CIBC announces first quarter 2008 results



    TORONTO, Feb. 28 /CNW/ - CIBC (CM: TSX; NYSE) announced a net loss of
$1,456 million for the first quarter ended January 31, 2008, compared with net
income of $770 million for the same period last year. Diluted loss per share
was $4.39, compared with $2.11 diluted earnings per share (EPS) a year ago.
Cash diluted loss per share was $4.36(1), compared with cash diluted EPS of
$2.12(1) a year ago.
    CIBC's Tier 1 capital ratio at January 31, 2008 was 11.4%.

    
    Results for the first quarter of 2008 were positively affected by the
following items:

    -   $171 million ($115 million after-tax, or $0.34 per share) from
        changes in credit spreads on the mark-to-market of our credit
        derivatives on corporate loans ($128 million, $86 million after-tax)
        and financial guarantors ($43 million, $29 million after-tax); and
    -   $56 million ($0.17 per share) of significant tax-related items.

    Results for the first quarter were negatively affected by the following
items:

    -   $2.28 billion ($1.54 billion after-tax, or $4.51 per share) charge on
        the credit protection purchased from ACA Financial Guaranty Corp.
        (ACA);
    -   $626 million ($422 million after-tax, or $1.24 per share) charge on
        the credit protection purchased from financial guarantors other than
        ACA;
    -   $473 million ($316 million after-tax, or $0.93 per share) mark-to-
        market losses, net of gains on related hedges, on collateralized debt
        obligations (CDOs) and residential mortgage-backed securities (RMBS)
        related to the U.S. residential mortgage market; and
    -   $108 million ($64 million after-tax, or $0.19 per share) combined
        loss on the sale of some of CIBC's U.S. businesses to Oppenheimer
        Holdings Inc. (Oppenheimer), management changes and the exit and
        restructuring of certain other businesses.
    

    The net loss, diluted loss per share and cash diluted loss per share for
the first quarter of 2008 compared with net income of $884 million, $2.53
diluted EPS and $2.55(1) cash diluted EPS, respectively, for the prior
quarter, which included items of note aggregating to net earnings of $0.25 per
share.

    "Our losses related to the U.S. residential mortgage market are a
significant disappointment and are not aligned with our strategic imperative
of consistent and sustainable performance," says Gerald T. McCaughey,
President and Chief Executive Officer. "Our focus is to get CIBC back on the
strategic track we set for the organization which has, for the past two years,
resulted in significant value for our shareholders."

    Update on business priorities

    Business strength

    Despite a more challenging environment during the first quarter, CIBC's
retail businesses continued to perform well overall.
    CIBC Retail Markets reported revenue of $2,371 million, up $98 million or
4% from the same quarter last year.
    Net income for the first quarter was $657 million, up 15% from a year
ago. This strong result was supported by volume growth and our FirstCaribbean
International Bank acquisition, partially offset by lower brokerage revenue.
    CIBC maintained or improved its market share in most key product areas.
In personal lending, market share stabilized after declines in past quarters
while CIBC repositioned the risk profile of this portfolio.
    CIBC World Markets reported a loss of $2.2 billion. This loss was a
result of the previously noted valuation charges against purchased credit
protection from financial guarantors and write-downs on CDOs and RMBS related
to the U.S. residential mortgage market.
    Market and economic conditions relating to the financial guarantors may
change in the future, which could result in significant future losses.
    CIBC has taken several steps to improve the alignment of our World
Markets business activities with CIBC's objective of delivering consistent and
sustainable performance.
    CIBC has curtailed its structured credit business activities in which the
U.S. residential mortgage exposures were originated and is gradually reducing
existing positions. On a broader scale, CIBC has adjusted its business mix by
exiting businesses that were not completely aligned with the desired risk
profile and strategy. During the quarter, CIBC closed the sale of its U.S.
domestic investment banking businesses to Oppenheimer and exited its European
leveraged finance business. CIBC also transferred its commercial banking
business to Retail Markets to enable World Markets to focus on its core
capital markets and investment banking businesses.

    Productivity

    In addition to continuing to invest and position its core businesses for
long term performance, CIBC remains committed to its strategic objective of
achieving a median efficiency ratio among the major Canadian banks.
    CIBC's target for 2008 is to hold expenses flat relative to annualized
2006 fourth quarter expenses, excluding FirstCaribbean and the U.S.
restructuring initiated in 2007.
    Expenses for the first quarter were $1,761 million, down from
$1,874 million in the prior quarter primarily due to lower expenses related to
stock appreciation rights and lower costs associated with the sale of some of
our U.S. businesses.
    CIBC's focus in the area of productivity remains on achieving
improvements in revenue growth, while maintaining expense discipline.

    Balance sheet strength

    CIBC's third priority is to build balance sheet strength. As stated
previously, CIBC is placing additional emphasis on this priority in 2008,
given the uncertain environment.
    In January, CIBC strengthened its capital position by raising
$2.9 billion of common equity through a combined private placement and public
offering.
    "Our enhanced capital position provides a cushion against further
deterioration of market conditions, particularly related to the U.S.
residential mortgage market where we have exposure, while enabling continued
investment in our strong core businesses," says McCaughey. "The successes of
the private placement and the public offering are a direct reflection of the
long-term prospects for CIBC and the inherent value that our franchise can
deliver."
    Balance sheet strength will remain CIBC's most important priority in
2008.

    Management appointments

    On January 7, CIBC announced three senior executive management
appointments.
    Tom Woods, CIBC's former Chief Financial Officer (CFO), was appointed
Chief Risk Officer. Mr. Woods is a seasoned professional with a deep
understanding of CIBC's risk profile. His immediate focus is to complete a
comprehensive review of CIBC's risk management processes.
    David Williamson, formerly Chief Executive Officer (CEO) of Atlas Cold
Storage and CFO of Clarica Life Insurance, joined CIBC as CFO on January 10.
Mr. Williamson has a proven track record and brings extensive financial
institution experience to this role.
    Richard Nesbitt, CEO of the TSX Group since 2004, joins CIBC as CEO of
CIBC World Markets, effective February 29. Mr. Nesbitt will lead CIBC World
Markets' renewed focus on its profitable and successful core businesses.

    Making a difference in communities

    CIBC remains committed to supporting causes that matter to CIBC clients,
employees and communities.
    On December 5, 2007, CIBC World Markets and CIBC Wood Gundy employees
world-wide raised more than $10.1 million in support of CIBC World Markets
Children's Foundation. Miracle Day benefits children's charities in CIBC World
Markets and CIBC Wood Gundy communities around the world. In addition, CIBC's
2007 United Way campaign raised over $7.8 million in Canada, including a
$2.9 million corporate donation. More than 10,000 employees and retirees
contributed their time and money to the campaign.

    -----------------------------------
    (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 Risk Officer (CRO) of CIBC
to certify CIBC's first quarter financial report and controls and procedures.
CIBC's CEO and CRO 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 2007 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 February 28,
2008. 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 149 and 150 of our 2007 Annual Accountability Report.

    
    External reporting changes

    The following is a summary of the external reporting changes adopted in
the first quarter of 2008:

    -   We adopted the Internal Convergence of Capital Measurement and
        Capital Standards: a Revised Framework, commonly named as Basel II.
        See "Management of risk" section for additional details.
    -   We moved our commercial banking line of business from CIBC World
        Markets to CIBC Retail Markets. Prior period information was
        restated.
    -   We moved our securitization-related revenue from the lines of
        businesses (cards, mortgages and personal lending) to other within
        CIBC Retail Markets. Prior period information was restated.
    -   We moved the investment consulting service revenue from retail
        brokerage to asset management, both within CIBC Retail Markets. Prior
        period information was restated.
    -   We allocated the general allowance for credit losses between the
        strategic business lines (CIBC Retail Markets and CIBC World
        Markets). Prior to 2008, the general allowance (excluding
        FirstCaribbean International Bank) was included within Corporate and
        Other. Prior period information was not restated.
    -   We reclassified the allowance for credit losses related to the
        undrawn credit facilities to other liabilities. Prior to 2008, it was
        included in allowance for credit losses. Prior period information was
        not restated.
    

    A NOTE ABOUT FORWARD-LOOKING STATEMENTS

    From time to time, we make written or oral forward-looking statements
within the meaning of certain securities laws, including in this report, in
other filings with Canadian securities regulators or the U.S. Securities and
Exchange Commission and in other communications. These statements include, but
are not limited to, statements made in the "Update on business priorities",
"Overview - Significant events", "Overview - Outlook" and "Financial
performance review - 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 2008 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 changes to accounting standards, rules and
interpretations; changes in our estimates of reserves and allowances; changes
in tax laws; that our estimate of 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, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide components of our
business infrastructure; the accuracy and completeness of information provided
to us by clients and counterparties; the failure of third parties to comply
with their obligations to us and our affiliates; intensifying competition from
established competitors and new entrants in the financial services industry;
technological change; global capital market activity; 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 in other
communications except as required by law.


    
    FIRST QUARTER FINANCIAL HIGHLIGHTS
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                                         As at or for the three months ended
                                       --------------------------------------
                                              2008         2007         2007
    Unaudited                              Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Common share information
    Per share
      - basic (loss) earnings           $    (4.39)  $     2.55   $     2.13
      - cash basic (loss) earnings(1)        (4.36)        2.57         2.14
      - diluted (loss) earnings              (4.39)        2.53         2.11
      - cash diluted (loss) earnings(1)      (4.36)        2.55         2.12
      - dividends                             0.87         0.87         0.70
      - book value                           32.76        33.31        31.85
    Share price
      - high                                 99.81       103.30       102.00
      - low                                  64.70        87.00        88.96
      - closing                              73.25       102.00       100.88
    Shares outstanding (thousands)
      - average basic                      338,732      334,849      336,486
      - average diluted                    340,811      337,927      339,942
      - end of period                      380,650      334,989      337,139
    Market capitalization ($ millions)  $   27,883   $   34,169   $   34,011
    -------------------------------------------------------------------------
    Value measures
    Price to earnings multiple
     (12 month trailing)                      26.9         11.1         12.7
    Dividend yield (based on closing
     share price)                              4.7%         3.4%         2.8%
    Dividend payout ratio                      n/m         34.1%        32.9%
    Market value to book value ratio          2.24         3.06         3.17
    -------------------------------------------------------------------------
    Financial results ($ millions)
    Total revenue                       $     (521)  $    2,946   $    3,091
    Provision for credit losses                172          132          143
    Non-interest expenses                    1,761        1,874        1,943
    Net (loss) income                       (1,456)         884          770
    -------------------------------------------------------------------------
    Financial measures
    Efficiency ratio                           n/m         63.6%        62.9%
    Cash efficiency ratio, taxable
     equivalent basis (TEB)(1)                 n/m         60.9%        61.5%
    Return on equity                        (52.9)%        30.3%        27.1%
    Net interest margin                       1.33%        1.45%        1.33%
    Net interest margin on average
     interest-earning assets                  1.57%        1.67%        1.52%
    Return on average assets                (1.68)%        1.03%        0.97%
    Return on average
     interest-earning assets                (1.98)%        1.19%        1.10%
    Total shareholder return                (27.3)%        11.2%        16.0%
    -------------------------------------------------------------------------
    On- and off-balance sheet
     information ($ millions)
    Cash, deposits with banks
     and securities                     $   99,411  $   100,247   $  108,482
    Loans and acceptances                  171,090      170,678      159,530
    Total assets                           347,734      342,178      322,608
    Deposits                               239,976      231,672      223,625
    Common shareholders' equity             12,472       11,158       10,736
    Average assets                         344,528      340,236      316,122
    Average interest-earning assets        293,166      294,591      276,799
    Average common shareholders' equity     11,181       11,191       10,474
    Assets under administration          1,169,570    1,187,567    1,122,184
    -------------------------------------------------------------------------
    Balance sheet quality measures
    Common equity to risk-weighted
     assets(2)                                10.6%         8.8%         8.7%
    Risk-weighted assets
     ($ billions)(2)                    $    117.4   $    127.4   $    124.1
    Tier 1 capital ratio(2)                   11.4%         9.7%         9.6%
    Total capital ratio(2)                    15.2%        13.9%        14.1%
    -------------------------------------------------------------------------
    Other information
    Retail/wholesale ratio(3)               71%/29%      73%/27%      74%/26%
    Regular workforce headcount             40,237       40,457       40,559
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) Q1/08 is based upon Basel II framework whereas the prior quarters
        were based upon Basel I methodology.
    (3) The ratio represents the amount of capital attributed to the business
        lines as at the end of the period.
    n/m Not meaningful due to the net loss.


    OVERVIEW
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    Net loss for the quarter was $1,456 million, compared with net income of
$770 million for the same quarter last year and $884 million for the prior
quarter.
    Our results for the current period were positively affected by the
following items:

    -   $171 million ($115 million after-tax) impact of changes in credit
        spreads on the mark-to-market of our credit derivatives on corporate
        loans ($128 million, $86 million after-tax) and financial guarantors
        ($43 million, $29 million after-tax); and
    -   $56 million impact of significant tax-related items.

    Our results for the current period were negatively affected by the
following items:

    -   $2.28 billion ($1.54 billion after-tax) charge on the credit
        protection purchased from ACA Financial Guaranty Corp. (ACA);
    -   $626 million ($422 million after-tax) charge on the credit protection
        purchased from financial guarantors other than ACA;
    -   $473 million ($316 million after-tax) mark-to-market losses, net of
        gains on related hedges, on collateralized debt obligations (CDOs)
        and residential mortgage-backed securities (RMBS) related to the U.S.
        residential mortgage market (USRMM); and
    -   $108 million ($64 million after-tax) combined loss related to the
        sale of some of our U.S. businesses to Oppenheimer Holdings Inc.
        (Oppenheimer), management changes and the exit and restructuring of
        certain other businesses.
    

    Compared with Q1, 2007

    The $2.9 billion credit-related valuation charges and the $473 million
mark-to-market losses related to the USRMM noted above were the main factors
in the significant drop of revenue from the same quarter last year. Spread
compression in retail lending products, the loss on the sale of some of our
U.S. businesses, and lower merchant banking revenue also contributed to the
decline. Revenue benefited from higher gains on credit derivatives, volume
growth in retail products, and the impact of the FirstCaribbean acquisition.
Provision for credit losses was up, driven by lower recoveries in the
corporate lending portfolios. Non-interest expenses were down largely due to
lower performance-related compensation. The loss for the quarter resulted in a
tax benefit.

    Compared with Q4, 2007

    Revenue was down significantly mainly due to the $2.9 billion
credit-related valuation charges noted above. A Visa gain of $456 million in
the prior quarter, and lower merchant banking revenue and the loss on the sale
of some of our U.S. businesses this quarter also contributed to the decline.
Revenue benefited from higher gains on credit derivatives. Provision for
credit losses was up, largely due to lower recoveries and higher losses in the
corporate lending portfolio. Non-interest expenses were down as a result of
higher costs associated with the sale of some of our U.S. businesses in the
prior quarter. The loss for the quarter resulted in a tax benefit.

    
    -------------------------------------------------------------------------
    Our results for the prior periods were affected by the following items:

    Q4, 2007
    --------
    -   $463 million ($302 million after-tax) mark-to-market losses on CDOs
        and RMBS related to the USRMM;
    -   $456 million ($381 million after-tax and minority interest) gain from
        the completion of Visa's worldwide restructuring (Visa gain);
    -   $47 million ($26 million after-tax) of expenses associated with the
        sale of some of our U.S. businesses to Oppenheimer;
    -   $27 million ($22 million after-tax) net reversal of litigation
        accruals; and
    -   $17 million ($11 million after-tax) positive impact of credit
        derivatives spread.

    Q1, 2007
    --------
    -   $6 million ($4 million after-tax) negative impact of credit
        derivatives spread.
    -------------------------------------------------------------------------
    

    Significant events

    Sale of some of our U.S. businesses

    Effective January 1, 2008, we sold our U.S. based investment banking,
leveraged finance, equities and related debt capital markets businesses and
our Israeli investment banking and equities businesses (the "transferred
businesses") to Oppenheimer. During the quarter, we recorded a loss of
$80 million on the sale. The sale of certain other U.S. capital markets
related businesses located in the U.K. and Asia to Oppenheimer is expected to
close in the second quarter of 2008.
    CIBC restricted share awards (RSAs) held by employees transferred to
Oppenheimer will continue to vest in accordance with their original terms. To
support this compensation arrangement, Oppenheimer will reimburse CIBC for the
cost of these RSAs to the extent they vest, at which time we will record the
reimbursements in other non-interest income.
    The disposition is not expected to have a significant impact on our
ongoing results of operations.

    Unhedged USRMM exposure

    We have exposure to the USRMM through investments in CDOs and RMBS and
other transactions with entities with exposure to this market. During the
quarter, we had realized and unrealized losses, net of gains on related
hedges, of US$475 million ($473 million) on these exposures. As at January 31,
2008, our gross unhedged notional exposure related to USRMM was approximately
US$1.6 billion ($1.6 billion). We have taken mark-to-market losses on these
positions such that the net unhedged exposure is approximately US$286 million
($287 million). Mitigating this exposure are subprime index hedges with a
notional amount of US$300 million ($301 million) and a fair value of
US$150 million ($151 million). During the quarter, we recognized a gain of
US$24 million ($24 million) from the hedges.

    Hedged USRMM exposure and other exposure to financial guarantors

    We have exposure related to the USRMM that is hedged with financial
guarantors and others. The following table presents the notional amounts and
fair values of the purchased protection by counterparty. The fair value net of
valuation adjustments is included in derivative instruments in other assets on
the consolidated balance sheet.

    
    US$ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                Credit ratings (as of February 26, 2008)    USRMM related
               ------------------------------------------  ------------------
                                                                      Fair
                                                                    value of
                            Standard   Moody's    Fitch            derivative
                          and Poor's   Investor  Ratings  Notional    con-
                                       Services            amount   tracts(1)
                                                          -------------------
                                                              A         B
    -------------------------------------------------------------------------
    Financial guarantor
     counterparties

    No. I                       A-(2)     A3         A(2) $  2,628  $  1,508
    No. II                     AAA       Aaa(2)    AAA(2)      628       556
    No. III                      A(3)     A3(2)     AA(2)      566       362
    No. IV                     AAA(2)    Aaa(2)     AA(2)      549       217
    No. V                      AAA       Aaa       AAA(2)       85         -
    No. VI(4)                  CCC(3)      -         -       3,453     2,353
    -------------------------------------------------------------------------
                                                             7,909     4,996
    Other counterparty

    No. VII(5)                  AA       Aa2        AA(2)      591       182
    -------------------------------------------------------------------------
    Total hedged USRMM exposure                           $  8,500  $  5,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Before valuation adjustments.
    (2) On credit watch with negative implications.
    (3) On credit watch.
    (4) ACA. See narrative below for additional details.
    (5) A large American diversified multi-national insurance and financial
        services company with which CIBC has market standard collateral
        arrangements.
    


    Financial guarantors

    During the quarter, we recorded a charge of US$2.30 billion
($2.28 billion) on the hedging contracts provided by ACA (including
US$30 million ($30 million) against contracts unrelated to USRMM unwound
during the quarter) as a result of its downgrade to non-investment grade. As
at January 31, 2008, the fair value of derivative contracts with ACA net of
the valuation adjustment amounted to US$70 million ($70 million). Further
charges could result depending on the performance of both the underlying
assets and ACA.
    In addition, we have exposure to 10 financial guarantors where the
underlying assets are unrelated to USRMM. The fair value of this exposure was
US$885 million ($888 million) as at January 31, 2008. The largest exposure to
any one of these financial guarantors had a fair value of US$219 million
($220 million).
    We recorded a charge of US$624 million ($626 million) against our
exposure to financial guarantors to increase our valuation adjustments to
US$648 million ($650 million) as at January 31, 2008. The methodology employed
to establish these valuation adjustments (excluding that for ACA) was changed
in the first quarter to take into account market observed credit spreads.
Market and economic conditions relating to these counterparties may change in
the future, which could result in significant future losses.
    Mitigating our exposure to these financial guarantors (excluding ACA) are
credit hedges with a notional amount of US$525 million ($527 million) and a
fair value of US$63 million ($63 million) as at January 31, 2008. During the
quarter, we recognized a gain of US$42 million ($43 million) on these hedges.

    Liquidity facilities to asset-backed commercial paper (ABCP) conduits

    As at January 31, 2008, our holdings of ABCP issued by our sponsored
conduits were $1.0 billion (October 31, 2007: $3.1 billion). We also had par
value holdings of $358 million (October 31, 2007: $358 million) in non-bank
sponsored ABCP which are subject to the "Montreal Accord". During the quarter,
we recognized losses in the consolidated statement of operations of $8 million
on certain of these non-bank sponsored ABCP; the remainder had adverse changes
in estimated fair value of $75 million which were recognized in other
comprehensive income.
    As at January 31, 2008, the total backstop liquidity facilities committed
by CIBC to ABCP conduits was $14.8 billion (October 31, 2007: $17.3 billion).
Of these committed facilities, approximately 94% (October 31, 2007: 92%) of
the amount was for the benefit of our sponsored Canadian ABCP conduits.

    Risk factors related to fair valuation adjustments

    We believe that we have made appropriate fair value adjustments and have
taken appropriate write-downs to date. The establishment of fair value
adjustments and the determination of the amount of write-downs involve
estimates that are based on accounting processes and judgments by management.
We evaluate the adequacy of the fair value adjustments and the amount of
write-downs on an ongoing basis. The levels of fair value adjustments and the
amount of the write-downs could be changed as events warrant.

    Issue of share capital

    During the quarter, we issued 45.3 million common shares for net proceeds
of $2.9 billion, through a combination of private placements and a public
offering.

    Private placements

    We issued 23.9 million common shares for net proceeds of $1.5 billion to
a group of institutional investors, comprising Manulife Financial Corporation,
Caisse de dépôt et placement du Québec, Cheung Kong (Holdings) Ltd. and OMERS
Administration Corporation.
    Shares purchased under the private placements may not be resold until the
expiry of a four month hold period from the issue date, except in accordance
with limited exemptions and compliance with other requirements of applicable
securities laws.

    Public offering

    We issued 21.4 million common shares for net proceeds of $1.4 billion.

    Exit of certain businesses

    Given the uncertain market conditions and to focus on our core businesses
in CIBC World Markets, we are exiting our European leveraged finance business
and have curtailed activity in our structured credit business in which our
USRMM exposures were originated. The risks in these businesses are currently
managed by a focused team distinct from the continuing business of CIBC World
Markets, with a mandate to manage down the residual exposures.

    Visa Inc.

    On February 25, 2008, Visa Inc. announced its intent to proceed with an
initial public offering (IPO) of its Class A shares in the range of US$37 to
US$42 per share, which suggests that the fair value of our Visa shares is $80
million to $130 million lower than the book value.  As a result, to the extent
that the IPO and the mandatory redemption of a portion of our shares (expected
to be around 50% of our holdings) occurs in the second quarter of 2008, we
will likely record a loss on sale in respect of those shares. In addition,
during the second quarter, we will assess the extent to which we will be
required to record an other than-temporary impairment on our remaining shares.
The amount of the losses we will record will be impacted by the outcome of the
IPO as well as the final adjustment process, which may positively or
negatively affect the number of shares we own.

    Outlook

    Canadian economic growth is expected to be slower during the first half
of 2008, held back by weak exports as the U.S. appears to be close to a
recession. We expect both economies should return to moderate growth in the
second half of 2008, helped by significant central bank interest rate cuts and
fiscal stimulus. Healthy global resource markets and a stable housing market
are expected to allow the Canadian economy to outperform the U.S. economy.
    CIBC Retail Markets should benefit from a continuation of low
unemployment rates, falling interest rates, and healthy housing markets,
supporting lending and deposit growth. A slower pace of real estate price
increases may moderate mortgage growth rates. Improvements in the risk profile
of the unsecured retail lending portfolio should continue to realize benefits.
    For CIBC World Markets, mergers and acquisition and equity activity will
likely be slower given a softer stock market and credit concerns affecting
global leveraged deals. We expect loan demand to increase due to reduced
investor appetite for commercial paper. U.S. economic softness and a strong
Canadian dollar could lead to a less favourable period for corporate credit
risk in certain parts of the Canadian economy.


    FINANCIAL PERFORMANCE REVIEW
    -------------------------------------------------------------------------

    
                                                  For the three months ended
                                         ------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,154   $    1,240   $    1,059
    Non-interest income                     (1,675)       1,706        2,032
    -------------------------------------------------------------------------
    Total revenue                             (521)       2,946        3,091
    Provision for credit losses                172          132          143
    Non-interest expenses                    1,761        1,874        1,943
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests              (2,454)         940        1,005
    Income tax (benefit) expense            (1,002)          45          231
    Non-controlling interests                    4           11            4
    -------------------------------------------------------------------------
    Net (loss) income                   $   (1,456)  $      884   $      770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    


    Net interest income

    Net interest income was up $95 million or 9% from the same quarter last
year, mainly due to volume growth in retail products, the impact of the
FirstCaribbean acquisition, and lower mark-to-market losses on de-designated
fair value hedges. In addition, favourable spreads in deposits also
contributed to the increase. These factors were offset in part by spread
compression in retail lending products.
    Net interest income was down $86 million or 7% from the prior quarter,
primarily due to lower dividend income on trading securities and fee income on
mortgages, partially offset by volume growth in retail lending products.
Favourable spreads in mortgages and deposits were mostly offset by spread
compression in personal lending and cards.

    Non-interest income

    Non-interest income was down $3,707 million from the same quarter last
year, primarily due to the charge on credit protection purchased from
financial guarantors and mark-to-market losses related to the USRMM.
Available-for-sale (AFS) securities had lower gains and higher write-downs
during the quarter. In addition, the loss on the sale of some of our U.S.
businesses, and lower revenue from the hedging of stock appreciation rights
(SARs), U.S. real estate finance and retail brokerage contributed to the
decline. These factors were partially offset by gains on credit derivatives
resulting from the continuing widening of credit spreads.
    Non-interest income was down $3,381 million from the prior quarter,
primarily due to the charge on credit protection purchased from financial
guarantors, and the Visa gain in the prior quarter. AFS securities had lower
gains and higher write-downs during the quarter. In addition, the loss on the
sale of some of our U.S. businesses, and lower revenue from the hedging of
SARs contributed to the decline. These factors were partially offset by higher
gains on credit derivatives resulting from the continuing widening of credit
spreads.

    Provision for credit losses

    Provision for credit losses was up $29 million or 20% from the same
quarter last year, mainly due to lower recoveries in the corporate lending
portfolio and higher losses in the cards portfolio resulting from volume
growth.
    Provision for credit losses was up $40 million or 30% from the prior
quarter, primarily due to lower recoveries and higher losses in the corporate
lending portfolio.

    Non-interest expenses

    Non-interest expenses were down $182 million or 9% from the same quarter
last year, largely due to lower performance-related compensation, lower
expenses related to SARs, and lower litigation provisions, offset in part by
the impact of the FirstCaribbean acquisition.
    Non-interest expenses were down $113 million or 6% from the prior
quarter, primarily due to lower expenses related to SARs, and higher costs
associated with the sale of some of our U.S. businesses in the prior quarter.
In addition, computer and advertising expenses and business and capital taxes
were lower during the quarter. These factors were partially offset by the net
reversal of litigation accruals in the prior quarter.

    Income taxes

    Income tax benefit was $1,002 million, compared to an expense of
$231 million in the same quarter last year and an expense of $45 million in
the prior quarter. This benefit resulted from the loss during the quarter.
Included in this benefit is a $63 million positive impact of a tax loss
carryback to prior years, which had higher statutory tax rates.
    The effective tax recovery rate was 40.8% for the quarter, compared to
effective tax rates of 23.0% for the same quarter last year and 4.8% for the
prior quarter.
    The adjusted effective tax recovery and taxable equivalent (TEB) recovery
rates for the quarter ended January 31, 2008 were 38.5%(1) and 37.0%(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 20-23% range
and the adjusted sustainable TEB tax rate will be in the 24-27% range. These
rates are determined based on the estimated earnings in various jurisdictions
over the near term and the expected enacted tax rates in these jurisdictions.
The impact of one-time tax items is excluded.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar appreciated 14%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $70 million decrease in the translated value of our U.S. dollar
functional earnings.

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

    
    Review of quarterly financial information

                                2008                                    2007
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended      Jan. 31   Oct. 31   Jul. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets   $  2,371  $  2,794  $  2,386  $  2,309  $  2,273
      CIBC World Markets      (2,957)        5       455       606       662
      Corporate and Other         65       147       138       135       156
    -------------------------------------------------------------------------
    Total revenue               (521)    2,946     2,979     3,050     3,091
    Provision for
     credit losses               172       132       162       166       143
    Non-interest expenses      1,761     1,874     1,819     1,976     1,943
    -------------------------------------------------------------------------
    (Loss) income before
     taxes and non-
     controlling interests    (2,454)      940       998       908     1,005
    Income tax (benefit)
     expense                  (1,002)       45       157        91       231
    Non-controlling
     interests                     4        11         6        10         4
    -------------------------------------------------------------------------
    Net (loss) income       $ (1,456) $    884  $    835  $    807  $    770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (Loss) earnings per
     share
      - basic               $  (4.39) $   2.55  $   2.33  $   2.29  $   2.13
      - diluted(1)          $  (4.39) $   2.53  $   2.31  $   2.27  $   2.11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                    2006
    -----------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended      Oct. 31   Jul. 31   Apr. 30
    -----------------------------------------------------
    Revenue
      CIBC Retail Markets   $  2,171  $  2,164  $  2,094
      CIBC World Markets         572       551       488
      Corporate and Other        147       111       195
    -----------------------------------------------------
    Total revenue              2,890     2,826     2,777
    Provision for
     credit losses                92       152       138
    Non-interest expenses      1,892     1,883     1,836
    -----------------------------------------------------
    (Loss) income before
     taxes and non-
     controlling interests       906       791       803
    Income tax (benefit)
     expense                      87       125       190
    Non-controlling
     interests                     -         4        28
    -----------------------------------------------------
    Net (loss) income       $    819  $    662  $    585
    -----------------------------------------------------
    -----------------------------------------------------
    (Loss) earnings per
     share - basic          $   2.34  $   1.88  $   1.65
      - diluted(1)          $   2.32  $   1.86  $   1.63
    -----------------------------------------------------
    -----------------------------------------------------
    (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.
    The acquisition of FirstCaribbean has resulted in an increase in revenue
in CIBC Retail Markets since 2007. In addition, revenue was particularly high
in the fourth quarter of 2007 due to the Visa gain. CIBC World Markets revenue
has been adversely affected since the third quarter of 2007 due to the
mark-to-market losses on CDOs and RMBS, and more significantly in the current
quarter due to the charges on credit protection purchased from financial
guarantors, including ACA. Foreign exchange revenue on the repatriation of
capital and retained earnings from our foreign operations led to an increase
in revenue in Corporate and Other in the second quarter of 2006, while the
deconsolidation of a variable interest entity (VIE) led to lower revenue in
the third quarter of 2006.
    Retail lending provisions increased slightly in 2007 largely due to
higher losses in the cards portfolio, resulting from volume growth, and the
impact of the FirstCaribbean acquisition. Corporate lending recoveries and
reversals have decreased from the high levels in the past. Reversals of the
general allowance were included in the second quarters of 2007 and 2006 and
the fourth quarter of 2006.
    Non-interest expenses were higher in 2007 resulting from the
FirstCaribbean acquisition. Performance-related compensation has been lower
since the third quarter of 2007. The net reversal of litigation accruals also
led to lower expenses in the third and fourth quarters of 2007.
    The first quarter of 2008 had an income tax benefit resulting from the
loss during the quarter. Income tax recoveries related to the favourable
resolution of various income tax audits and reduced tax contingencies were
included in the last three quarters of 2007 and 2006. Tax-exempt income has
generally been increasing over the period, with larger tax-exempt dividends
received in the fourth quarters of 2007 and 2006. The last quarter of 2007
benefited from a lower tax rate on the Visa gain and the last two quarters of
2007 benefited from a lower tax rate on the net reversal of litigation
accruals. Income tax expense on the repatriation of capital and retained
earnings from our foreign operations was also included in the fourth quarter
of 2007 and second quarter of 2006.

    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 45 of the 2007 Annual Accountability Report.
    The following tables provide a reconciliation of non-GAAP to GAAP
measures related to CIBC on a consolidated basis. The reconciliation of the
non-GAAP measures of our business lines are provided in their respective
sections.

    
    -------------------------------------------------------------------------
                                                  For the three months ended
                                             --------------------------------
    $ millions, except per                        2008       2007       2007
     share amounts                             Jan. 31    Oct. 31    Jan. 31
    -------------------------------------------------------------------------
    Net interest income                      $   1,154  $   1,240  $   1,059
    Non-interest income                         (1,675)     1,706      2,032
    -------------------------------------------------------------------------
    Total revenue per
     financial statements             A           (521)     2,946      3,091
    TEB adjustment                    B             61        116         62
    -------------------------------------------------------------------------
    Total revenue (TEB)(1)            C      $    (460) $   3,062  $   3,153
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Non-interest expenses per
     financial statements             D      $   1,761  $   1,874  $   1,943
    Less: amortization of other
     intangible assets                              10         11          5
    -------------------------------------------------------------------------
    Cash non-interest expenses(1)     E      $   1,751  $   1,863  $   1,938
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (Loss) income before taxes and
     non-controlling interests per
     financial statements             F      $  (2,454) $     940  $   1,005
    TEB adjustment                    B             61        116         62
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests
     (TEB)(1)                         G      $  (2,393) $   1,056  $   1,067
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Reported income taxes per
     financial statements             H      $  (1,002) $      45  $     231
    TEB adjustment                    B             61        116         62
    Other tax adjustments             I             56         75          -
    -------------------------------------------------------------------------
    Adjusted income taxes(1)          J      $    (885) $     236  $     293
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net (loss) income applicable
     to common shares                 K      $  (1,486) $     854  $     716
    Add: after tax effect of
     amortization of other
     intangible assets                               8          8          4
    -------------------------------------------------------------------------
    Cash net (loss) income
     applicable to common shares(1)   L      $  (1,478) $     862  $     720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic weighted average common
     shares (thousands)               M        338,732    334,849    336,486
    Diluted weighted average
     common shares (thousands)        N        340,811    337,927    339,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash efficiency ratio (TEB)(1)   E/C           n/m       60.9%      61.5%
    Reported effective income
     tax rate (TEB)(1)(2)          (H+B)/G        39.3%      15.2%      27.5%
    Adjusted effective income
     tax rate(1)(2)                (H+I)/F        38.5%      12.8%      23.0%
    Adjusted effective income
     tax rate (TEB)(1)(2)            J/G          37.0%      22.3%      27.5%
    Cash basic (loss) earnings
     per share(1)                    L/M     $   (4.36) $    2.57  $    2.14
    Cash diluted (loss) earnings
     per share(1)(3)                 L/N     $   (4.36) $    2.55  $    2.12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Non-GAAP measure.
    (2) For the quarter ended January 31, 2008, represents tax recovery rates
        applicable to the loss before tax and non-controlling interests.
    (3) 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.
    n/m Not meaningful due to the net loss.


    CIBC RETAIL MARKETS
    -------------------------------------------------------------------------

    CIBC Retail Markets comprises CIBC's retail and wealth management
businesses. We provide a full range of financial products and services to
individual, small business and commercial banking clients, as well as
investment management services globally to retail and institutional clients.

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

                                                  For the three months ended
                                         ------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue
      Personal and small
       business banking                 $      544   $      546   $      517
      Imperial Service                         244          242          237
      Retail brokerage                         276          282          302
      Cards                                    423          809          410
      Mortgages and personal lending           319          321          381
      Asset management                         120          123          123
      Commercial banking                       126          142          121
      FirstCaribbean                           126          174           50
      Other                                    193          155          132
    -------------------------------------------------------------------------
    Total revenue (a)                        2,371        2,794        2,273
    Provision for credit losses                155          150          148
    Non-interest expenses (b)                1,353        1,402        1,353
    -------------------------------------------------------------------------
    Income before taxes and
    non-controlling interests                  863        1,242          772
    Income tax expense                         202          271          198
    Non-controlling interests                    4           11            4
    -------------------------------------------------------------------------
    Net income (c)                      $      657   $      960   $      570
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Efficiency ratio (b/a)                    57.1%        50.2%        59.6%
    Amortization of other
     intangible assets (d)              $        8   $        8   $        3
    Cash efficiency ratio(2) ((b-d)/a)        56.7%        49.9%        59.4%
    ROE(2)                                    54.0%        76.1%        53.8%
    Charge for economic capital(2) (e)  $     (156)  $     (159)  $     (137)
    Economic profit(2) (c+e)            $      501   $      801   $      433
    Regular workforce headcount             27,984       27,659       27,758
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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 $87 million or 15% from the same quarter last year.
Volume growth, higher treasury revenue allocations and the FirstCaribbean
acquisition, offset in part by spread compression in lending products and
lower brokerage revenue contributed to the increase in net income.
    Net income was down $303 million or 32% from the prior quarter, largely
due to the $456 million Visa gain included in the prior quarter.

    Revenue

    FirstCaribbean revenue is included from the date of acquisition on
December 22, 2006. Prior to December 22, 2006, FirstCaribbean was
equity-accounted and the revenue was included in "Other".

    Revenue was up $98 million or 4% from the same quarter last year.
    Personal and small business banking revenue was up $27 million, mainly
due to volume growth and favourable deposit spreads.
    Retail brokerage revenue was down $26 million, largely due to lower
trading and new issue activity, offset in part by higher fee-based revenue
from increased asset values.
    Cards revenue was up $13 million, driven by volume growth, partially
offset by spread compression.
    Mortgages and personal lending revenue was down $62 million, primarily
due to spread compression, partially offset by volume growth and higher fee
income in mortgages.
    Other revenue was up $61 million, mainly due to higher treasury revenue
allocations.
    Revenue was down $423 million or 15% from the prior quarter.
    Cards revenue was down $386 million, primarily due to the Visa gain of
$404 million in the prior quarter. Excluding the Visa gain, revenue was up
mainly due to volume growth, offset in part by spread compression.
    Mortgages and personal lending revenue was down $2 million. Mortgages was
up $5 million, mainly due to favourable spreads and volume growth, offset in
part by lower fee income. Personal lending was down $7 million, mainly due to
spread compression, partially offset by lower internal sales commissions paid
to personal and small business banking.
    Commercial banking revenue was down $16 million, largely due to interest
and fee income recoveries in the prior quarter and lower fee-based revenue.
    FirstCaribbean revenue was down $48 million, primarily due to the Visa
gain in the prior quarter.
    Other revenue was up $38 million, primarily due to higher treasury
revenue allocations.

    Provision for credit losses

    Provision for credit losses was up $7 million or 5% from the same quarter
last year, largely due to higher losses in the cards portfolio, resulting from
volume growth, and lower recoveries and reversals in commercial banking,
offset in part by lower losses in the personal lending portfolio.
    Provision for credit losses was up $5 million or 3% from the prior
quarter, largely due to higher losses in the small business portfolio.

    Non-interest expenses

    Non-interest expenses were comparable to the same quarter last year, as
increases in expenses resulting from the FirstCaribbean acquisition were
largely offset by lower performance-related compensation, business and capital
taxes, and corporate support costs.
    Non-interest expenses were down $49 million or 3% from the prior quarter,
resulting mainly from lower operational losses, advertising expenses, project
expenses, and business and capital taxes.

    Income taxes

    Income taxes were up $4 million or 2% from the same quarter last year,
due to higher income, partially offset by an increase in the relative
proportion of earnings subject to lower rates of tax.
    Income taxes were down $69 million or 25% from the prior quarter, due to
a decrease in income.

    Regular workforce headcount

    The regular workforce headcount was up 226 from the same quarter last
year and up 325 from the prior quarter, primarily due to an increase in
customer-facing staff.

    CIBC WORLD MARKETS
    -------------------------------------------------------------------------

    CIBC World Markets is the wholesale and corporate banking arm of CIBC,
providing a range of integrated credit and capital markets, investment
banking, and merchant banking products and services 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
                                         ------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue (TEB)(2)
      Capital markets                   $   (3,169)  $     (249)  $      449
      Investment banking and
       credit products                         283          240          204
      Merchant banking                           9          141           77
      Other                                    (19)         (11)          (6)
    -------------------------------------------------------------------------
    Total revenue (TEB)(2) (a)              (2,896)         121          724
    TEB adjustment                              61          116           62
    -------------------------------------------------------------------------
    Total revenue (b)                       (2,957)           5          662
    Provision for (reversal of)
     credit losses                              17          (18)          (5)
    Non-interest expenses (c)                  351          357          486
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests              (3,325)        (334)         181
    Income tax (benefit) expense            (1,166)        (222)          11
    -------------------------------------------------------------------------
    Net (loss) income (d)               $   (2,159)  $     (112)  $      170
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Efficiency ratio (c/b)                     n/m          n/m         73.4%
    Efficiency ratio (TEB)(2) (c/a)            n/m          n/m         67.1%
    ROE(2)                                  (391.7)%      (26.6)%       41.6%
    Charge for economic capital(2) (e)  $      (72)  $      (56)  $      (52)
    Economic (loss) profit(2) (d+e)     $   (2,231)  $     (168)  $      118
    Regular workforce headcount              1,287        1,862        1,880
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    n/m Not meaningful due to the net loss.
    

    Financial overview

    Net loss was $2,159 million, compared to net income of $170 million in
the same quarter last year. CIBC World Markets' results were significantly
affected by the $2.0 billion after-tax charge on credit protection purchased
from financial guarantors, including $1.5 billion after-tax related to ACA.
During the quarter, we also had losses, net of gains on related hedges, of
$314 million after-tax against our unhedged exposure related to the USRMM.
    Net loss was up $2,047 million from the prior quarter, primarily due to
the reasons noted above.

    Revenue

    Revenue was down $3,619 million from the same quarter last year.
    Capital markets revenue was down $3,618 million, primarily due to the
charge on credit protection purchased from financial guarantors and
mark-to-market losses related to the USRMM noted above. Revenue was also lower
due to higher funding costs resulting from the widening of credit spreads, and
lower equity and commodity structured products revenue. These were offset in
part by gains on credit hedges against our exposure to financial guarantors.
    Investment banking and credit products revenue was up $79 million,
primarily due to gains associated with corporate loan hedging programs,
resulting from the continuing widening of credit spreads, and higher Canadian
investment banking revenue. These increases were partially offset by lower
revenue from U.S. real estate finance and the sale of our U.S. investment and
corporate banking business.
    Merchant banking revenue was down $68 million, mainly due to lower gains
from direct investments.
    Other revenue was down $13 million, primarily due to the loss on the sale
of some of our U.S. businesses, partially offset by higher treasury revenue
allocations.
    Revenue was down $2,962 million from the prior quarter.
    Capital markets revenue was down $2,920 million, primarily due to the
charge on credit protection purchased from financial guarantors noted above
and lower revenue in equity and commodity structured products. These were
offset in part by gains on credit hedges against our exposure to financial
guarantors.
    Investment banking and credit products revenue was up $43 million,
primarily due to higher gains associated with corporate loan hedging programs,
resulting from the continuing widening of credit spreads, partially offset by
the sale of our U.S. investment and corporate banking business.
    Merchant banking revenue was down $132 million, primarily due to lower
gains from direct investments and third-party managed funds.
    Other revenue was down $8 million, primarily due to the loss on the sale
of some of our U.S. businesses, partially offset by higher treasury revenue
allocations.

    Provision for (reversal of) credit losses

    Provision for credit losses was $17 million, compared to a reversal of
$5 million in the same quarter last year, mainly due to recoveries in Europe
in the prior year quarter. The current quarter had higher losses in Canada and
lower losses net of recoveries in the U.S.
    Provision for credit losses was $17 million, compared to a reversal of
$18 million in the prior quarter, mainly due to lower recoveries in the U.S.
and higher losses in Canada.

    Non-interest expenses

    Non-interest expenses were down $135 million or 28% from the same quarter
last year, primarily due to lower performance-related compensation and
litigation provisions.
    Non-interest expenses were down $6 million or 2% from the prior quarter,
primarily due to higher costs associated with the sale of some of our U.S.
businesses, offset in part by the net reversal of litigation accruals, both in
the prior quarter.

    Income taxes

    Income tax benefit was $1,166 million, compared to an income tax expense
of $11 million in the same quarter last year. This was largely due to the loss
in the quarter, resulting primarily from the charge on credit protection
purchased from financial guarantors and mark-to-market losses related to the
USRMM noted above.
    Income tax benefit was up $944 million from the prior quarter, mainly due
to the higher loss in the quarter, resulting from the charge on the credit
protection purchased from financial guarantors noted above.

    Regular workforce headcount

    The regular workforce headcount was down 593 from the same quarter last
year and 575 from the prior quarter, primarily due to the sale of some of our
U.S. businesses.

    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 (TRM) - that
support CIBC's business lines, as well as CIBC Mellon joint ventures, and
other income statement and balance sheet items, not directly attributable to
the business lines. The revenue and expenses of the functional groups are
generally allocated to the business lines.

    
    Results(1)

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

                                                  For the three months ended
                                         ------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Total revenue                       $       65   $      147   $      156
    Non-interest expenses                       57          115          104
    -------------------------------------------------------------------------
    Income before taxes                          8           32           52
    Income tax (benefit) expense               (38)          (4)          22
    -------------------------------------------------------------------------
    Net income                          $       46   $       36   $       30
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Regular workforce headcount             10,966       10,936       10,921
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

    Financial overview

    Net income was up $16 million or 53% from the same quarter last year,
primarily due to higher income tax recoveries, partially offset by lower
unallocated revenue from treasury.
    Net income was up $10 million or 28% from the prior quarter, mainly due
to lower taxes and unallocated corporate support costs, offset by lower
unallocated revenue from treasury.

    Revenue

    Revenue was down $91 million or 58% from the same quarter last year, and
down $82 million or 56% from the prior quarter, primarily due to lower
unallocated revenue from treasury and lower revenue from the hedging of SARs.

    Non-interest expenses

    Non-interest expenses were down $47 million or 45% from the same quarter
last year, primarily due to lower expenses related to SARs.
    Non-interest expenses were down $58 million or 50% from the prior
quarter, primarily due to lower expenses related to SARs and lower unallocated
support costs.

    Income tax

    Income tax benefit was $38 million, compared to an expense of $22 million
in the same quarter last year. This change is largely due to the $63 million
impact from tax effecting recoveries at prior years' higher statutory rates.
    Income tax benefit was up $34 million from the prior quarter, mainly due
to the reason noted above. The prior quarter included income tax recoveries
and a tax expense of $22 million on repatriated capital from a foreign
operation.


    FINANCIAL CONDITION
    -------------------------------------------------------------------------
    Review of consolidated balance sheet

    
    -------------------------------------------------------------------------
                                                           2008         2007
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                     $   18,193   $   13,747
    Securities                                           81,218       86,500
    Securities borrowed or purchased
     under resale agreements                             35,625       34,020
    Loans                                               162,563      162,654
    Derivative instruments                               23,395       24,075
    Other assets                                         26,740       21,182
    -------------------------------------------------------------------------
    Total assets                                     $  347,734   $  342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                         $  239,976   $  231,672
    Derivative instruments                               26,109       26,688
    Obligations related to securities lent or sold
    short or under repurchase agreements                 39,432       42,081
    Other liabilities                                    21,255       21,977
    Subordinated indebtedness                             5,402        5,526
    Preferred share liabilities                             600          600
    Non-controlling interests                               157          145
    Shareholders' equity                                 14,803       13,489
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  347,734   $  342,178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Assets

    Total assets as at January 31, 2008 were up $5.6 billion or 2% from
October 31, 2007.
    Cash and deposits with banks increased mainly due to the issuance of
additional share capital.
    Securities decreased due to lower AFS and trading securities, offset in
part by higher securities designated at fair value (FVO). AFS securities
decreased due to the sale of U.S. treasury and Government of Canada bonds and
a reduction in CIBC-sponsored ABCP securities. Trading securities decreased
marginally due to normal trading activities, offset largely by the purchase of
assets at par from third-party structured securitization vehicles. FVO
securities increased due to higher mortgage-backed securities inventory to
support our ongoing CIBC-originated residential mortgage securitization
program and to be available for collateral management purposes.
    The increase in securities borrowed or purchased under resale agreements
was primarily due to normal client-driven business activity.
    Loans have decreased marginally as the impact of residential mortgage
securitizations was mostly offset by volume growth in both consumer and
business and government loans.
    Derivative instruments decreased largely due to valuation adjustments
related to the credit protection purchased from financial guarantors and lower
market valuation on foreign exchange and equity derivatives. These were mostly
offset by higher market valuation on credit and interest rate derivatives.
    Other assets increased mainly due to an increase in derivatives
collateral and income tax receivable.

    Liabilities

    Total liabilities as at January 31, 2008 were up $4.3 billion or 1% from
October 31, 2007.
    The increase in deposits was due to normal treasury activities and retail
volume growth.
    Derivative instruments decreased mainly due to lower market valuation on
foreign exchange and equity derivatives, largely offset by higher market
valuation on credit and interest rate derivatives.
    The decrease in obligations related to securities lent or sold short or
under repurchase agreements is largely as a result of normal client-driven
activities.
    Subordinated indebtedness decreased primarily due to a redemption,
partially offset by the change in the fair value of the hedged debentures.

    Shareholders' equity

    Shareholders' equity as at January 31, 2008 was up $1.3 billion or 10%
from October 31, 2007, primarily due to the issuance of additional share
capital, partially offset by lower retained earnings resulting from the loss
in the quarter.

    Capital resources

    We actively manage our capital to maintain a strong and efficient capital
base, to maximize risk-adjusted returns to shareholders, and to meet
regulatory requirements. For additional details, see pages 54 to 56 of the
2007 Annual Accountability Report.

    Regulatory capital

    Our minimum regulatory capital requirements are determined in accordance
with guidelines issued by the Office of the Superintendent of Financial
Institutions (OSFI). The OSFI guidelines evolve from the framework of
risk-based capital standards developed by the Bank for International
Settlements (BIS). Commencing November 1, 2007, our regulatory capital
requirements are based on the Basel II framework, as described in detail in
the "Management of risk" section.
    BIS standards require that banks maintain minimum Tier 1 and Total
capital ratios of 4% and 8%, respectively. OSFI has established that Canadian
deposit-taking financial institutions maintain Tier 1 and Total capital ratios
of at least 7% and 10%, respectively.
    Capital adequacy requirements are applied on a consolidated basis. The
consolidation basis applied to CIBC's financial statements is described in
Note 1 to the 2007 consolidated financial statements. All subsidiaries, except
certain investments and holdings which are not subject to risk assessment
under Basel II and are instead deducted from regulatory capital, are included
for regulatory capital calculation purposes. A deduction approach applies to
investment in insurance subsidiaries, substantial investments and
securitization-related activities.
    Our Canadian insurance subsidiary, CIBC Life Insurance Company Limited,
is subject to OSFI's Minimum Continuing Capital Surplus Requirements for life
insurance companies.
    The following table presents the components of our regulatory capital.
The information as at January 31, 2008 is based on Basel II requirements and
information for October 31, 2007 is based upon Basel I requirements, and hence
the information is not comparable.

    
    -------------------------------------------------------------------------
                                                       Basel II      Basel I
                                                          basis        basis
                                                           2008         2007
    $ millions, as at                                    Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   13,426   $   12,379
    Tier 2 capital                                        4,419        6,304
    Total regulatory capital                             17,845       17,758
    Risk-weighted assets                                117,408      127,424
    Tier 1 capital ratio                                   11.4%         9.7%
    Total capital ratio                                    15.2%        13.9%
    Assets-to-capital multiple                             19.0x        19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Tier 1 ratio was up by 1.7% from the year-end, largely due to the issue
of common shares, and a reduction in risk-weighted assets that resulted from
the change to Basel II methodology commencing November 1, 2007. This was
offset in part by the reduction in retained earnings due to the loss in the
quarter, and certain other deductions, which under Basel II are now subtracted
directly from Tier 1 capital.
    Total capital ratio was up by 1.3% due to the reasons noted above,
partially offset by a reduction in the Tier 2 capital, as only a portion of
the general allowance is eligible for inclusion in Tier 2 capital under the
Basel II methodology. The redemption of subordinated indebtedness also reduced
the Tier 2 capital.

    Significant capital management activities

    The following table summarizes our significant capital management
activities:

    
    -------------------------------------------------------------------------
                                                               For the three
                                                                months ended
    $ millions                                                 Jan. 31, 2008
    -------------------------------------------------------------------------
    Issue of common shares                                           2,916(1)
    Redemption of subordinated indebtedness                             (250)
    Dividends
      Preferred shares - classified as equity                            (30)
      Preferred shares - classified as liabilities                        (8)
      Common shares                                                     (291)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) After issuance costs, net of tax, of $32 million.
    

    Subsequent to the quarter-end, on February 26, 2008, in accordance with
their terms, we redeemed all $89 million of our 5.89% Debentures (subordinated
indebtedness) due February 26, 2013, for their outstanding principal amount,
plus unpaid interest accrued to the redemption date.
    For additional details, see Notes 6 and 7 to the interim consolidated
financial statements.

    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include securitizations, derivatives,
credit-related arrangements, and guarantees. Details on our off-balance sheet
arrangements are provided on pages 57 to 59 of the 2007 Annual Accountability
Report.
    The following table summarizes our exposures to entities involved in the
securitization of third-party assets (both CIBC sponsored/structured and
third-party structured):

    
    -------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC sponsored multi-seller
     conduits                           $      985   $ 12,234(3)  $        -
    CIBC structured CDO vehicles               823          162        1,018
    Third-party structured vehicles          7,132        1,704       26,065
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2007
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC sponsored multi-seller
     conduits                           $    3,029   $ 12,092(3)  $        -
    CIBC structured CDO vehicles               647          154        1,147
    Third-party structured vehicles          3,083        2,236       31,467
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Amounts are net of mark-to-market losses. Excludes securities issued
        by entities established by Canada Mortgage and Housing Corporation
        (CMHC), Federal National Mortgage Association (Fannie Mae), Federal
        Home Loan Mortgage Corporation (Freddie Mac), Government National
        Mortgage Association (Ginnie Mae), and Student Loan Marketing
        Association (Sallie Mae). $7.3 billion (Oct. 31, 2007: $2.0 billion)
        of the exposure was hedged by credit derivatives with third parties.
    (2) Comprises credit derivatives written options and total return swaps
        under which we assume exposures. The fair value recorded on the
        consolidated balance sheet was $(6.2) billion (Oct. 31, 2007:
        $(3.8) billion). Notional amounts of $26.1 billion (Oct. 31, 2007:
        $31.7 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of the valuation
        adjustments was $2.5 billion (Oct. 31, 2007: $3.4 billion).
        Accumulated fair value losses amount to $812 million (Oct. 31, 2007:
        $484 million) on unhedged written credit derivatives. Under certain
        credit derivative arrangements, we can be called upon to purchase the
        reference assets at par with the simultaneous termination of the
        credit derivatives; the notional amount of these trades totalled
        approximately $2.0 billion (Oct. 31, 2007: $6.5 billion) and the fair
        value was approximately $(654) million (Oct. 31, 2007:
        $(470) million).
    (3) Net of $985 million (Oct. 31, 2007: $3,029 million) of investment in
        CIBC sponsored multi-seller conduits.
    

    During the quarter, we purchased certain reference assets at a par amount
of $4.8 billion from two third-party structured vehicles in consideration for
the termination of the related total return swaps (see footnote 2 above). The
reference assets purchased were categorized as trading securities on our
consolidated balance sheet. We may also be called upon to purchase additional
reference assets at a par amount of $2.0 billion covered by the remaining
total return swaps with the third-party structured vehicles.
    For details on securitizations of our own assets and guarantees provided
by us, see Notes 5 and 11 to the interim consolidated financial statements.


    MANAGEMENT OF RISK
    -------------------------------------------------------------------------

    Our approach to management of risk is described on pages 60 to 73 of the
2007 Annual Accountability Report.
    In addition, in the MD&A, we have provided certain of the required
disclosures under the Canadian Institute of Chartered Accountants (CICA)
handbook section 3862, "Financial Instruments - Disclosures" related to the
nature and extent of risks arising from financial instruments, as permitted by
that standard. These disclosures are included in the sections "Risk overview",
"Credit risk", Market risk", "Liquidity risk", "Operational risk", "Reputation
and legal risk", and "Regulatory risk". These disclosures have been shaded and
form an integral part of the interim consolidated financial statements.

    Risk overview

    We manage risk and related balance sheet resources within tolerance
levels established by our management committees and approved by the Board of
Directors and its committees. Several groups within TRM, independent of the
originating businesses, contribute to our management of risk, including:

    
    -   Treasury - provides enterprise-wide funding and asset/liability,
        liquidity, cash and collateral management; manages the capital
        structure within the constraints of regulatory requirements; and
        manages capital in our subsidiaries, affiliates and legal entities;
    -   Credit and Investment Risk Management groups - provide independent,
        enterprise-wide oversight of the adjudication, management and
        monitoring of global credit risk; apply market-based techniques and
        models to the measurement, monitoring and control of risks in the
        credit portfolios and merchant banking investments;
    -   Market Risk Management (MRM) - provides independent, enterprise-wide
        oversight of the management and related measurement, monitoring and
        control of trading and non-trading market risk and trading credit
        risk;
    -   Operational Risk Management - provides independent identification,
        measurement, monitoring and control of operational risk
        enterprise-wide; and
    -   Balance Sheet Measurement, Monitoring and Control - oversees the
        balance sheet resource allocation process; and provides independent,
        enterprise-wide oversight of the measurement, monitoring and control
        of our balance sheet resources, economic capital, and model risk
        including independent validation of the risk-rating systems and
        parameters.
    

    Basel II Capital Accord

    On November 1, 2007, we adopted a new capital management framework,
commonly called Basel II, which is designed to enhance the risk sensitivity of
regulatory capital. Under the new Basel II Framework, regulatory capital for
the first time includes a charge for operational risk. In addition, the rules
permit wider discretion by bank regulators to increase or decrease capital
requirements in line with the circumstances of individual banks. The rules
require greater transparency of risk management information intrinsic to
underlying risks and capital adequacy.
    We adopted the Advanced Internal Ratings Based (AIRB) approach for credit
risk for all material portfolios. We received final approval with associated
conditions for the use of the AIRB approach to the calculation of credit risk
capital from OSFI on December 31, 2007. Immaterial portfolios (refer to
"Credit risk" section for details) are initially on the standardized approach,
and in the event that any one of the standardized portfolios becomes material,
management will implement plans to transition it to an AIRB approach as
required by OSFI.
    On August 1, 2007, we received Conditional Acceptance from OSFI to
implement the Advanced Measurement Approach (AMA) for operational risk
effective November 1, 2007. OSFI has set the target date for Formal Acceptance
as December 31, 2008 or earlier.
    Market risk for the trading books continues to be measured under the
pre-existing OSFI approval for use of the Internal Models Approach.

    Credit risk

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

    Process and control

    The credit approval process is centrally controlled, with all significant
credit requests submitted to a credit risk management unit that is independent
of the originating businesses. Approval authorities are a function of the risk
and amount of credit requested. In certain cases, credit requests must be
referred to the Risk Management Committee (RMC) for approval.
    After initial approval, individual credit exposures continue to be
monitored, with a formal risk assessment including review of assigned ratings
documented at least annually. Higher risk-rated accounts are subject to closer
monitoring and are reviewed at least quarterly. Collections and specialized
loan workout groups handle the day-to-day management of the highest risk loans
to maximize recoveries.

    Credit risk limits

    Credit limits are established for business and government loans for the
purposes of portfolio diversification and managing concentration. These
include limits for individual borrowers, groups of related borrowers, industry
sectors, country and geographic regions, and products or portfolios. Direct
loan sales, credit derivative hedges or structured transactions are used to
reduce concentrations.

    Credit derivatives

    We use credit derivatives to reduce industry sector concentrations and
single-name exposures, or as part of portfolio diversification techniques.

    Guarantees

    We obtain third party guarantees and insurance to reduce the risk in our
lending portfolios. The most material of these guarantees relate to our
residential mortgage portfolio that is guaranteed by Canada Housing and
Mortgage Corporation (a Government of Canada owned corporation) or other
investment-grade counterparties.

    Collateral

    Our credit risk management policies include requirements related to
collateral valuation and management. Valuations are updated periodically
depending on the nature of the collateral. The main types of collateral are
cash, securities, inventory and real estate. We have policies in place to
monitor the existence of undesirable concentration in the collateral
supporting our credit exposure.

    Exposure to credit risk

    The following table presents the exposure to credit risk which is
measured as exposure at default (EAD) for on- and off-balance sheet financial
instruments. Details on the calculation of EAD are provided on the next page.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                              AIRB  Standardized
                                          approach     approach        Total
    -------------------------------------------------------------------------
    Business and government portfolios
      Corporate
        Drawn                           $   34,276   $    5,561   $   39,837
        Undrawn commitments                 18,764          332       19,096
        Repo-style transactions             26,201           46       26,247
        Other off-balance sheet              6,215          197        6,412
        OTC derivatives                     12,119           67       12,186
    -------------------------------------------------------------------------
                                            97,575        6,203      103,778
    -------------------------------------------------------------------------
      Sovereign
        Drawn                               20,968          953       21,921
        Undrawn commitments                  2,762            -        2,762
        Repo-style transactions              1,082            -        1,082
        Other off-balance sheet                 32            2           34
        OTC derivatives                      1,661            -        1,661
    -------------------------------------------------------------------------
                                            26,505          955       27,460
    -------------------------------------------------------------------------
      Banks
        Drawn                               14,428          854       15,282
        Undrawn commitments                    816            -          816
        Repo-style transactions             57,051          354       57,405
        Other off-balance sheet             41,120           14       41,134
        OTC derivatives                      6,509           14        6,523
    -------------------------------------------------------------------------
                                           119,924        1,236      121,160
    -------------------------------------------------------------------------
    Total business and
     government portfolios                 244,004        8,394      252,398
    -------------------------------------------------------------------------
    Retail portfolios
      Real estate secured personal
       lending
        Drawn                              100,707        2,013      102,720
        Undrawn commitments                 23,795            -       23,795
    -------------------------------------------------------------------------
                                           124,502        2,013      126,515
    -------------------------------------------------------------------------
      Qualifying revolving retail
        Drawn                               15,259            -       15,259
        Undrawn commitments                 22,693            -       22,693
    -------------------------------------------------------------------------
                                            37,952            -       37,952
    -------------------------------------------------------------------------
      Other retail
        Drawn                                9,261          972       10,233
        Undrawn commitments                  2,086           53        2,139
        Other off-balance sheet                108            -          108
    -------------------------------------------------------------------------
                                            11,455        1,025       12,480
    -------------------------------------------------------------------------
    Total retail portfolios                173,909        3,038      176,947
    -------------------------------------------------------------------------
    Securitization exposures(1)             17,482          839       18,321
    -------------------------------------------------------------------------
    Gross credit exposure               $  435,395   $   12,271   $  447,666
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Under the internal ratings based approach.
    

    The portfolios are categorized based upon how we manage the business and
the associated risks. Amounts provided are after valuation adjustments related
to financial guarantors, and before allowance for credit losses and risk
mitigation, including $79.0 billion of collateral held for our repurchase
agreement activities. Non-trading equity exposures are not included in the
table above as they have been deemed immaterial under the OSFI guidelines, and
hence, are subject to 100% risk-weighting.

    Exposures subject to AIRB approach

    Business and government portfolios (excluding scored small business) -
    risk rating method

    The portfolio comprises exposures to corporate, sovereign and bank
obligors. These obligors are individually assessed and assigned a rating that
reflects our estimate of the probability of default.  A mapping between our
internal ratings and the ratings used by external ratings agencies is shown in
the table below. As part of our risk-rating methodology, the risk assessment
includes a review of external ratings of the obligor. The obligor rating
assessment takes into consideration our financial assessment of the obligor,
the industry, and the economic environment of the region in which the obligor
operates. In certain circumstances, where a guarantee from a third party
exists, both the obligor and the guarantor will be assessed.

    
                               CIBC           Standard &     Moody's Investor
    Grade                    rating    Poor's equivalent  Services equivalent
    -------------------------------------------------------------------------
    Investment grade        00 - 47          AAA to BBB-          Aaa to Baa3
    -------------------------------------------------------------------------
    Non-investment grade    51 - 67            BB+ to B-            Ba1 to B3
    -------------------------------------------------------------------------
    Watchlist               70 - 80           CCC+ to CC           Caa1 to Ca
    -------------------------------------------------------------------------
    Default                      90                    D                    C
    -------------------------------------------------------------------------
    

    We use quantitative modeling techniques to assist in the development of
internal risk-rating systems. The risk-rating systems have been developed
through analysis of internal and external credit risk data. They are used for
portfolio management, risk limit setting, product pricing, and in the
determination of economic capital.
    We assess risk exposure using the following three dimensions. Parameter
estimates for each of these dimensions are long-term averages with adjustments
for the impact of any potential change in the credit cycle.

    
    -   Probability of default (PD) - the probability that the obligor will
        default within the next 12 months.
    -   Exposure at default (EAD) - the estimate of the amount which will be
        drawn at the time of default.
    -   Loss given default (LGD) - the expected severity of loss as the
        result of the default, expressed as a percentage of the EAD.
    

    The effectiveness of the risk rating systems and the parameters
associated with the risk ratings are monitored within TRM and are subject to
an annual review. The models used in the estimation of the risk parameters are
also subject to independent validation by the TRM validation group, which is
independent of both the origination business and the model development
process.
    We have counterparty credit exposure that arises from our interest rate,
foreign exchange, equity, commodity and credit derivatives trading, hedging
and portfolio management activities, as explained in Note 14 to the 2007
consolidated financial statements. The PD of our counterparties is measured in
the same manner as our direct lending activity. We establish a valuation
adjustment for expected future credit losses from each of our derivative
counterparties. The expected future credit loss is a function of our estimates
of the PD, the expected loss/exposure in the event of default and other
factors such as risk mitigants.

    Credit quality of the risk-rated portfolios

    The following table provides the credit quality of the risk-rated
portfolios. Amounts provided are before allowance for credit losses, and after
credit risk mitigation, valuation adjustments related to financial guarantors,
and collateral on repurchase agreement activities. Insured residential
mortgage and student loan portfolios of $53.1 billion are reclassified to
either sovereign or corporate exposures in the table below.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                            EAD
                          --------------------------------------
    Grade                   Corporate    Sovereign        Banks        Total
    -------------------------------------------------------------------------
    Investment grade       $   39,425   $   77,802   $   58,882   $  176,109
    Non-investment
    grade                      25,367          206        9,040       34,613
    Watchlist                   1,256            1            -        1,257
    Default                       294            1            -          295
    -------------------------------------------------------------------------
                           $   66,342   $   78,010   $   67,922   $  212,274
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Business and government portfolios (excluding scored small business) -
    slotting approach

    A simplified risk-rating process (slotting approach) is used for
uninsured Canadian commercial mortgages, which comprise non-residential
mortgages and multi-family residential mortgages. These exposures are
individually rated on our rating scale using a risk-rating methodology that
considers the property's key attributes, which include its loan to value and
debt service ratios, the quality of the property, and the financial strength
of the owner/sponsor. All exposures are secured by a lien over the property
and in some cases additionally by mortgage insurance. Insured multi-family
residential mortgages are treated as sovereign exposures in the table above.

    Exposure by risk-bands

    The following table provides the exposure by risk-weight bands.
Facilities in the "satisfactory" category have key attributes that meet our
criteria, while facilities in the "good" and "strong" categories exceed it
with progressively stronger risk metrics. Exposures in the "weak" category
generally were originated at a stronger risk level but have migrated below our
current criteria.

    
    $ millions, as at January 31, 2008                                   EAD
    -------------------------------------------------------------------------
    Strong                                                        $    5,594
    Good                                                                 130
    Satisfactory                                                          40
    Weak                                                                   7
    Default                                                                3
    -------------------------------------------------------------------------
                                                                  $    5,774
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Retail portfolios

    Retail portfolios are characterized by a large number of relatively small
exposures. They comprise: real estate secured personal lending (comprising
residential mortgages, and personal loans and lines secured by residential
property); qualifying revolving retail exposures (credit cards and unsecured
lines of credit); other retail exposures (loans secured by non-residential
assets, unsecured loans including student loans, and scored small business
loans). These are managed as pools of homogenous risk exposures using external
credit bureau scores and/or other behavioral assessment to group exposures
according to similar credit risk profiles. These pools are assessed through
statistical techniques, such as credit scoring and computer-based models.
Characteristics used to group individual exposures vary by asset category; as
a result, the number of pools, their size, and the statistical techniques
applied to their management differ accordingly.
    The following table maps the PD bands to various risk levels:

    
    Description                                                     PD bands
    -------------------------------------------------------------------------
    Exceptionally low                                           0.01% - 0.20%
    Very low                                                    0.21% - 0.50%
    Low                                                         0.51% - 2.00%
    Medium                                                     2.01% - 10.00%
    High                                                      10.01% - 99.99%
    Default                                                           100.00%
    -------------------------------------------------------------------------
    

    Credit quality of the retail portfolios

    The following table presents the credit quality of the retail portfolios.
Amounts provided are before allowance for credit losses and after credit risk
mitigation. Insured residential mortgage and student loan portfolios of
$53.1 billion are reclassified to either sovereign or corporate exposures.
Retail portfolios include $3,947 million of small business scored exposures.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                             EAD
                         ---------------------------------------
                          Real estate
                              secured   Qualifying
                             personal    revolving        Other
    PD                        lending       retail       retail        Total
    -------------------------------------------------------------------------
    Exceptionally low      $   29,737   $   16,288   $    2,565   $   48,590
    Very low                   17,129        5,125        2,636       24,890
    Low                        24,546       10,662        4,344       39,552
    Medium                        153        4,124        1,386        5,663
    High                           88        1,625          127        1,840
    Default                        70          128          122          320
    -------------------------------------------------------------------------
                            $  71,723   $   37,952  $    11,180  $   120,855
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Exposures subject to the standardized approach

    Exposures within FirstCaribbean, obligations of certain exposures of
individuals for non-business purposes, and certain exposures in the CIBC
Mellon joint ventures have been deemed immaterial, and are subject to the
standardized approach. A detailed breakdown of our standardized exposures
before allowance for credit losses by risk-weight is provided below. Eligible
financial collateral also impacts the risk weighting category for the
exposure.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                Risk-weight category
                 --------------------------------------------------
                        0%       20%       50%       75%      100%     Total
    -------------------------------------------------------------------------
    Corporate     $      -  $    994  $      -  $      -  $  5,209  $  6,203
    Sovereign          430        82       222         -       221       955
    Bank                 -     1,230         -         -         6     1,236
    Real estate
     secured
     personal
     lending             -         -         -     2,007         6     2,013
    Other retail         -         -         -        53       972     1,025
    -------------------------------------------------------------------------
                  $    430  $  2,306  $    222  $  2,060  $  6,414  $ 11,432
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Securitization exposures

    The following table provides details on our securitization exposures by
credit ratings under the internal ratings based (IRB) and standardized
approach.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                                    EAD
                                       --------------------------
    Ratings                                    IRB  Standardized       Total
    -------------------------------------------------------------------------
    AAA to BBB-                         $   17,190   $      839   $   18,029
    BB+ to BB-                                   9            -            9
    Below BB-                                   37            -           37
    Unrated                                    246            -          246
    -------------------------------------------------------------------------
                                        $   17,482   $      839   $   18,321
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Concentration of exposures

    Concentration of credit risk exists when a number of obligors are engaged
in similar activities, or operate in the same geographical areas or industry
sectors, and have similar economic characteristics so that their ability to
meet contractual obligations is similarly affected by changes in economic,
political or other conditions.

    Geographic distribution

    The following table provides a geographic distribution of our business
and government exposures under the AIRB approach. The classification of
geography is based upon the country of ultimate risk. Amounts are before
allowance for credit losses and risk mitigation, and after valuation
adjustments related to financial guarantors and $79.0 billion of collateral
held for our repurchase agreement activities.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                  Canada         U.S.       Europe        Other        Total
    -------------------------------------------------------------------------
    Drawn     $   51,909   $    9,439   $    6,272   $    2,052   $   69,672
    Undrawn
     commit-
     ments        19,465        2,107          267          503       22,342
    Repo-style
     transactions  1,987        1,613          325        1,399        5,324
    Other
     off-balance
     sheet        29,996        9,526        7,036          809       47,367
    OTC
     deriv-
     atives        6,579        7,798        5,392          520       20,289
    -------------------------------------------------------------------------
              $  109,936   $   30,483   $   19,292   $    5,283   $  164,994
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For retail portfolios, substantially all of the exposures under the AIRB
approach are based in Canada.

    Business and government exposures by industry groups
    The following table provides an industry-wide breakdown of our business
and government exposures under the AIRB approach. Amounts are before allowance
for credit losses and risk mitigation, and after valuation adjustments related
to financial guarantors and $79.0 billion of collateral held for our
repurchase agreement activities.

    
    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
                                            Repo-    Other
                                 Undrawn    style     off-      OTC
                                 commit-   trans-  balance  deriva-
                          Drawn     ment  actions    sheet    tives    Total
    -------------------------------------------------------------------------
    Commercial
     mortgages         $  5,639 $    135 $      - $      - $      - $  5,774
    Financial
     institutions        19,820    3,483    5,263   42,836 15,919(1)  87,321
    Retail                2,115    1,566        -      245      393    4,319
    Business services     3,607    1,583        -      799      374    6,363
    Manufacturing,
     capital goods        1,115      967        -      320      211    2,613
    Manufacturing,
     consumer goods       1,113      763        -       41       61    1,978
    Real estate and
     construction         5,800    1,635        -      743       68    8,246
    Agriculture           2,632    1,231        -       48       14    3,925
    Oil and gas           3,490    3,084        -      340      912    7,826
    Mining                1,746      458        -      109       35    2,348
    Forest products         542      279        3       83       20      927
    Hardware and
     software               513      517        -       95       49    1,174
    Telecommunications
     and cable              459      505        -       72      291    1,327
    Publishing,
     printing and
     broadcasting           832      537        -       53      238    1,660
    Transportation          762      607        -      789       79    2,237
    Utilities               515    1,562        -      655      405    3,137
    Education, health
     and social
     services             1,241      767        3      107       40    2,158
    Governments          17,731    2,663       55       32    1,180   21,661
    -------------------------------------------------------------------------
                       $ 69,672 $ 22,342 $  5,324 $ 47,367 $ 20,289 $164,994
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $5.3 billion of EAD with financial guarantors hedging our
        derivative contracts. The fair value of these derivative contracts
        net of the valuation adjustments was $3.0 billion.



    Impaired loans and allowance and provision for credit losses

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

                                                           2008         2007
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                         $      536   $      493
    Business and government(1)                              404          370
    -------------------------------------------------------------------------
    Total gross impaired loans                       $      940   $      863
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Allowance for credit losses
    Consumer                                         $      365   $      359
    Business and government(1)                              215          194
    -------------------------------------------------------------------------
    Specific allowance                                      580          553
    General allowance                                       799          890
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,379   $    1,443
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    

    Gross impaired loans were up $77 million or 9% from October 31, 2007.
Consumer gross impaired loans were up $43 million or 9%, whereas business and
government gross impaired loans were up $34 million or 9%. Total gross
impaired loans increased $16 million in Canada, $28 million in the U.S. and
$33 million in other countries. The overall increase in gross impaired loans
was largely attributed to residential mortgages, and the publishing, printing,
and broadcasting sector.
    Allowance for credit losses was down $64 million or 4% from October 31,
2007. Specific allowance was up $27 million or 5% from the year-end, primarily
due to increases in retail, business services, and the publishing, printing
and broadcasting sectors. The general allowance totalled $799 million, down
$91 million or 10% from the year-end, due to the reclassification of general
allowance related to the undrawn credit facilities to other liabilities.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    Market risk

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

    Process and control

    Market risk exposures are monitored daily against approved risk limits,
and control processes are in place to monitor that only authorized activities
are undertaken. We generate daily risk and limit-monitoring reports, based on
the previous day's positions. Summary market risk and limit compliance reports
are produced and reviewed weekly with the Senior Executive Team, and quarterly
with the RMC.
    We have risk tolerance levels, expressed in terms of both statistically
based Value-at-Risk (VaR) measures and potential worst-case stress losses. We
use a three-tiered approach to set market risk and stress limits on the
amounts of risk that we can assume in our trading and non-trading activities,
as follows:

    
    -   Tier 1 limits are our overall market risk and worst-case scenario
        limits.
    -   Tier 2 limits are designed to control the risk profile in each
        business.
    -   Tier 3 limits are at the desk level and designed to monitor risk
        concentration and the impact of book-specific stress events.
    

    Trading activities

    We use a number of risk measures such as VaR, and stress testing and
scenario analysis for measuring trading risk.

    Value-at-Risk

    Our VaR methodology is a statistical technique that measures the
potential worst-case overnight loss within a 99% confidence level. VaR uses
numerous risk factors as inputs and is computed through the use of historical
volatility of each risk factor and the associated historical correlations
among them, evaluated over a one-year period.

    Stress testing and scenario analysis

    Our stress testing measures the effect on portfolio values of extreme
market movements up to a period of one quarter. Scenarios are developed to
model extreme economic events, worst-case historical experiences or potential
future plausible events.
    Our core stress tests and scenario analyses are run daily, and further ad
hoc analysis is carried out as required. Scenarios are reviewed and amended as
necessary to ensure they remain relevant. Limits are placed on the maximum
acceptable loss to the aggregate portfolio under any worst-case scenario and
on the impact of stress testing at the detailed portfolio level and by asset
class.

    Backtesting

    The backtesting process measures that actual profit and loss outcomes are
consistent with the statistical assumptions of the VaR model. This process
also includes the calculation of a hypothetical or static profit and loss.
This represents the theoretical change in value of the prior day's closing
portfolio due to each day's price movements, on the assumption that the
contents of the portfolio remained unchanged.

    
    Value-at-risk by risk type (trading portfolios)


                                         As at or for the three months ended
                                  -------------------------------------------
                                                               Jan. 31, 2008
                                  -------------------------------------------
    $ millions                         High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $   10.9   $    5.2   $   10.9   $    7.4
    Credit spread risk                 16.0        7.2        9.7       12.8
    Equity risk                         7.6        3.7        6.4        5.0
    Foreign exchange risk               1.3        0.3        0.7        0.7
    Commodity risk                      1.2        0.5        0.8        0.8
    Debt specific risk                 13.7        7.9        8.6       10.5
    Diversification effect(1)           n/m        n/m      (16.6)     (18.5)
                                                        ---------------------
    Total risk                     $   21.4   $   15.6   $   20.5   $   18.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                         As at or for the three months ended
                                  -------------------------------------------
                                         Oct. 31, 2007         Jan. 31, 2007
                                  -------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    7.2   $    7.1   $    8.6   $    7.0
    Credit spread risk                  9.6        6.4        3.2        3.5
    Equity risk                         6.0        5.5        5.8        6.4
    Foreign exchange risk               0.6        0.5        0.6        0.4
    Commodity risk                      1.3        1.3        1.5        1.6
    Debt specific risk                 10.3        9.2        n/a        n/a
    Diversification effect(1)         (20.3)     (15.4)     (10.2)      (9.9)
    -------------------------------------------------------------------------
    Total risk                     $   14.7   $   14.6   $    9.5   $    9.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1)  Aggregate VaR is less than the sum of the VaR of the different
         market risk types due to risk offsets resulting from the effect of
         portfolio diversification.
    n/m  Not meaningful. It is not meaningful to compute a diversification
         effect because the high and low may occur on different days for
         different risk types.
    n/a  Not available, as we started reporting this measure only in the
         fourth quarter of 2007.
    

    Total average risk was up 28% from the last quarter, primarily due to
significant increases in credit spread risk as a result of the volatile market
conditions. Total average risk was up more than 100% from the same quarter
last year, primarily due to inclusion of debt specific risk measure in VaR in
the prior quarter, as well as the higher levels of credit spread risk.

    Trading revenue

    Trading revenue (TEB)(1) was positive for 50% of the days in the quarter.
Trading losses did not exceed VaR for any day during the quarter. Average
daily trading revenue (TEB)(1) was $0.5 million during the quarter. The
trading revenue (TEB)(1) and VaR backtesting graph below compares the current
quarter and the three previous quarters' actual daily trading revenue (TEB)(1)
with the previous day's VaR measures. The trading revenue (TEB)(1) excludes
$0.6 million related to the consolidation of variable interest entities, and
$(3,298) million related to reductions in fair value of structured credit
assets and counterparty credit-related valuation adjustments, which cannot be
meaningfully allocated to specific days.

    
    Backtesting of trading revenue (TEB)(1) vs. VaR

    (image appears here)

    (1) For additional information, see the "Non-GAAP measures" section on
        pages 45 to 46 of our 2007 Annual Accountability Report.
    

    Non-trading activities

    Market risks also arise from our retail banking business, equity
investments and other non-trading activities.

    Interest rate risk

    Non-trading interest rate risk consists primarily of risk inherent in ALM
activities and the activities of domestic and foreign subsidiaries. Interest
rate risk results from differences in the maturities or repricing dates of
assets and liabilities, both on- and off-balance sheet, as well as from
embedded optionality in retail products. A variety of cash instruments and
derivatives, principally interest rate swaps, futures and options, are used to
manage and control these risks.
    The following table shows the potential impact of an immediate 100 basis
points increase or decrease in interest rates over the next 12 months, as
adjusted for estimated prepayments:

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

                                                2008                    2007
    $ millions, as at                        Jan. 31                 Oct. 31
    -------------------------------------------------------------------------
                                  C$     US$   Other      C$     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  23   $  (1)  $   -   $  24   $  12   $  (3)
    Change in present value
     of equity risk              101      31      36      98      21      36

    100 basis points decrease
     in interest rates
    Net income                 $ (56)  $   1   $   -   $ (96)  $ (12)  $   3
    Change in present value
     of equity risk             (143)    (31)    (37)   (155)    (21)    (36)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

                                                2007
    $ millions, as at                        Jan. 31
    -------------------------------------------------
                                  C$     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  24   $  (7)  $  (5)
    Change in present value
     of equity risk              153       9      20

    100 basis points decrease
     in interest rates
    Net income                 $ (83)  $   7   $   5
    Change in present value
     of equity risk             (209)     (9)    (20)
    -------------------------------------------------
    -------------------------------------------------
    

    Foreign exchange risk

    Non-trading foreign exchange risk, also referred to as structural foreign
exchange risk, arises primarily from our investments in foreign operations.
This risk, predominantly in U.S. dollars, is managed using derivative hedges,
and by funding the investments in foreign currencies.
    A 1% appreciation of the Canadian dollar would reduce our shareholders'
equity as at January 31, 2008 by approximately $30 million (October 31, 2007:
by approximately $28 million).
    Our non-functional currency denominated earnings are converted into the
functional currencies through spot or forward foreign exchange transactions to
reduce exchange rate fluctuations on our consolidated statement of operations.
Foreign functional currency earnings are translated at average monthly
exchange rates as they arise.
    We hedge certain anticipated foreign currency expenses using derivatives
which are accounted for as cash flow hedges. As at January 31, 2008, the net
change in fair value of these hedging derivatives included in accumulated
other comprehensive income amounted to a loss of $99 million (October 31,
2007: loss of $112 million). This amount will be released to income to offset
the hedged currency fluctuations as the expenses are incurred.

    Equity risk

    Non-trading equity risk arises primarily in our merchant banking
activities and comprises public and private equities, investments in limited
partnerships, and equity-accounted investments.
    The following table provides the carrying and fair values of our non-
trading equities, including merchant banking portfolios:

    
                                                       Carrying
    $ millions, as at                                     value   Fair value
    -------------------------------------------------------------------------
    Jan. 31, 2008  AFS securities                    $    1,540   $    1,997
                   Other assets(1)                          262          309
    -------------------------------------------------------------------------
                                                     $    1,802   $    2,306
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2007  AFS securities                    $    1,415   $    1,921
                   Other assets(1)                          254          299
    -------------------------------------------------------------------------
                                                     $    1,669   $    2,220
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes equity-accounted investments.
    

    Liquidity risk

    Liquidity risk arises from our general funding activities and in the
course of managing our assets and liabilities. It is the risk of having
insufficient cash resources to meet current financial obligations without
raising funds at unfavourable rates or selling assets on a forced basis.
    Our liquidity risk management strategies seek to maintain sufficient
liquid financial resources to continually fund our balance sheet under both
normal and stressed market environments.

    Process and control

    Actual and anticipated inflows and outflows of funds generated from on-
and off-balance sheet exposures are managed on a daily basis within specific
short-term asset/liability mismatch limits by geographic location.
    Potential cash flows under various stress scenarios are modeled using
balance sheet positions. On a consolidated basis, prescribed liquidity levels
under a selected benchmark stress scenario are maintained for a minimum time
horizon.

    Risk measurement

    Our liquidity measurement system provides daily liquidity risk exposure
reports for independent monitoring and review by MRM. Senior management and
the RMC oversee liquidity risk exposure reporting. Stress event impacts are
measured through scenario analyses, designed to measure potential impact of
abnormal market conditions on the liquidity risk profile. Treatment of cash
flows under varying conditions is reviewed periodically to determine whether
changes to customer behaviour assumptions are warranted.

    Term funding sources and strategies

    We 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 primary source of
retail funding. As at January 31, 2008, Canadian dollar deposits from
individuals totalled $85.4 billion (October 31, 2007: $83.8 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:

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

                                                           2008         2007
    $ billions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.0   $      1.0
    Deposits with banks                                    17.2         12.7
    Securities(1)                                          60.4         65.1
    Securities borrowed or purchased
     under resale agreements                               35.6         34.0
    -------------------------------------------------------------------------
                                                     $    114.2   $    112.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes AFS and FVO securities with residual term to contractual
        maturity within one year, and trading securities.
    

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to- day clearing and settlement of payments and securities. Pledged assets
as at January 31, 2008 totalled $25.2 billion (October 31, 2007: $27.7
billion).
    The recent turmoil in global capital markets has resulted in a reduction
of liquidity as well as increased costs in term funding markets for all
financial institutions. One factor affecting our access to unsecured funding
markets is our credit ratings. In December 2007, while the major rating
agencies all maintained our rating, Standard & Poor's and Moody's both revised
their ratings outlooks from stable to negative, while Fitch and DBRS placed
our ratings under review with negative implications. Despite these
developments, our liquidity position remains sound.

    Maturity of financial liabilities

    The following table provides the maturity profile of financial
liabilities based upon contractual repayment obligations. Certain contractual
maturity dates are subject to a defined set of management adjustments for
liquidity management, which have been incorporated under structural
assumptions. The table below excludes contractual cash flows related to
derivative liabilities.

    
    $ millions, as at             Less than     3 - 12      1 - 3      3 - 5
     January 31, 2008              3 months     months      years      years
    -------------------------------------------------------------------------
    Liabilities
    Deposits                      $ 150,745  $  54,265  $  21,018  $   8,986
    Acceptances                       8,016        511          -          -
    Obligations related to
     securities sold short               74        437      1,630      1,478
    Obligations related to
     securities lent or sold
     under repurchase agreements     29,172        183          -          -
    Other liabilities                   595          2      2,407          -
    Subordinated indebtedness            89          -          -          -
    Preferred share liabilities         600          -          -          -
    Structural assumptions         (114,047)   (35,225)         -          -
    -------------------------------------------------------------------------
                                  $  75,244  $  20,173  $  25,055  $  10,464
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                    No
    $ millions, as at                  Over  specified
     January 31, 2008               5 years   maturity      Total
    --------------------------------------------------------------
    Liabilities
    Deposits                      $   4,962  $       -  $ 239,976
    Acceptances                           -          -      8,527
    Obligations related to
     securities sold short            2,778      3,680     10,077
    Obligations related to
     securities lent or sold
     under repurchase agreements          -          -     29,355
    Other liabilities                     -      9,881     12,885
    Subordinated indebtedness         5,313          -      5,402
    Preferred share liabilities           -          -        600
    Structural assumptions          154,064     (4,792)         -
    --------------------------------------------------------------
                                  $ 167,117  $   8,769  $ 306,822
    --------------------------------------------------------------
    --------------------------------------------------------------

    Maturity of credit and liquidity commitments

    The following table provides the contractual maturity of notional amounts
of credit, guarantee and liquidity commitments. Contractual amounts represent
the amounts at risk should contracts be fully drawn upon and clients default.
Since a significant portion of guarantees and commitments are expected to
expire without being drawn upon, the total of the contractual amounts is not
representative of future liquidity requirements.


                            Contract amounts expiration per period
                          -----------------------------------------
    $ millions, as at      Less than       1-3       3-5      Over
     January 31, 2008         1 year     years     years   5 years     Total
    -------------------------------------------------------------------------
    Unutilized credit
     commitments(1)           27,939     1,767     8,020     1,443    39,169
    Backstop liquidity
     facilities               14,810         -         -         -    14,810
    Standby and performance
     letters of credit         5,229       354       405       435     6,423
    Documentary and
     commercial letters
     of credit                   254         -         -         2       256
    -------------------------------------------------------------------------
                            $ 48,232  $  2,121  $  8,425  $  1,880  $ 60,658
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes personal lines of credit and credit card lines, which are
        revocable at our discretion at any time.
    

    Contractual obligations

    Details on our contractual obligations are provided on page 71 of the
2007 Annual Accountability Report. There were no significant changes to
contractual obligations that were not in the ordinary course of our business.

    Operational risk

    Operational risk is the loss resulting from inadequate or failed internal
processes, systems, or from human error or external events.

    Process and control

    Each line of business has responsibility for the day-to-day management of
operational risk. Infrastructure and governance groups maintain risk and
control self-assessment processes. We maintain a corporate insurance program
to provide additional protection from loss and a global business continuity
management program to mitigate business continuity risks in the event of a
disaster.

    Risk measurement

    Effective November 1, 2007, under Basel II, we use the AMA to calculate
operational risk regulatory capital. Our operational risk measurement
methodology for economic capital purposes attributes operational risk capital
to expected and unexpected losses arising from the following loss event types:
    
    -   Legal liability (with respect to third parties, clients and
        employees);
    -   Client restitution;
    -   Regulatory compliance and taxation violations;
    -   Loss or damage to assets;
    -   Transaction processing errors; and
    -   Theft, fraud and unauthorized activities.
    

    Operational risk capital is calculated using a loss distribution approach
with the input parameters based on either actual internal loss experience
where a statistically significant amount of internal historical data is
available, or applying a loss scenario approach based on the available
internal/external loss data and management expertise.
    In addition to the capital attributed as described above, adjustments are
made for internal control issues and risks that are not included in the
original operational risk profile.
    Under AMA, we are allowed to recognize the risk mitigating impact of
insurance in the measures of operational risk used for regulatory minimum
capital requirements. Although our current insurance policy is tailored to
provide earnings protection from potential high-severity losses, we currently
do not take any capital relief as a result of our insurance program.

    Reputation and legal risk

    CIBC's reputation and financial soundness are of fundamental importance
to CIBC, its customers, shareholders and employees.
    Reputation risk is the potential for negative publicity regarding CIBC's
business conduct or practices which, whether true or not, could significantly
harm our reputation as a leading financial institution, or could materially
and adversely affect our business, operations or financial condition.
    Legal risk is the potential for civil litigation or criminal or
regulatory proceedings being commenced against CIBC that, once decided, could
materially and adversely affect our business, operations or financial
condition.
    The RMC provides oversight of the management of reputation and legal
risk. The identification, consideration and management of potential reputation
and legal risk is a key responsibility of CIBC and all of its employees.
    Our "Global Reputation and Legal Risks Policy" sets standards for
safeguarding our reputation and minimizing exposure to our reputation and
legal risk. The policy is supplemented by business specific procedures for
identifying and escalating transactions that could pose material reputation
risk and/or legal risk. The Reputation and Legal Risk Committee reviews all
transactions brought before it to assess whether CIBC is exposing itself to
any undue reputation and legal risk.

    Regulatory risk

    Regulatory risk is the risk of non-compliance with regulatory
requirements. Non-compliance with these requirements may lead to regulatory
sanctions and harm to our reputation.
    Our regulatory compliance philosophy is to manage regulatory risk
through, among other things, the integration of controls within the business
and infrastructure groups. The foundation of this approach is a legislative
compliance management (LCM) framework. The LCM framework maps regulatory
requirements to internal policies, procedures and controls that govern
regulatory compliance.
    Our compliance department is responsible for the development and
maintenance of a regulatory compliance program, including oversight of the LCM
framework. The department is independent of business management, has the
authority to communicate directly to the Audit Committee, and reports to that
committee on a quarterly basis.
    Primary responsibility for compliance with all applicable regulatory
requirements rests with senior management of the business and infrastructure
groups, and extends to all employees. The compliance department's activities
support those groups, with particular emphasis on those regulatory
requirements that govern the relationship between CIBC and its clients and
those requirements that help protect the integrity of the capital markets.
Specific activities that assist the business and infrastructure groups include
communication of regulatory requirements, advice, training, testing and
monitoring, and reporting and escalation of control deficiencies and
regulatory risks.

    ACCOUNTING AND CONTROL MATTERS
    -------------------------------------------------------------------------

    Critical accounting policies and estimates

    A summary of significant accounting policies is presented in Note 1 to
the 2007 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. 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 74 to 77 of the 2007 Annual Accountability Report.
    During the quarter, we changed our methodology employed for establishing
valuation adjustments against our counterparty credit exposures related to
financial guarantors (excluding that for ACA) to take into account market
observed credit spreads. See "Overview" section for additional details.

    Changes in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended CICA Emerging Issues
Committee Abstract (EIC 46), "Leveraged Leases", which was based upon the
Financial Accounting Standards Board (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".
    The EIC requires that a change in the estimated timing of the cash flows
relating to income taxes results in a recalculation of the timing of income
recognition from the leveraged lease. The adoption resulted in a $66 million
charge to opening retained earnings as at November 1, 2007. An amount
approximating this non-cash charge will be recognized into income over the
remaining lease terms using the effective interest rate method.

    Capital disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 1535,
"Capital Disclosures," which requires an entity to disclose its objectives,
policies and processes for managing capital as well as disclosure of summary
quantitative information about what an entity manages as capital.

    Financial instruments

    Effective November 1, 2007, we adopted the CICA handbook sections 3862
"Financial Instruments - Disclosures" and 3863 "Financial Instruments -
Presentation".
    These sections replace CICA handbook section 3861 "Financial Instruments
- Disclosure and Presentation", and enhance disclosure requirements on the
nature and extent of risks arising from financial instruments and how the
entity manages those risks.

    Controls and procedures

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer,
Chief Financial Officer and Chief Risk Officer, has evaluated the
effectiveness, as at January 31, 2008, 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, 2008 that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.


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

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

                                                           2008         2007
    Unaudited, $ millions, as at                        Jan. 31      Oct. 31
    ------------------------------------------------------------ ------------
    ASSETS
    Cash and non-interest-bearing
     deposits with banks                             $    1,673   $    1,457
    ------------------------------------------------------------ ------------
    Interest-bearing deposits with banks                 16,520       12,290
    ------------------------------------------------------------ ------------
    Securities
    Trading                                              58,365       58,779
    Available-for-sale (AFS)                              8,589       17,430
    Designated at fair value (FVO)                       14,264       10,291
    ------------------------------------------------------------ ------------
                                                         81,218       86,500
    ------------------------------------------------------------ ------------
    Securities borrowed or purchased under
     resale agreements                                   35,625       34,020
    ------------------------------------------------------------ ------------
    Loans
    Residential mortgages                                90,572       91,664
    Personal                                             29,539       29,213
    Credit card                                           9,395        9,121
    Business and government                              34,436       34,099
    Allowance for credit losses (Note 4)                 (1,379)      (1,443)
    ------------------------------------------------------------ ------------
                                                        162,563      162,654
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               23,395       24,075
    Customers' liability under acceptances                8,527        8,024
    Land, buildings and equipment                         2,001        1,978
    Goodwill                                              1,911        1,847
    Other intangible assets                                 414          406
    Other assets                                         13,887        8,927
    ------------------------------------------------------------ ------------
                                                         50,135       45,257
    ------------------------------------------------------------ ------------
                                                     $  347,734   $  342,178
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $   93,883   $   91,772
    Business and government                             131,000      125,878
    Bank                                                 15,093       14,022
    ------------------------------------------------------------ ------------
                                                        239,976      231,672
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               26,109       26,688
    Acceptances                                           8,527        8,249
    Obligations related to securities sold short         10,077       13,137
    Obligations related to securities lent or sold
     under repurchase agreements                         29,355       28,944
    Other liabilities                                    12,728       13,728
    ------------------------------------------------------------ ------------
                                                         86,796       90,746
    ------------------------------------------------------------ ------------
    Subordinated indebtedness                             5,402        5,526
    ------------------------------------------------------------ ------------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------ ------------
    Non-controlling interests                               157          145
    ------------------------------------------------------------ ------------
    Shareholders' equity
    Preferred shares                                      2,331        2,331
    Common shares                                         6,049        3,133
    Treasury shares                                          12            4
    Contributed surplus                                      86           96
    Retained earnings                                     7,174        9,017
    Accumulated other comprehensive income (AOCI)          (849)      (1,092)
    ------------------------------------------------------------ ------------
                                                         14,803       13,489
    ------------------------------------------------------------ ------------
                                                     $  347,734   $  342,178
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    The accompanying notes and shaded sections in "MD&A - Management of risk"
    on pages 17 to 27 are an integral part of these consolidated financial
    statements.



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

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Interest income
    Loans                               $    2,582   $    2,583   $    2,304
    Securities borrowed or purchased
     under resale agreements                   529          564          472
    Securities                                 664          869          762
    Deposits with banks                        230          222          173
    -------------------------------------------------------------------------
                                             4,005        4,238        3,711
    -------------------------------------------------------------------------
    Interest expense
    Deposits                                 2,208        2,216        1,903
    Other liabilities                          563          697          665
    Subordinated indebtedness                   72           77           76
    Preferred share liabilities                  8            8            8
    -------------------------------------------------------------------------
                                             2,851        2,998        2,652
    -------------------------------------------------------------------------
    Net interest income                      1,154        1,240        1,059
    -------------------------------------------------------------------------
    Non-interest income
    Underwriting and advisory fees             176          190          185
    Deposit and payment fees                   195          200          193
    Credit fees                                 60           59           69
    Card fees                                   77           72           70
    Investment management and
     custodial fees                            136          139          130
    Mutual fund fees                           212          218          212
    Insurance fees, net of claims               58           59           58
    Commissions on securities
     transactions                              170          196          229
    Trading revenue (Note 8)                (3,127)        (378)         375
    AFS securities (losses) gains, net         (49)         133          132
    FVO revenue                                (29)           9           43
    Income from securitized assets             144          103          129
    Foreign exchange other than trading        132          100           84
    Other                                      170          606          123
    -------------------------------------------------------------------------
                                            (1,675)       1,706        2,032
    -------------------------------------------------------------------------
    Total revenue                             (521)       2,946        3,091
    -------------------------------------------------------------------------
    Provision for credit losses (Note 4)       172          132          143
    -------------------------------------------------------------------------
    Non-interest expenses
    Employee compensation and benefits         994        1,006        1,160
    Occupancy costs                            145          148          150
    Computer and office equipment              262          283          263
    Communications                              74           81           71
    Advertising and business development        53           71           50
    Professional fees                           51           51           39
    Business and capital taxes                  25           37           35
    Other                                      157          197          175
    -------------------------------------------------------------------------
                                             1,761        1,874        1,943
    -------------------------------------------------------------------------
    (Loss) income before income taxes
     and non-controlling interests          (2,454)         940        1,005
    Income tax (benefit) expense            (1,002)          45          231
    -------------------------------------------------------------------------
                                            (1,452)         895          774
    Non-controlling interests                    4           11            4
    -------------------------------------------------------------------------
    Net (loss) income                   $   (1,456)  $      884   $      770
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (Loss) earnings per share
     (in dollars) (Note 10) - Basic     $    (4.39)  $     2.55   $     2.13
                            - Diluted   $    (4.39)  $     2.53   $     2.11
    Dividends per common
     share (in dollars)                 $     0.87   $     0.87   $     0.70
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes and shaded sections in "MD&A - Management of risk"
    on pages 17 to 27 are an integral part of these consolidated financial
    statements.



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

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Preferred shares
    Balance at beginning of period      $    2,331   $    2,331   $    2,381
    Issue of preferred shares                    -            -          450
    Redemption of preferred shares               -            -         (400)
    -------------------------------------------------------------------------
    Balance at end of period            $    2,331   $    2,331   $    2,431
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Common shares
    Balance at beginning of period      $    3,133   $    3,121   $    3,064
    Issue of common shares (Note 7)          2,948           12           50
    Issuance costs, net of related
     income taxes                              (32)           -            -
    -------------------------------------------------------------------------
    Balance at end of period            $    6,049   $    3,133   $    3,114
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Treasury shares
    Balance at beginning of period      $        4   $      (11)  $      (19)
    Purchases                               (2,959)      (1,456)      (1,356)
    Sales                                    2,967        1,471        1,374
    -------------------------------------------------------------------------
    Balance at end of period            $       12   $        4   $       (1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance at beginning of period      $       96   $       85   $       70
    Stock option expense                         3           (1)           2
    Stock options exercised                     (1)          (1)          (4)
    Net (discount) premium on
     treasury shares and other                 (12)          13            6
    -------------------------------------------------------------------------
    Balance at end of period            $       86   $       96   $       74
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings
    Balance at beginning of period,
     as previously reported             $    9,017   $    8,450   $    7,268
    Adjustment for change in
     accounting policies                    (66)(1)           -       (50)(2)
    -------------------------------------------------------------------------
    Balance at beginning of period,
     as restated                             8,951        8,450        7,218
    Net (loss) income                       (1,456)         884          770
    Dividends
      Preferred                                (30)         (30)         (38)
      Common                                  (291)        (292)        (235)
    Premium on redemption of preferred
     shares (classified as equity)               -            -          (16)
    Other                                        -            5           (6)
    -------------------------------------------------------------------------
    Balance at end of period            $    7,174   $    9,017   $    7,693
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    AOCI, net of tax
    Balance at beginning of period      $   (1,092)  $     (587)  $     (442)
    Adjustment for change in
     accounting policies(2)                      -            -          123
    Other comprehensive income
     (loss) (OCI)                              243         (505)         175
    -------------------------------------------------------------------------
    Balance at end of period            $     (849)  $   (1,092)  $     (144)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings and AOCI          $    6,325   $    7,925   $    7,549
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity at end
     of period                          $   14,803   $   13,489   $   13,167
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants Emerging Issues Committee Abstract 46,
        "Leveraged Leases". See Note 1 for additional details.
    (2) Represents the transitional adjustment on adoption of the CICA
        handbook sections 1530, 3251, 3855, and 3865.

    The accompanying notes and shaded sections in "MD&A - Management of risk"
    on pages 17 to 27 are an integral part of these consolidated financial
    statements.



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net (loss) income                   $   (1,456)  $      884   $      770
    -------------------------------------------------------------------------
    OCI, net of tax
      Foreign currency translation
       adjustments
      Net gains (losses) on investment
       in self-sustaining foreign
       operations                              973       (1,921)         805
      Net (losses) gains on hedges of
       foreign currency translation
       adjustments                            (746)       1,493         (603)
    -------------------------------------------------------------------------
                                               227         (428)         202
    -------------------------------------------------------------------------
      Net change in AFS securities
      Net unrealized (losses) gains
       on AFS securities                       (21)          54          (43)
      Transfer of net losses (gains)
       to net income                           106          (35)         (28)
    -------------------------------------------------------------------------
                                                85           19          (71)
    -------------------------------------------------------------------------
      Net change in cash flow hedges
      Net (losses) gains on derivatives
       designated as cash flow hedges          (36)        (120)          73
      Net (gains) losses on derivatives
       designated as cash flow hedges
       transferred to net income               (33)          24          (29)
    -------------------------------------------------------------------------
                                               (69)         (96)          44
    -------------------------------------------------------------------------
    Total OCI(1)                               243         (505)         175
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive (loss) income         $   (1,213)  $      379   $      945
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes non-controlling interest of nil (October 31, 2007: nil;
        January 31, 2007: $1 million).



    -------------------------------------------------------------------------
    INCOME TAX (EXPENSE) BENEFIT ALLOCATED TO EACH COMPONENT OF OCI

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Foreign currency translation
     adjustments
      Changes on investment in self-
       sustaining foreign operations    $       (3)  $        4   $      (10)
      Changes on hedges of foreign
       currency translation adjustments        374         (736)         313
    Net change in AFS securities
      Net unrealized losses (gains)
       on AFS securities                        15          (34)          29
      Transfer of net (losses) gains
       to net income                           (89)          15           16
    Net change in cash flow hedges
      Changes on derivatives designated
       as cash flow hedges                      20           65          (39)
      Changes on derivatives designated
       as cash flow hedges transferred
       to net income                            18          (12)          15
    -------------------------------------------------------------------------
                                        $      335   $     (698)  $      324
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes and shaded sections in "MD&A - Management of risk"
    on pages 17 to 27 are an integral part of these consolidated financial
    statements.



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

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     operating activities
    Net (loss) income                   $   (1,456)  $      884   $      770
    Adjustments to reconcile net (loss)
     income to cash flows provided by
     (used in) operating activities:
      Provision for credit losses              172          132          143
      Amortization of buildings,
       furniture, equipment and
       leasehold improvements                   52           50           53
      Amortization of other
       intangible assets                        10           11            5
      Stock-based compensation                 (19)           7           18
      Future income taxes                      (53)         141           63
      AFS securities losses (gains), net        49         (133)        (132)
      Losses (gains) on disposal of land,
       buildings and equipment                   -            1            -
      Other non-cash items, net                 66         (158)          50
      Changes in operating assets
       and liabilities
        Accrued interest receivable            104          (51)        (106)
        Accrued interest payable               (24)          16         (474)
        Amounts receivable on
         derivative contracts                  663       (3,787)        (404)
        Amounts payable on derivative
         contracts                            (954)       7,262         (958)
        Net change in trading securities       414        4,673       (4,238)
        Net change in FVO securities        (3,973)      (2,663)        (629)
        Net change in other FVO
         financial instruments                (581)      (2,192)         187
        Current income taxes                (1,794)        (145)        (377)
        Other, net                          (3,779)         150       (1,742)
    -------------------------------------------------------------------------
                                           (11,103)       4,198       (7,771)
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     financing activities
    Deposits, net of withdrawals             8,844        4,371        5,554
    Obligations related to securities
     sold short                             (3,076)        (868)         (69)
    Net obligations related to
     securities lent or sold under
     repurchase agreements                     411       (5,100)      (1,178)
    Redemption of subordinated
     indebtedness                             (250)        (537)           -
    Issue of preferred shares                    -            -          450
    Redemption of preferred shares               -            -         (416)
    Issue of common shares, net              2,916           12           50
    Net proceeds from treasury shares
     (purchased) sold                            8           15           18
    Dividends                                 (321)        (322)        (273)
    Other, net                                (445)         130          353
    -------------------------------------------------------------------------
                                             8,087       (2,299)       4,489
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     investing activities
    Interest-bearing deposits with banks    (4,230)       3,316       (2,494)
    Loans, net of repayments                (2,047)      (4,483)       1,295
    Proceeds from securitizations            2,250        1,493        2,537
    Purchase of AFS securities              (1,924)      (5,149)      (1,787)
    Proceeds from sale of AFS securities     5,870        1,258        1,462
    Proceeds from maturity of AFS
     securities                              4,941          790        2,396
    Net securities borrowed or purchased
     under resale agreements                (1,605)       1,064        1,464
    Net cash used in acquisition(1)              -            -         (778)
    Purchase of land, buildings
     and equipment                             (43)         (14)        (233)
    Proceeds from disposal of land,
     buildings and equipment                     -            1            -
    -------------------------------------------------------------------------
                                             3,212       (1,724)       3,862
    -------------------------------------------------------------------------
    Effect of exchange rate changes
     on cash and non-interest-bearing
     deposits with banks                        20          (55)          41
    -------------------------------------------------------------------------
    Net increase (decrease) in cash and
     non-interest-bearing deposits with
     banks during period                       216          120          621
    Cash and non-interest-bearing
     deposits with banks at beginning
     of period                               1,457        1,337        1,317
    -------------------------------------------------------------------------
    Cash and non-interest-bearing
     deposits with banks at end
     of period                          $    1,673   $    1,457   $    1,938
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash interest paid                  $    2,875   $    2,982   $    3,126
    Cash income taxes paid              $      846   $       49   $      545
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Related to the acquisition of FirstCaribbean International Bank.

    The accompanying notes and shaded sections in "MD&A - Management of risk"
    on pages 17 to 27 are an integral part of these consolidated financial
    statements.



    NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

    The unaudited 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, 2007, 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, 2007, as set out on
    pages 84 to 137 of the 2007 Annual Accountability Report.

    1.  Change in accounting policy

    Leveraged leases

    Effective November 1, 2007, we adopted the amended Canadian Institute of
    Chartered Accountants (CICA) Emerging Issues Committee Abstract (EIC 46),
    "Leveraged Leases", which was based upon the Financial Accounting
    Standards Board 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". The EIC requires that a
    change in the estimated timing of the cash flows relating to income taxes
    results in a recalculation of the timing of income recognition from the
    leveraged lease.

    The adoption of this guidance resulted in a $66 million charge to opening
    retained earnings as at November 1, 2007. An amount approximating this
    non-cash charge will be recognized into income over the remaining lease
    terms using the effective interest rate method.

    Capital disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 1535,
    "Capital Disclosures", which requires an entity to disclose its
    objectives, policies, and processes for managing capital. These were
    provided in Note 17 of the 2007 consolidated financial statements, and
    are unchanged from the prior year. In addition, the section requires
    disclosure of summary quantitative information about what an entity
    manages as capital. See Note 7 for additional details.

    Financial instruments

    Effective November 1, 2007, we adopted the CICA handbook sections 3862
    "Financial Instruments - Disclosures" and 3863 "Financial Instruments -
    Presentation".

    These sections replace CICA handbook section 3861 "Financial Instruments
    - Disclosure and Presentation", and enhance disclosure requirements on
    the nature and extent of risks arising from financial instruments and how
    the entity manages those risks. See Note 13 for additional details.

    2.  Sale of some of our U.S. businesses

    Effective January 1, 2008, we sold our U.S. based investment banking,
    leveraged finance, equities and related debt capital markets businesses
    and our Israeli investment banking and equities businesses (the
    "transferred businesses") to Oppenheimer Holdings Inc. (Oppenheimer). The
    sale of certain other U.S. capital markets related businesses located in
    the U.K. and Asia to Oppenheimer is expected to close in the second
    quarter of 2008. In consideration, Oppenheimer provided us warrants for
    one million shares exercisable at the end of five years, and will pay us
    a minimum deferred purchase price of US$25 million at the end of five
    years based on the earnings of the transferred businesses. We provided
    indemnities in respect of certain costs that Oppenheimer may incur in
    integrating the transferred businesses.

    We wrote-off the goodwill associated with the transferred businesses,
    impaired certain leasehold improvement and computer and software fixed
    assets, and recorded liabilities with respect to certain contracts that
    are no longer required as part of our continuing operations. In addition,
    we accelerated the recognition of the cost of certain restricted share
    awards (RSAs) granted to employees that were transferred to Oppenheimer.

    As a result, we recorded a net pre-tax loss of $70 million in January
    2008 in other non-interest income. We also recorded an impairment charge
    of $10 million in other non-interest expenses related to the decision to
    relocate most of our remaining U.S. personnel.

    CIBC RSAs held by employees transferred to Oppenheimer will continue to
    vest in accordance with their original terms. To support this
    compensation arrangement, Oppenheimer will reimburse CIBC for the cost of
    these RSAs to the extent they vest, at which time we will record the
    reimbursements in other non-interest income.

    Pursuant to the sale agreement, CIBC invested in a US$100 million
    subordinated debenture issued by Oppenheimer and is providing certain
    credit facilities to Oppenheimer and its investment banking clients to
    facilitate Oppenheimer's business, with each loan subject to approval by
    CIBC's credit committee.

    Excluding the losses noted above, the transferred businesses contributed
    the following to our results for the two months ended December 31, 2007:

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

                                                                        2007
    $ millions, for the two months ended                             Dec. 31
    -------------------------------------------------------------------------
    Net interest income                                           $        1
    Non-interest income                                                   58
    -------------------------------------------------------------------------
    Total revenue                                                         59
    Non-interest expenses                                                 48
    -------------------------------------------------------------------------
    Income before taxes and non-controlling interests                     11
    Income taxes                                                           6
    -------------------------------------------------------------------------
    Net income                                                    $        5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    3.  Past due loans but not impaired

    Past due loans are loans where repayment of principal or payment of
    interest is contractually in arrears. The following table provides an
    ageing analysis of the past due loans. Consumer overdraft balances past
    due less than 30 days have been excluded from the table below as the
    information is currently indeterminable

    -------------------------------------------------------------------------
    $ millions, as at             Less than      31 to       Over
     January 31, 2008               30 days    90 days    90 days      Total
    -------------------------------------------------------------------------
    Residential mortgages         $   1,333  $     597  $     150  $   2,080
    Personal                            530        140         45        715
    Credit card                         422        117         71        610
    Business and government             353        212         24        589
    -------------------------------------------------------------------------
                                  $   2,072  $   1,066  $     290  $   3,428
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    4.  Allowance for credit losses

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

    $ millions, for the three
     months ended                                              Jan. 31, 2008
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      553   $      890   $    1,443
    Provision for (reversal of)
     credit losses                             171            1          172
    Write-offs                                (187)           -         (187)
    Recoveries                                  31            -           31
    Transfer from general to specific(1)         2           (2)           -
    Other(2)                                    10            -           10
    -------------------------------------------------------------------------
    Balance at end of period            $      580   $      889   $    1,469
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans                             $      580   $      799   $    1,379
      Undrawn credit facilities(3)               -           90           90
      Letters of credit(4)                       -            -            -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    $ millions, for the three
     months ended                                              Oct. 31, 2007
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      608   $      892   $    1,500
    Provision for (reversal of)
     credit losses                             134           (2)         132
    Write-offs                                (215)           -         (215)
    Recoveries                                  43            -           43
    Transfer from general to specific(1)         -            -            -
    Other(2)                                   (17)           -          (17)
    -------------------------------------------------------------------------
    Balance at end of period            $      553   $      890   $    1,443
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans                             $      553   $      890   $    1,443
      Undrawn credit facilities(3)               -            -            -
      Letters of credit(4)                       -            -            -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

    $ millions, for the three
     months ended                                              Jan. 31, 2007
    -------------------------------------------------------------------------
                                          Specific      General        Total
                                         allowance    allowance    allowance
    -------------------------------------------------------------------------
    Balance at beginning of period      $      544   $      900   $    1,444
    Provision for (reversal 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
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans                             $      634   $      920   $    1,554
      Undrawn credit facilities(3)               -            -            -
      Letters of credit(4)                       2            -            2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Related to student loan portfolio.
    (2) First quarter of 2007 includes $117 million in specific allowance and
        $23 million in general allowance related to the acquisition of
        FirstCaribbean International Bank.
    (3) Beginning in the first quarter of 2008, allowance on undrawn credit
        facilities is included in other liabilities. Prior to 2008, it was
        included in allowance for credit losses.
    (4) Included in other liabilities.


    5.  Securitizations and variable interest entities

    Securitizations (residential mortgages)

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

                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Securitized                         $    6,308   $    4,719   $    3,850
    Sold                                     2,272        1,510        2,549
    Net cash proceeds                        2,250        1,493        2,537
    Retained interests                          48           25           33
    Gain on sale, net of transaction costs      14            4           10
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining
     life (in years)                           3.7          3.8          3.3
    Prepayment/payment rate            11.0 - 36.0  11.0 - 39.0  11.0 - 39.0
    Discount rate                        3.8 - 4.6    4.6 - 4.9     4.1- 4.3
    Expected credit losses               0.0 - 0.1    0.0 - 0.1    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Variable interest entities (VIEs)

    As discussed in Note 6 to our 2007 consolidated financial statements, we
    have interests in certain VIEs that are not considered significant
    because our interests are hedged with other counterparties.

    Under certain total return swap credit derivative arrangements with these
    VIEs held in our trading book, we can be called upon to purchase the
    underlying reference assets at par with the simultaneous termination of
    the credit derivatives. Pursuant to these arrangements, during the
    quarter, we purchased certain reference assets at a par amount of
    $4.8 billion from two third-party structured vehicles in consideration
    for the termination of the related total return swaps. The reference
    assets purchased were categorized as trading securities on our
    consolidated balance sheet and continue to be hedged. We may also be
    called upon to purchase additional reference assets at a par amount of
    $2.0 billion covered by the remaining total return swaps with the
    third-party structured vehicles.

    We continue to support our sponsored conduits from time to time through
    the purchase of commercial paper issued by these conduits. As at
    January 31, 2008, our direct investment in commercial paper issued by our
    sponsored conduits was $1.0 billion. We were not considered to be the
    primary beneficiary of any of these conduits.

    6.  Subordinated indebtedness

    On January 21, 2008, in accordance with their terms, we redeemed all
    $250 million of our 4.75% Debentures (subordinated indebtedness) due
    January 21, 2013, for their outstanding principal amount, plus unpaid
    interest accrued to the redemption date.

    Subsequent to the quarter-end, on February 26, 2008, we redeemed all
    $89 million of our 5.89% Debentures (subordinated indebtedness) due
    February 26, 2013, for their outstanding principal amount, plus unpaid
    interest accrued to the redemption date.

    7.  Share capital

    Regulatory capital and ratios

    Commencing November 1, 2007, our regulatory capital requirements are
    based on the Basel II framework. Refer to "Management of risk" section of
    the MD&A for additional details on Basel II.

    Bank for International Settlements standards require that banks maintain
    minimum Tier 1 and Total capital ratios of 4% and 8%, respectively. The
    Office of the Superintendent of Financial Institutions has established
    that Canadian deposit-taking financial institutions maintain Tier 1 and
    Total capital ratios of at least 7% and 10%, respectively. During the
    quarter, we have complied with these regulatory capital requirements.

    As at January 31, 2008, Tier 1 capital comprised common shares excluding
    short trading positions in our own shares, retained earnings, preferred
    shares, non-controlling interests, contributed surplus, and foreign
    currency translation adjustments. Goodwill and gains on sale upon
    securitization were deducted from Tier 1 capital. Tier 2 capital
    comprised subordinated debt and eligible general allowance. Commencing
    November 1, 2007, the investment in insurance subsidiaries and pre-2007
    substantial investments were deducted from Tier 2 capital. Both Tier 1
    and Tier 2 capital were subject to certain other deductions on a 50/50
    basis.

    Our capital ratios and assets-to-capital multiple are presented in the
    following table. The information as at January 31, 2008 is based on Basel
    II requirements and information for October 31, 2007 is based upon Basel
    I requirements, and hence the information is not comparable.

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

                                                    Basel II       Basel I
                                                       basis         basis
    -------------------------------------------------------------------------
                                                        2008          2007
    $ millions, as at                                Jan. 31       Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                $   13,426    $   12,379
    Total regulatory capital                          17,845        17,758
    Risk-weighted assets                             117,408       127,424
    Tier 1 capital ratio                                11.4 %         9.7 %
    Total capital ratio                                 15.2 %        13.9 %
    Assets-to-capital multiple                         19.0x         19.0x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Common shares

    During the quarter, we issued 45.3 million common shares for net cash
    proceeds of $2.9 billion, after issuance costs, net of tax, of
    $32 million. We also issued 0.2 million common shares for $11 million,
    pursuant to stock option plans.

    8.  Hedged U.S. residential mortgage market (USRMM) exposure and
        financial guarantors

    We have derivative contracts with ACA Financial Guaranty Corp. (ACA) to
    hedge our exposure on various reference assets, including collateralized
    debt obligations and other positions related to the USRMM. During the
    quarter, we recorded a charge of US$2.30 billion ($2.28 billion) on the
    hedging contracts provided by ACA (including US$30 million ($30 million)
    against contracts unrelated to USRMM unwound during the quarter) as a
    result of its downgrade to non-investment grade.

    The amount of the charge is based on the estimated fair value of the ACA
    derivative contracts, which in turn is based on market value of the
    underlying reference assets. The total amount of the notional exposure
    from the derivative liabilities subject to the hedges with ACA was
    US$3.5 billion ($3.5 billion) all of which related to the USRMM. Further
    charges could result depending on the performance of both the underlying
    assets and ACA.

    The notional amount of the remaining derivative contracts with
    counterparties hedging our USRMM exposures was US$5.0 billion
    ($5.1 billion), with a fair value of US$2.8 billion ($2.8 billion), of
    which all but US$591 million ($593 million) notional and US$182 million
    ($183 million) fair value was with financial guarantors.

    In addition, we have derivative contracts with financial guarantors where
    the underlying assets are unrelated to USRMM. As at January 31, 2008, the
    fair value of these derivative contracts amounted to US$885 million
    ($888 million).

    During the quarter, we recorded a charge of US$624 million ($626 million)
    against our exposure to financial guarantors to increase our valuation
    adjustments to US$648 million ($650 million) as at January 31, 2008. The
    methodology employed to establish these valuation adjustments (excluding
    that for ACA) was changed in the first quarter to take into account
    market observed credit spreads. Market and economic conditions relating
    to these counterparties may change in the future, which could result in
    significant future losses.

    Mitigating our exposure to these financial guarantors are credit hedges
    with a notional amount of US$525 million ($527 million) and a fair value
    of US$63 million ($63 million) as at January 31, 2008. During the
    quarter, we recognized a gain of US$42 million ($43 million) on these
    hedges.

    We believe that we have made appropriate fair value adjustments to date.
    The establishment of fair value adjustments involve estimates that are
    based on accounting processes and judgments by management. We evaluate
    the adequacy of the fair value adjustments on an ongoing basis. The
    levels of fair value adjustments could be changed as events warrant.

    9.  Employee future benefit expenses

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2008         2007         2007
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Defined benefit plans

    Pension benefit plans               $       38   $       45   $       48
    Other benefit plans                          8           10            8
    -------------------------------------------------------------------------
                                        $       46   $       55   $       56
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Defined contribution plans

    CIBC's pension plans                $        4   $        8   $        4
    Government pension plans(1)                 21           13           22
    -------------------------------------------------------------------------
                                        $       25   $       21   $       26
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    10. (Loss) earnings per share (EPS)

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
    $ millions, except per                    2008         2007         2007
     share amounts                         Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Basic EPS
    Net (loss) income                   $   (1,456)  $      884   $      770
    Preferred share dividends
     and premiums                              (30)         (30)         (54)
    -------------------------------------------------------------------------
    Net (loss) income applicable to
     common shares                      $   (1,486)  $      854   $      716
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               338,732      334,849      336,486
    -------------------------------------------------------------------------
    Basic EPS                           $    (4.39)  $     2.55   $     2.13
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted EPS
    Net (loss) income applicable to
     common shares                      $   (1,486)  $      854   $      716
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               338,732      334,849      336,486
    Add: stock options potentially
     exercisable(1) (thousands)              2,079        3,078        3,456
    -------------------------------------------------------------------------
    Weighted-average diluted common
     shares outstanding(2) (thousands)     340,811      337,927      339,942
    -------------------------------------------------------------------------
    Diluted EPS(3)                      $    (4.39)  $     2.53   $     2.11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes average options outstanding of 850,531 with a weighted-
        average exercise price of $87.69; average options outstanding of
        4,553 with a weighted-average exercise price of $102.22; and average
        options outstanding of 3,249 with a weighted-average exercise price
        of $98.30 for the three months ended January 31, 2008, October 31,
        2007, and January 31, 2007, respectively, as the options' exercise
        prices were greater than the average market price of CIBC's common
        shares.
    (2) Convertible preferred shares/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.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted EPS will be anti-dilutive; therefore basic and
        diluted EPS will be the same.


    11. Guarantees

    -------------------------------------------------------------------------
                                              2008                      2007
    $ millions, as at                      Jan. 31                   Oct. 31
    -------------------------------------------------------------------------
                              Maximum                   Maximum
                            potential                 potential
                               future     Carrying       future     Carrying
                            payment(1)      amount    payment(1)      amount
    -------------------------------------------------------------------------
    Securities lending with
     indemnification(2)    $   41,645   $        -   $   43,287   $        -
    Standby and performance
     letters of credit          6,422           13        6,353           13
    Credit derivatives
     written options           67,031        6,171       67,283        3,971
    Other derivative
     written options(3)            (4)       4,409           (4)       5,612
    Other indemnification
     agreements                    (4)           -           (4)           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $51.2 billion (October 31, 2007: $53.7 billion).
    (2) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services Company, which is a
        50/50 joint venture between CIBC and The Bank of New York Mellon.
    (3) Includes $769 million (October 31, 2007: $631 million) related to
        total return swaps (TRS). For TRS with notional amount of
        approximately $2.0 billion (October 31, 2007: $6.5 billion) and a
        fair value liability of approximately $654 million (October 31, 2007:
        fair value liability of $470 million), we can be called upon to
        purchase the reference assets at par with the simultaneous
        termination of the swap contracts.
    (4) See narrative on page 127 of the 2007 consolidated financial
        statements for further information.


    12. 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.

    During the quarter: (a) We moved commercial banking from CIBC World
    Markets to CIBC Retail Markets. Prior period information was restated;
    (b) We allocated the general allowance for credit losses between the
    strategic business lines (CIBC Retail Markets and CIBC World Markets).
    Prior to 2008, the general allowance (excluding FirstCaribbean
    International Bank) was included within Corporate and Other. Prior period
    information was not restated; and (c) We reclassified the allowance for
    credit losses related to the undrawn credit facilities to other
    liabilities. Prior to 2008, it was included in allowance for credit
    losses. Prior period information was not restated.

    -------------------------------------------------------------------------
                                       CIBC       CIBC
    $ millions, for the              Retail      World  Corporate       CIBC
     three months ended             Markets    Markets  and Other      Total
    -------------------------------------------------------------------------
    Jan. 31, 2008
      Net interest income
       (expense)                  $   1,259  $    (164) $      59  $   1,154
      Non-interest income             1,111     (2,793)         7     (1,675)
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,371     (2,957)        65       (521)
      Provision for credit losses       155         17          -        172
      Amortization(2)                    28          5         29         62
      Other non-interest expenses     1,325        346         28      1,699
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        863     (3,325)         8     (2,454)
      Income tax expense (benefit)      202     (1,166)       (38)    (1,002)
      Non-controlling interests           4          -          -          4
    -------------------------------------------------------------------------
      Net income (loss)           $     657  $  (2,159) $      46  $  (1,456)
    -------------------------------------------------------------------------
      Average assets(3)           $ 235,279  $ 108,082  $   1,167  $ 344,528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2007
      Net interest income
       (expense)                  $   1,246  $     (84) $      78  $   1,240
      Non-interest income             1,546         89         71      1,706
      Intersegment revenue(1)             2          -         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   2,794          5        147      2,946
      Provision for (reversal of)
       credit losses                    150        (18)         -        132
      Amortization(2)                    29          4         28         61
      Other non-interest expenses     1,373        353         87      1,813
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                      1,242       (334)        32        940
      Income tax expense (benefit)      271       (222)        (4)        45
      Non-controlling interests          11          -          -         11
    -------------------------------------------------------------------------
      Net income (loss)           $     960  $    (112) $      36  $     884
    -------------------------------------------------------------------------
      Average assets(3)           $ 234,632  $ 105,051  $     553  $ 340,236
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2007
      Net interest income
       (expense)                  $   1,145  $    (168) $      82  $   1,059
      Non-interest income             1,126        830         76      2,032
      Intersegment revenue(1)             2          -         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   2,273        662        156      3,091
      Provision for (reversal of)
       credit losses                    148         (5)         -        143
      Amortization(2)                    20          5         33         58
      Other non-interest expenses     1,333        481         71      1,885
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                        772        181         52      1,005
      Income tax expense                198         11         22        231
      Non-controlling interests           4          -          -          4
    -------------------------------------------------------------------------
      Net income                  $     570  $     170  $      30  $     770
    -------------------------------------------------------------------------
      Average assets(3)           $ 214,962  $ 100,616  $     544  $ 316,122
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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.


    13. Financial instruments - disclosures

    Effective November 1, 2007, we adopted the CICA handbook section 3862,
    "Financial Instruments - Disclosures". We have included some of the
    disclosures required by the CICA handbook section 3862 in the shaded
    sections of the "MD&A - Management of risk", as permitted by the
    standard. The following table provides a cross referencing of those
    disclosures from the MD&A.

    -------------------------------------------------------------------------
    Description                                              Section
    -------------------------------------------------------------------------
    For each type of risk arising from financial             Risk overview
    instruments, an entity shall disclose: the exposure to   ----------------
    risk and how they arise; objectives, policies and        Credit risk
    processes used for managing the risks; methods used to   ----------------
    measure the risk; and description of collateral          Market risk
                                                             ----------------
                                                             Liquidity risk
                                                             ----------------
                                                             Operational risk
                                                             ----------------
                                                             Reputation and
                                                             legal risk
                                                             ----------------
                                                             Regulatory risk
    -------------------------------------------------------------------------
    Credit risk - gross exposure to credit risk, credit      Credit risk
    quality, and concentration of exposures
    -------------------------------------------------------------------------
    Market risk - trading portfolios - value-at-risk;        Market risk
    non-trading portfolios - interest rate risk, foreign
    exchange risk, and equity risk
    -------------------------------------------------------------------------
    Liquidity risk - liquid assets, maturity of financial    Liquidity risk
    liabilities, and credit and liquidity commitments
    -------------------------------------------------------------------------

    We have provided quantitative disclosures related to credit risk
    consistent with Basel II guidelines, which requires entities to disclose
    their exposures based on how they manage their business and risks. The
    following table sets out the categories of the drawn exposure to credit
    risk under Advanced Internal Ratings Based (AIRB) and standardized
    approaches displayed in both accounting categories and Basel II
    portfolios.

    $ millions, as at January 31, 2008
    -------------------------------------------------------------------------
    Accounting categories                    Basel II portfolios
    -------------------------  ----------------------------------------------
                                                                 Real estate
                                                                     secured
                                                                    personal
                               Corporate   Sovereign        Bank     lending
    -------------------------  ----------------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $     725   $       -
    Interest-bearing deposits
     with banks                        6         344       7,021           -
    Securities
      Trading                        131          56          21           -
      AFS                          2,137       3,169           4           -
      FVO                              4      14,051           -           -
    Loans
      Residential mortgages          603       1,198           -      87,614
      Personal loans                 296           4          24      15,098
      Credit card loans                -           -           -           -
      Business and government
       loans                      27,908         772         803           -
    Customers' liability under
     acceptances                   7,789         304         434           -
    Other assets                     963       2,023       6,250           8
    -------------------------------------------------------------------------
    Total credit exposure      $  39,837   $  21,921   $  15,282   $ 102,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -----------------------------------------------------------------
    Accounting categories              Basel II portfolios
    -------------------------  --------------------------------------
                               Qualifying
                                revolving       Other
                                   retail      retail Securitization
    -------------------------  --------------------------------------
    Non-interest bearing
     deposits with banks       $       -   $       -   $       -
    Interest-bearing deposits
     with banks                        -           -           -
    Securities
      Trading                          -           -       2,180
      AFS                              -           -       1,595
      FVO                              -           -         242
    Loans
      Residential mortgages            -           -           -
      Personal loans               5,970       8,049           -
      Credit card loans            9,289         106           -
      Business and government
       loans                           -       2,078         187
    Customers' liability under
     acceptances                       -           -           -
    Other assets                       -           -          98
    -----------------------------------------------------------------
    Total credit exposure      $  15,259   $  10,233   $   4,302
    -----------------------------------------------------------------
    -----------------------------------------------------------------

    14. Subsequent event

    On February 25, 2008, Visa Inc. announced its intent to proceed with an
    initial public offering (IPO) of its Class A shares in the range of US$37
    to US$42 per share, which suggests that the fair value of our Visa shares
    is $80 million to $130 million lower than the book value. As a result, to
    the extent that the IPO and the mandatory redemption of a portion of our
    shares (expected to be around 50% of our holdings) occurs in the second
    quarter of 2008, we will likely record a loss on sale in respect of those
    shares. In addition, during the second quarter, we will assess the extent
    to which we will be required to record an other than-temporary impairment
    on our remaining shares. The amount of the losses we will record will be
    impacted by the outcome of the IPO as well as the final adjustment
    process, which may positively or negatively affect the number of shares
    we own.
    

    %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


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