its core markets, while identifying opportunities
in areas such as electronic trading, prime brokerage and structured products.

    Productivity
    CIBC's second priority is to improve productivity.
    CIBC's target in 2007 is to hold expenses flat, excluding the
FirstCaribbean acquisition, by absorbing normal inflationary increases to its
cost base. Expenses for the first quarter were $1,943 million, up from
$1,892 million in the prior quarter due to the FirstCaribbean acquisition and
higher performance-related compensation.
    CIBC's efficiency ratio for the first quarter improved to 62.9% from
65.7% for the same period last year. CIBC's cash efficiency ratio (TEB)(1) for
the first quarter improved to 61.5% from 64.4% a year ago.
    "Our first quarter results reflect the balance we are seeking between
expense constraint and revenue growth," says McCaughey. "We believe that the
impact of improved revenue through consistent investment in our core
businesses and continued expense discipline is the most balanced way to
achieve further productivity improvements."

    Balance sheet strength and capital usage
    CIBC's third priority is balance sheet strength and capital usage.
    CIBC's Tier 1 ratio of 9.6% remains above its medium term target of 8.5%.
CIBC's capital usage plans are first to invest in core businesses, then
balance remaining deployment opportunities.
    With the FirstCaribbean acquisition now complete, CIBC will consider
further opportunities for international growth, both through organic expansion
at FirstCaribbean and additional strategic acquisitions. CIBC will balance
these opportunities with capital returns to shareholders.
    Dividends are an important part of CIBC's capital management plan.
    CIBC's dividend payout ratio for the quarter was 32.9%, below its medium
term objective of 40% to 50%. Today, CIBC announced an increase to its second
quarter common share dividend of 10% or 7 cents per share (to 77 cents per
share).

    Making a difference in communities
    CIBC remains committed to maintaining a meaningful presence in its
communities.
    On December 6, 2006, CIBC World Markets and CIBC Wood Gundy employees
world-wide raised $12.7 million in support of CIBC World Markets Children's
Foundation Miracle Day to benefit children's charities in CIBC's communities
around the world. In addition, over 9,000 CIBC employees in Canada and the
United States raised over $8 million in support of CIBC's 2006 United Way
campaign.
    "I would like to thank our employees who have contributed their energy,
time and generous support to these campaigns," says McCaughey.

    --------------------------------------
    (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 first 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 first 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) should be read in conjunction
with the unaudited interim consolidated financial statements included in this
report and with the MD&A contained in our 2006 Annual Accountability Report.
The unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles (GAAP) and
are expressed in Canadian dollars. This MD&A is current as of March 1, 2007.
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. Certain comparative amounts have
been reclassified to conform with the presentation adopted in the current
period. A glossary of terms used throughout this quarterly report can be found
on pages 142 and 143 of our 2006 Annual Accountability Report.

    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 we make in the "Update on business priorities,"
"Outlook" and "Review of consolidated statement of operations - Income taxes"
sections of this report and other statements about our operations, business
lines, financial condition, risk management, priorities, targets, ongoing
objectives, strategies and outlook for 2007 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 "Outlook" 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: 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 applying future accounting
changes; changes in our estimates of reserves and allowances; changes in tax
laws; that our estimate of our sustainable effective tax rate will not be
achieved; political conditions and developments; the possible effect on our
business of international conflicts and the war on terror; natural disasters,
public health emergencies 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;
intensifying competition from established competitors and new entrants in the
financial services industry; technological change; global capital market
activity; interest rate and currency value fluctuations; general 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; 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 other communications.

    
    First Quarter Financial Highlights
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    Unaudited, as at or for the               2007         2006         2006
     three months ended                    Jan. 31      Oct. 31      Jan. 31
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    Common share information
    Per share - basic earnings          $     2.13   $     2.34   $     1.64
      - basic earnings (cash basis)(1)        2.14         2.36         1.65
      - diluted earnings                      2.11         2.32         1.62
      - diluted earnings (cash basis)(1)      2.12         2.34         1.63
      - dividends                             0.70         0.70         0.68
      - book value                           31.85        29.59        25.85
    Share price - high                      102.00        87.87        81.00
      - low                                  88.96        77.95        72.90
      - closing                             100.88        87.60        79.90
    Shares outstanding (thousands)
      - average basic                      336,486      335,522      334,357
      - average diluted                    339,942      338,737      337,704
      - end of period                      337,139      335,977      334,786
    Market capitalization ($ millions)  $   34,011   $   29,432   $   26,749
    -------------------------------------------------------------------------
    Value measures
    Price to earnings multiple
     (12 month trailing)                      12.7         11.8          n/m
    Dividend yield (based on closing
     share price)                              2.8%         3.2%         3.4%
    Dividend payout ratio                     32.9%        29.9%        41.6%
    Market value to book value ratio          3.17         2.96         3.09
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    Financial results ($ millions)
    Total revenue                       $    3,091   $    2,890   $    2,858
    Provision for credit losses                143           92          166
    Non-interest expenses                    1,943        1,892        1,877
    Net income                                 770          819          580
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    Financial measures
    Efficiency ratio                          62.9%        65.5%        65.7%
    Efficiency ratio cash basis, taxable
     equivalent basis (TEB)(1)                61.5%        63.5%        64.4%
    Return on equity                          27.1%        32.5%        25.6%
    Net interest margin                       1.33%        1.50%        1.59%
    Net interest margin on average
     interest-earning assets                  1.52%        1.72%        1.86%
    Return on average assets                  0.97%        1.08%        0.81%
    Return on average interest-earning
     assets                                   1.10%        1.25%        0.94%
    Total shareholder return                  16.0%        14.3%        11.6%
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    On- and off-balance sheet
     information ($ millions)
    Cash, deposits with banks and
     securities                         $  108,482   $   95,351   $   89,253
    Loans and acceptances                  159,530      151,916      144,779
    Total assets                           322,608      303,984      288,906
    Deposits                               223,625      202,891      193,666
    Common shareholders' equity             10,736        9,941        8,655
    Average assets                         316,122      299,513      285,679
    Average interest-earning assets        276,799      260,569      245,269
    Average common shareholders' equity     10,474        9,601        8,484
    Assets under administration          1,122,184    1,068,600    1,030,357
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    Balance sheet quality measures
    Common equity to risk-weighted
     assets                                    8.7%         8.7%         7.6%
    Risk-weighted assets ($ billions)   $    124.1   $    114.8   $    113.3
    Tier 1 capital ratio                       9.6%        10.4%         9.0%
    Total capital ratio                       14.1%        14.5%        13.1%
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    Other information
    Retail / wholesale ratio(2)             74%/26%      72%/28%      74%/26%
    Regular workforce headcount             40,559       37,016       36,971
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    (1)   For additional information, see the "Non-GAAP measures" section.
    (2)   Retail includes CIBC Retail Markets and commercial banking
          (reported as part of CIBC World Markets). Wholesale reflects CIBC
          World Markets, excluding commercial banking. The ratio represents
          the amount of capital attributed to the business lines as at the
          end of the period. For further details, see the "Non-GAAP measures"
          section.
    n/m - not meaningful due to the net loss over the 12 month trailing
          period.


    Overview
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    CIBC is a leading North American financial institution. Through our two
distinct business lines, CIBC Retail Markets and CIBC World Markets, we
provide a full range of products and services to over 11 million individual
and small business clients, and meet the financial needs of corporate and
institutional clients.

    Economic and market environment
    Economic growth reports in Canada diverged from the U.S. towards the end
of calendar 2006. American consumer spending and gross domestic product (GDP)
were reinvigorated by cheaper fuel prices. Conversely Canadian household
spending slowed, contributing to a poor performance for quarterly GDP and to
some deceleration in consumer credit growth. Housing activity and prices held
up better in Canada, but mortgage demand also appeared to be decelerating
somewhat. The yield curve remained flat by historic standards, with core
inflation looking unthreatening in both countries. These factors contributed
to retail volume growth. Despite new rules for income trusts and softer energy
prices, Canadian equities as a whole showed strong gains in the three months
to January 2007, boosted by solid earnings growth, leading to strong retail
brokerage and equities revenue.

    Financial performance
    Net income for the quarter was $770 million, compared with $580 million
from the same quarter last year and $819 million from the prior quarter.
Diluted earnings per share (EPS) and return on equity (ROE) were $2.11 and
27.1%, respectively, compared with $1.62 and 25.6% for the same quarter last
year and $2.32 and 32.5% for the prior quarter. Net income before the
amortization of other intangible assets(1) was $774 million, compared with
$585 million for the same quarter last year and $824 million for the prior
quarter. Diluted EPS(1) before the amortization of other intangible assets
were $2.12, compared with $1.63 for the same quarter last year and $2.34 for
the prior quarter. Our current and prior quarter's results were affected by
the following items:

    Q1, 2007
    -   $6 million ($4 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market of our corporate loan credit
        derivatives.

    Q4, 2006
    -   $90 million of favourable significant tax-related adjustments;
    -   $39 million ($25 million after-tax) reversal of the general allowance
        for credit losses; and
    -   $13 million ($8 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market of our corporate loan credit
        derivatives.

    Compared with Q1, 2006
    Net income was up $190 million or 33%, primarily due to higher capital
markets and merchant banking revenue, volume growth in cards, deposits and
mortgages, higher treasury revenue, and lower provision for credit losses. The
current quarter also benefited from the impact of the FirstCaribbean
acquisition (discussed on page 7). These factors were partially offset by
spread compression on retail lending products and higher performance-related
compensation.

    Compared with Q4, 2006
    Net income was down $49 million or 6%, primarily due to the tax
recoveries and the reversal of general allowance noted above in the prior
quarter. Higher performance-related compensation and lower investment banking
and credit products revenue also contributed to the decline. These factors
were partially offset by higher capital markets revenue and the impact of the
FirstCaribbean acquisition.

    Outlook
    The economic outlook remains positive for the coming quarters as interest
and employment rates are expected to remain relatively steady; nonetheless,
some softening in the housing activity and only moderate growth in consumer
spending is anticipated. Product spreads are expected to remain stable.
Mortgage and lending growth rates may moderate while card balances are
expected to continue at approximately the recent growth rate.
    While investment banking activities and capital markets are difficult to
predict, market liquidity remains robust and we expect steady mergers and
acquisition (M&A) activity will continue. The high level of equity new issue
activity in the current quarter may have been representative of the unique
circumstances surrounding the income trust announcement and it is not certain
whether this level of activity will continue. The credit cycle should remain
favourable in the near term, but we expect the current low level of corporate
defaults rates is likely not sustainable over the longer term.


    Review of results of operations and financial position
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    Review of consolidated statement of operations

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                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,059   $    1,130   $    1,148
    Non-interest income                      2,032        1,760        1,710
    -------------------------------------------------------------------------
    Total revenue                            3,091        2,890        2,858
    Provision for credit losses                143           92          166
    Non-interest expenses                    1,943        1,892        1,877
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests               1,005          906          815
    Income taxes                               231           87          238
    Non-controlling interests                    4            -           (3)
    -------------------------------------------------------------------------
    Net income                          $      770   $      819   $      580
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effective income tax rate                 23.0%         9.6%        29.2%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net interest income
    Net interest income was down $89 million or 8% from the same quarter last
year, largely due to increased trading-related funding costs and spread
compression in retail lending products. During the quarter, we de-designated
certain fair value hedges under the new financial instruments standards. Since
the net unrealized gains on those derivative instruments are recorded in other
income, net interest income declined accordingly. These factors were partially
offset by higher dividends and interest on trading securities, volume growth
in cards, deposits and mortgages and the impact of the FirstCaribbean
acquisition.
    Net interest income was down $71 million or 6% from the prior quarter,
largely due to increased trading-related funding costs and the de-designation
of fair value hedges noted above. These factors were partially offset by the
impact of the FirstCaribbean acquisition and higher treasury revenue.

    Non-interest income
    Non-interest income was up $322 million or 19% from the same quarter last
year, largely as a result of higher trading activities. Gains net of write-
downs on available-for-sale (AFS) securities (previously classified as
investment securities and limited partnership investments) were higher during
the quarter. The net unrealized gains on the de-designation of certain fair
value hedges noted above also contributed to the increase.
    Non-interest income was up $272 million or 15% from the prior quarter,
largely due to the reasons noted above.

    Provision for credit losses
    Provision for credit losses was down $23 million or 14% from the same
quarter last year, primarily due to improvements in the unsecured personal
lending portfolio, partially offset by higher losses in the cards portfolio.
    Provision for credit losses was up $51 million or 55% from the prior
quarter. The increase was a combination of the $39 million reversal of general
allowance in the prior quarter, increased losses in the cards portfolio,
partially offset by higher recoveries net of losses in the corporate lending
portfolio.

    Non-interest expenses
    Non-interest expenses were up $66 million or 4% from the same quarter
last year, primarily due to higher performance-related compensation and the
impact of the FirstCaribbean acquisition.
    Non-interest expenses were up $51 million or 3% from the prior quarter,
primarily due to higher performance-related compensation and the impact of the
FirstCaribbean acquisition, partially offset by lower computer and advertising
expenses.

    Income taxes
    Despite higher income, income taxes were down $7 million or 3% from the
same quarter last year, primarily due to higher income from lower tax
jurisdictions.
    Income taxes were up $144 million from the prior quarter, primarily due
to the income tax recoveries included in the prior quarter and higher income
in the current quarter.
    The effective tax rate and taxable equivalent rate (TEB) for the quarter
ended January 31, 2007, were 23.0% and 27.5%(1), respectively. While rates
will vary from quarter to quarter, our current estimate is that the adjusted
sustainable effective tax rate will be in the 21-24% range and the adjusted
sustainable TEB tax rate will be in the 25-28% range.

    Non-controlling interests
    Non-controlling interests were up $7 million from the same quarter last
year and up $4 million from the prior quarter, primarily due to the minority
interest resulting from our acquisition of FirstCaribbean.


    Review of consolidated balance sheet
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    CONDENSED CONSOLIDATED BALANCE SHEET
                                                           2007         2006
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                     $   17,692   $   11,853
    Securities                                           90,790       83,498
    Securities borrowed or purchased under resale
     agreements                                          23,968       25,432
    Loans                                               152,546      145,625
    Derivative instruments market valuation              17,665       17,122
    Other assets                                         19,947       20,454
    -------------------------------------------------------------------------
    Total assets                                     $  322,608   $  303,984
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                         $  223,625   $  202,891
    Derivative instruments market valuation              16,694       17,330
    Obligations related to securities lent or sold
     short or under repurchase agreements                42,974       44,221
    Other liabilities and acceptances                    19,279       21,013
    Subordinated indebtedness                             5,991        5,595
    Preferred share liabilities                             600          600
    Non-controlling interests                               278           12
    Shareholders' equity                                 13,167       12,322
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  322,608   $  303,984
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Assets
    Total assets as at January 31, 2007 were up $18.6 billion or 6% from
October 31, 2006.
    Cash and deposits with banks increased mainly due to normal treasury
funding requirements and the FirstCaribbean acquisition.
    The growth in securities was mainly driven by an increase in trading
securities in our wholesale banking reflecting normal trading activities and
the FirstCaribbean acquisition.
    The decrease in securities borrowed or purchased under resale agreements
was primarily due to normal client-driven business activity.
    Loans increased largely due to the FirstCaribbean acquisition, slightly
offset by volume declines in personal loans and residential mortgages (net of
securitizations).
    Derivative instruments market valuation increased primarily due to the
reclassification of hedging derivative instruments from other assets under the
financial instruments standards, partially offset by a decrease in trading
derivatives due to the strengthening of the U.S. dollar and the increasing
interest rate environment.
    Other assets decreased primarily due to the reclassification of hedging
derivative instruments to derivative instruments market valuation and the
investment in limited partnerships to AFS securities, both under the financial
instruments standards. As a result of obtaining majority control, our
investment in FirstCaribbean is no longer included in other assets. These
factors were partially offset by the goodwill and other intangible assets
acquired resulting from the FirstCaribbean acquisition and an increase in
acceptances.

    Liabilities
    Total liabilities as at January 31, 2007 were up $17.8 billion or 6% from
October 31, 2006.
    Deposits increased primarily due to the FirstCaribbean acquisition,
higher business and government and bank deposits largely due to funding
requirements and client-driven activities, and retail volume growth.
    The decrease in obligations related to securities lent or sold short or
under repurchase agreements represents normal client-driven and treasury
funding activities, partially offset by the FirstCaribbean acquisition.
    Derivative instruments market valuation decreased primarily due to the
strengthening of the U.S. dollar and the increasing interest rate environment.
This was partially offset by the reclassification of hedging derivative
instruments from other liabilities under the financial instruments standards.
    Other liabilities and acceptances decreased primarily due to the
reclassification noted above.
    Subordinated indebtedness increased primarily due to the FirstCaribbean
acquisition and change in the fair value of hedged debentures as a result of
the implementation of the financial instruments standards.
    The increase in non-controlling interests represents the minority
interest in FirstCaribbean.

    Shareholders' equity
    Shareholders' equity as at January 31, 2007 was up $845 million or 7%
from October 31, 2006, primarily due to an increase in retained earnings and
translation gains on net investments in foreign operations net of the impact
of hedging.

    FirstCaribbean International Bank

    On December 22, 2006, we obtained control of FirstCaribbean International
Bank (FirstCaribbean) by acquiring a further 39.3% ownership interest from
Barclays Bank PLC (Barclays) (FirstCaribbean acquisition). After completing
the transaction, we owned approximately 83.0% of the common shares of
FirstCaribbean with the remaining common shares held by both Barclays and
other minority shareholders. The transaction took place at a share price of
US$1.62 plus accrued dividends with a total transaction value of
US$989 million (C$1,153 million), which we paid in cash to Barclays. In
addition, we incurred transaction costs, net of tax, of US$7 million
(C$8 million).
    On February 2, 2007, subsequent to the quarter end, pursuant to a tender
offer at the same price for the remaining common shares held by Barclays and
the other minority shareholders, we acquired an additional 8.5% interest in
FirstCaribbean in exchange for additional cash consideration of US$212 million
(C$250 million), bringing our total ownership to 91.5%.
    For additional details, see Note 2 to the interim consolidated financial
statements.

    Contingent liabilities
    CIBC is a party to a number of legal proceedings, including regulatory
investigations, in the ordinary course of its business. While there exists an
inherent difficulty in predicting the outcome of any 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.

    Review of quarterly financial information


                                2007                                    2006
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    $ millions, except per
     share amounts, for the
     three months ended      Jan. 31   Oct. 31   Jul. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets   $  2,151  $  2,046  $  2,038  $  1,975  $  2,068
      CIBC World Markets         784       697       677       607       679
      Corporate and Other        156       147       111       195       111
    -------------------------------------------------------------------------
    Total revenue              3,091     2,890     2,826     2,777     2,858
    Provision for credit
     losses                      143        92       152       138       166
    Non-interest expenses      1,943     1,892     1,883     1,836     1,877
    -------------------------------------------------------------------------
    Income (loss) before
     taxes and
     non-controlling
     interests                 1,005       906       791       803       815
    Income taxes                 231        87       125       190       238
    Non-controlling
     interests                     4         -         4        28        (3)
    -------------------------------------------------------------------------
    Net income (loss)       $    770  $    819  $    662  $    585  $    580
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Per share - basic
     earnings (loss)        $   2.13  $   2.34  $   1.88  $   1.65  $   1.64
      - diluted earnings
       (loss)(1)            $   2.11  $   2.32  $   1.86  $   1.63  $   1.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------
                                                    2005
    $ millions, except per
     share amounts, for th
     three months ended      Oct. 31   Jul. 31   Apr. 30
    -----------------------------------------------------
    Revenue
    three months ended
      CIBC Retail Markets   $  2,063  $  2,025  $  1,982
      CIBC World Markets         964       929       742
      Corporate and Other        399       201       107
    -----------------------------------------------------
    Total revenue              3,426     3,155     2,831
    Provision for credit
     losses                      170       199       159
    Non-interest expenses      2,060     4,854     2,043
    -----------------------------------------------------
    Income (loss) before
     taxes and
     non-controlling
     interests                 1,196    (1,898)      629
    Income taxes                 436      (106)      176
    Non-controlling
     interests                    32       115        13
    -----------------------------------------------------
    Net income (loss)       $    728  $ (1,907) $    440
    -----------------------------------------------------
    -----------------------------------------------------
    Per share - basic
     earnings (loss)        $   2.08  $  (5.77) $   1.21
      - diluted earnings
       (loss)(1)            $   2.06  $  (5.77) $   1.20
    -----------------------------------------------------
    -----------------------------------------------------
    (1) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be anti-
        dilutive; therefore, basic and diluted earnings (loss) per share will
        be the same.

    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 activities.

    Revenue
    CIBC Retail Markets revenue increased in the current quarter as a result
of the FirstCaribbean acquisition and strength in retail brokerage and
investment product sales in Imperial Service. Revenue was lower in the past
few quarters as a result of higher levels of cards securitization and
declining spreads in the mortgage and personal lending businesses. Revenue was
lower in the second quarters of 2006 and 2005 primarily due to three fewer
days.
    CIBC World Markets revenue is influenced to a large extent by capital
markets conditions and the opportunity for merchant banking divestitures.
Increased capital markets volumes led to higher revenue in the current
quarter. Increased merchant banking gains net of write-downs contributed to
higher revenue in the third and fourth quarters of 2005.
    Corporate and Other revenue is affected by the impact of significant
items not included in the other business lines. Revenue in the third quarter
of 2006 was lower due to the deconsolidation of a variable interest entity
(VIE). Foreign exchange revenue on the repatriation of capital and retained
earnings from our foreign operations led to an increase in revenue in the
second quarter of 2006 and the fourth quarter of 2005. Revenue was higher in
the third quarter of 2005 due to higher revenue in a consolidated VIE.

    Provision for credit losses
    The provision for credit losses is dependent upon the credit cycle in
general and on the credit performance of the loan portfolio. Retail lending
provisions increased from the previous quarter largely due to higher losses in
the cards portfolio. However, provisions are lower than the previous quarters
of 2005 reflecting a shift to a higher proportion of secured personal lending
products. The level of recoveries and reversals in the large corporate lending
portfolio is not expected to continue. Reversals of the general allowance were
included in both the fourth quarters of 2006 and 2005 and in the second
quarter of 2006.

    Non-interest expenses
    Non-interest expenses have declined in recent quarters as a result of our
productivity initiative. The FirstCaribbean acquisition and higher performance-
related compensation contributed to an increase in expenses in the current
quarter. Severance costs were higher in the fourth quarter of 2005. The third
quarter of 2005 included the Enron-related litigation provision. The second
and third quarters of 2005 included the provision for hedge funds settlements.

    Income taxes
    Income taxes vary with changes in income and can also be affected by the
impact of significant items. The last three quarters of 2006 and the fourth
quarter of 2005 included recoveries related to the favourable resolution of
various income tax audits and reduced tax contingencies. The increase in the
fourth quarter of 2005 was due primarily to the income tax expense on the
repatriation of capital and retained earnings from our foreign operations. The
Enron-related litigation provision led to an income tax benefit in the third
quarter of 2005.

    Non-controlling interests
    Non-controlling interests were higher in the current quarter resulting
from the acquisition of the controlling interest in FirstCaribbean. During the
first three quarters of 2006, we deconsolidated certain VIEs which resulted in
a decrease in non-controlling interests. In the first quarter of 2006, we
acquired the remaining non-controlling interest in INTRIA Items Inc. The third
quarter of 2005 included higher revenue in consolidated VIEs.

    CIBC Retail Markets
    -------------------------------------------------------------------------

    CIBC Retail Markets comprises CIBC's retail and wealth management
businesses. The results of FirstCaribbean are included in the Other line of
business within CIBC Retail Markets since December 22, 2006. We provide a full
range of financial products and services to individual and small business
clients, as well as investment management services globally to retail and
institutional clients.

    Results(1)
    -------------------------------------------------------------------------

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue
      Personal and small business
       banking                          $      517   $      522   $      510
      Imperial Service                         237          230          230
      Retail brokerage                         314          292          297
      Cards                                    371          380          347
      Mortgages and personal lending           389          354          413
      Other                                    323          268          271
    -------------------------------------------------------------------------
    Total revenue                            2,151        2,046        2,068
    Provision for credit losses                153          132          180
    Non-interest expenses                    1,288        1,255        1,245
    -------------------------------------------------------------------------
    Income before taxes                        710          659          643
    Income taxes                               176          158          205
    Non-controlling interests                    4            -            -
    -------------------------------------------------------------------------
    Net income                          $      530   $      501   $      438
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Efficiency ratio                          59.9%        61.4%        60.2%
    Efficiency ratio cash basis (TEB)(2)      59.7%        61.3%        60.2%
    ROE(2)                                    55.0%        55.0%        45.7%
    Economic profit(2)                  $      405   $      384   $      312
    Regular workforce headcount             27,254       23,396       23,002
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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 was up $92 million or 21% from the same quarter last year.
Revenue increased due to the FirstCaribbean acquisition, volume growth in
cards, deposits and mortgages, and higher mortgage securitization and retail
brokerage revenue, partially offset by spread compression in lending products.
The current quarter also benefited from a lower provision for credit losses
and a lower effective tax rate. These factors were partially offset by higher
non-interest expenses mainly due to the FirstCaribbean acquisition.
    Net income was up $29 million or 6% from the prior quarter. Revenue was
up due to the FirstCaribbean acquisition, and higher retail brokerage and
mortgage securitization revenue. Non-interest expenses were higher during the
quarter mainly due to the FirstCaribbean acquisition. The prior quarter
benefited from income tax recoveries.

    Revenue

    Revenue was up $83 million or 4% from the same quarter last year.
    Personal and small business banking revenue was up $7 million, largely
due to volume growth and improved deposit spreads, partially offset by lower
internal sales commissions received from mortgages and personal lending.
    Imperial Service revenue was up $7 million, mainly due to higher revenue
from investment product sales.
    Retail brokerage revenue was up $17 million, primarily due to higher fee-
based revenue from net sales and increased asset values, and new issue
activity, partially offset by lower trading activity.
    Cards revenue was up $24 million, primarily due to volume growth and
higher fee income, partially offset by spread compression.
    Mortgages and personal lending revenue was down $24 million, primarily
due to spread compression and lower personal lending volume. These decreases
were partially offset by higher securitization revenue, volume growth in
mortgages and lower internal commissions paid to personal and small business
banking.
    Other revenue was up $52 million due to the FirstCaribbean acquisition.
    Revenue was up $105 million or 5% from the prior quarter.
    Personal and small business banking revenue was down $5 million,
primarily due to lower internal sales commissions received and lower fee
income, partially offset by volume growth and improved deposit spreads.
    Imperial Service revenue was up $7 million, primarily due to higher
revenue from investment product sales, partially offset by lower internal
commissions received.
    Retail brokerage revenue was up $22 million, primarily due to higher
trading and new issue activity.
    Cards revenue was down $9 million, primarily due to lower fee income and
higher credit losses relating to securitized assets, partially offset by
volume growth.
    Mortgages and personal lending revenue was up $35 million, primarily due
to higher securitization revenue and lower internal sales commissions paid to
personal and small business banking and Imperial Service.
    Other revenue was up $55 million, primarily due to the FirstCaribbean
acquisition, partially offset by lower treasury revenue allocations.

    Provision for credit losses

    Provision for credit losses was down $27 million or 15% from the same
quarter last year, primarily due to improvements in the unsecured personal
lending portfolio, partially offset by increased losses in the cards
portfolio.
    Provision for credit losses was up $21 million or 16% from the prior
quarter, primarily due to increased losses in the cards portfolio.

    Non-interest expenses

    Non-interest expenses were up $43 million or 3% from the same quarter
last year, primarily due to the FirstCaribbean acquisition, and higher
corporate support costs and performance-related compensation.
    Non-interest expenses were up $33 million or 3% from the prior quarter,
primarily due to the FirstCaribbean acquisition and higher corporate support
costs, partially offset by lower advertising expenses and operational losses.
    The regular workforce headcount was up 4,252 from the same quarter last
year, primarily due to the FirstCaribbean acquisition, the realignment of
staff from Administration, Technology and Operations, and an increase in
customer-facing staff. The regular workforce headcount was up 3,858 from the
prior quarter, primarily due to the FirstCaribbean acquisition and the
realignment of staff from Administration, Technology and Operations.

    Income taxes

    Income taxes were down $29 million or 14% from the same quarter last
year, primarily due to a lower effective tax rate resulting from higher income
in lower tax jurisdictions.
    Income taxes were up $18 million or 11% from the prior quarter, which
included income tax recoveries.

    CIBC World Markets
    -------------------------------------------------------------------------

    CIBC World Markets is the wholesale and corporate banking arm of CIBC,
providing a range of integrated credit and capital markets products,
investment banking, and merchant banking to clients in key financial markets
in North America and around the world. We provide capital solutions and
advisory expertise across a wide range of industries as well as research for
our corporate, government and institutional clients.


    Results(1)
    -------------------------------------------------------------------------

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue (TEB)(2)
      Capital markets                   $      449   $      351   $      371
      Investment banking and credit
       products(3)                             204          242          237
      Commercial banking(3)                    121          125          124
      Merchant banking                          77           61           12
      Other                                     (5)          (5)         (19)
    -------------------------------------------------------------------------
    Total revenue (TEB)(2)                     846          774          725
    TEB adjustment                              62           77           46
    -------------------------------------------------------------------------
    Total revenue                              784          697          679
    Recovery of credit losses                  (10)          (1)         (15)
    Non-interest expenses                      551          485          533
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests                 243          213          161
    Income taxes                                33           (5)          32
    Non-controlling interests                    -            -            1
    -------------------------------------------------------------------------
    Net income                          $      210   $      218   $      128
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Efficiency ratio                          70.3%        69.6%        78.3%
    Efficiency ratio cash basis (TEB)(2)      65.2%        62.6%        73.4%
    ROE(2)                                    41.6%        44.2%        25.6%
    Economic profit(2)                  $      146   $      154   $       64
    Regular workforce headcount              2,384        2,291        2,293
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    (3) Effective November 1, 2006, all cash management revenue previously
        allocated to investment banking and credit products was transferred
        to commercial banking on a retroactive basis.


    Financial overview

    Net income was up $82 million or 64% from the same quarter last year,
primarily due to higher revenue from capital markets and merchant banking.
These increases were partially offset by lower investment banking and credit
products revenue, higher non-interest expenses and lower recovery of credit
losses.
    Net income was down $8 million or 4% from the prior quarter, as higher
revenue in capital markets was offset by an increase in non-interest expenses
and lower investment banking and credit products revenue. The prior quarter
benefited from income tax recoveries.

    Revenue

    Revenue was up $105 million or 15% from the same quarter last year.
    Capital markets revenue was up $78 million, primarily due to higher
revenue in equity and commodity structured products, Canadian equities and
debt capital markets, partially offset by lower revenue in U.S. equities.
    Investment banking and credit products revenue was down $33 million,
primarily due to lower revenue in Canadian and European investment banking.
    Merchant banking revenue was up $65 million, primarily due to higher
gains net of write-downs.

    Revenue was up $87 million or 12% from the prior quarter.
    Capital markets revenue was up $98 million, primarily due to higher
revenue in Canadian equities, debt capital markets, equity and commodity
structured products and U.S. equities.
    Investment banking and credit products revenue was down $38 million,
primarily due to lower revenue in Canadian and European investment banking,
partially offset by higher revenue in U.S. investment banking.
    Merchant banking revenue was up $16 million, primarily due to higher
gains net of write-downs.

    Recovery of credit losses

    Recovery of credit losses was down $5 million or 33% from the same
quarter last year, primarily due to higher losses net of recoveries in the
U.S., partially offset by higher recoveries in Europe and commercial banking.
    Recovery of credit losses was up $9 million from the prior quarter due to
higher recoveries in Europe.

    Non-interest expenses

    Non-interest expenses were up $18 million or 3% from the same quarter
last year, primarily due to higher performance-related compensation, partially
offset by lower litigation provisions and corporate support costs.
    Non-interest expenses were up $66 million or 14% from the prior quarter,
primarily due to higher performance-related compensation, litigation
provisions, and occupancy costs.
    The regular workforce headcount was up 91 from the same quarter last year
and up 93 from the prior quarter, primarily due to realignment of staff from
Administration, Technology and Operations.

    Income taxes

    Despite higher income, income tax expense was up only $1 million from the
same quarter last year, largely due to an increase in tax exempt income and
higher income from lower tax jurisdictions.
    Income taxes were up to $38 million from the prior quarter, primarily due
to higher income. The prior quarter benefited from income tax recoveries.

    Corporate and Other
    -------------------------------------------------------------------------

    Corporate and Other comprises the five functional groups -
Administration, Technology and Operations; Corporate Development; Finance;
Legal and Regulatory Compliance; and Treasury and Risk Management - that
support CIBC's business lines, as well as CIBC Mellon joint ventures,
Oppenheimer Holdings Inc. debentures (sold during 2006), and other income
statement and balance sheet items, including the general allowance, not
directly attributable to the business lines. The general allowance applicable
to FirstCaribbean is determined locally and is included in CIBC Retail
Markets. The revenue and expenses of the functional groups are generally
allocated to the business lines.

    Results(1)

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Total revenue                       $      156   $      147   $      111
    (Recovery of) provision for credit
     losses                                      -          (39)           1
    Non-interest expenses                      104          152           99
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests                  52           34           11
    Income taxes                                22          (66)           1
    Non-controlling interests                    -            -           (4)
    -------------------------------------------------------------------------
    Net income                          $       30   $      100   $       14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Regular workforce headcount             10,921       11,329       11,676
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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 was up $16 million from the same quarter last year, primarily
due to higher revenue.
    Net income was down $70 million or 70% from the prior quarter, primarily
due to the income tax recoveries and the reversal of the general allowance for
credit losses in the prior quarter, partially offset by lower unallocated
corporate support costs.

    Revenue

    Revenue was up $45 million or 41% from the same quarter last year,
primarily due to higher revenue from treasury, CIBC Mellon joint ventures and
hedging of stock appreciation rights (SARs).
    Revenue was up $9 million or 6% from the prior quarter, primarily due to
higher revenue from treasury and CIBC Mellon joint ventures.

    (Recovery of) provision for credit losses

    Recovery of credit losses was nil, compared with $39 million in the prior
quarter, which included the $39 million reversal of the general allowance.

    Non-interest expenses

    Non-interest expenses were up $5 million or 5% from the same quarter last
year, primarily due to higher expenses related to SARs.
    Non-interest expenses were down $48 million or 32% from the prior
quarter, primarily due to lower unallocated support costs.
    The regular workforce headcount was down 755 from the same quarter last
year, primarily due to reduction of back office functions and the realignment
of staff to business groups. These decreases were partially offset by the
transfer of staff from an external service provider relating to the
repatriation of desktop support and related network management services to
CIBC. The regular workforce headcount was down 408 from the prior quarter,
primarily due to realignment of staff to business groups and completion of
certain projects, partially offset by the transfer of staff noted above.

    Income taxes

    Income taxes were up $21 million from the same quarter last year,
primarily due to higher income.
    Income taxes were up $88 million from the prior quarter, which included
income tax recoveries.

    Management of risk
    -------------------------------------------------------------------------

    Our approach to the management of risk and capital resources has not
changed significantly from that described on pages 53 to 66 of the 2006 Annual
Accountability Report.

    Management of credit risk

    -------------------------------------------------------------------------
    CREDIT QUALITY PERFORMANCE
                                                           2007         2006
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                         $      547   $      386
    Business and government                                 444          244
    -------------------------------------------------------------------------
    Total gross impaired loans                       $      991   $      630
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Allowance for credit losses
    Consumer                                         $      389   $      363
    Business and government                                 247          181
    -------------------------------------------------------------------------
    Specific allowance                                      636          544
    General allowance                                       920          900
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,556   $    1,444
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Gross impaired loans were up $361 million or 57% from October 31, 2006.
Consumer gross impaired loans were up $161 million or 42%. Business and
government gross impaired loans were up $200 million or 82%. The overall
increase in gross impaired loans was largely due to the FirstCaribbean
acquisition. During the three months ended January 31, 2007, gross impaired
loans increased $4 million in Canada, $23 million in the U.S. and $334 million
in other countries.
    Allowance for credit losses was up $112 million or 8% from October 31,
2006. Specific allowance was up $92 million or 17% from year-end, primarily
due to the FirstCaribbean acquisition. This increase was partially offset by a
reduction in the specific allowance of the personal loans portfolio in Canada.
The general allowance totalled $920 million, up $20 million from the year-end,
due to the FirstCaribbean acquisition.
    For details on the provision for credit losses, see "Review of
consolidated statement of operations" section.

    Management of market risk

    Trading activities
    ------------------
    The following table shows Value-at-Risk (VaR) by risk-type for CIBC's
trading activities. Total average risk was up from the same quarter last year
primarily due to higher levels of interest rate risk, partially offset by
lower levels of credit spread risk. Total average risk was down from the prior
quarter primarily due to lower levels of credit spread risk. Trading revenue
(TEB)(A) was positive for 91% of the days in the quarter and trading losses
did not exceed VaR for any day.

    -------------------------------------------------------------------------
    VaR BY RISK TYPE - TRADING PORTFOLIO

                                                               Jan. 31, 2007
                                   ------------------------------------------
    $ millions, as at or for
     the three months ended            High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $   10.3   $    4.6   $    8.6   $    7.0
    Credit spread risk                  4.1        3.0        3.2        3.5
    Equity risk                         7.6        5.4        5.8        6.4
    Foreign exchange risk               1.0        0.2        0.6        0.4
    Commodity risk                      3.5        0.8        1.5        1.6
    Diversification effect(1)         n/m(2)     n/m(2)     (10.2)      (9.9)
    ------------------------------                      ---------------------
    Total risk                     $   11.0   $    7.3   $    9.5   $    9.0
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    VaR BY RISK TYPE - TRADING PORTFOLIO

                                         Oct. 31, 2006         Jan. 31, 2006
                                   ------------------------------------------
    $ millions, as at or for
     the three months ended           As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    6.1   $    6.2   $    7.1   $    3.8
    Credit spread risk                  5.7        5.8        4.4        4.4
    Equity risk                         6.1        5.5        6.0        5.9
    Foreign exchange risk               0.4        0.4        0.3        0.3
    Commodity risk                      1.2        1.9        1.4        1.4
    Diversification effect(1)         (10.3)     (10.4)      (9.7)      (7.6)
    -------------------------------------------------------------------------
    Total risk                     $    9.2   $    9.4   $    9.5   $    8.2
    -------------------------------------------------------------------------
    (1) 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.
    (2) 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.

    Non-trading activities
    ----------------------
    The following table shows the potential impact of an immediate 100 basis
points increase and decrease in interest rates over the next 12 months, as
adjusted for estimated prepayments.

    -------------------------------------------------------------------------
    INTEREST RATE SENSITIVITY
     - NON TRADING (AFTER-TAX)                2007         2006         2006
    $ millions, as at                      Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    100 basis points increase in
     interest rates
    Impact on net interest income       $       12   $       35   $       78
    Impact on shareholders' equity(1)          183          203          179

    100 basis points decrease in
     interest rates
    Impact on net interest income       $      (72)  $     (111)  $     (110)
    Impact on shareholders' equity(1)         (239)        (274)        (179)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Measured on a present value basis.

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

    Management of liquidity risk

    Consistent with our liquidity risk mitigation strategies, we continue to
source term funding in the wholesale markets from a variety of clients and
geographic locations, borrowing across a range of maturities using a mix of
funding instruments. Core personal deposits remain a prime source of
dependable retail funding. As at January 31, 2007, Canadian dollar deposits
from individuals totalled $80.0 billion (October 31, 2006: $77.4 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding, asset securitization initiatives, capital
and subordinated debt issuance, 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.

    The following table summarizes our liquid assets:

    -------------------------------------------------------------------------
                                                           2007         2006
    $ billions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.2   $      0.9
    Deposits with banks                                    16.5         10.9
    Securities(1)                                          71.5         66.8
    Securities borrowed or purchased under resale
     agreements                                            24.0         25.4
    -------------------------------------------------------------------------
    Total                                            $    113.2   $    104.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes available-for-sale securities (2006: investment securities)
        and securities designated at fair value 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
as at January 31, 2007 totalled $27.1 billion (October 31, 2006: $25.5
billion).

    Management of capital resources

    Regulatory capital
    ------------------
    Regulatory capital is determined in accordance with guidelines issued by
the Office of the Superintendent of Financial Institutions (OSFI).


    -------------------------------------------------------------------------
                                                           2007         2006
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   11,932   $   11,935
    Total regulatory capital                             17,499       16,583
    Risk-weighted assets                                124,118      114,780
    Tier 1 capital ratio                                    9.6%        10.4%
    Total capital ratio                                    14.1%        14.5%
    Assets-to-capital multiple                             18.1x        18.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Tier 1 ratio was down 80 basis points from the year-end, largely due to
an increase in risk-weighted assets and goodwill, both arising from the
purchase of the controlling interest in FirstCaribbean. These factors were
partially offset by the minority interest in FirstCaribbean, the increase in
retained earnings and foreign currency translation adjustments.
    Total capital ratio was down 40 basis points from year-end, largely due
to the factors noted above. The total capital ratio benefited from the
reduction in equity-accounted investments as a result of our FirstCaribbean
acquisition.
    On February 2, 2007, subsequent to the quarter-end, we acquired an
additional 8.5% interest in FirstCaribbean pursuant to our tender offer. As a
result, our capital ratios will be affected by an increase in the goodwill
deduction and a decrease in the minority interest. However, the effect is not
expected to be significant.

    Significant capital management activities
    -----------------------------------------

    The following table summarizes our significant capital management
activities:

    -------------------------------------------------------------------------
                                                                     2007
    $ millions, for the three months ended                        Jan. 31
    -------------------------------------------------------------------------
    Issue of Class A Preferred Shares Series 31                $      450
    Redemption of Class A Preferred Shares Series 24                 (416)(1)
    Issue of common shares (options exercised)                         50
    Dividends
      Preferred shares - classified as equity                         (38)
      Preferred shares - classified as liabilities                     (8)
      Common shares                                                  (235)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $16 million premium on redemption.


    Subsequent to the quarter-end, on February 14, 2007, we issued 12 million
Non-cumulative Class A Series 32 Preferred Shares for an aggregate amount of
$300 million.
    For additional details, see Note 5 to the interim consolidated financial
statements.

    Regulatory approval to pay dividends
    ------------------------------------
    We have obtained the approval of OSFI under section 79 of the Bank Act
(Canada) to pay dividends on our common shares and Class A Preferred Shares
for the quarter ended January 31, 2007.
    Subsequent to the quarter-end, we obtained the approval of OSFI to pay
dividends on our common shares and Class A Preferred Shares for the quarter
ending April 30, 2007.

    Off-balance sheet arrangements and contractual obligations
    -------------------------------------------------------------------------

    Off-balance sheet arrangements
    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include transactions with VIEs,
derivatives, credit-related arrangements and guarantees. Details on our off-
balance sheet arrangements are provided on pages 67 to 69 of the 2006 Annual
Accountability Report. For additional details on securitizations and
guarantees, see the notes to the interim consolidated financial statements.
There were no other significant changes to off-balance sheet arrangements
during the quarter.

    Contractual obligations
    Details on our contractual obligations are provided on page 69 of the
2006 Annual Accountability Report.
    On November 1, 2006, we amended a contract to extend an existing three
year commitment to seven years, and thereby increased the purchase obligation
by approximately $600 million through 2013. There were no significant changes
to contractual obligations that were not in the ordinary course of our
business.

    Critical accounting policies and estimates
    -------------------------------------------------------------------------

    A summary of significant accounting policies is presented in Note 1 to
the 2006 consolidated financial statements.
    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. Significant
changes in accounting policies were adopted on November 1, 2006 related to the
financial instruments standards noted below. For a description of the
judgments and estimates involved in the application of critical accounting
policies and assumptions made for pension and other benefit plans, see pages
70 to 73 of the 2006 Annual Accountability Report.

    Changes in accounting policy
    ------------------------------------------------------------------------

    Financial instruments
    On November 1, 2006, we adopted the Canadian Institute of Chartered
Accountants (CICA) handbook sections 3855 "Financial Instruments - Recognition
and Measurement," 3865 "Hedges" (including the amendments to the transitional
provisions finalized by the CICA on December 15, 2006 by way of a Board
Notice), 1530 "Comprehensive Income," and 3251 "Equity."
    The standards require that all financial assets be classified as trading,
designated at fair value, available for sale, held to maturity, or loans and
receivables. In addition, the standards require that all financial assets,
including all derivatives, be measured at fair value with the exception of
loans and receivables, debt securities classified as held-to-maturity, and
available-for-sale equities that do not have quoted market values in another
active market. As required, these standards have been applied as an adjustment
to opening retained earnings and accumulated other comprehensive income
(AOCI). As a result, retained earnings decreased by $50 million; and AOCI
increased by $123 million, excluding the impact of the reclassification of the
foreign currency translation adjustments opening balance to AOCI. Prior period
balances have not been restated.
    For further details, see Note 1 to the interim consolidated financial
statements.

    Future accounting changes
    -------------------------------------------------------------------------

    Leveraged leases
    In July 2006, the Financial Accounting Standards Board (FASB) issued a
FASB Staff Position (FSP) FAS 13-2, "Accounting for a Change or Projected
Change in the Timing of Cash Flows Relating to Income Taxes Generated by a
Leveraged Lease Transaction," which amends Statement of Financial Accounting
Standard 13, certain aspects of which are incorporated in the CICA Emerging
Issues Abstract (EIC) 46, "Leveraged Leases." The FSP is effective beginning
November 1, 2007.
    For additional details, see page 130 of our 2006 Annual Accountability
Report.

    Controls and procedures
    -------------------------------------------------------------------------

    Disclosure controls and procedures
    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at
January 31, 2007, 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 are 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 January 31, 2007, that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.

    Non-GAAP measures
    -------------------------------------------------------------------------

    We use a number of financial measures to assess the performance of our
business lines. 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 37 of the 2006 Annual Accountability Report.
    The following tables provide a reconciliation of our non-GAAP to GAAP
measures:

    Statement of operations measures

    -------------------------------------------------------------------------
                                       CIBC       CIBC
    $ millions, for the              Retail      World  Corporate       CIBC
     three months ended             Markets    Markets  and Other      Total
    -------------------------------------------------------------------------

    Jan. 31, 2007
      Total revenue               $   2,151  $     784  $     156  $   3,091
      Add: adjustment for TEB             -         62          -         62
    -------------------------------------------------------------------------
      Revenue (TEB)               $   2,151  $     846  $     156  $   3,153
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income                  $     530  $     210  $      30  $     770
      Less: charge for economic
       capital                          125         64          4        193
    -------------------------------------------------------------------------
      Economic profit             $     405  $     146  $      26  $     577
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Efficiency ratio                 59.9%      70.3%       n/m       62.9%
      Less: adjustment for
             impact of TEB                -        5.1        n/m        1.3
            amortization of other
             intangible assets          0.2          -        n/m        0.1
    -------------------------------------------------------------------------
      Efficiency ratio cash
       basis (TEB)                     59.7%      65.2%       n/m       61.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Oct. 31, 2006
      Total revenue               $   2,046  $     697  $     147  $   2,890
      Add: adjustment for TEB             -         77          -         77
    -------------------------------------------------------------------------
      Revenue (TEB)               $   2,046  $     774  $     147  $   2,967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income                  $     501  $     218  $     100  $     819
      Less: charge for economic
       capital                          117         64          5        186
    -------------------------------------------------------------------------
      Economic profit             $     384  $     154  $      95  $     633
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Efficiency ratio                 61.4%      69.6%       n/m       65.5%
      Less: adjustment for
             impact of TEB                -        7.0        n/m        1.7
            amortization of other
             intangible assets          0.1          -        n/m        0.3
    -------------------------------------------------------------------------
      Efficiency ratio cash
       basis (TEB)                     61.3%      62.6%       n/m       63.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Jan. 31, 2006
      Total revenue               $   2,068  $     679  $     111  $   2,858
      Add: adjustment for TEB             -         46          -         46
    -------------------------------------------------------------------------
      Revenue (TEB)               $   2,068  $     725  $     111  $   2,904
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income                  $     438  $     128  $      14  $     580
      Less: charge for economic
       capital                          126         64          5        195
    -------------------------------------------------------------------------
      Economic profit             $     312  $      64  $       9  $     385
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Efficiency ratio                 60.2%      78.3%       n/m       65.7%
      Less: adjustment for
             impact of TEB                -        4.9        n/m        1.1
            amortization of other
             intangible assets            -          -        n/m        0.2
    -------------------------------------------------------------------------
      Efficiency ratio cash
       basis (TEB)                     60.2%      73.4%       n/m       64.4%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    n/m - not meaningful


    Adjusted income taxes

    Adjusted effective tax rate is calculated by adjusting the tax expense
for significant tax recoveries and tax rate changes. The adjusted effective
tax rate (TEB) is calculated by also grossing up income and income taxes with
the tax-exempt income to an equivalent before-tax basis.

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

                                                  For the three months ended
                                             --------------------------------
                                                  2007       2006       2006
    $ millions                                 Jan. 31    Oct. 31     Jan.31
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests        A      $   1,005  $     906  $     815
    TEB adjustment                    B             62         77         46
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests (TEB)  C      $   1,067  $     983  $     861
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Reported income taxes per
     financial statements             D      $     231  $      87  $     238
      TEB adjustment                  B             62         77         46
      Income tax recoveries           E              -         90          -
    -------------------------------------------------------------------------
    Adjusted income taxes             F      $     293  $     254  $     284
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Reported effective income
     tax rate (TEB)                (D+B)/C        27.5%      16.7%      33.0%
    Adjusted effective income
     tax rate                      (D+E)/A        23.0%      19.5%      29.2%
    Adjusted effective income
     tax rate (TEB)                  F/C          27.5%      25.8%      33.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash basis measures

    Cash basis measures are calculated by adjusting the amortization of other
intangible assets to net income and non-interest expenses. Management believes
these measures permit uniform measurement, which enables users of our
financial information to make comparisons more readily.

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

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net income                          $      770   $      819   $      580
    Add: after-tax effect of
     amortization of other intangible
     assets                                      4            5            5
    -------------------------------------------------------------------------
    Cash basis - net income             $      774   $      824   $      585
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Non-interest expenses               $    1,943   $    1,892   $    1,877
    Less: amortization of other
     intangible assets                          (5)          (8)          (7)
    -------------------------------------------------------------------------
    Cash basis - non-interest expenses  $    1,938   $    1,884   $    1,870
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash basis - Basic EPS              $     2.14   $     2.36   $     1.65
    Cash basis - Diluted EPS            $     2.12   $     2.34   $     1.63
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CIBC INTERIM CONSOLIDATED FINANCIAL STATEMENTS
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF OPERATIONS

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Interest income
    Loans                               $    2,304   $    2,279   $    2,033
    Securities borrowed or purchased
     under resale agreements                   472          467          333
    Securities                                 762          778          620
    Deposits with banks                        173          130           87
    -------------------------------------------------------------------------
                                             3,711        3,654        3,073
    -------------------------------------------------------------------------
    Interest expense
    Deposits                                 1,903        1,742        1,328
    Other liabilities                          665          696          517
    Subordinated indebtedness                   76           78           72
    Preferred share liabilities                  8            8            8
    -------------------------------------------------------------------------
                                             2,652        2,524        1,925
    -------------------------------------------------------------------------
    Net interest income                      1,059        1,130        1,148
    -------------------------------------------------------------------------
    Non-interest income
    Underwriting and advisory fees             185          165          180
    Deposit and payment fees                   193          195          195
    Credit fees                                 69          107           88
    Card fees                                   70           74           64
    Investment management and
     custodial fees                            130          127          114
    Mutual fund fees                           212          203          194
    Insurance fees, net of claims               58           57           58
    Commissions on securities
     transactions                              229          206          229
    Trading revenue (Note 8)                   375          285          262
    Investment securities gains
     (losses), net                             n/a           27           (2)
    Realized net gains on available for
     sale securities                           132          n/a          n/a
    Revenue on financial instruments
     designated at fair value and
     related economic hedges (Note 9)           43          n/a          n/a
    Income from securitized assets             129          126          116
    Foreign exchange other than trading         84           62           64
    Other                                      123          126          148
    -------------------------------------------------------------------------
                                             2,032        1,760        1,710
    -------------------------------------------------------------------------
    Total revenue                            3,091        2,890        2,858
    -------------------------------------------------------------------------
    Provision for credit losses (Note 3)       143           92          166
    -------------------------------------------------------------------------
    Non-interest expenses
    Employee compensation and benefits       1,160        1,064        1,080
    Occupancy costs                            150          136          146
    Computer and office equipment              263          286          273
    Communications                              71           73           75
    Advertising and business development        50           68           47
    Professional fees                           39           43           44
    Business and capital taxes                  35           36           31
    Other                                      175          186          181
    -------------------------------------------------------------------------
                                             1,943        1,892        1,877
    -------------------------------------------------------------------------
    Income before income taxes and
     non-controlling interests               1,005          906          815
    Income tax expense                         231           87          238
    -------------------------------------------------------------------------
                                               774          819          577
    Non-controlling interests                    4            -           (3)
    -------------------------------------------------------------------------
    Net income                          $      770   $      819   $      580
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share
     (in dollars) (Note 11) -  Basic    $     2.13   $     2.34   $     1.64
                            -  Diluted  $     2.11   $     2.32   $     1.62
    Dividends per common
     share (in dollars)                 $     0.70   $     0.70   $     0.68
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    n/a   not applicable. Beginning November 1, 2006, certain new accounting
          categories have been created pursuant to adoption of the Canadian
          Institute of Chartered Accountants (CICA) handbook sections 3855,
          3865, 1530 and 3251. These sections were adopted on a prospective
          basis with no restatement of prior period information. See Note 1
          for additional details.

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



    -------------------------------------------------------------------------
    CONSOLIDATED BALANCE SHEET

                                                           2007         2006
    Unaudited, $ millions, as at                        Jan. 31      Oct. 31
    ------------------------------------------------------------  -----------
    ASSETS
    Cash and non-interest-bearing deposits
     with banks                                      $    1,938   $    1,317
    ------------------------------------------------------------  -----------
    Interest-bearing deposits with banks                 15,754       10,536
    ------------------------------------------------------------  -----------
    Securities
    Trading (Note 8)                                     68,113       62,331
    Available for sale                                   15,708          n/a
    Designated at fair value (Note 9)                     6,969          n/a
    Investment                                              n/a       21,167
    ------------------------------------------------------------  -----------
                                                         90,790       83,498
    ------------------------------------------------------------  -----------
    Securities borrowed or purchased under
     resale agreements                                   23,968       25,432
    ------------------------------------------------------------  -----------
    Loans
    Residential mortgages                                83,338       81,358
    Personal                                             28,622       28,052
    Credit card                                           7,612        7,253
    Business and government (Notes 8 and 9)              34,528       30,404
    Allowance for credit losses (Note 3)                 (1,554)      (1,442)
    ------------------------------------------------------------  -----------
                                                        152,546      145,625
    ------------------------------------------------------------  -----------
    Other
    Derivative instruments market valuation (Note 7)     17,665       17,122
    Customers' liability under acceptances                6,984        6,291
    Land, buildings and equipment                         2,212        2,032
    Goodwill                                              1,951          982
    Other intangible assets                                 456          192
    Other assets                                          8,344       10,957
    ------------------------------------------------------------  -----------
                                                         37,612       37,576
    ------------------------------------------------------------  -----------
                                                     $  322,608   $  303,984
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $   88,954   $   81,829
    Business and government (Note 9)                    118,955      107,468
    Bank                                                 15,716       13,594
    ------------------------------------------------------------  -----------
                                                        223,625      202,891
    ------------------------------------------------------------  -----------
    Other
    Derivative instruments market valuation (Note 7)     16,694       17,330
    Acceptances                                           6,984        6,297
    Obligations related to securities sold short         13,719       13,788
    Obligations related to securities lent or sold
     under repurchase agreements                         29,255       30,433
    Other liabilities                                    12,295       14,716
    ------------------------------------------------------------  -----------
                                                         78,947       82,564
    ------------------------------------------------------------  -----------
    Subordinated indebtedness                             5,991        5,595
    ------------------------------------------------------------  -----------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------  -----------
    Non-controlling interests                               278           12
    ------------------------------------------------------------  -----------
    Shareholders' equity
    Preferred shares                                      2,431        2,381
    Common shares                                         3,114        3,064
    Treasury shares                                          (1)         (19)
    Contributed surplus                                      74           70
    Foreign currency translation adjustments                n/a         (442)
    Retained earnings                                     7,693        7,268
    Accumulated other comprehensive income (Note 6)        (144)         n/a
    ------------------------------------------------------------  -----------
                                                         13,167       12,322
    ------------------------------------------------------------  -----------
                                                     $  322,608   $  303,984
    ------------------------------------------------------------  -----------
    ------------------------------------------------------------  -----------
    n/a  not applicable. See the "Consolidated statement of operations" for
         additional details.

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



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Preferred shares
    Balance at beginning of period      $    2,381   $    2,381   $    2,381
    Issue of preferred shares                  450            -            -
    Redemption of preferred shares            (400)           -            -
    -------------------------------------------------------------------------
    Balance at end of period            $    2,431   $    2,381   $    2,381
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Common shares
    Balance at beginning of period      $    3,064   $    3,037   $    2,952
    Issue of common shares                      50           27           40
    -------------------------------------------------------------------------
    Balance at end of period            $    3,114   $    3,064   $    2,992
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Treasury shares
    Balance at beginning of period      $      (19)  $      (24)  $        -
    Purchases                               (1,356)        (771)      (1,406)
    Sales                                    1,374          776        1,401
    -------------------------------------------------------------------------
    Balance at end of period            $       (1)  $      (19)  $       (5)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance at beginning of period      $       70   $       67   $       58
    Stock option expense                         2            2            1
    Stock options exercised                     (4)          (1)          (3)
    Net premium on treasury shares               6            2            -
    -------------------------------------------------------------------------
    Balance at end of period            $       74   $       70   $       56
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Foreign currency translation
     adjustments
    Balance at beginning of period      $     (442)  $     (415)  $     (327)
    Transitional adjustment on adoption
     of new accounting policies(1)             442            -            -
    Foreign exchange losses from
     investment in subsidiaries and
     other items                               n/a         (114)        (546)
    Foreign exchange gains from hedging
     activities                                n/a          131          746
    Income tax expense                         n/a          (44)        (248)
    -------------------------------------------------------------------------
    Balance at end of period            $        -   $     (442)  $     (375)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings
    Balance at beginning of period,
     as previously reported             $    7,268   $    6,712   $    5,667
    Transitional adjustment on adoption
     of new accounting policies(1)             (50)           -            -
    -------------------------------------------------------------------------
    Balance at beginning of period,
     as restated                             7,218        6,712        5,667
    Net income                                 770          819          580
    Dividends
      Preferred                                (38)         (33)         (33)
      Common                                  (235)        (234)        (227)
    Premium on redemption of preferred
     shares (classified as equity)             (16)           -            -
    Other                                       (6)           4            -
    -------------------------------------------------------------------------
    Balance at end of period            $    7,693   $    7,268   $    5,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Accumulated other comprehensive
     income (AOCI), net of tax (Note 6)
    Transitional adjustment on adoption
     of new accounting policies(1)      $     (319)         n/a          n/a
    Other comprehensive income                 175          n/a          n/a
    -------------------------------------------------------------------------
    Balance at end of period            $     (144)         n/a          n/a
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings and AOCI          $    7,549   $    7,268   $    5,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity at end
     of period                          $   13,167   $   12,322   $   11,036
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents the transitional adjustment on adoption of the CICA
        handbook sections 3855, 3865, 1530 and 3251. See Note 1 for
        additional details.
    n/a  not applicable. See the "Consolidated statement of operations" for
         additional details.

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



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                                                        2007
    Unaudited, $ millions, for the three months ended                Jan. 31
    -------------------------------------------------------------------------
    Net income                                                    $      770
    -------------------------------------------------------------------------
    Other comprehensive income, net of tax
      Foreign currency translation adjustments
      Net gains on investment in self-sustaining foreign
       operations(1)                                                     805
      Net losses on hedges of foreign currency translation
       adjustments(2)                                                   (603)
    -------------------------------------------------------------------------
                                                                         202
    -------------------------------------------------------------------------
      Unrealized gains (losses) on available for sale securities
      Net unrealized losses on securities available for sale(3)          (43)
      Transfer of net gains to net income(4)                             (28)
    -------------------------------------------------------------------------
                                                                         (71)
    -------------------------------------------------------------------------
      Gains (losses) on cash flow hedges
      Net gains on derivatives designated as cash flow hedges(5)          73
      Net gains on derivatives designated as cash flow hedges
       transferred to net income(6)                                      (29)
    -------------------------------------------------------------------------
                                                                          44
    -------------------------------------------------------------------------
    Total other comprehensive income(7)                                  175
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income                                          $      945
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Net of income tax expense of $(10) million.
    (2) Net of income tax benefit of $313 million.
    (3) Net of income tax benefit of $29 million.
    (4) Net of income tax benefit of $16 million.
    (5) Net of income tax expense of $(39) million.
    (6) Net of income tax benefit of $15 million.
    (7) Includes non-controlling interest of $1 million.

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



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF CASH FLOWS

                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     operating activities
    Net income                          $      770   $      819   $      580
    Adjustments to reconcile net income
     to cash flows provided by (used
     in) operating activities:
      Provision for credit losses              143           92          166
      Amortization of buildings,
       furniture, equipment and
       leasehold improvements                   53           51           54
      Amortization of other intangible
       assets                                    5            8            7
      Stock-based compensation                  18           15           15
      Future income taxes                       63          163           77
      Investment securities (gains)
       losses realized, net                    n/a          (27)           2
      Realized net gains on available
       for sale securities                    (132)         n/a          n/a
      Losses on disposal of land,
       buildings and equipment                   -            1            -
      Other non-cash items, net                 50            -            -
      Changes in operating assets and
       liabilities
        Accrued interest receivable           (106)         (92)          17
        Accrued interest payable              (474)         309           13
        Amounts receivable on
         derivative contracts                 (404)         275          931
        Amounts payable on derivative
         contracts                            (958)          85          (58)
        Net change in trading securities    (4,238)      (2,093)      (7,117)
        Net change in securities
         designated at fair value             (629)         n/a          n/a
        Net change in other assets and
         liabilities designated at fair
         value                                 187          n/a          n/a
        Current income taxes                  (377)        (116)          53
        Other, net                          (1,742)         166       (1,890)
    -------------------------------------------------------------------------
                                            (7,771)        (344)      (7,150)
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     financing activities
    Deposits, net of withdrawals             5,554        2,876          932
    Obligations related to securities
     sold short                                (69)        (348)         328
    Net obligations related to
     securities lent or sold under
     repurchase agreements                  (1,178)       5,541        9,634
    Issue of subordinated indebtedness         234            -            -
    Redemption of subordinated
     indebtedness                                -         (250)        (250)
    Redemption of preferred shares            (416)           -            -
    Issue of preferred shares                  450            -            -
    Issue of common shares                      50           27           40
    Net proceeds from treasury shares
     sold (purchased)                           18            5           (5)
    Dividends                                 (273)        (267)        (260)
    Other, net                                 353          249          150
    -------------------------------------------------------------------------
                                             4,489        7,833       10,569
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     investing activities
    Interest-bearing deposits with banks    (2,494)        (411)       1,479
    Loans, net of repayments                 1,295       (5,521)         355
    Proceeds from securitizations            2,537        1,950        2,026
    Investment securities
      Purchase of securities                   n/a       (2,504)      (6,011)
      Proceeds from sale of securities         n/a        2,325        1,294
      Proceeds from maturity of
       securities                              n/a          435          641
    Available for sale securities
      Purchase of securities                (1,787)         n/a          n/a
      Proceeds from sale of securities       1,462          n/a          n/a
      Proceeds from maturity of
       securities                            2,396          n/a          n/a
    Net securities borrowed or purchased
     under resale agreements                 1,464       (3,792)      (3,185)
    Net cash used in acquisition(1)           (778)           -          (75)
    Purchase of land, buildings
     and equipment                            (233)         (51)          (6)
    Proceeds from disposal of land,
     buildings and equipment                     -            1            -
    -------------------------------------------------------------------------
                                             3,862      (7,568)      (3,482)
    -------------------------------------------------------------------------
    Effect of exchange rate changes on
     cash and non-interest-bearing
     deposits with banks                        41           (8)         (12)
    -------------------------------------------------------------------------
    Net increase (decrease) in cash and
     non-interest-bearing deposits with
     banks during period                       621          (87)         (75)
    Cash and non-interest-bearing
     deposits with banks at beginning
     of period                               1,317        1,404        1,310
    -------------------------------------------------------------------------
    Cash and non-interest-bearing
     deposits with banks at end
     of period                          $    1,938   $    1,317   $    1,235
    -------------------------------------------------------------------------
    Cash interest paid                  $    3,126   $    2,215   $    1,912
    Cash income taxes paid              $      545   $       41   $      108
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) On December 22, 2006, we acquired a controlling interest in
        FirstCaribbean International Bank. On November 1, 2005, we purchased
        the remaining non-controlling interest in INTRIA Items Inc.
    n/a  not applicable. See the "Consolidated statement of operations" for
         additional details.

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



    NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

    The interim consolidated financial statements of Canadian Imperial Bank
    of Commerce and its subsidiaries (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, 2006, except as noted below. 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, 2006, as set out on pages 80 to 130 of the 2006
    Annual Accountability Report.

    During the quarter, we revisited our presentation of certain revenue and
    expense items for prior periods to better reflect the nature of these
    items. Accordingly, certain comparative amounts have been reclassified to
    conform with the presentation adopted in the current period.

    1.  Change in accounting policy

    On November 1, 2006, we adopted the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement," 3865 "Hedges"
    (including the amendments to the transitional provisions finalized by the
    CICA on December 15, 2006 by way of a Board Notice), 1530 "Comprehensive
    Income," and 3251 "Equity."

    The standards require that all financial assets be classified as trading,
    designated at fair value (FVO), available for sale (AFS), held to
    maturity (HTM), or loans and receivables. The investment securities
    classification is no longer applicable under the new rules. In addition,
    the standards require that all financial assets, including all
    derivatives, be measured at fair value with the exception of loans and
    receivables, debt securities classified as HTM, and AFS equities that do
    not have quoted market values in an active market.

    Fair values are based on quoted market prices where available from active
    markets, otherwise fair values are estimated using a variety of valuation
    techniques and models.

    Transaction costs related to trading securities are expensed as incurred.
    Transaction costs related to AFS and HTM securities and loans and
    receivables are generally capitalized and are then amortized over the
    expected life of the instrument using the effective yield method.

    Settlement date accounting continues to be used for all securities,
    except changes in fair value between the trade date and settlement date
    are reflected in income for trading and FVO securities, while changes in
    fair value between trade date and settlement date are reflected in other
    comprehensive income (OCI) for AFS securities.

    Classification of financial instruments

    Trading financial assets are securities purchased for resale, generally
    within a short period of time. Trading financial liabilities are
    obligations related to securities sold short. They are measured at fair
    value at the balance sheet date. Gains and losses realized on disposal
    and unrealized gains and losses from market fluctuations continue to be
    reported in income as trading revenue. Dividends and interest earned and
    interest incurred are included in interest income and expense,
    respectively.

    Designated at fair value (FVO) financial assets and financial liabilities
    are those that an entity designates on initial recognition as instruments
    that it will measure at fair value through the consolidated statement of
    operations. These are accounted for in the same manner as trading
    financial assets and financial liabilities. There are regulatory
    restrictions imposed by the Office of the Superintendent of Financial
    Institutions (OSFI) on the use of this designation including that retail
    asset exposures are precluded from being designated and that the fair
    value designated financial instruments are managed on a fair value basis.
    Reliable fair values are required.

    Held-to-maturity financial assets are non-derivative financial assets
    with fixed or determinable payments and a fixed maturity, other than
    loans and receivables, that an entity has the positive intention and
    ability to hold to maturity. These financial assets are accounted for at
    amortized cost. We have not designated any financial assets as HTM.

    Available-for-sale financial assets are those non-derivative financial
    assets that are designated as AFS, or that are not classified as loans
    and receivables, HTM investments, trading or designated at fair value.
    Securities included in this category comprise debt and equity securities,
    including investments over which we have no significant influence. Except
    for equities that do not have quoted market values in an active market,
    AFS securities are carried at fair value whereby the unrealized gains and
    losses are included in accumulated other comprehensive income (AOCI)
    until sale or other-than-temporary impairment when the cumulative gain or
    loss is transferred to the consolidated statement of operations. Equities
    that do not have quoted market values in an active market are carried at
    cost. Realized gains and losses on sale, determined on an average cost
    basis, and write-downs to reflect other-than-temporary impairments in
    value are included in non-interest income. Dividends and interest income
    from these securities are included in interest income.

    Loans and receivables continue to be accounted for at amortized cost.

    Financial liabilities are recorded at amortized cost and include all
    liabilities, other than derivatives, obligations related to securities
    sold short, or liabilities to which the fair value option has been
    applied.

    Derivatives are always carried at fair value and are reported as assets
    where they have a positive fair value and as liabilities where they have
    a negative fair value, in both cases as derivative instruments market
    valuation. Derivatives may be embedded in other financial instruments.
    Under the new standards, derivatives embedded in other financial
    instruments are valued as separate derivatives when their economic
    characteristics and risks are not clearly and closely related to those of
    the host contract; the terms of the embedded derivative are the same as
    those of a free standing derivative; and the combined contract is not
    held for trading or designated at fair value. These embedded derivatives
    are classified as part of the host instrument and measured at fair value
    with changes therein recognized in the consolidated statement of
    operations. We elected to apply this accounting treatment to all host
    contracts at November 1, 2006.

    Equity

    Accumulated other comprehensive income is included on the consolidated
    balance sheet as a separate component of shareholders' equity (net of
    tax), and includes net unrealized gains and losses on AFS securities,
    gains and losses on derivative instruments designated within effective
    cash flow hedges, and unrealized foreign currency translation gains and
    losses on self-sustaining foreign operations net of the gains or losses
    on related hedges.

    Hedge accounting

    Where derivatives are held for risk management purposes, and when
    transactions meet the criteria specified in the CICA handbook section
    3865, we apply fair value hedge accounting, cash flow hedge accounting,
    or accounting for hedges of net investments in self-sustaining foreign
    operations, as appropriate, to the risks being hedged. When hedge
    accounting is not applied the change in the fair value of the derivative
    is always recognized in income, including for instruments used for
    economic hedging purposes such as seller swaps that do not meet the
    requirements for hedge accounting.

    In order for derivatives to qualify for hedge accounting, the hedge
    relationship must be designated and formally documented at its inception
    in accordance with the CICA handbook section 3865, outlining the
    particular risk management objective and strategy, the specific asset,
    liability or cash flow being hedged, as well as how effectiveness is
    assessed.

    We document our assessment of the effectiveness of the derivatives that
    are used in hedging transactions in offsetting changes in fair values or
    cash flows of the hedged items both at the hedge inception and on an
    ongoing basis. Ineffectiveness results to the extent that the changes in
    the fair value of the hedging derivative differ from changes in the fair
    value of the hedged risk in the hedged item; or the cumulative change in
    the fair value of the hedging derivative differs from the cumulative
    change in the fair value of expected future cash flows of the hedged
    item. Effectiveness requires a high correlation of changes in fair values
    or cash flows. The amount of ineffectiveness, provided that it is not to
    the extent as to disqualify the entire hedge for hedge accounting, is
    recorded in income.

    The change in fair value of derivatives not designated as accounting
    hedges but used to economically hedge financial asset or liabilities
    designated at fair value is included in revenue on financial instruments
    designated at fair value and related economic hedges. The change in fair
    value of other derivatives not designated as accounting hedges but used
    for other economic hedging purposes is included in either foreign
    exchange other than trading (FXOTT) or other non-interest income. The
    change in fair value of all other trading derivatives is included in
    trading revenue.

    Fair value hedges
    -----------------

    We designate fair value hedges as part of interest rate risk management
    strategies that use derivatives to hedge changes in the fair value of
    financial instruments with fixed interest rates. These hedges minimize
    fluctuations in income that are caused by interest rate volatility
    through the creation of basis adjustments to the hedged financial
    instruments that are recognized in net interest income against the change
    in fair value recognized in net interest income from the hedging
    derivatives. Accordingly, any hedge ineffectiveness, representing the
    difference between change in fair value of the hedging derivative and the
    change in the basis adjustment to the hedged item, is also recognized in
    net interest income.

    We also designate fair value hedges as part of foreign exchange risk
    management strategies that use derivatives and other financial
    instruments to hedge changes in the fair value of financial instruments
    denominated in a currency other than the functional currency. These
    hedges minimize fluctuations in income that are caused by foreign
    exchange volatility through the creation of basis adjustments to the
    hedged financial instruments that are recognized in FXOTT against the
    change in fair value recognized in FXOTT from the hedging financial
    instruments. Accordingly, any hedge ineffectiveness is also recognized in
    FXOTT.

    In the absence of the basis adjustments created by these hedges, only the
    change in fair value of the hedging instruments would be recognized in
    income.

    The basis adjustment included in income is equal to the gain or loss on
    the hedged item attributed to the risk being hedged. If the hedging
    instrument expires or is sold, terminated or exercised, or where the
    hedge no longer meets the criteria for hedge accounting, the hedge
    relationship is terminated and the basis adjustment to the hedged item is
    amortized over the remaining term of the original hedge. If the hedged
    item is derecognized, the unamortized basis adjustment is recognized
    immediately in income.

    Upon the adoption of the new standards we re-established various fair
    value hedging relationships pursuant to which certain deferred hedge
    balances have been included as a basis adjustment to the hedged item. The
    accumulated ineffectiveness related to these hedges has been recognized
    in retained earnings together with deferred hedge balances related to
    current and past hedging relationships that have not been continued or
    would not qualify for hedge effectiveness under the new rules.

    Cash flow hedges
    ----------------

    We designate cash flows hedges as part of risk management strategies that
    use derivatives and other financial instruments to mitigate our risk from
    variable cash flows by hedging forecasted foreign currency denominated
    cash flows and by converting certain variable rate financial instruments
    to fixed rate financial instruments.

    The effective portion of the change in fair value of the derivative
    instrument is offset through OCI until the variability in cash flows
    being hedged is recognized in earnings in future accounting periods at
    which time the amount that was in the AOCI is reclassified into income.
    The ineffective portion of the change in fair value of the hedging
    derivative is recognized either in FXOTT or net interest income. If the
    hedging instrument expires or is sold, terminated or exercised, or where
    the hedge no longer meets the criteria for hedge accounting, the hedge
    relationship is terminated and any remaining amount in AOCI remains
    therein and is recognized in income when the hedged forecast transaction
    is ultimately recognized in income. When the forecasted transaction is no
    longer expected to occur, the cumulative gain or loss that was reported
    in the AOCI is immediately recognized in income.

    Upon the adoption of the new standards we re-established various cash
    flow hedging relationships pursuant to which certain deferred hedge
    balances have been included as an adjustment to the AOCI. The accumulated
    ineffectiveness related to these hedges has been recognized in retained
    earnings together with deferred hedge balances related to current and
    past hedging relationships that have not been continued or would not
    qualify for hedge effectiveness under the new rules.

    Hedges of net investments in self-sustaining foreign operations
    ---------------------------------------------------------------

    We designate net investment in foreign operation hedges to protect our
    investment in self sustaining operations against adverse movement in
    foreign exchange rates.

    These hedges are accounted for in a similar manner to cash flow hedges as
    the effective portion of the changes in fair value of the hedging
    derivative instruments is included in OCI until the reduction of the net
    investment at which time any gains or losses in the AOCI are recognized
    in FXOTT. The ineffective portion of the change in fair value of the
    hedging derivative is recognized in FXOTT.

    Transitional adjustment

    As required, these standards have been applied as an adjustment to
    opening retained earnings and accumulated other comprehensive income.
    Prior period balances have not been restated. The impact of adopting
    these standards as at November 1, 2006 was as follows:

    -------------------------------------------------------------------------
                                                     Adjustment
                                                           upon
                                             As at     adoption        As at
                                           Oct. 31,      of new       Nov. 1,
    $ millions                                2006    standards         2006
    -------------------------------------------------------------------------
    ASSETS
    Securities
      Investment                        $   21,167   $  (21,167)  $        -
      Available for sale                         -       16,006       16,006
      Trading                               62,331         (552)      61,779
      Designated at fair value                   -        6,340        6,340
    -------------------------------------------------------------------------
                                            83,498          627       84,125
    -------------------------------------------------------------------------
    Loans                                  145,625          136      145,761
    Derivative instruments market
     valuation                              17,122        1,585       18,707
    Other assets                            10,957       (1,701)      10,215
    -------------------------------------------------------------------------
    Impact on total assets              $  257,202   $      647   $  257,849
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS'
     EQUITY
    Deposits                            $  202,891   $      (44)  $  202,847
    Derivative instruments market
     valuation                              17,330        1,565       18,895
    Other liabilities                       14,716         (947)      13,769
    -------------------------------------------------------------------------
    Impact on total liabilities            234,937          574      235,511
    -------------------------------------------------------------------------
    Shareholders' equity
      Foreign currency translation
       adjustments                            (442)         442            -
      Retained earnings                      7,268          (50)       7,218
      Accumulated other comprehensive
       income
        Foreign currency translation
         adjustments                             -         (442)        (442)
        Unrealized gains (losses) on
         AFS securities                          -          (29)         (29)
        Gains (losses) on cash flow
         hedges                                  -          152          152
    -------------------------------------------------------------------------
    Impact on shareholders' equity           6,826           73        6,899
    -------------------------------------------------------------------------
    Impact on liabilities and
     shareholders' equity               $  241,763   $      647   $  242,410
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The $16,006 million of financial assets classified as AFS included
    $15,429 million (fair value $15,391 million) and $615 million (fair value
    $615 million) of financial assets previously classified as investment
    securities and other assets, respectively. The $6,340 million of
    financial assets classified as designated at fair value securities
    included $5,738 million (fair value $5,799 million) and $541 million
    (fair value $541 million) of financial assets previously classified as
    investment securities and trading securities, respectively.

    2.  Acquisition

    On December 22, 2006, we obtained control of FirstCaribbean International
    Bank (FirstCaribbean) by acquiring 90% of Barclay's Bank PLC's (Barclays)
    interest in FirstCarribean which represents a further 39.3% ownership
    interest. As a result of this transaction, as at January 31, 2007, we
    owned approximately 83.0% of the common shares of FirstCaribbean with the
    remaining common shares held by both Barclays and other minority
    shareholders. The common shares were acquired at US$1.62 each plus
    accrued dividends for total cash consideration of US$989 million
    (C$1,153 million) paid to Barclays. In addition, we incurred transaction
    costs, net of tax, of US$7 million (C$8 million). On February 2, 2007,
    subsequent to the quarter end, pursuant to a tender offer at the same
    price for the remaining common shares held by Barclays and the other
    minority shareholders, we acquired an additional 8.5% interest in
    FirstCaribbean in exchange for additional cash consideration of
    US$212 million (C$250 million), bringing our total ownership to 91.5%.

    The transaction has been accounted for using the purchase method. The
    results of FirstCaribbean's operations have been included within CIBC
    Retail Markets strategic business line in the consolidated financial
    statements since December 22, 2006. Prior to that date, we accounted for
    our 43.7% interest in FirstCaribbean using the equity method of
    accounting.

    Details of the aggregate consideration given and the fair value of net
    assets acquired in respect of the initial 39.3% acquisition are as
    follows:

    -------------------------------------------------------------------------
    $ millions
    -------------------------------------------------------------------------
    Aggregate consideration
    Purchase consideration (paid in cash)                         $    1,153
    Transaction costs, net of tax                                          8
    Carrying value of equity investment in FirstCaribbean
     prior to acquisition                                                840
    -------------------------------------------------------------------------
                                                                  $    2,001
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Fair value of net assets acquired
      Cash and deposits with banks                                $    3,107
      Securities                                                       3,934
      Loans                                                            6,667
      Goodwill                                                           958
      Other intangible assets                                            267
      Other assets                                                       876
    -------------------------------------------------------------------------
    Total assets acquired                                             15,809
    -------------------------------------------------------------------------
      Deposits                                                        10,921
      Other liabilities                                                2,386
      Subordinated indebtedness                                          232
      Non-controlling interest                                           269
    -------------------------------------------------------------------------
    Total liabilities assumed                                         13,808
    -------------------------------------------------------------------------
    Net assets acquired                                           $    2,001
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The goodwill may be adjusted throughout 2007 as part of the finalization
    of the allocation of the purchase price to the assets acquired and
    liabilities assumed from FirstCaribbean.

    The acquired intangible assets include a core deposit intangible of
    $248 million and the FirstCaribbean brand name of $19 million. The core
    deposit intangible will be amortized at 12% per annum using the declining
    balance method, while the brand has an indefinite life and is not
    amortized.

    3.  Allowance for credit losses

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

    $ millions, for the three
     months ended                                           January 31, 2007
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      544   $      900   $    1,444
    Provision for (recovery of)
     credit losses                             143            -          143
    Write-offs                                (224)           -         (224)
    Recoveries                                  53            -           53
    Transfer from general to specific(1)         3           (3)           -
    Other(2)                                   117           23          140
    -------------------------------------------------------------------------
    Balance at end of period            $      636   $      920   $    1,556
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                             $      634   $      920   $    1,554
      Letters of credit(3)                       2            -            2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    $ millions, for the three
     months ended                                           October 31, 2006
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      632   $      950   $    1,582
    Provision for (recovery of)
     credit losses                             131          (39)          92
    Write-offs                                (252)           -         (252)
    Recoveries                                  22            -           22
    Transfer from general to specific(1)        11          (11)           -
    Other(2)                                     -            -            -
    -------------------------------------------------------------------------
    Balance at end of period            $      544   $      900   $    1,444
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                             $      542   $      900   $    1,442
      Letters of credit(3)                       2            -            2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    $ millions, for the three
     months ended                                           January 31, 2006
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      663   $      975   $    1,638
    Provision for (recovery of)
     credit losses                             166            -          166
    Write-offs                                (208)           -         (208)
    Recoveries                                  23            -           23
    Transfer from general to specific(1)         -            -            -
    Other(2)                                     3            -            3
    -------------------------------------------------------------------------
    Balance at end of period            $      647   $      975   $    1,622
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprised of:
      Loans                             $      645   $      975   $    1,620
      Letters of credit(3)                       2            -            2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Related to student loan portfolio.
    (2) Includes $117 million in specific allowance and $23 million in
        general allowance related to the FirstCaribbean acquisition in the
        current quarter.
    (3) Included in other liabilities.

    4.  Securitizations

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

    $ millions, for the             Jan. 31,   Oct. 31,
     three months ended                2007       2006      Jan. 31, 2006
    -------------------------------------------------------------------------
                                   Residen-   Residen-   Residen-
                                       tial       tial       tial
                                  mortgages  mortgages  mortgages      Cards
    -------------------------------------------------------------------------
    Securitized                   $   3,850  $ 1,906(1) $   2,785  $     272
    Sold(2)                           2,549    1,965(1)     1,765        272
    Net cash proceeds                 2,537      1,953      1,754        272
    Retained interests(3)                33         33         31         23
    Gain on sale, net of
     transaction costs                   10          6          8          1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions:
      Prepayment/payment rate(4)     11.0 -     11.0 -     12.0 -       43.5%
                                       39.0%      39.0%      39.0%
      Discount rate                   4.1 -      4.1 -      3.5 -        9.0%
                                        4.3%       4.6%       4.2%
      Expected credit losses          0.0 -      0.0 -          -%       3.6%
                                        0.1%       0.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $92 million of uninsured fixed-rate mortgages securitized to
        a qualifying special purpose entity.
    (2) Assets securitized and not sold are reported as FVO securities
        (2006: investment securities) on the consolidated balance sheet.
    (3) Retained interests arising from securitization are reported as AFS
        securities (2006: investment securities) on the consolidated balance
        sheet.
    (4) Annual prepayment rate for residential mortgages and monthly payment
        rate for cards.

    5.  Significant capital transactions

    On November 15, 2006, we issued 18 million Non-cumulative Class A Series
    31 Preferred Shares with a par value of $25.00 each for an aggregate
    amount of $450 million.

    On January 31, 2007, we redeemed all 16 million outstanding
    Non-cumulative Class A Series 24 Preferred Shares at a price of $26.00
    per shares for an aggregate consideration of $416 million.

    During the quarter, we issued 0.9 million common shares for $50 million,
    pursuant to stock option plans.

    Subsequent to the quarter-end, on February 14, 2007, we issued 12 million
    Non-cumulative Class A Series 32 Preferred Shares with a par value of
    $25.00 each for an aggregate amount of $300 million.

    Regulatory approval to pay dividends
    ------------------------------------

    We have obtained the approval of the OSFI under section 79 of the Bank
    Act (Canada) to pay dividends on our common shares and Class A Preferred
    Shares for the quarter ended January 31, 2007.

    Subsequent to the quarter-end, we obtained the approval of OSFI to pay
    dividends on our common shares and Class A Preferred Shares for the
    quarter ending April 30, 2007.

    6.  Accumulated other comprehensive income (net of tax)

    -------------------------------------------------------------------------
                                                                     2007
    $ millions, as at                                             Jan. 31
    -------------------------------------------------------------------------
    Foreign currency translation adjustments                   $     (240)
    Net unrealized losses on AFS securities                          (100)(1)
    Net gains on cash flow hedges                                     196(2)
    -------------------------------------------------------------------------
    Total                                                      $     (144)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $239 million of cumulative loss related to AFS securities
        measured at fair value.
    (2) A net gain of $32 million, deferred in AOCI, as at January 31, 2007,
        is expected to be reclassified to net income during the next
        12 months. Remaining amounts will be reclassified to net income over
        periods up to 13 years thereafter.

    7.  Derivative instruments market valuation

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
                                                         Assets  Liabilities
    -------------------------------------------------------------------------
    Trading                                          $   16,282   $   15,815
    Designated accounting hedges (Note 12)                  687          245
    Economic hedges(1)
      Economic hedges of FVO financial
       assets and liabilities                               139          322
      Other economic hedges                                 557          312
    -------------------------------------------------------------------------
                                                     $   17,665   $   16,694
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises derivatives not part of qualifying hedging relationships
        for accounting purposes under the CICA handbook section 3865.

    8.  Trading financial instruments

    The following tables present the assets and liabilities and income
    related to trading financial instruments. Net interest income arises from
    interest and dividends related to trading assets and liabilities other
    than derivatives, and is reported net of interest expense and income
    associated with funding these assets and liabilities. Non-interest income
    includes unrealized gains and losses on security positions held, and
    gains and losses that are realized from the purchase and sales of
    securities. Non-interest income also includes all income from trading
    derivative instruments.

    -------------------------------------------------------------------------
                                                           2007         2006
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Trading assets
    Securities
      Debt                                           $   33,269   $   28,493
      Equity                                             34,844       33,838
    Loans
      Business and government                               n/a        3,641
    Derivative instruments                               16,282       16,805
    -------------------------------------------------------------------------
                                                     $   84,395   $   82,777
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Trading liabilities
    Obligations related to securities sold short     $   13,491   $   12,716
    Derivative instruments                               15,815       16,891
    -------------------------------------------------------------------------
                                                     $   29,306   $   29,607
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    n/a  not applicable


    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Trading income consists of:
      Interest income                   $      729   $      740   $      576
      Interest expense                         920          861          640
    -------------------------------------------------------------------------
      Net interest expense                    (191)        (121)         (64)
      Non-interest income                      375          285          262
    -------------------------------------------------------------------------
                                        $      184   $      164   $      198
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income by product line:
      Interest rates                    $       65   $       34   $       66
      Foreign exchange                          44           39           39
      Equities                                  43           17           23
      Commodities                                6           10            7
      Other                                     26           64(1)      63(1)
    -------------------------------------------------------------------------
                                        $      184   $      164   $      198
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises primarily loan trading activities.

    9.  Financial instruments designated at fair value

    Financial instruments designated at fair value include the following:

    -   Certain commercial real estate fixed rate loans, real estate related
        securities and loans held to hedge structured total return swap
        transactions, and certain loans hedged through credit derivatives are
        designated at fair value to significantly reduce measurement
        inconsistencies that would arise if the related derivatives were
        treated as trading and marked-to-market and the underlying financial
        instruments were carried at amortized cost.

    -   Secondary traded loans are designated at fair value to match both the
        accounting and the economics of the portfolio. These financial
        instruments are managed as trading loans with a documented trading
        strategy pursuant to which the positions are intended to be sold
        within six months.

    -   Certain financial assets, such as mortgage-backed securities,
        Government of Canada bonds and treasury bills, debt securities, and
        certain fixed rate deposit liabilities are designated at fair value
        to significantly reduce measurement inconsistencies that would arise
        if the related hedging derivatives, such as interest rate swaps,
        seller swaps and other asset swaps, were treated as trading and
        marked-to-market and the underlying financial asset accounted for at
        amortized cost.

    The following tables present the FVO assets and liabilities, the income
    earned from these financial instruments and the income and losses on
    derivatives used to economically hedge these financial instruments. Net
    interest income arises from interest and dividends related to the FVO
    assets and liabilities, and is reported net of interest expense and
    income associated with funding these assets and liabilities. Non-interest
    income includes unrealized gains and losses on the FVO assets and
    liabilities and all income from the derivative instruments held to
    economically hedge these financial instruments.

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
    FVO assets
    Securities
      Debt                                                        $    6,969
    Loans
      Business and government                                          4,347
    -------------------------------------------------------------------------
                                                                  $   11,316
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    FVO liabilities
    Deposits
      Business and government                                          4,318
    -------------------------------------------------------------------------
                                                                  $    4,318
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2007
    $ millions, for the three months ended                           Jan. 31
    -------------------------------------------------------------------------
    Interest income                                               $      153
    Interest expense                                                     150
    -------------------------------------------------------------------------
    Net interest income                                                    3
    -------------------------------------------------------------------------
    Non-interest income
      FVO financial instruments                                          (11)
      Economic hedges(1)                                                  54
    -------------------------------------------------------------------------
                                                                          43
    -------------------------------------------------------------------------
    Total                                                         $       46
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises derivative instruments held to economically hedge FVO
        financial instruments.

    Deposits designated at fair value

    As at January 31, 2007, the carrying amount of FVO deposits was
    $3 million lower than the amount if the deposits were carried on an
    amortized cost basis.

    For the three months ended January 31, 2007, the cumulative net loss
    attributable to changes in CIBC's credit risk for FVO deposits was not
    significant.

    10. Employee future benefit expenses

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Defined benefit plan expense
      Pension benefit plans             $       48   $       59   $       50
      Other benefit plans                        8           28           19
    -------------------------------------------------------------------------
                                        $       56   $       87   $       69
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Defined contribution plan expense
      CIBC's pension plans              $        4   $        3   $        3
      Government pension plans(1)               22           13           21
    -------------------------------------------------------------------------
                                        $       26   $       16   $       24
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.

    11. Earnings per share

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2007         2006         2006
    $ millions, except per share amounts   Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Basic EPS
      Net income                        $      770   $      819   $      580
      Preferred share dividends
       and premium                             (54)         (33)         (33)
    -------------------------------------------------------------------------
    Net income applicable to common
     shares                             $      716   $      786   $      547
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               336,486      335,522      334,357
    -------------------------------------------------------------------------
    Basic EPS                           $     2.13   $     2.34   $     1.64
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted EPS
    Net income applicable to common
     shares                             $      716   $      786   $      547
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               336,486      335,522      334,357
    Add: stock options potentially
     exercisable(1) (thousands)              3,456        3,215        3,347
    -------------------------------------------------------------------------
    Weighted-average diluted common
     shares outstanding(2) (thousands)     339,942      338,737      337,704
    -------------------------------------------------------------------------
    Diluted EPS                         $     2.11   $     2.32   $     1.62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes average options outstanding of 3,249 with a weighted-average
        exercise price of $98.30; and average options outstanding of 14,610
        with a weighted-average exercise price of $84.69 for the three months
        ended January 31, 2007 and October 31, 2006, 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 since we have the right to redeem
        them for cash prior to the conversion date.

    12. Designated accounting hedges

    For fair value, cash flow and net investment in foreign operations
    hedging activities, a loss of approximately $2 million relating to net
    ineffectiveness was included in the consolidated statement of operations
    for the quarter. Portions of derivative gains (losses) that were excluded
    from the assessment of hedge effectiveness for fair value and cash flow
    hedging activities are included in the consolidated statement of
    operations and are not significant for the quarter.

    The following table presents notional amounts and carrying value of our
    hedging-related derivative instruments:

    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
                                       Derivatives         Carrying value
                                          notional   ------------------------
                                            amount     Positive     Negative
    -------------------------------------------------------------------------
    Fair value hedges                   $   66,371   $      317   $      228
    Cash flow hedges                         5,142          370           11
    Net investment in foreign
     operations hedges                       5,046            -            6
    -------------------------------------------------------------------------
                                        $   76,559   $      687   $      245
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    In addition, foreign currency denominated deposit liabilities of
    $432 million and $17,067 million have been designated as fair value
    hedges of foreign exchange risk and net investment in self-sustaining
    foreign operations hedges, respectively.

    13. Guarantees

    -------------------------------------------------------------------------
                                                           2007         2006
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
                                                        Maximum      Maximum
                                                      potential    potential
                                                         future       future
                                                        payment      payment
    -------------------------------------------------------------------------
    Securities lending with indemnification(1)       $   37,885   $   37,921
    Standby and performance letters of credit             6,660        6,094
    Credit derivatives written options                   75,353       59,769
    Other derivative contracts                               (2)          (2)
    Other indemnification agreements                         (2)          (2)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services (GSS), which is a
        50/50 joint venture between CIBC and Mellon Financial Corporation.
    (2) See page 120 of the 2006 Annual Accountability Report for further
        details.

    As at January 31, 2007, we had a liability of $59 million (October 31,
    2006: $43 million) on our consolidated balance sheet related to the
    guarantees noted above (excluding other derivative contracts). For other
    derivative contracts, as at January 31, 2007, we had a liability of
    $3.6 billion (October 31, 2006: $5.4 billion) on our consolidated balance
    sheet. The total collateral available relating to these guarantees was
    $48.9 billion (October 31, 2006: $48.9 billion).

    14. Segmented information

    CIBC has two strategic business lines: CIBC Retail Markets and CIBC World
    Markets. These business lines are supported by five functional groups -
    Administration, Technology and Operations; Corporate Development;
    Finance; Legal and Regulatory Compliance; and Treasury 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.

    As discussed in Note 2, the results of FirstCaribbean are included in the
    CIBC Retail Markets strategic business line since December 22, 2006.

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

                                       CIBC       CIBC
    $ millions,                      Retail      World  Corporate       CIBC
     for the three months ended     Markets    Markets  and Other      Total
    -------------------------------------------------------------------------
    Jan. 31,2007
      Net interest income         $   1,101  $    (124) $      82  $   1,059
      Non-interest income             1,105        851         76      2,032
      Intersegment revenue(1)           (55)        57         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   2,151        784        156      3,091
      Provision for (recovery of)
       credit losses                    153        (10)         -        143
      Amortization(2)                    20          5         33         58
      Other non-interest expenses     1,268        546         71      1,885
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                        710        243         52      1,005
      Income tax expense                176         33         22        231
      Non-controlling interests           4          -          -          4
    -------------------------------------------------------------------------
      Net income                  $     530  $     210  $      30  $     770
    -------------------------------------------------------------------------
      Average assets(3)           $ 204,984  $ 110,594  $     544  $ 316,122
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2006
      Net interest income         $   1,109  $     (54) $      75  $   1,130
      Non-interest income               990        697         73      1,760
      Intersegment revenue(1)           (53)        54         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,046        697        147      2,890
      Provision for (recovery of)
       credit losses                    132         (1)       (39)        92
      Amortization(2)                    19          5         35         59
      Other non-interest expenses     1,236        480        117      1,833
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                        659        213         34        906
      Income tax expense (benefit)      158         (5)       (66)        87
    -------------------------------------------------------------------------
      Net income                  $     501  $     218  $     100  $     819
    -------------------------------------------------------------------------
      Average assets(3)           $ 193,189  $ 106,020  $     304  $ 299,513
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2006
      Net interest income         $   1,124  $     (24) $      48  $   1,148
      Non-interest income             1,000        646         64      1,710
      Intersegment revenue(1)           (56)        57         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,068        679        111      2,858
      Provision for (recovery of)
       credit losses                    180        (15)         1        166
      Amortization(2)                    22          5         34         61
      Other non-interest expenses     1,223        528         65      1,816
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                        643        161         11        815
      Income tax expense                205         32          1        238
      Non-controlling interests           -          1         (4)        (3)
    -------------------------------------------------------------------------
      Net income                  $     438  $     128  $      14  $     580
    -------------------------------------------------------------------------
      Average assets(3)           $ 184,548  $ 100,490  $     641  $ 285,679
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Intersegment revenue represents internal sales commissions and
        revenue allocations under the Manufacturer / Customer Segment /
        Distributor Management Model.
    (2) Includes amortization of buildings, furniture, equipment, leasehold
        improvements and finite-lived other intangible assets.
    (3) Assets are disclosed on an average basis as this measure is most
        relevant to a financial institution and is the measure reviewed by
        management.

    15. Future accounting changes

    Leveraged leases

    In July 2006, the Financial Accounting Standards Board (FASB) issued a
    FASB Staff Position (FSP) FAS 13-2, "Accounting for a Change or Projected
    Change in the Timing of Cash Flows Relating to Income Taxes Generated by
    a Leveraged Lease Transaction," which amends Statement of Financial
    Accounting Standard 13, certain aspects of which are incorporated in the
    CICA Emerging Issues Abstract (EIC) 46, "Leveraged Leases." The FSP is
    effective beginning November 1, 2007.

    For additional details, see page 130 of our 2006 Annual Accountability
    Report.

    

    %SEDAR: 00002543EF




For further information:

For further information: Investor and analyst inquiries should be
directed to John Ferren, Vice-President, Investor Relations, at (416)
980-2088; 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;
To request a free copy of this organization's annual report, please go to
http://www.newswire.ca and click on Tools for Investors.


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