CIBC announces first quarter 2009 results



    TORONTO, Feb. 26 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of
$147 million for the first quarter ended January 31, 2009, compared to a net
loss of $1,456 million for the same period last year. Diluted earnings per
share (EPS) were $0.29, compared to a diluted loss per share of $4.39 a year
ago. Cash diluted EPS were $0.31(1), compared to a cash diluted loss per share
of $4.36(1) a year ago.
    CIBC's Tier 1 and Total capital ratios at January 31, 2009 were 9.8% and
14.8%, respectively.

    
    Results for the first quarter of 2009 were affected by the following items
of note aggregating to a negative impact of $1.36 per share:

    -   $708 million ($483 million after-tax, or $1.27 per share) loss on
        structured credit run-off activities;

    -   $94 million ($64 million after-tax, or $0.17 per share) positive
        impact of changes in credit spreads on the mark-to-market of credit
        derivatives in the corporate loan hedging programs;

    -   $92 million ($51 million after-tax, or $0.13 per share) of mark-to-
        market losses on hedges related to leveraged leases;

    -   $87 million ($52 million after-tax, or $0.14 per share) of merchant
        banking losses/write-downs; and

    -   $48 million foreign exchange loss ($4 million after-tax gain, or
        $0.01 per share) on the repatriation of retained earnings.
    

    In addition, first quarter results were helped by higher net revenue from
Treasury trading activities. Realized gains from available-for-sale securities
were higher, more than offsetting lower results from interest rate related
positioning. Compared to average quarterly net revenues in 2008 from these
activities, the first quarter of 2009 was higher by approximately $60 million.
    Net income for the first quarter of 2009 compared with net income of $436
million for the prior quarter. Diluted EPS and cash diluted EPS for the first
quarter of 2009 compared with diluted EPS of $1.06 and cash diluted EPS of
$1.09(1), respectively, for the prior quarter, which included items of note
that aggregated to a negative impact on results of $0.48 per share.
    "While conditions across the worldwide financial services industry remain
challenging, we are managing through this global environment by maintaining an
emphasis on capital and overall balance sheet strength and continuing to
position our core businesses for consistent and sustainable performance," says
Gerald T. McCaughey, President and Chief Executive Officer.

    
    Update on business priorities

    Capital strength
    
    CIBC continues to emphasize capital strength as a key area of focus given
the challenging global environment.
    In early February, CIBC closed a new preferred share offering that was
announced in January. The offering strengthened CIBC's capital position by
raising gross proceeds of $325 million. Giving effect to this transaction,
CIBC's Tier 1 and Total capital ratios were 10.1%(1) and 15.1%(1),
respectively, at the end of the first quarter.
    CIBC's Tier 1 capital ratio is well above CIBC's target of 8.5% and the
regulatory minimum of 7.0%. CIBC's capital strength, which is among the
highest of major commercial banks in North America, provides CIBC with a solid
foundation for the future.

    Business strength

    CIBC Retail Markets reported net income of $562 million, down from $660
million in the first quarter of 2008.
    Revenue of $2.4 billion was up slightly from the first quarter of 2008.
Volume growth and higher revenue from FirstCaribbean International Bank were
offset by lower spreads and the impact of weaker equity markets.
    Expenses decreased to $1,305 million from $1,353 million a year ago, due
primarily to lower performance-related compensation and effective cost
management.
    Loan losses were $327 million, up from $189 million a year ago, primarily
due to increases in the cards portfolio due to higher net write-offs and
bankruptcies, and an increase in the allowance driven by higher delinquencies
resulting from the deteriorating economic environment.
    In the current environment, CIBC's focus is to balance growth with
expense and credit discipline. This prudent posture will position CIBC's
retail business for success over the long term.
    During the first quarter of 2009, CIBC Retail Markets continued to make
investments in CIBC's network to further strengthen CIBC's advisory
capabilities on behalf of our clients:

    
    -   As part of a 5-year, $280 million branch investment program, CIBC
        opened two new branches, one in downtown Toronto and one in the
        Vancouver Lower Mainland, and re-opened a renovated and expanded
        branch in Scarborough, Ontario;

    -   CIBC began the first phase of a multi-year plan to systematically
        replace CIBC's network of more than 3,700 ABMs with state-of-the-art
        machines that consume less power while offering the latest
        technology, accessibility and security features;

    -   CIBC was awarded, for the fourth time, the 2008 call centre industry
        service quality Award of Excellence from the Service Quality
        Measurement (SQM) Group Inc. for clients conducting self-serve
        transactions over the phone.

    During the quarter, CIBC also made progress on its strategic priority of
offering competitive, client-focused products and services:

    -   CIBC was early to market with a pre-registration offer for the new
        Tax-Free Savings Account;

    -   CIBC extended new chip card technology to additional CIBC
        credit card clients to enhance card security and reduce incidents
        of fraud. By quarter-end, more than one million CIBC chip-enhanced
        cards had been distributed.
    

    CIBC World Markets reported a net loss of $413 million for the first
quarter, compared to net income of $133 million for the fourth quarter of
2008. The prior quarter included a $486 million Enron-related expected tax
benefit.
    Revenue of ($368) million compared with revenue of ($318) million last
quarter. The combination of higher revenue from CIBC World Markets' continuing
businesses in capital markets and corporate and investment banking and lower
valuation adjustments on trading positions that continue to be managed down
was more than offset by the combination of a higher loss on structured credit
run-off activities, lower gains from corporate loan hedging program and the
mark-to-market losses related to hedges on leveraged leases.
    Expenses of $267 million were down from $288 million last quarter. Lower
occupancy costs, professional fees and project related expenses were offset
partially by higher performance-related compensation.
    CIBC World Markets' corporate loan portfolio continues to perform well,
with loan losses of $19 million in the first quarter.
    During the quarter, CIBC World Markets made further progress in reducing
exposures within its structured credit run-off business:

    
    -   CIBC World Markets terminated US$1.8 billion of written credit
        derivatives in its run-off correlation trading book;

    -   Normal amortization reduced the notional amount of credit protection
        purchased from financial guarantors by US$126 million;

    -   CIBC World Markets commuted U.S. residential mortgage market
        contracts with a financial guarantor with negligible impact on CIBC's
        earnings for the quarter.

    As at January 31, 2009, the fair value, net of valuation adjustments, of
purchased protection from financial guarantor counterparties was $2.4 billion
(US$1.9 billion). Market and economic conditions relating to these financial
guarantors may change in the future, which could result in significant future
losses.
    During the quarter, the strength of the CIBC World Markets franchise was
evident in several notable achievements:

    -   CIBC World Markets acted as exclusive Financial Advisor to George
        Weston Limited on the sale of its U.S. fresh baking assets in a
        transaction valued at US$2.5 billion, and to Teranet Income Fund on
        its sale to Borealis Infrastructure Management in a transaction
        valued at C$2.0 billion;

    -   CIBC World Markets ranked first in M&A league tables which rate
        Canadian financial advisors along numerous metrics. According to both
        Bloomberg Financial Markets and Thomson Reuters, in 2008 CIBC World
        Markets advised on more deals than any other firm and advised on the
        highest aggregate value of Canadian transactions.

    -   Bloomberg Financial Markets named Avery Shenfeld, CIBC World Markets,
        Senior Economist, one of the top forecasters of the U.S. economy and
        the top Canadian economist in forecasting the key drivers of the U.S.
        economy between 2006 and 2008.
    

    Productivity

    In addition to continuing to invest and position its core businesses for
long-term performance, CIBC continues to make further progress in the area of
expense discipline.
    Non-interest expenses for the first quarter were $1,653 million, down
from $1,761 million a year ago.
    Through a combination of better revenue performance, as well as a
continued focus on adjusting its infrastructure support activities in light of
recent business divestitures and to changing market conditions, CIBC expects
to achieve further progress in the area of productivity.

    
    Making a difference in communities

    "As a leader in community investment, we are committed to supporting
causes that matter to our clients, our employees and our communities," says
McCaughey. "During the quarter, we continued to demonstrate leadership in this
area."

    -   On December 3, 2008, CIBC World Markets and CIBC Wood Gundy employees
        raised $3.1 million for children's charities through Miracle Day. For
        the past 24 years, CIBC World Markets trading staff and CIBC Wood
        Gundy investment advisors have donated their fees and commissions on
        the first Wednesday in December to support children and, to date,
        more than $44 million has been raised in Canada.

    -   CIBC's 2008 United Way campaign raised $7.0 million in Canada,
        including a $2.9 million corporate donation. More than 8,500
        employees and retirees contributed their time and money to support
        the United Way across Canada in its ongoing work toward improving the
        social conditions of Canadians.

    -   CIBC was proud to host two graduation events this quarter:

        -  On December 10, 2008, CIBC hosted the graduation of the first
           class from the CIBC Connection to Employment(TM) program. 24
           qualified newcomers to Canada participated in this CIBC-sponsored
           job readiness training program offering skill building for careers
           in financial services. CIBC and the YMCA of Greater Toronto have
           partnered to offer this path to employment through the CIBC YMCA
           Access to Opportunity(TM) program.

        -  On November 25, 2008, 18 women graduated from the first
           ReConnect(TM) program, sponsored by CIBC in partnership with the
           Richard Ivey School of Business. A first of its kind in Canada,
           the program was developed to help women update their skills and
           networks, and build their confidence as they prepare to restart
           their careers after an absence from the workforce.

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

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

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

    
                     MANAGEMENT'S DISCUSSION AND ANALYSIS
    -------------------------------------------------------------------------
    
    Management's discussion and analysis (MD&A) should be read in conjunction
with the unaudited interim consolidated financial statements included in this
report and with the MD&A contained in our 2008 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 26,
2009. Additional information relating to CIBC is available on SEDAR at
www.sedar.com and on the U.S. Securities and Exchange Commission's 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 167 to 169 of our 2008 Annual Accountability Report.

    
    External reporting changes

    -   We realigned the businesses within CIBC Retail Markets and CIBC World
        Markets. Prior period information was restated to reflect the
        changes. The new reported businesses are as follows:

        CIBC Retail Markets:

        -  Personal banking - includes personal deposits and lending, cards,
           residential mortgages, and insurance
        -  Business banking - includes business deposits and lending,
           commercial mortgages, and commercial banking
        -  Wealth management - includes retail brokerage and asset management
        -  FirstCaribbean
        -  Other

        CIBC World Markets:

        -  Capital markets - includes cash equities, global derivatives and
           strategic risks, and fixed income, currencies and distribution
           businesses
        -  Corporate and investment banking - includes corporate credit
           products, investment banking, U.S. real estate finance, and core
           merchant banking
        -  Other - includes legacy merchant banking, structured credit and
           other run-off businesses, exited businesses, and corporate loan
           hedging

    -   We moved the impact of securitization from Other within CIBC Retail
        Markets to Corporate and Other. Prior period information was
        restated.

    -   We moved the sublease income of our New York premises from Other
        within CIBC World Markets to Corporate and Other. Prior period
        information was not restated.

    -   We have retroactively reclassified intangible assets relating to
        application software from "Land, buildings and equipment" to
        "Software and other intangible assets" on our consolidated balance
        sheet.



    Contents

    5   A note about forward-looking statements

    6   First quarter financial highlights

    7   Overview

    8   Significant events
    8   Outlook

    9   Run-off businesses and other selected activities

    9   Run-off businesses
    17  Other selected activities

    19  Financial performance review

    19  Net interest income
    19  Non-interest income
    19  Provision for credit losses
    19  Non-interest expenses
    19  Income taxes
    20  Foreign exchange
    21  Review of quarterly financial information
    22  Non-GAAP measures

    23  Business line overview

    23  CIBC Retail Markets
    25  CIBC World Markets
    27  Corporate and Other

    28  Financial condition

    28  Review of consolidated balance sheet
    28  Capital resources
    29  Off-balance sheet arrangements

    30  Management of risk

    30  Risk overview
    30  Credit risk
    32  Market risk
    33  Liquidity risk
    34  Operational risk
    34  Other risks

    35  Accounting and control matters
    

    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 "Summary of first quarter results", "Update on business
priorities", "Overview - Outlook for 2009", "Run-off businesses and other
selected activities", "Financial performance review - Income Taxes" and
"Accounting and Control Matters" sections, of this report and other statements
about our operations, business lines, financial condition, risk management,
priorities, targets, ongoing objectives, strategies and outlook for 2009 and
subsequent periods. Forward-looking statements are typically identified by the
words "believe", "expect", "anticipate", "intend", "estimate" and other
similar expressions or future or conditional verbs such as "will", "should",
"would" and "could". By their nature, these statements require us to make
assumptions, including the economic assumptions set out in the "Overview -
Outlook for 2009" section of this report, and are subject to inherent risks
and uncertainties that may be general or specific. A variety of factors, many
of which are beyond our control, affect our operations, performance and
results, and could cause actual results to differ materially from the
expectations expressed in any of our forward-looking statements. These factors
include: credit, market, liquidity, strategic, operational, reputation and
legal, regulatory and environmental risk discussed in the Management of Risk
section of this report; legislative or regulatory developments in the
jurisdictions where we operate; amendments to, and interpretations of, risk-
based capital guidelines and reporting instructions; the resolution of legal
proceedings and related matters; the effect of changes to accounting
standards, rules and interpretations; changes in our estimates of reserves and
allowances; changes in tax laws; changes to our credit ratings; 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 business and economic conditions
worldwide, as well as in Canada, the U.S. and other countries where we have
operations; changes in market rates and prices which may adversely affect the
value of financial products; our success in developing and introducing new
products and services, expanding existing distribution channels, developing
new distribution channels and realizing increased revenue from these channels;
changes in client spending and saving habits; our ability to attract and
retain key employees and executives; and our ability to anticipate and manage
the risks associated with these factors. This list is not exhaustive of the
factors that may affect any of our forward-looking statements. These and other
factors should be considered carefully and readers should not place undue
reliance on our forward-looking statements. We do not undertake to update any
forward-looking statement that is contained in this report or in other
communications except as required by law.


    
                     FIRST QUARTER FINANCIAL HIGHLIGHTS

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


                                         As at or for the three months ended
                                       --------------------------------------
                                              2009         2008         2008
    Unaudited                              Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Common share information

    Per share
      - basic earnings (loss)           $     0.29   $     1.07   $    (4.39)
      - cash basic earnings (loss)(1)         0.32         1.09        (4.36)
      - diluted earnings (loss)               0.29         1.06        (4.39)
      - cash diluted earnings (loss)(1)       0.31         1.09        (4.36)
      - dividends                             0.87         0.87         0.87
      - book value                           28.98        29.40        32.76
    Share price
      - high                                 57.43        65.11        99.81
      - low                                  41.65        49.00        64.70
      - closing                              46.63        54.66        73.25
    Shares outstanding (thousands)
      - average basic                      380,911      380,782      338,732
      - average diluted                    381,424      381,921      340,811
      - end of period                      381,070      380,805      380,650
    Market capitalization ($ millions)  $   17,769   $   20,815   $   27,883
    -------------------------------------------------------------------------
    Value measures

    Price to earnings multiple
     (12 month trailing)                       n/m          n/m         26.9
    Dividend yield (based on
     closing share price)                      7.4%         6.3%         4.7%
    Dividend payout ratio                      n/m        81.6%          n/m
    Market value to book value ratio          1.61         1.86         2.24
    -------------------------------------------------------------------------
    Financial results ($ millions)

    Total revenue                       $    2,022   $    2,204   $     (521)
    Provision for credit losses                284          222          172
    Non-interest expenses                    1,653        1,927        1,761
    Net income (loss)                          147          436       (1,456)
    -------------------------------------------------------------------------
    Financial measures

    Efficiency ratio                          81.8%        87.4%         n/m
    Cash efficiency ratio, taxable
     equivalent basis (TEB)(1)                80.6%        86.0%         n/m
    Return on equity                           4.0%        14.8%      (52.9)%
    Net interest margin                       1.43%        1.60%        1.33%
    Net interest margin on average
     interest-earning assets                  1.77%        1.90%        1.57%
    Return on average assets                  0.16%        0.51%      (1.68)%
    Return on average
     interest-earning assets                  0.19%        0.60%      (1.98)%
    Total shareholder return                (13.1)%      (10.6)%      (27.3)%
    -------------------------------------------------------------------------
    On- and off-balance sheet
     information ($ millions)

    Cash, deposits with
     banks and securities               $   90,589   $   88,130   $   99,411
    Loans and acceptances                  174,499      180,323      171,090
    Total assets                           353,815      353,930      347,734
    Deposits                               226,383      232,952      239,976
    Common shareholders' equity             11,041       11,200       12,472
    Average assets                         369,249      342,621      344,528
    Average interest-earning assets        299,136      288,544      293,166
    Average common shareholders' equity     10,960       10,896       11,181
    Assets under administration          1,038,958    1,047,326    1,123,750
    -------------------------------------------------------------------------
    Balance sheet quality measures

    Common equity to
     risk-weighted assets                      9.0%         9.5%        10.6%
    Risk-weighted assets ($ billions)   $    122.4   $    117.9   $    117.4
    Tier 1 capital ratio                       9.8%        10.5%        11.4%
    Total capital ratio                       14.8%        15.4%        15.2%
    -------------------------------------------------------------------------
    Other information

    Retail / wholesale ratio(2)             63%/37%      65%/35%      71%/29%
    Regular workforce headcount             39,004       39,698       40,237
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) For additional information, see the "Non-GAAP measures" section.
    (2) 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

    Net income for the quarter was $147 million, compared to a net loss of
$1,456 million for the same quarter last year and net income of $436 million
for the prior quarter.

    Our results for the current quarter were affected by the following items:

    -   $708 million ($483 million after-tax) loss on structured credit run-
        off business;
    -   $94 million ($64 million after-tax) positive impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging programs;
    -   $92 million ($51 million after-tax) MTM losses relating to interest-
        rate hedges for the leveraged lease portfolio that did not qualify
        for hedge accounting;
    -   $87 million ($52 million after-tax) losses/write-downs on our
        merchant banking portfolio; and
    -   $48 million foreign exchange losses ($4 million after-tax gain) on
        the repatriation of retained earnings.
    

    In addition, first quarter results were helped by higher net revenue from
Treasury trading activities. Realized gains from available-for-sale (AFS)
securities were higher, more than offsetting lower results from interest rate
related positioning. Compared to average quarterly net revenues in 2008 from
these activities, the current quarter was higher by approximately $60 million.

    Compared with Q1, 2008

    Revenue was higher than the same quarter last year, primarily due to the
$3.5 billion structured credit losses in the last year quarter. The current
quarter had MTM losses relating to interest-rate hedges for the leveraged
lease portfolio that did not qualify for hedge accounting, higher merchant
banking related losses/write-downs, lower wealth management related fee
income, and a foreign exchange loss on the repatriation of retained earnings
from foreign operations. In addition, the current quarter was impacted by
lower treasury results from reduced revenue and higher funding costs,
partially offset by higher realized gains on available for sale (AFS)
securities. The current quarter benefited from volume growth in retail
products, and higher equity and interest rate trading revenue. Provision for
credit losses was up primarily due to higher losses in the credit cards
portfolio, driven by higher delinquencies and bankruptcies, and higher
provisions net of recoveries in the corporate lending portfolio, both related
to the deteriorating economic environment. Non-interest expenses were down
mainly due to the impact of the sale of some of our U.S. businesses in the
last year quarter and lower performance-related compensation. The current
quarter included a tax benefit related to foreign exchange losses on the
repatriation of retained earnings. The structured credit losses in the last
year quarter resulted in a tax benefit in that quarter.

    Compared with Q4, 2008

    Revenue was lower than the prior quarter mainly due to higher structured
credit losses. The prior quarter structured credit results included a gain on
the reduction of our unfunded commitment on a variable funding note (VFN). The
current quarter had lower gains associated with corporate loan hedging
programs, foreign exchange losses on the repatriation of retained earnings
compared to a foreign exchange gain in the prior quarter, and MTM losses on
the leveraged lease portfolio noted above. These factors were partially offset
by higher equity and interest rate trading revenue, and favourable prime/BA
spreads and volume growth in retail deposits and lending products. Excluding
repatriation income/losses, treasury results for the current quarter were
slightly higher than the prior quarter due to higher realized gains on AFS
securities partially offset by lower other treasury revenue and higher funding
costs. Provision for credit losses was higher primarily due to higher losses
in the credit cards portfolio, driven by higher delinquencies and
bankruptcies, and higher provisions in the corporate lending portfolio, both
related to the deteriorating economic environment. Non-interest expenses were
lower primarily due to lower occupancy, severance and project costs, partially
offset by higher performance-related compensation. The current quarter
included a tax benefit related to foreign exchange losses on the repatriation
of retained earnings noted above. The prior quarter included a tax expense
related to foreign exchange gains on repatriation of capital and retained
earnings and a $486 million Enron-related expected tax benefit.

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

    -------------------------------------------------------------------------
    Q4, 2008
    --------
    -   $479 million ($323 million after-tax) loss on the structured credit
        run-off business;
    -   $463 million positive impact of favourable tax-related items,
        including $486 million on recognition of an additional expected tax
        benefit relating to Enron-related litigation settlements;
    -   $242 million ($163 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives;
    -   $177 million ($106 million after-tax) of higher than normal
        losses/write-downs on our merchant banking and other investment
        portfolios;
    -   $122 million ($82 million after-tax) of higher than normal severance
        accruals;
    -   $112 million foreign exchange gain ($92 million loss after-tax) on
        the repatriation of capital and retained earnings;
    -   $68 million ($46 million after-tax) losses related to the exit of
        certain trading positions;
    -   $56 million ($38 million after-tax) increase in market valuation
        adjustments due to changes in valuation technique on other than
        structured credit positions;
    -   $51 million ($34 million after-tax) of losses related to leveraged
        leases; and
    -   $25 million ($17 million after-tax) credit valuation adjustments
        (CVA) against credit exposures to derivative counterparties, other
        than financial guarantors, on non-structured credit contracts.
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Q1, 2008
    --------
    -   $171 million ($115 million after-tax) positive 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);
    -   $56 million positive impact of significant tax-related 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 management changes and the exit
        and restructuring of certain other businesses.
    -------------------------------------------------------------------------

    Significant events

    Global market credit issues

    Our structured credit business within CIBC World Markets had losses for
the quarter of $708 million. In addition to the deterioration in MTM values,
our exposures were also affected by the following developments during the
quarter:

    -   Commutation of a USRMM contract with a financial guarantor; and
    -   Termination of written credit derivatives.
    

    These events are discussed in more detail in our "Run-off businesses"
section.
    The global market credit issues also started to significantly impact the
automotive industry in the current quarter. We have provided additional
disclosure regarding our exposures in the automotive sector in the "Other
selected activities" section.

    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. If leases are held to maturity, an
amount approximating this non-cash charge will be recognized into income over
the remaining lease terms using the effective interest rate method.
    CIBC has accepted the recent Internal Revenue Service (IRS) settlement
offer with respect to its leveraged leases and has provided the required
supplementary information to the IRS in connection with the settlement. The
terms and conditions of the offer letter are identical to those received by
other industry participants in these transactions. The effect of the
communication represented a further change in the cash flows from the previous
offer to settle by the IRS and from what was reflected in the opening retained
earnings amount as described above. The statement of operations in 2008
included a pre-tax charge of $40 million resulting from a GAAP lease income
adjustment. Approximately $18 million of this pre-tax charge represented a
fourth quarter adjustment, resulting from clarifications made by the IRS to
the terms and conditions of their settlement offer. In addition, there was a
2008 pre-tax charge of $34 million for interest payments on deficient tax
installments. In early February of 2009, CIBC received final agreements from
the IRS. While CIBC believes its provisions and charges to date accurately
reflect the terms of the IRS settlement offer and subsequent clarifications
thereto by the IRS, it is possible that additional charges could occur during
the process of finalizing this final settlement agreement.

    Outlook for 2009

    A deepening global slowdown sent the Canadian economy into a recession in
the first fiscal quarter. All regions of the country will be affected, and
real GDP is likely to drop by more than 1% in calendar 2009 as a whole. We
expect growth to return in the latter half of the calendar year in response to
low interest rates and fiscal stimulus in Canada and abroad, but risks of a
deeper or more protracted downturn remain, given uncertainties in the U.S.
economic and financial outlook.
    CIBC Retail Markets is expected to see slower demand for mortgage and
other credit products, reflecting softer housing turnover and prices, weaker
consumer spending growth, and higher unemployment rates. We expect a rise in
personal and small business bankruptcies associated with the weaker economic
backdrop.
    For CIBC World Markets, a slower pace to new issuance of equities and
corporate bonds, particularly in the first half of the fiscal year, will
impact corporate finance activities. U.S. real estate finance will be impacted
by the weakness in the securitization market. Corporate default rates are
likely to head higher, but valuations on corporate debt securities and the
market for new debt and equity issues could improve given the negative outlook
already priced in. Loan demand will be supported by the reduced ability to tap
equity and public debt markets.


    
                             RUN-OFF BUSINESSES

    Given the uncertain market conditions and to focus on our core businesses
in CIBC World Markets, we curtailed activity in our structured credit and non-
Canadian leveraged finance businesses and have established a focused team with
the mandate to manage and reduce the residual exposures.

    -------------------------------------------------------------------------
    Background information on special purpose entities

    Structured credit activities usually involve special purpose entities
    (SPEs). SPEs are legal vehicles, often in the form of trusts, which are
    designed to fulfill specific and narrow needs. SPEs are used to provide
    market liquidity to clients and to create investment products by
    aggregating either pools of homogenous assets or a variety of different
    assets, and issuing either single tranche short term debt securities,
    referred to as asset-backed commercial paper (ABCP) or longer term multi-
    tiered debt instruments which include super senior, senior, subordinated
    or mezzanine, and equity tranches. Often SPEs are referred to by
    reference to the type of assets that are aggregated within the SPE such
    as RMBS which aggregate mortgage loans, or collateralized loan
    obligations (CLOs) which aggregate corporate loans. In addition, SPEs can
    also aggregate debt securities issued by other SPEs, such as RMBS, and
    are referred to as CDOs. In more complex structures, SPEs which aggregate
    securities issued by other CDOs and then issue a further tranche of debt
    securities are referred to as CDOs squared. Our involvement with SPEs is
    discussed in the "Off balance sheet arrangements" section of the MD&A.
    -------------------------------------------------------------------------

    Structured credit run-off business

    Overview and results

    Our structured credit business, within CIBC World Markets, comprised our
activities as principal and for client facilitation. These activities included
warehousing of assets and structuring of SPEs, which could result in the
holding of unhedged positions. Other activities included intermediation,
correlation, and flow trading, which earned a spread on matching positions.

    Exposures

    Our exposures largely consist of the following categories:
    Unhedged -
    - USRMM
    - non-USRMM
    Hedged -
    - financial guarantors (USRMM and non-USRMM)
    - other counterparties (USRMM and non-USRMM)


    Results - losses before taxes
    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Trading(1)                          $      758   $      497   $    3,378
    Held-to-maturity(HTM)(1)                   (69)         (50)           -
    Available-for-sale (AFS)                    19           32           86
    -------------------------------------------------------------------------
    Total                               $      708   $      479   $    3,464
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) 2008 amounts have been restated to reclassify the HTM related funding
        costs previously included in trading to HTM.
    

    The structured credit business had losses during the quarter of $708
million. These losses were primarily driven by deterioration in the credit
quality of financial guarantors and MTM losses for certain underlying assets,
which resulted in increases in CVA. These were partially offset by the gain on
the Cerberus protection.

    Reclassification of certain exposures

    As a result of the unprecedented extent of the deterioration in global
market conditions and the lack of an active trading market, in the fourth
quarter of 2008, we changed our intention on certain positions from trading to
held-to-maturity. As a consequence, we reclassified notional of $5,973 million
(US$5,833 million) of CLOs and $455 million (US$444 million) CDOs of trust
preferred securities (TruPs) in our structured credit runoff business from
trading to non-trading held-to-maturity effective August 1, 2008. As at
January 31, 2009, the remaining weighted average life (WAL) of the CLOs, and
TruPs was 5 years and 5.1 years respectively. The impact of the
reclassifications is summarized in Note 4 to the 2008 annual consolidated
financial statements.
    If the reclassification had not been made, income before taxes would have
been reduced by $322 million (US$252 million) and $629 million (US$522
million) for the current quarter and the fourth quarter of 2008 respectively.

    
    Change in exposures

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

    -------------------------------------------------------------------------
                                                           2009         2008
    US$ millions, as at                                 Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Notional
      Investments and loans                          $   10,155   $   10,304
      Written credit derivatives(1)                      28,635       30,931
    -------------------------------------------------------------------------
    Total gross exposures                            $   38,790   $   41,235
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Purchased credit derivatives                     $   36,149   $   37,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.
    

    During the quarter, we had the following changes in our exposures:

    Commutation of a USRMM contract with a financial guarantor

    In January 2009, we commuted USRMM contracts with a financial guarantor
for cash consideration of $105 million (US$86 million) and common equity
valued at $15 million (US$12 million), for a total of $120 million (US$98
million), which was equal to the fair value of the net USRMM receivable at
that time. As a result we wrote down the gross receivable by $720 million
(US$587 million) with a corresponding reduction of the related CVA of $600
million (US$489 million). There was negligible impact to our results for the
quarter. The underlying exposures that became unhedged as a result of the
commutation, are written credit derivatives with a notional $386 million
(US$315 million) and a fair value of $374 million (US$305 million) and
securities with a notional of $357 million (US$291 million) and a fair value
of $11 million (US$9 million).

    Cerberus transaction

    In the fourth quarter of 2008, we transacted with Cerberus to obtain
downside protection on our USRMM exposures while retaining upside
participation if the underlying securities recover. As at January 31, 2009,
the outstanding principal and fair value of the limited recourse note issued
as part of the Cerberus transaction was $700 million (US$571 million) and $504
million (US$411 million) respectively. The underlying CDO exposures had a fair
value of $630 million (US$514 million) as at January 31, 2009. We recorded a
gain of $153 million (US$125 million) on the limited recourse note in the
current quarter.

    
    Other changes in exposures

    -   We terminated $2.2 billion (US$1.8 billion) of written credit
        derivatives in the correlation book resulting in a loss of $9 million
        (US$7 million). Subsequent to this transaction, US$1.8 billion of
        purchased credit derivatives that previously hedged these positions
        became unmatched; and
    -   Normal amortization reduced the notional of our purchased credit
        derivatives with financial guarantors by $155 million (US$126
        million).
    

    Total exposures

    The exposures held within our structured credit run-off business within
CIBC World Markets are summarized in the table below. Our subsidiary,
FirstCaribbean, within CIBC Retail Markets, also has holdings in securities
with USRMM exposure, which are being managed separately and are included in
the table below. The table below also excludes the Cerberus protection of our
USRMM exposures.

    
    US$ millions, as at January 31, 2009
    -------------------------------------------------------------------------
                                          Exposures(1)
                   ----------------------------------------------------------
                           Investments & loans             Written credit
                                                            derivatives
                                                         and liquidity and
                                                        credit facilities(2)
                   ----------------------------------  ----------------------


                                    Fair    Carrying                    Fair
                     Notional      value       value    Notional     value(4)
                   ----------------------------------------------------------
    USRMM
    Unhedged(6)
    -----------
      Super senior
      CDO of
       mezzanine
       RMBS         $    398    $      9    $      9    $    986    $    958
      Warehouse -
       RMBS              341           3           3           -           -
      Various(7)         368          11          11         339         315
    -------------------------------------------------------------------------
                       1,107          23          23       1,325       1,273
    Hedged
    ------
      Other CDO        1,272         153         153       2,384       1,985
    -------------------------------------------------------------------------
    Total USRMM     $  2,379    $    176    $    176    $  3,709    $  3,258
    -------------------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)        $    257    $    168    $    184    $     81    $      3
      Corporate
       debt              170         108         108           -           -
      Montreal
       Accord
       notes(8)          384         175         175         245         n/a
      Third party
       sponsored
       ABCP
       conduits(2)       147         147         147         134         n/a
      Warehouse -
       non-RMBS          160           7           7           -           -
      Others(2)          218         213         213         386          18
    -------------------------------------------------------------------------
                       1,336         818         834         846          21
    Hedged
    ------
      CLO(9)           5,803       4,584       5,171       7,638         561
      Corporate debt       -           -                  13,534       1,056
      CMBS                 -           -                     777         446
      Others             637         264         435       2,131         675
    Unmatched
     purchased
     credit
     derivatives           -           -                       -           -
    -------------------------------------------------------------------------
    Total non-
     USRMM          $  7,776    $  5,666    $  6,440    $ 24,926    $  2,759
    -------------------------------------------------------------------------
    Total           $ 10,155    $  5,842    $  6,616    $ 28,635    $  6,017
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008   $ 10,304    $  6,430    $  6,952    $ 30,931    $  5,924
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                     Hedged by                      Unhedged
                   ----------------------------------------------
                   Purchased credit derivatives and index hedges       USRMM



                   ----------------------------------------------------------
                     Financial guarantors          Others
                    ----------------------   --------------------
                                    Fair                    Fair         Net
                     Notional  value(3)(4)   Notional value(3)(4) exposure(5)
                   ----------------------------------------------------------
    USRMM
    Unhedged(6)
    -----------
      Super senior
      CDO of
       mezzanine
       RMBS         $      -    $      -    $      -    $      -    $     37
      Warehouse -
       RMBS                -           -           -           -           3
      Various(7)           -           -           -           -          35
    -------------------------------------------------------------------------
                           -           -           -           -    $     75
    Hedged
    ------
      Other CDO        3,155       2,644         501         441
    -------------------------------------------------------------
    Total USRMM     $  3,155    $  2,644    $    501    $    441
    -------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)        $      -    $      -    $      -    $      -
      Corporate
       debt                -           -           -           -
      Montreal
       Accord
       notes(8)            -           -           -           -
      Third party
       sponsored
       ABCP
       conduits(2)         -           -           -           -
      Warehouse -
       non-RMBS            -           -           -           -
      Others(2)            -           -           -           -
    -------------------------------------------------------------
                           -           -           -           -
    Hedged
    ------
      CLO(9)          13,039         941         434          21
      Corporate debt   5,159         567       8,379         505
      CMBS               777         447
      Others           2,386         997         452          63
    Unmatched
     purchased
     credit
     derivatives       1,800         135          67           -
    -------------------------------------------------------------
    Total non-
     USRMM          $ 23,161    $  3,087    $  9,332    $    589
    -------------------------------------------------------------
    Total           $ 26,316    $  5,731    $  9,833    $  1,030
    -------------------------------------------------------------
    -------------------------------------------------------------
    Oct. 31, 2008   $ 27,108    $  5,711    $  9,931    $  1,195
    -------------------------------------------------------------
    -------------------------------------------------------------
    (1) We have excluded from the table above our total holdings of the
        following entities, including those related to our treasury
        activities, as at January 31, 2009 of notional US$4,466 million and
        fair value US$4,445 million which includes:
        -  Debt securities issued by Federal National Mortgage Association
           (Fannie Mae) (notional US$1,827 million, fair value US$1,816
           million), Federal Home Loan Mortgage Corporation (Freddie Mac)
           (notional US$1,571 million, fair value US$1,559 million),
           Government National Mortgage Association (Ginnie Mae) (notional US
           $168 million, fair value US$168 million), Federal Home Loan Banks
           (notional US$850 million, fair value US$850 million) and Federal
           Farm Credit Bank (notional US$50 million, fair value US$50
           million).
        -  Trading equity securities issued by Student Loan Marketing
           Association (Sallie Mae) (fair value US$2 million).
    (2) Liquidity and credit facilities to third party non-bank sponsored
        ABCP conduits amounted to US$134 million and to non-USRMM unhedged
        others amounted to US$156 million.
    (3) Gross of CVA for purchased credit derivatives of US$3.8 billion.
    (4) This is the fair value of the contracts, which were typically zero,
        or close to zero, at the time they were entered into.
    (5) After write-downs.
    (6) As at January 31, 2009, the S&P rating for super senior CDO of
        mezzanine RMBS ranges from CCC+ to CC. The rating for the warehouse
        RMBS was approximately 58% investment grade and 42% non-investment
        grade (based on market value).
    (7) Includes USRMM exposures with a notional of US$15 million (fair
        value US$11 million) held in FirstCaribbean, which mature in 25
        to 38 years and are rated AA1 to AAA.
    (8) Includes estimated USRMM exposure of $141 million as at January 31,
        2009.
    (9) Investments and loans include unfunded investment commitments with a
        notional of US$261 million.
    n/a Not applicable.
    

    Unhedged USRMM exposures

    Our remaining unhedged exposure to the USRMM, after write-downs, was $92
million (US$75 million) as at January 31, 2009.

    Unhedged non-USRMM exposures

    Our unhedged exposures to non-USRMM primarily relate to the following
categories: CLO, corporate debt, Montreal Accord related notes, third party
non-bank sponsored ABCP conduits, warehouse non-RMBS, and other.

    CLO

    Our unhedged CLO exposures with notional of $415 million (US$338 million)
are mostly rated AAA as at January 31, 2009, and are backed by diversified
pools of European-based senior secured leveraged loans.

    Corporate debt

    Approximately 21%, 54% and 25% of the unhedged corporate debt exposures
with notional of $209 million (US$170 million) are related to positions in
Europe, Canada and other countries respectively.

    Montreal Accord related notes

    The standstill and court approved restructuring plan proposed by
signatories to the Montreal Accord was ratified on January 21, 2009. As a
result, we received $141 million in senior Class A-1 notes, $152 million in
senior Class A-2 notes and $178 million of various subordinated and tracking
notes in exchange for our non-bank sponsored ABCP with par value of $471
million. As was the case with the original ABCP instruments, the new notes are
backed by fixed income, traditional securitization and CDO assets as well as
super senior credit default swaps on investment grade corporates. The
underlying assets that have U.S. subprime mortgage exposures have been
isolated and are specifically linked to tracking notes with a notional value
of $141 million as at January 31, 2009.
    The Class A-1 and Class A-2 notes pay a variable rate of interest below
market levels. The subordinated notes are zero coupon in nature, paying
interest and principal only after the Class A-1 and Class A-2 notes are
settled in full. The tracking notes pass through the cash flows of the
underlying assets. All of the restructured notes are expected to mature in
December 2016.
    Based on our estimate of the $215 million combined fair value of the
notes received compared with our October 31, 2008 estimate of the fair value
of the ABCP surrendered, we recorded a loss of $22 million during the current
quarter.
    In addition, pursuant to the restructuring plan, we are a participant in
a Margin Funding Facility (MFF) to support the collateral requirements of the
restructured conduits. Under the terms of the MFF, we have provided a $300
million undrawn loan facility to be used if the amended collateral triggers of
the related credit derivatives are breached and the new trusts created under
the restructuring plan do not have sufficient assets to meet any collateral
calls. If the loan facility was fully drawn and subsequently more collateral
was required due to breaching further collateral triggers, we would not be
obligated to fund any additional collateral, although the consequence would
likely be the loss of that $300 million loan.

    Third party non-Bank sponsored ABCP conduits

    We provided liquidity and credit related facilities to third party non-
bank sponsored ABCP conduits. As at January 31, 2009, $345 million (US$281
million) of the facilities remained committed. Of this amount, $105 million
(US$86 million), undrawn as at January 31, 2009, was provided to a conduit,
with U.S. auto loan assets, sponsored by a U.S. based auto manufacturer. The
remaining $240 million (US$ 195 million) primarily relates to U.S. CDOs, $180
million (US$147 million) of which was drawn as at January 31, 2009. Of the $60
million (US$48 million) undrawn, $55 million (US$45 million) was subject to
liquidity agreements under which the conduits maintain the right to put their
assets back to CIBC at par. The underlying assets of the U.S. CDOs have
maturities ranging from three to seven years.

    Warehouse non-RMBS

    Of the unhedged warehouse non-RMBS assets with notional of $196 million
(US$160 million), 73% represents investments in CLOs backed by diversified
pools of U.S.-based senior secured leveraged loans. Approximately 14%
represents investments in CDOs backed by TruPs with exposure to U.S. real
estate investment trusts. Another 7% has exposure to the U.S. commercial real
estate market.

    Other

    Other unhedged exposures with notional of $741 million (US$604 million)
include $459 million (US$374 million) credit facilities (drawn US$218 million
and undrawn US$156 million) provided to SPEs with film rights receivables
(57%), lottery receivables (15%), and U.S. mortgage defeasance loans (28%).
The remaining $282 million (US$230 million) represents written protection on
mostly AAA tranches of portfolios of high yield corporate debt. We are only
obligated to pay for any losses upon both the default of the underlying
corporate debt as well as that of the primary financial guarantor, who was
restructured in February 2009.

    Purchased protection from financial guarantors (USRMM and non-USRMM)

    Our methodology for CVA on the hedging contracts provided by financial
guarantors takes into account market observed credit spreads. For certain
financial guarantors who we considered no longer viable, we base our CVA on an
estimated recoverable basis, and took a charge of $410 million (US$333
million) in the quarter. The total CVA charge for financial guarantors was
$636 million (US$512 million) for the current quarter. As at January 31, 2009,
CVA on credit derivative contracts with financial guarantors was $4.7 billion
(US$3.8 billion), and the fair value of credit derivative contracts with
financial guarantors net of valuation adjustments was $2.4 billion (US$1.9
billion). Further significant losses could result depending on the performance
of both the underlying assets and the financial guarantors.
    In addition, we have loan and tranched securities positions that are
partly secured by direct guarantees from financial guarantors or by bonds
guaranteed by financial guarantors. As at January 31, 2009, these positions
were performing and the total amount guaranteed by financial guarantors was
approximately $220 million (US$179 million).
    The following table presents the notional amounts and fair values of
purchased protection from financial guarantors 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, 2009              USRMM related
    ----------------------------------------  -------------------------------
             Standard    Moody's                                      Credit-
    Counter-      and   Investor      Fitch                  Fair    related
     party     Poor's   Services    Ratings   Notional    value(1)        VA
    -------------------------------------------------------------------------

    I            AA(5)    Baa1(5)       -(4)  $     71   $     25   $    (16)
    II            A(2)    Baa1(3)       -(4)       532        473       (231)
    III          BB(3)     Ba3(3)       -(4)         -          -          -
    IV          CCC(2)    Caa1(2)       -(4)         -          -          -
    V            CC(2)    Caa1(2)       -(4)     2,552      2,146     (1,872)
    VI          AAA(2)      Baa1       AA(2)         -          -          -
    VII           AAA        Aa2        AAA          -          -          -
    VIII        AAA(2)     Aa3(3)     AAA(2)         -          -          -
    IX         BBB+(2)      A3(2)       -(4)         -          -          -
    X            A-(2)      A3(2)    BBB+(2)         -          -          -
    -------------------------------------------------------------------------
    Total
     financial
     guarantors                               $  3,155   $  2,644   $ (2,119)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008                                     $  3,786   $  3,086   $ (2,260)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   Non-USRMM                    Total
                        ------------------------------- ---------------------
                                                Credit-                  Net
    Counter-                           Fair    related                  fair
     party              Notional    value(1)        VA   Notional      value
    -------------------------------------------------------------------------

    I                   $  1,657   $    575   $   (371)  $  1,728   $    213
    II                     1,723        477       (234)     2,255        485
    III                    1,415        154        (58)     1,415         96
    IV                     2,068        153       (124)     2,068         29
    V                      2,620        203       (177)     5,172        300
    VI                     5,200        578       (197)     5,200        381
    VII                    4,648        402       (259)     4,648        143
    VIII                   1,451        224        (91)     1,451        133
    IX                     2,234        321       (173)     2,234        148
    X                        145          -          -        145          -
    -------------------------------------------------------------------------
    Total
     financial
     guarantors         $ 23,161   $  3,087   $ (1,684)  $ 26,316   $  1,928
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008               $ 23,322   $  2,625   $ (1,520)  $ 27,108   $  1,931
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Before CVA.
    (2) Credit watch / outlook with negative implication.
    (3) Watch developing.
    (4) Rating withdrawn. No longer rated by Fitch Ratings.
    (5) The counterparty was restructured in February 2009 with part of its
        business transferred to a new entity. After the restructuring, the
        counterparty was rated BBB+ and B3 by Standard and Poor's and Moody's
        Investor Services respectively.


    The assets underlying the protection purchased from financial guarantors
are as follows:

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

    US$ millions,    USRMM
     as at         related             Non-USRMM related
     January 31,  --------- -------------------------------------------------
     2009         Notional                  Notional
    ------------- --------- -------------------------------------------------
                                     Corporate
    Counterparty       CDO       CLO      debt      CMBS    Others     Total
    -------------------------------------------------------------------------
    I             $     71  $    616  $      -  $    777  $    264  $  1,657
    II                 532       892         -         -       831     1,723
    III                  -     1,290         -         -       125     1,415
    IV                   -     1,834         -         -       234     2,068
    V                2,552     2,620         -         -         -     2,620
    VI                   -         -     5,200         -         -     5,200
    VII                  -     4,398         -         -       250     4,648
    VIII                 -     1,314         -         -       137     1,451
    IX                   -        75     1,759         -       400     2,234
    X                    -         -         -         -       145       145
    -------------------------------------------------------------------------
    Total
     financial
     guarantors   $  3,155  $ 13,039  $  6,959  $    777  $  2,386  $ 23,161
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008         $  3,786  $ 13,125  $  6,959  $    777  $  2,461  $ 23,322
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    USRMM

    Our USRMM related positions of notional $3.9 billion (US$3.2 billion)
hedged by financial guarantors comprise super senior CDOs with underlyings
being approximately 16% sub-prime RMBS, 48% Alt-A RMBS, 14% asset backed
securities (ABS) CDO and 22% non-USRMM. Sub-prime and Alt-A underlyings
consist of approximately 9% pre-2006 vintage as well as 91% 2006 and 2007
vintage RMBS. Sub-prime exposures are defined as having Fair Isaac Corporation
(FICO) scores less than 660; and Alt-A underlyings as those exposures that
have FICO scores of 720 or below, but greater than 660.

    Non-USRMM

    The following provides further data and description of the non-USRMM
assets underlying the protection purchased from financial guarantors:

    
    US$ millions, as at January 31, 2009
    ----------------------------------------------------------------



                                            Total  Notional/Tranche
                                    Fair tranches  -----------------
                       Notional    value       (1)    High      Low
    ----------------------------------------------------------------
    CLO                 $13,039  $   941       82  $   375  $    25
    Corporate debt        6,959      702       11      800      259
    CMBS                    777      447        2      453      324
    Others
      Non-US RMBS           377       85        5      130       14
      TruPS                 819      517       12      128       24
      Other               1,190      395        9      270        7
    ----------------------------------------------------------------
    Total               $23,161  $ 3,087      121  $ 2,156  $   653
    ----------------------------------------------------------------
    ----------------------------------------------------------------


    -------------------------------------------------------------------------
                                         Weighted
                                          average   Invest-
                                             life     ment
                       Fair value/Tranche (WAL)(3) grade(2)   Subordination
                       ------------------      in    under- -----------------
                           High      Low    years   lyings  Average    Range
    -------------------------------------------------------------------------
    CLO                 $    40  $     -      5.0        1%      31%    6-67%
    Corporate debt          217       25      3.7       70%      19%   15-30%
    CMBS                    238      209      5.9       61%      44%   43-46%
    Others
      Non-US RMBS            34        -      4.7      n/a       33%    1-53%
      TruPS                  91       16      5.1      n/a       49%   45-57%
      Other                 148        -      7.1      n/a       21%    0-53%
    -------------------------------------
    Total               $   768  $   250
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) A tranche is a portion of a security offered as part of the same
        transaction where the underlying may be an asset, pool of assets,
        index or another tranche. The value of the tranche depends on the
        value of the underlying, subordination and deal specific structures
        such as tests/triggers.
    (2) Or equivalent based on internal credit ratings.
    (3) The WAL of our tranche will typically be shorter than the WAL for the
        underlying collateral for one or more reasons relating to how cash
        flows from repayment and default recoveries are directed to pay down
        our tranche.

    n/a Not available.
    

    CLO

    CLOs comprise assets in a wide range of industries with the highest
concentration in the services (personal and food) industry (28%); the
broadcasting, publishing and telecommunication sector (19%); and the
manufacturing sector (15%). Only 3% is in the real estate sector.
Approximately 68% and 25% of the underlyings represent U.S. and European
exposures respectively.

    Corporate Debt

    The Corporate Debt underlyings consist of 11 super senior synthetic CDO
tranches that reference portfolios of primarily U.S. (56%) and European (33%)
corporate debt in various industries (manufacturing 28%, financial
institutions 13%, cable and telecommunications 10%, retail and wholesale 9%).

    CMBS

    The two synthetic tranches reference CMBS portfolios, which are backed by
pools of commercial real estate mortgages located primarily in the U.S.

    Others

    Others are CDOs backed by TruPs, which are Tier II Innovative Capital
Instruments issued by U.S. regional banks and insurers, non-U.S. RMBS (such as
European residential mortgages) and other assets including tranches of CDOs,
aircraft leases, railcar leases and film receivables.

    Purchased protection from other counterparties

    The following table provides the notional amounts and fair values (before
CVA of US$56 million) of purchased credit derivatives from counterparties
other than financial guarantors, excluding unmatched purchased credit
derivatives:

    
                                        USRMM related         Non-USRMM
                                      ------------------- -------------------

                                                    Fair                Fair
    US$ millions, as at               Notional     value  Notional     value
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    501  $    441  $     91  $     10
    Banks                                    -         -       793        74
    Canadian conduits                        -         -     8,379       505
    Others                                   -         -         2         -
    -------------------------------------------------------------------------
    Total                             $    501  $    441  $  9,265  $    589
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                                           Total
                                      ---------------------------------------
                                            Notional           Fair value
                                      ------------------- -------------------
                                          2009      2008      2009      2008
    US$ millions, as at                Jan. 31   Oct. 31   Jan. 31   Oct. 31
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    592  $    642  $    451  $    463
    Banks                                  793       766        74        72
    Canadian conduits                    8,379     8,453       505       660
    Others                                   2         2         -         -
    -------------------------------------------------------------------------
    Total                             $  9,766  $  9,863  $  1,030  $  1,195
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The non-financial guarantor counterparty hedging our USRMM exposures is a
large U.S. based diversified multinational insurance and financial services
company with which CIBC has market standard collateral arrangements.
Approximately 99% of other counterparties hedging our non-USRMM exposures have
internal credit ratings equivalent to investment grade.

    The assets underlying the exposure hedged by counterparties other than
financial guarantors are as below:

    
                                        USRMM         Non-USRMM related
                                       related
                                     ---------- -----------------------------
                                      Notional            Notional
                                     ---------- -----------------------------
                                         CDO(1)   CLO(2) Corporate   Other(3)
    US$ millions, as at                                       debt
     January 31, 2009
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    501  $      -  $      -  $     91
    Banks                                    -       434         -       359
    Canadian conduits                        -         -     8,379         -
    Others                                   -         -         -         2
    -------------------------------------------------------------------------
    Total                             $    501  $    434  $  8,379  $    452
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The US$501 million represents super senior CDO with approximately 75%
        sub-prime RMBS, 3% Alt-A RMBS, 11% ABS CDO, and 12% non-USRMM. Sub-
        prime and Alt-A are all pre-2006 vintage.
    (2) All underlyings are non-investment grade. 5% is North American
        exposure and 95% is European exposure. Major industry concentration
        is in the services industry (39%), the manufacturing sector (19%),
        the broadcasting and communication industries (14%); and only 3% is
        in the real estate sector.
    (3) Approximately 58% of the underlyings are investment grade or
        equivalent with the majority of the exposure located in the U.S. and
        Europe. The industry concentration is primarily banking and finance,
        manufacturing, broadcasting, publishing and telecommunication and
        mining, oil and gas, with less than 3% in the real estate sector.
    

    Canadian conduits

    We purchased credit derivative protection from Canadian conduits and
generated revenue by selling the same protection on to third parties. The
reference portfolios consist of diversified indices of corporate loans and
bonds. These conduits are in compliance with their collateral posting
arrangements and have posted collateral exceeding current market exposure. One
of the conduit counterparties, Great North Trust, is sponsored by CIBC and the
remaining conduit counterparties were parties to the Montreal Accord.

    
    -------------------------------------------------------------------------
                                                                  Collateral
    US$ millions,                                                        and
     as at January                                      Mark-to-   guarantee
     31, 2009             Underlying    Notional(1)      market   notional(2)
    -------------------------------------------------------------------------
    Conduits
    --------
    Great North Trust  Investment grade
                        corporate
                        credit index(3)  $   4,029    $     196    $   339(4)
    MAV I / MAV II     160 Investment
                        grade
                        corporates(5)        4,350          309          506
    -------------------------------------------------------------------------
    Total                                $   8,379    $     505    $     845
    -------------------------------------------------------------------------
    Oct. 31, 2008                        $   8,453    $     660    $     944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These exposures mature within 4 to 8 years.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, bankers acceptances, and
        funding commitments. The fair value of the collateral at January 31,
        2009 was US$812 million (October 31, 2008 US$921 million).
    (3) Consists of a static portfolio of 126 North American corporate
        reference entities that were investment grade rated when the index
        was created. 82.5% of the entities are rated BBB- or higher. 99% of
        the entities are U.S. entities. Financial guarantors represent
        approximately 1.6% of the portfolio. 2.4% of the entities have
        experienced credit events. Attachment point is 30% and there is no
        direct exposure to USRMM or the U.S. commercial real estate market.
    (4) Includes US$95 million of funding commitments (with indemnities) from
        certain third party investors in Great North Trust.
    (5) These transactions were transferred from Nemertes I and Nemertes II
        trusts to MAV I and MAV II upon the completion of the Montreal
        Accord. The underlying portfolio consists of a static portfolio of
        160 corporate reference entities of which 91.3% were investment grade
        on the trade date. 86.3% of the entities are currently rated BBB- or
        higher (investment grade). 48% of the entities are U.S. entities.
        Financial guarantors represent approximately 2.5% of the portfolio.
        1.25% of the entities have experienced credit events. Attachment
        point is 20% and there is no direct exposure to USRMM or the U.S.
        commercial real estate market.
    

    Leveraged finance business

    We provide leveraged finance to non-investment grade customers to
facilitate their buyout, acquisition and restructuring activities. We
generally underwrite leveraged financial loans and syndicate the majority of
the loans, earning a fee during the process.
    We sold our U.S. leveraged finance business as part of our sale of some
of our U.S. businesses to Oppenheimer and are exiting our European leveraged
finance (ELF) business.
    As with the structured credit run-off business, the risk in the ELF run-
off business is also managed by a focused team with the mandate to reduce the
residual portfolio. As at January 31, 2009, we have funded leveraged loans of
$955 million (October 31, 2008: $935 million), and unfunded letters of credits
and commitments of $188 million (October 31, 2008: $ 210 million).

    
    Exposures of ELF loans (net of impairment) by industry are as below:

    -------------------------------------------------------------------------
    $ millions, as at January 31, 2009                    Drawn      Undrawn
    -------------------------------------------------------------------------
    Publishing                                        $      89    $      31
    Manufacturing                                           310           58
    Services                                                267           21
    Transportation and public utilities                      46           33
    Wholesale trade                                         243           45
    -------------------------------------------------------------------------
    Total                                             $     955    $     188
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     935    $     210
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    U.S. total return swaps portfolio

    Our U.S. total return swaps (TRS) portfolio consists of TRS on primarily
non-investment grade loans and units in hedge funds. The underlying loans are
mostly term loans, bonds, revolver credit lines and short-term credit
facilities to the corporate sector. The underlying asset is rated Baa2 and
below. The portfolio has an average term of 390 days. The total current
notional of the TRS portfolio is approximately $481 million (US$392 million).
Of this total portfolio, $193 million (US$157 million) is loan related and
backed by $167 million (US$136 million) of cash collateral. The remaining
hedge fund exposures are subject to net asset value tests which determine
margin requirements keeping total assets available at 133% of notional. The
table below summarizes the notional value of our positions in the portfolio:

    
    -------------------------------------------------------------------------
    US$ millions, as at January 31, 2009                            Notional
    -------------------------------------------------------------------------
    Loans                                                          $     157
    Hedge Funds                                                          235
    -------------------------------------------------------------------------
    Total                                                          $     392
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                                  $   1,458
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    During the quarter we continued to exit the program by closing the TRS
and selling off the underlying assets. The net loss of the TRS portfolio was
$7 million for the quarter.


    
                          OTHER SELECTED ACTIVITIES
    

    In response to the recommendations of the Financial Stability Forum, this
section provides additional details on other selected activities.

    Securitization business

    Our securitization business provides clients access to funding in the
debt capital markets. We sponsor several multi-seller conduits in Canada that
purchase pools of financial assets from our clients, and finance the purchases
by issuing commercial paper to investors. We generally provide the conduits
with commercial paper backstop liquidity facilities, securities distribution,
accounting, cash management and other financial services.
    As at January 31, 2009, our holdings of ABCP issued by our sponsored
conduits that offer ABCP to external investors was $522 million (October 31,
2008: $729 million) and our committed backstop liquidity facilities to these
conduits was $7.3 billion. We also provided credit facilities of $60 million
to these conduits at January 31, 2009.
    The following table shows the underlying collateral and the average
maturity for each asset type in these multi-seller conduits:

    
    -------------------------------------------------------------------------
                                                                   Estimated
                                                                    weighted
                                                                   avg. life
    $ millions, as at January 31, 2009                 Amount(2)      (years)
    -------------------------------------------------------------------------
    Asset class
    Canadian residential mortgages                   $    2,917          1.9
    Auto leases                                           1,891          1.0
    Franchise loans                                         610          1.2
    Auto loans                                              374          1.0
    Credit cards                                            975        4.1(1)
    Equipment leases/loans                                  243          1.3
    Other                                                    10          1.1
    -------------------------------------------------------------------------
    Total                                            $    7,020          1.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                    $    8,440          1.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Based on the revolving period and amortization period contemplated in
        the transaction.
    (2) The committed backstop facility of these assets was the same as the
        amounts noted in the table, other than for franchise loans, for which
        the facility was $900 million.
    

    The short-term notes issued by the conduits are backed by the above
assets. The performance of the above assets has met the criteria required to
retain the ratings of the notes issued by the multi-seller conduits.
    $227 million of the $2,917 million Canadian residential mortgages relates
to amounts securitized by the subsidiary of the finance arm of a U.S. auto
manufacturer.
    Of the $1,891 million relating to auto leases, $553 million relates to
balances originated by the finance arm of a U.S. auto manufacturer, $441
million relates to balances originated by Canadian fleet leasing companies and
the remaining relates to non-North American auto manufacturers.
    Of the $374 million relating to auto loans, $102 million relates to
balances originated by the finance arms of two U.S. auto manufacturers, $20
million relates to balances originated by a regulated Canadian financial
institution and the remaining relates to non-North American auto
manufacturers.
    In addition, as at January 31, 2009, we held 100% of the ABCP issued by
MACRO Trust, a CIBC-sponsored conduit. This resulted in the consolidation of
the conduit with $593 million of dealer floorplan receivables and $18 million
of medium term notes backed by Canadian residential mortgages. The dealer
floor plan receivables were originated by the finance arm of a U.S. auto
manufacturer, have an estimated weighted average life of 0.9 year and have a
commitment period which expires on June 1, 2009.
    We also securitize our mortgages and credit cards receivables. Details of
our consolidated variable interest entities and securitization transactions
during the quarter are provided in Note 5 to the interim consolidated
financial statements.

    U.S. real estate finance

    In our U.S. real estate finance business, we operate a full-service
platform which originates commercial mortgages to mid-market clients, under
three programs. The construction program offers floating rate financing to
properties under construction. The interim program offers fixed and floating-
rate financing for properties that are fully leased or with some leasing or
renovation yet to be done.
    These programs provide feeder product for the group's permanent fixed-
rate loan program and typically have an average term of 1 to 3 years. Once the
construction and interim phases are complete and the properties are income-
producing, borrowers are offered fixed-rate financing within the permanent
program (typically with average terms of 10 years). The business also
maintains CMBS trading and distribution capabilities. As of January 31, 2009
the group has CMBS inventory with a market value of less than US$1 million.
    The following table provides a summary of our positions in this business
as at January 31, 2009:

    
    -------------------------------------------------------------------------
                                                       Unfunded       Funded
    US$ millions, as at January 31, 2009            commitments        loans
    -------------------------------------------------------------------------
    Construction program                             $      148   $      489
    Interim program                                         181        1,545
    Commercial fixed rate mortgages                           -         51(1)
    -------------------------------------------------------------------------
    Total                                            $      329   $    2,085
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                    $      416   $    2,018
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) This represents the market value of US$137 million in funded loans
        economically hedged with interest rate swap and total return swaps.


    North American auto industry exposure

    We have exposures to the North American auto industry through our
securitization business and in our run-off exposure to third party non-Bank
sponsored ABCP conduits as discussed above. In addition, as at January 31,
2009, we had loans and undrawn credit commitments to the North American auto-
related industries as shown in the table below.

    -------------------------------------------------------------------------
                                                                     Undrawn
                                                                      credit
    $ millions, as at January 31, 2009                  Loans    commitments
    -------------------------------------------------------------------------
    U.S. auto manufacturers(1)                       $        6   $        -
    Finance arms associated with the U.S.
     auto manufacturers(2)                                  245            9
    Motor vehicle parts suppliers and wholesalers           140          346
    Canadian automobile dealers                             534          472
    -------------------------------------------------------------------------
    Total                                            $      925   $      827
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                    $      819   $      865
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The U.S. auto manufacturers' exposure is accounted for at fair value
of approximately $4 million as at January 31, 2009. The exposure is
economically hedged with credit derivatives.
    (2) $138 million of the finance arms' exposure is economically hedged with
credit derivatives in our corporate loan hedging programs.


    We also have MTM receivables of approximately $16 million from derivatives
transactions with these counterparties as at January 31, 2009.


                        FINANCIAL PERFORMANCE REVIEW
    -------------------------------------------------------------------------
                                                  For the three months ended
                                          -----------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,333   $    1,377   $    1,154
    Non-interest income (loss)                 689          827       (1,675)
    -------------------------------------------------------------------------
    Total revenue                            2,022        2,204         (521)
    Provision for credit losses                284          222          172
    Non-interest expenses                    1,653        1,927        1,761
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests                  85           55       (2,454)
    Income tax benefit                         (67)        (384)      (1,002)
    Non-controlling interests                    5            3            4
    -------------------------------------------------------------------------
    Net income (loss)                   $      147   $      436   $   (1,456)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Net interest income

    Net interest income was up $179 million or 16% from the same quarter last
year, mainly due to volume growth in retail products, higher income in U.S.
real estate finance and lower trading-related interest expense. These factors
were offset in part by lower treasury revenue and unfavourable spreads in
retail products.
    Net interest income was down $44 million or 3% from the prior quarter,
primarily due to lower treasury revenue, offset in part by favourable prime/BA
spreads, higher income in U.S. real estate finance and volume growth in retail
deposits and lending products.

    Non-interest income

    Non-interest income was up $2,364 million from the same quarter last
year, primarily due to higher structured credit losses in the last year
quarter. Higher AFS securities gains in Treasury and higher equity and
interest rate trading revenue also contributed to the increase. These factors
were partially offset by higher write-downs in the legacy merchant banking
portfolio, lower wealth management related fee income, lower advisory revenue,
and the foreign exchange loss on the repatriation of retained earnings. The
current quarter also had higher MTM losses relating to interest-rate hedges
for the leveraged lease portfolio that did not qualify for hedge accounting.
    Non-interest income was down $138 million or 17% from the prior quarter,
primarily due to lower gains associated with corporate loan hedging programs,
foreign exchange losses on the repatriation of retained earnings compared to
foreign exchange gains on repatriation of capital and retained earnings in the
prior quarter, and mark-to-market losses on the leveraged lease portfolio as
discussed above. These factors were partially offset by higher AFS securities
gains in Treasury, higher equity and interest rate trading revenue, and lower
merchant banking losses/write-downs. The prior quarter included a gain on the
reduction of our unfunded commitment on a VFN partially offsetting our
structured credit losses and higher market valuation adjustments on certain
trading positions.

    Provision for credit losses

    Provision for credit losses was up $112 million or 65% from the same
quarter last year, primarily due to higher losses in the cards portfolio,
driven by higher delinquencies and bankruptcies, and higher provisions net of
recoveries in the corporate lending portfolio, both related to the
deteriorating economic environment.
    Provision for credit losses was up $62 million or 28% from the prior
quarter, primarily due to higher losses in the cards portfolio, driven by
higher delinquencies and bankruptcies, and higher provisions in the corporate
lending portfolio, both related to the deteriorating economic environment.

    Non-interest expenses

    Non-interest expenses were down $108 million or 6% from the same quarter
last year, primarily due to the impact of the sale of some of our U.S.
businesses, and lower performance-related compensation. The last year quarter
included higher Share Appreciation Rights (SARs) related recoveries.
    Non-interest expenses were down $274 million or 14% from the prior
quarter, primarily due to lower occupancy costs, professional fees and lower
project costs, partially offset by higher performance-related compensation.
The prior quarter included severance related expenses.

    Income taxes

    Income tax benefit was down $935 million from the same quarter last year,
primarily due to the tax impact of the loss incurred in the last year quarter.
    Income tax benefit was down $317 million from the prior quarter. The
current quarter included a tax benefit related to foreign exchange losses on
the repatriation of retained earnings. The prior quarter included tax expense
related to foreign exchange gains on repatriations of capital and retained
earnings and a $486 million Enron-related expected tax benefit. Also impacting
the tax benefit was lower tax exempt income in the current quarter.
    At the end of the quarter, our future income tax asset was $2.0 billion,
net of a US$52 million ($64 million) valuation allowance. Included in the
future income tax asset are $1,258 million related to Canadian non-capital
loss carryforwards that expire in 20 years, $76 million related to Canadian
capital loss carryforwards that have no expiry date, and $471 million related
to our U.S. operations. Accounting standards require a valuation allowance
when it is more likely than not that all or a portion of a future income tax
asset will not be realized prior to its expiration. Although realization is
not assured, we believe that based on all available evidence, it is more
likely than not that all of the future income tax asset, net of the valuation
allowance, will be realized.
    The effective tax rates are unusual for the current and prior quarters
primarily due to the impact of the items noted above.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar depreciated 23%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $10 million increase in the translated value of our U.S. dollar
functional earnings.
    The Canadian dollar depreciated 10% on average relative to the U.S.
dollar from the prior quarter, resulting in a $5 million increase in the
translated value of our U.S. dollar functional earnings.

    
    Review of quarterly financial information

                                2009                                    2008
    -------------------------------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended      Jan. 31   Oct. 31   Jul. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets   $  2,416  $  2,367  $  2,377  $  2,284  $  2,410
      CIBC World Markets        (368)     (318)     (598)   (2,166)   (2,957)
      Corporate and Other        (26)      155       126         8        26
    -------------------------------------------------------------------------
    Total revenue              2,022     2,204     1,905       126      (521)
    Provision for credit
     losses                      284       222       203       176       172
    Non-interest expenses      1,653     1,927     1,725     1,788     1,761
    -------------------------------------------------------------------------
    Income (loss) before
     taxes and non-
     controlling interests        85        55       (23)   (1,838)   (2,454)
    Income tax (benefit)
     expense                     (67)     (384)     (101)     (731)   (1,002)
    Non-controlling
     interests                     5         3         7         4         4
    -------------------------------------------------------------------------
    Net income (loss)       $    147  $    436  $     71  $ (1,111) $ (1,456)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic               $   0.29  $   1.07  $   0.11  $  (3.00) $  (4.39)
      - diluted(1)          $   0.29  $   1.06  $   0.11  $  (3.00) $  (4.39)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                    2007
    -----------------------------------------------------
    $ millions, except per
     share amounts, for the
     three months ended      Oct. 31   Jul. 31   Apr. 30
    -----------------------------------------------------
    Revenue
      CIBC Retail Markets   $  2,855  $  2,393  $  2,342
      CIBC World Markets           5       455       606
      Corporate and Other         86       131       102
    -----------------------------------------------------
    Total revenue              2,946     2,979     3,050
    Provision for credit
     losses                      132       162       166
    Non-interest expenses      1,874     1,819     1,976
    -----------------------------------------------------
    Income (loss) before
     taxes and non-
     controlling interests       940       998       908
    Income tax (benefit)
     expense                      45       157        91
    Non-controlling
     interests                    11         6        10
    -----------------------------------------------------
    Net income (loss)       $    884  $    835  $    807
    -----------------------------------------------------
    -----------------------------------------------------
    Earnings (loss) per share
      - basic               $   2.55  $   2.33  $   2.29
      - diluted(1)          $   2.53  $   2.31  $   2.27
    -----------------------------------------------------
    -----------------------------------------------------
    (1) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be anti-
        dilutive; therefore, basic and diluted earnings (loss) per share
        will be the same.
    

    Our quarterly results are modestly affected by seasonal factors. The
first quarter is normally characterized by increased credit card purchases
over the holiday period. The second quarter has fewer days as compared with
the other quarters, generally leading to lower earnings. The summer months
(July - third quarter and August - fourth quarter) typically experience lower
levels of capital markets activity, which affects our brokerage, investment
management and wholesale activities.
    Revenue was higher in the fourth quarter of 2007 primarily due to the
gain recorded on the Visa restructuring. CIBC World Markets revenue has been
adversely affected since the third quarter of 2007 due to the MTM losses on
CDOs and RMBS, and more significantly in 2008 due to the charges on credit
protection purchased from financial guarantors and MTM losses related to our
exposure to the USRMM.
    Retail lending provisions trended higher beginning the second half of
2008 largely due to higher losses in the cards portfolio. This is the result
of both volume growth as well as economic deterioration in the consumer
sector. Corporate lending recoveries and reversals have decreased from the
high levels in the past. A reversal of general allowance was included in the
second quarter of 2007 and there was an increase in general allowance in the
first quarter of 2009.
    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 three quarters of 2008 had an income tax benefit resulting from
the loss during the period. A $486 million income tax reduction attributable
to an increase in our expected tax benefit relating to Enron-related
litigation settlements was recorded in the fourth quarter of 2008. Income tax
recoveries related to the favourable resolution of various income tax audits
and reduced tax contingencies were included in the second and fourth quarters
of 2008 and the last three quarters of 2007. Tax-exempt income has generally
been increasing over the period, until the third quarter of 2008. Thereafter,
the tax-exempt income has been steadily decreasing. Larger tax-exempt
dividends were received in the fourth quarter of 2007. The last quarter of
2007 benefited from a lower tax rate on the gain recorded on the Visa
restructuring and the last two quarters of 2007 benefited from a lower tax
rate on the net reversal of litigation accruals. Income tax benefits on the
foreign exchange losses on the repatriations from our foreign operations were
included in the first quarter of 2009 and the second quarter of 2008. Income
tax expenses on the repatriations from our foreign operations were included in
the fourth quarters of 2008 and 2007.

    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 54 of the 2008 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.

    
    Operations Measures

    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
    $ millions, except per                    2009         2008         2008
     share amounts                         Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,333   $    1,377   $    1,154
    Non-interest income                        689          827       (1,675)
    -------------------------------------------------------------------------
    Total revenue per
     financial statements         A          2,022        2,204         (521)
    TEB adjustment                B             15           23           61
    -------------------------------------------------------------------------
    Total revenue (TEB)(1)        C     $    2,037   $    2,227   $     (460)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Non-interest expenses per
     financial statements         D     $    1,653   $    1,927   $    1,761
    Less: amortization of
     other intangible assets                    11           11           10
    -------------------------------------------------------------------------
    Cash non-interest
     expenses(1)                  E     $    1,642   $    1,916   $    1,751
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Income (loss) before taxes
     and non-controlling
     interests per financial
     statements                   F     $       85   $       55   $   (2,454)
    TEB adjustment                B             15           23           61
    -------------------------------------------------------------------------
    Income (loss) before taxes
     and non-controlling
     interests (TEB)(1)           G     $      100   $       78   $   (2,393)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Reported income taxes per
     financial statements         H     $      (67)  $     (384)  $   (1,002)
    TEB adjustment                B             15           23           61
    Other tax adjustments         I              -          (23)          56
    -------------------------------------------------------------------------
    Adjusted income taxes(1)      J     $      (52)  $     (384)  $     (885)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income (loss)
     applicable to
     common shares                K     $      111   $      407   $   (1,486)
    Add: after-tax effect of
     amortization of other
     intangible assets                           9            8            8
    -------------------------------------------------------------------------
    Cash net income (loss)
     applicable to
     common shares(1)             L     $      120   $      415   $   (1,478)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic weighted-average
     common shares (thousands)    M        380,911      380,782      338,732
    Diluted weighted-average
     common shares (thousands)    N        381,424      381,921      340,811
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash efficiency ratio
     (TEB)(1)                    E/C         80.6%        86.0%          n/m
    Reported effective income
     tax rate (TEB)(1)(2)      (H+B)/G     (52.0)%     (462.8)%        39.3%
    Adjusted effective income
     tax rate(1)(2)            (H+I)/F     (78.8)%     (740.0)%        38.5%
    Adjusted effective income
     tax rate (TEB)(1)(2)        J/G       (52.0)%     (492.3)%        37.0%
    Cash basic earnings (loss)
     per share(1)                L/M    $     0.32   $     1.09   $    (4.36)
    Cash diluted earnings
     (loss) per share(1)(3)      L/N    $     0.31   $     1.09   $    (4.36)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Adjusted capital ratios

    Adjusted capital ratios are calculated by adjusting regulatory capital for
capital issuances announced before and completed subsequent to the end of a
reporting period(4). Management believes the adjusted capital ratios provide
additional information reflecting the impact of significant capital
transactions on the capital structure.

    -------------------------------------------------------------------------
                                                    Tier 1             Total
    $ millions, as at January 31, 2009             Capital           Capital
    -------------------------------------------------------------------------
    Reported regulatory capital                  $  12,017         $  18,115
    Preferred share issuance announced
     before and completed after
     January 31, 2009                                  316               316
    -------------------------------------------------------------------------
    Adjusted regulatory capital(1)          O    $  12,333    P    $  18,431
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Regulatory risk-weighted assets         Q    $ 122,400    Q    $ 122,400
    Adjusted capital ratios(1)             O/Q       10.1%   P/Q       15.1%
    -------------------------------------------------------------------------
    (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.
    (4) Capital redemptions announced before and completed subsequent to the
        end of a reporting period are required by regulators to be included
        in the reported capital ratio calculations in that reporting period.
    n/m Not meaningful due to the net loss.


                             CIBC RETAIL MARKETS

    CIBC Retail Markets provides a full range of financial products and
services to individual and business banking clients, as well as investment
management services globally to retail and institutional clients.

    Results(1)
    -------------------------------------------------------------------------
                                                  For the three months ended
                                          -----------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue
      Personal banking                  $    1,457   $    1,430   $    1,415
      Business banking                         330          337          352
      Wealth management                        323          363          396
      FirstCaribbean                           180          161          126
      Other                                    126           76          121
    -------------------------------------------------------------------------
    Total revenue (a)                        2,416        2,367        2,410
    Provision for credit losses                327          266          189
    Non-interest expenses (b)                1,305        1,363        1,353
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests                 784          738          868
    Income tax expense                         217          178          204
    Non-controlling interests                    5            6            4
    -------------------------------------------------------------------------
    Net income (c)                      $      562   $      554   $      660
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Efficiency ratio (b/a)                   54.0%        57.6%        56.1%
    Amortization of other intangible
     assets (d)                         $        8   $        8   $        8
    Cash efficiency ratio(2) ((b-d)/a)       53.7%        57.2%        55.8%
    ROE(2)                                   45.5%        44.5%        54.3%
    Charge for economic capital(2) (e)  $     (168)  $     (163)  $     (156)
    Economic profit(2) (c+e)            $      394   $      391   $      504
    Regular workforce headcount             27,727       27,923       27,984
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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

    In 2009, we realigned our business lines to better reflect the management
of our activities. As a result of the realignment, the business lines are as
follows:

    -   Personal banking - includes personal deposits and lending, credit
        cards, residential mortgages, and insurance
    -   Business banking - includes business deposits and lending, commercial
        mortgages, and commercial banking
    -   Wealth management - includes retail brokerage and asset management
    -   FirstCaribbean
    -   Other
    

    We also moved the impact of securitization from CIBC Retail Markets to
Corporate & Other which impacted total revenue, provision for credit losses
and the net income.
    Prior period information was restated to reflect these changes.
    Net income for the quarter was $562 million, a decrease of $98 million or
15% from the same quarter last year. These results reflect the economic
conditions which resulted in an increase in the provision for credit losses
and lower wealth management revenues. Further, the net income was negatively
impacted by a higher effective income tax rate in the current quarter. These
declines were partially offset by solid volume growth across most products and
effective cost management.
    Net income was up $8 million or 1% from the prior quarter, with revenue
increasing 2% and lower expenses more than offsetting the increase in the
provision for credit losses and a higher effective income tax rate.

    Revenue

    Revenue was up $6 million from the same quarter last year.
    Personal banking revenue was up $42 million, mainly due to solid volume
growth in most products, partially offset by narrower spreads. Overall spreads
were compressed due to a lower interest rate environment and a decrease in
mortgage refinancing fees but were helped by wider prime/BA spreads in the
current quarter.
    Business banking revenue was down $22 million mainly due to lower
spreads.
    Wealth management revenue was down $73 million mainly due to lower fee
income as a result of a decline in asset values due to market conditions.
    FirstCaribbean revenue was up $54 million mainly due to the impact of a
weaker Canadian dollar.

    Revenue was up $49 million or 2% from the prior quarter.
    Personal banking revenue was up $27 million, primarily due to the impact
of a wider Prime/BA spread, volume growth in deposits and lending, partially
offset by the negative impact of the lower interest rate environment.
    Wealth management revenue was down $40 million, largely due to lower fee
based revenue as a result of market driven decreases in asset values,
partially offset by an increase in new issue activity.
    FirstCaribbean revenue was up $19 million, largely due to a weaker
Canadian dollar.
    Other revenue was up $50 million, primarily due to higher treasury
revenue allocations.

    Provision for credit losses

    Provision for credit losses was up $138 million or 73% from the same
quarter last year, primarily due to increases in the credit cards portfolio
due to higher net write-offs and bankruptcies, and an increase in the
allowance driven by higher delinquencies resulting from the deteriorating
economic environment.
    Provision for credit losses was up $61 million or 23% from the prior
quarter largely due to increases in the credit cards portfolio due to higher
net write-offs and bankruptcies, and an increase in the allowance driven by
higher delinquencies resulting from the deteriorating economic environment.

    Non-interest expenses

    Non-interest expenses were down $48 million or 4% from the same quarter
last year, primarily due to lower performance-related compensation and
effective cost management.
    Non-interest expenses were down $58 million or 4% from the prior quarter,
primarily due to lower performance-related compensation and lower project
expenses.

    Income taxes

    Income taxes were up $13 million or 6% from the same quarter last year,
mainly due to a higher effective tax rate.
    Income taxes were up $39 million or 22% from the prior quarter, primarily
due to a higher effective tax rate and an increase in income.


    
                             CIBC WORLD MARKETS

    CIBC World Markets is the wholesale banking arm of CIBC. To deliver on its
mandate as a premier client-focused and Canadian-based investment bank, CIBC
World Markets provides a wide range of credit, capital markets, investment
banking, merchant banking and research products and services to government,
institutional, corporate and retail clients in Canada and in key markets
around the world.

    Results(1)
    -------------------------------------------------------------------------
                                                  For the three months ended
                                          -----------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Revenue (TEB)(2)
      Capital markets                   $      307   $       11   $      224
      Corporate and investment banking         156          113          181
      Other                                   (816)        (419)      (3,301)
    -------------------------------------------------------------------------
    Total revenue (TEB)(2)                    (353)        (295)      (2,896)
    TEB adjustment                              15           23           61
    -------------------------------------------------------------------------
    Total revenue                             (368)        (318)      (2,957)
    Provision for (reversal of)
     credit losses                              19          (10)          17
    Non-interest expenses                      267          288          351
    -------------------------------------------------------------------------
    Loss before taxes and
     non-controlling interests                (654)        (596)      (3,325)
    Income tax benefit                        (241)        (726)      (1,166)
    Non-controlling interests                    -           (3)           -
    -------------------------------------------------------------------------
    Net (loss) income (a)               $     (413)  $      133   $   (2,159)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    ROE(2)                                 (63.4)%        20.6%     (391.7)%
    Charge for economic capital(2) (b)  $      (94)  $      (82)  $      (72)
    Economic (loss) profit(2) (a+b)     $     (507)  $       51   $   (2,231)
    Regular workforce headcount              1,025        1,047        1,287
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (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

    In 2009, we realigned our business lines to better reflect the
repositioning of CIBC World Markets' activities. As a result of the
realignment, the business lines are as follows:
    -   Capital markets - includes cash equities, global derivatives and
        strategic risks, and fixed income, currencies and distribution
        businesses
    -   Corporate and investment banking - includes corporate credit
        products, investment banking, U.S. real estate finance, and core
        merchant banking
    -   Other - includes legacy merchant banking, structured credit and other
        run-off businesses, exited businesses, and corporate loan hedging
    

    Prior period information was restated to reflect these changes.
    Net loss was $413 million, compared to a net loss of $2,159 million in
the same quarter last year due to higher structured credit losses in the last
year quarter.
    Net loss was up $546 million from the prior quarter. The prior quarter
included a $486 million Enron-related expected tax benefit.

    Revenue

    Revenue was up $2,589 million from the same quarter last year.
    Capital markets revenue was up $83 million, primarily due to higher
equity and interest rate trading revenue.
    Corporate and investment banking revenue was down $25 million, primarily
due to lower advisory revenue, partially offset by higher revenue in U.S. real
estate finance.
    Other revenue was up $2,485 million, primarily due to higher structured
credit losses in the previous year quarter, as discussed earlier. This
increase was partially offset by higher losses/write-downs in the legacy
merchant banking portfolio, lower treasury allocations and the impact of the
sale of some of our U.S. businesses. We also recorded higher mark-to-market
losses relating to interest-rate hedges for the leveraged lease portfolio that
do not qualify for hedge accounting.

    Revenue was down $50 million from the prior quarter.
    Capital markets revenue was up $296 million, primarily due to higher
revenue from the fixed income, equity and interest rate trading businesses.
    Corporate and investment banking revenue was up $43 million, primarily
due to lower write-downs/losses in our core merchant banking portfolio and
higher revenue in U.S. real estate finance and equity new issue revenue,
partially offset by lower advisory revenue.
    Other revenue was down $397 million, primarily due to higher structured
credit losses, lower gains from corporate loan hedging programs and MTM losses
related to hedges on leveraged leases, as discussed above. These were
partially offset by reduced market valuation adjustments in certain trading
positions which we are continuing to manage down.

    Provision for (reversal of) credit losses

    Provision for credit losses was $19 million, compared with a provision of
$17 million in the same quarter last year, mainly due to higher provisions
resulting from the deteriorating economic environment, net of recoveries, in
the corporate lending portfolio.
    Provision for credit losses was $19 million, compared to a reversal of
$10 million in the prior quarter, mainly due to higher provisions resulting
from the deteriorating economic environment.

    Non-interest expenses

    Non-interest expenses were down $84 million or 24% from the same quarter
last year, primarily due to the impact of the sale of some of our U.S.
businesses, and lower expenses resulting from other cost reduction
initiatives.
    Non-interest expenses were down $21 million or 7% from the prior quarter,
primarily due to lower occupancy costs and professional fees, partially offset
by higher performance-related compensation.

    Income taxes

    Income tax recovery was $241 million, compared to a recovery of $1,166
million in the same quarter last year due to higher structured credit losses
in the last year quarter.
    Income tax recovery was down $485 million, mainly due to the $486 million
Enron-related expected tax benefit in the prior quarter.

    Regular workforce headcount

    The regular workforce headcount was down 262 from the same quarter last
year primarily due to the sale of some of our U.S. businesses.


    
                             CORPORATE AND OTHER

    Corporate and Other comprises the five functional groups - Technology and
Operations; Corporate Development; Finance (including Treasury);
Administration; and Risk Management - 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 impact of
securitization is retained within Corporate and Other. The remaining revenue
and expenses are generally allocated to the business lines.

    Results(1)
    -------------------------------------------------------------------------
                                                  For the three months ended
                                          -----------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Total revenue                       $      (26)  $      155   $       26
    Reversal of credit losses                  (62)         (34)         (34)
    Non-interest expenses                       81          276           57
    -------------------------------------------------------------------------
    (Loss) income before taxes and
     non-controlling interests                 (45)         (87)           3
    Income tax (benefit) expense               (43)         164          (40)
    -------------------------------------------------------------------------
    Net (loss) income                   $       (2)  $     (251)  $       43
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Regular workforce headcount             10,252       10,728       10,966
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

    Financial overview

    In 2009, we moved the impact of securitization from CIBC Retail Markets
to Corporate and Other which impacted total revenue, provision for/reversal of
credit losses and the net income. Prior period information was restated to
reflect this change.
    Net loss was $2 million compared to net income of $43 million in the same
quarter last year. The same quarter last year included the benefit of
recognizing tax recoveries at prior years' higher statutory rates.
    Net loss was down $249 million from the prior quarter. The prior quarter
was impacted by higher unallocated corporate costs which included severance
and project costs, and the $92 million after-tax loss on the repatriation of
capital and retained earnings.

    Revenue

    Revenue was down $52 million from the same quarter last year primarily
due to a $48 million foreign exchange loss on repatriation activities, lower
revenue in treasury, and higher losses related to securitization activities.
The last year quarter was impacted by losses from the hedging of SARs.
    Revenue was down $181 million from the prior quarter due to the foreign
exchange losses on repatriation of retained earnings, compared to foreign
exchange gains in the prior quarter, on the repatriation of retained earnings
and capital from foreign operations.

    Reversal of credit losses

    The reversal of credit losses is primarily a result of asset
securitization due to the reduction of loans and receivables attributable to
such activities.

    Non-interest expenses

    Non-interest expenses were up $24 million or 42% from the same quarter
last year. The last year quarter included higher recoveries related to SARs.
    Non-interest expenses were down $195 million or 71% from the prior
quarter primarily due to lower severances.

    Income tax

    Income tax benefit was up $3 million or 8% from the same quarter last
year. The impact of the repatriation of retained earnings noted above was
partially offset by the benefit in the previous year quarter of recognizing
tax recoveries at prior years' higher statutory rates.
    Income tax benefit was $43 million, compared with an income tax expense
of $164 million in the prior quarter primarily due to the tax impacts of the
repatriation activities noted above.

    Regular workforce headcount

    The regular workforce headcount was down 714 from the same quarter last
year primarily due to productivity savings in Canada and reduced
infrastructure support resulting from the sale of some of our U.S. businesses.
    The regular workforce headcount was down 476 from the prior quarter
primarily due to restructuring initiatives.


    
                             FINANCIAL CONDITION

    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                     $    9,642   $    8,959
    Securities                                           80,947       79,171
    Securities borrowed or purchased
     under resale agreements                             33,253       35,596
    Loans                                               165,157      171,475
    Derivative instruments                               34,144       28,644
    Other assets                                         30,672       30,085
    -------------------------------------------------------------------------
    Total assets                                     $  353,815   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                         $  226,383   $  232,952
    Derivative instruments                               38,851       32,742
    Obligations related to securities lent or
     sold short or under repurchase agreements           44,606       44,947
    Other liabilities                                    22,786       22,015
    Subordinated indebtedness                             6,728        6,658
    Preferred share liabilities                             600          600
    Non-controlling interests                               189          185
    Shareholders' equity                                 13,672       13,831
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  353,815   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Assets

    Total assets as at January 31, 2009 were similar to October 31, 2008.
    Included in securities are AFS, trading, FVO and HTM securities. During
the quarter, the portfolio mix changed as matured trading securities were
reinvested in debt and government securities that are classified as AFS.
    The net change in securities borrowed or purchased under resale
agreements was primarily driven by business decisions to reduce certain
underlying exposures.
    Loans have decreased mainly due to residential mortgage securitizations,
net of volume growth, and repayments.
    Derivative instruments increased during the quarter mainly due to
increased market valuations as a result of the change in interest rate
environment, partially offset by reduction in market values of foreign
exchange derivatives.
    Other assets increased mainly due to an increase in customers' liability
under acceptances.

    Liabilities

    Total liabilities as at January 31, 2009 were similar to October 31,
2008.
    Deposits decreased mainly due to a reduction in business and government
and bank deposits driven by our funding requirements partially offset by
growth in personal deposits.
    Derivative instruments liabilities increased due to the same factors
discussed under derivative instruments assets above.
    Other liabilities increased mainly due to an increase in bankers'
acceptances and derivatives collateral payable.

    Shareholders' equity

    Shareholders' equity as at January 31, 2009 was down by $159 million or
1% from October 31, 2008, representing the current quarter's earnings and
dividends declared on common and preferred shares.

    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 63 to 66 of the
2008 Annual Accountability Report.

    Regulatory capital

    Regulatory capital is determined in accordance with guidelines issued by
the Office of the Superintendent of Financial Institutions (OSFI).
    The following table presents the changes to the components of our
regulatory capital:

    
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   12,017   $   12,365
    Tier 2 capital                                        6,098        5,764
    Total regulatory capital                             18,115       18,129
    Risk-weighted assets                                122,400      117,946
    Tier 1 capital ratio                                   9.8%        10.5%
    Total capital ratio                                   14.8%        15.4%
    Assets-to-capital multiple                            17.7x        17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Tier 1 ratio was down by 0.7% from the year end mainly due to
structured credit charges in the quarter and higher credit risk weighted
assets in the trading book resulting primarily from financial guarantor
downgrades. The Tier 1 ratio was also adversely impacted by the expiry of
OSFI's transition rules related to the grandfathering of substantial
investments pre-December 31, 2006, which were deducted entirely from Tier 2
capital at year end. The Tier 1 ratio benefited from lower risk weighted
assets on residential mortgages resulting from higher insured mortgages.
    The total capital ratio was down 0.6% from year end mainly due to
structured credit charges in the quarter and higher credit risk weighted
assets in the trading book, resulting primarily from financial guarantor
downgrades. The ratio benefited from lower risk weighted assets on residential
mortgages resulting from higher insured mortgages.
    Subsequent to January 31, 2009, on February 4, 2009, we completed the
offering of 13 million non-cumulative Rate Reset Class A Preferred Shares,
Series 35 for net proceeds of $316 million. Had the offering been completed as
of January 31, 2009, our Tier 1 and Total capital ratios would have been
10.1%(1) and 15.1%(1) respectively.

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



    Significant capital management activities

    The following table summarizes our significant capital management
activities:

    -------------------------------------------------------------------------
                                                               For the three
                                                                months ended
    $ millions                                                 Jan. 31, 2009
    -------------------------------------------------------------------------
    Issue of common shares                                        $       12
    Dividends
      Preferred shares - classified as equity                            (36)
      Preferred shares - classified as liabilities                        (8)
      Common shares                                                     (332)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    For additional details, see Note 6 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 67 to 69 of the 2008 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). Investments, generally securities, are at fair value
and loans, none of which are impaired, are carried at par. Undrawn liquidity
and credit facilities and written credit derivatives are at notional amounts.

    
    -------------------------------------------------------------------------
                                                                        2009
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored multi-seller
     conduits                           $      601   $  6,845(3)  $        -
    CIBC structured CDO vehicles               720           70          783
    Third-party structured vehicles          7,246        1,054       17,078
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored multi-seller
     conduits                           $      805   $  7,984(3)  $        -
    CIBC structured CDO vehicles               772           69          766
    Third-party structured vehicles          8,167        1,091       17,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by entities established by Canada Mortgage
        and Housing Corporation (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae,
        Federal Home Loan Bank, Federal Farm Credit Bank, and Sallie Mae.
        $6.1 billion (Oct. 31, 2008: $6.7 billion) of the exposure related to
        CIBC structured CDO and third-party structured vehicles was hedged by
        credit derivatives.
    (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 $(6.1) billion (Oct. 31, 2008:
        $(5.6) billion). Notional amounts of $15.9 billion (Oct. 31, 2008:
        $16.0 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of CVA was
        $1.5 billion (Oct. 31, 2008: $1.2 billion). Accumulated fair value
        losses amount to $1.6 billion (Oct. 31, 2008: $1.3 billion) on
        unhedged written credit derivatives.
    (3) Net of $601 million (Oct. 31, 2008: $805 million) of investment and
        loans in CIBC sponsored multi-seller conduits.
    

    As at January 31, 2009 we owned 100% of the ABCP issued by MACRO Trust, a
CIBC-sponsored conduit. This resulted in the consolidation of the conduit with
$593 million of dealer floorplan receivables and $18 million of medium term
notes backed by Canadian residential mortgages. The dealer floor plan
receivables were originated by the finance arm of a U.S. auto manufacturer,
have an estimated weighted average life of 0.9 year and have a commitment
period which expires on June 1, 2009.
    For details on securitizations of our own assets, see Note 5 to the
interim consolidated financial statements.

    
                             MANAGEMENT OF RISK
    

    Our approach to management of risk has not changed significantly from
that described on pages 70 to 83 of the 2008 Annual Accountability Report.

    Risk overview

    We manage risk and related balance sheet resources within tolerance
levels established by our management committees and approved by the Board of
Directors and its committees. Key risk management policies are approved or
renewed by the applicable Board and management committees annually. Further
details on the Board and management committees, as applicable to the
management of risk, are provided in the "Governance" section included within
the 2008 Annual Accountability Report.
    Several groups within Risk Management, independent of the originating
businesses, contribute to our management of risk. Following a realignment of
risk management during the quarter, there are four groups which are as
follows:

    
    -   Capital Markets Risk Management - provides independent oversight of
        policies, procedures and standards concerning the measurement,
        monitoring and control of market risks (both trading and non-
        trading), trading credit risk and trading operational risk across
        CIBC's portfolios.
    -   Product Risk Management, Card Products, Mortgages & Retail Lending -
        oversees the management of credit and fraud risk in the credit card,
        residential mortgages and retail lending portfolios, including the
        optimization of lending profitability.
    -   Wholesale Credit & Investment Risk Management - responsible for the
        credit quality of CIBC's risk-rated credits through the global
        management of adjudication of small business, commercial and
        wholesale credit risks, as well as management of the special loans
        and investments portfolios.
    -   Risk Services - responsible for a range of activities, including:
        strategic risk analytics; credit portfolio management; Basel II
        reporting; economic capital; credit risk analytics; risk rating
        methodology; corporate and operational risk management; and vetting
        and validating of models and parameters.
    

    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 risk mitigation

    Our credit risk management policies include requirements relating to
collateral valuation and management, including verification requirements and
legal certainty. Valuations are updated periodically depending on the nature
of the collateral. The main types of collateral are cash or securities for
securities lending and reverse repurchase transactions; charges over
inventory, receivables and real properties for lending to commercial
borrowers; mortgages over residential real properties for retail lending; and
operating assets for corporate and small business borrowers.
    We obtain third-party guarantees and insurance to reduce the risk in our
lending portfolios. The most material of these guarantees relates to that part
of our residential mortgage portfolio that is guaranteed by CMHC, a Government
of Canada owned corporation, or other investment grade counterparties.
    We use credit derivatives to reduce industry sector concentrations and
single-name exposures, or as part of portfolio diversification techniques.
    We limit the credit risk of derivatives traded over-the-counter through
the use of multi-product derivative master netting agreements and collateral.

    Exposure to credit risk

    Our gross credit exposure measured as exposure at default (EAD) for on-
and off-balance sheet financial instruments was $476.7 billion as at January
31, 2009 (October 31, 2008: $458.7 billion). The change in exposure was
largely due to increases in drawn exposures in the sovereign and bank
categories, partially offset by a decrease in drawn exposures in real estate
secured personal lending.

    Counterparty credit exposures

    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 2008
consolidated financial statements.
    We establish a credit valuation adjustment for expected future credit
losses from each of our derivative counterparties. As at January 31, 2009, the
credit valuation adjustment for all derivative counterparties was $4.8 billion
(October 31, 2008: $4.7 billion).

    
    Rating profile of derivative MTM receivables(1)

    -------------------------------------------------------------------------
                                                      2009              2008
    $ billions, as at                              Jan. 31           Oct. 31
    -------------------------------------------------------------------------
    Standard & Poor's rating equivalent
    AAA to BBB-                           $   7.3    69.2%  $   8.3    80.9%
    BB+ to B-                                 2.4     22.9      1.2     11.5
    CCC+ to CCC-                              0.6      6.1      0.7      6.6
    Below CCC-                                0.2      1.2        -      0.2
    Unrated                                   0.1      0.6      0.1      0.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                 $  10.6   100.0%  $  10.3   100.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) MTM value of the derivative contracts after credit
        valuation adjustments and derivative master netting agreements but
        before any collateral.


    Impaired loans and allowance and provision for credit losses

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                         $      668   $      584
    Business and government(1)                              457          399
    -------------------------------------------------------------------------
    Total gross impaired loans                       $    1,125   $      983
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Allowance for credit losses
    Consumer                                         $      936   $      888
    Business and government(1)                              615          558
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,551   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
    Specific allowance for loans                     $      701   $      631
    General allowance for loans(2)                          850          815
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,551   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    (2) Excludes general allowance for undrawn credit facilities of
        $76 million (October 31, 2008, $77 million).
    

    Gross impaired loans were up $142 million or 14% from October 31, 2008.
Consumer gross impaired loans were up $84 million or 14%, whereas business and
government gross impaired loans were up $58 million or 15%. Total gross
impaired loans increased $90 million in Canada, $21 million in the U.S., and
$31 million in other countries. The overall increase in gross impaired loans
was largely attributed to residential mortgages, personal lending, business
services and transportation sectors.
    Allowance for credit losses was up $105 million or 7% from October 31,
2008. Specific allowance was up $70 million or 11% from October 31, 2008,
primarily due to increases in credit cards, personal lending, business
services, and transportation sectors. General allowance was up $35 million
from October 31, 2008 due to increases in the large corporate lending
portfolio.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    Market risk

    Trading activities

    The following table shows Value-at-Risk (VaR) by risk type for CIBC's
trading activities.
    The VaR for the three months ended January 31, 2009 disclosed in the
table and backtesting chart below exclude our exposures in our run-off
businesses as described on pages 9 to 16 of the MD&A. Due to the volatile and
illiquid markets, the quantification of risk for these positions is subject to
a high degree of uncertainty. These positions are being managed down
independent of our trading businesses.
    Total average risk was down 38% from the last quarter, primarily due to
proactive reduction of our market risk exposure across trading books. Total
average risk is not comparable to total average risk from the same quarter
last year because that number includes the run-off businesses.
    Actual realized market loss experience may differ from that implied by
the VaR measure for a variety of reasons. Fluctuations in market rates and
prices may differ from those in the past that are used to compute the VaR
measure. Additionally, the VaR measure does not account for any losses that
may occur beyond the 99% confidence level.

    
    VaR by risk type - trading portfolio

                                         As at or for the three months ended
                                   ------------------------------------------
                                                               Jan. 31, 2009
                                   ------------------------------------------
    $ millions                         High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    7.5   $    3.5   $    4.5   $    4.8
    Credit spread risk                  7.9        1.1        1.6        2.1
    Equity risk                         6.0        3.9        4.0        4.8
    Foreign exchange risk               2.4        0.3        0.5        1.3
    Commodity risk                      1.0        0.3        0.8        0.6
    Debt specific risk                  6.0        1.5        2.4        2.3
    Diversification effect(1)           n/m        n/m       (7.1)      (7.8)
                                                         --------------------
                                                         --------------------
    Total risk                     $   14.6   $    6.1   $    6.7   $    8.1
    -------------------------------------------------------------------------


                                         As at or for the three months ended
                                   ------------------------------------------
                                         Oct. 31, 2008         Jan. 31, 2008
                                   ------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    8.9   $    6.4   $   10.9   $    7.4
    Credit spread risk                  8.7        7.2        9.7       12.8
    Equity risk                         5.2        5.0        6.4        5.0
    Foreign exchange risk               1.4        0.5        0.7        0.7
    Commodity risk                      0.5        0.6        0.8        0.8
    Debt specific risk                  7.1        6.6        8.6       10.5
    Diversification effect(1)         (16.0)     (13.3)     (16.6)     (18.5)
                                   ------------------------------------------
                                   ------------------------------------------
    Total risk                     $   15.8   $   13.0   $   20.5   $   18.7
    -------------------------------------------------------------------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    

    Trading Revenue

    The trading revenue (TEB)(1) and VaR backtesting graph below compares the
current quarter and the three previous quarters' actual daily trading revenue
(TEB)(1) with the previous day's VaR measures.
    Trading revenue (TEB)(1) was positive for 76% of the days in the quarter.
Trading losses exceeded VaR for 1 day during the quarter due to adverse sharp
moves across capital markets. Average daily trading revenue (TEB)(1) was $2
million during the quarter.
    The trading revenue (TEB)(1) for the current quarter excludes $(727.7)
million related to the consolidation of variable interest entities as well as
trading losses from the run-off businesses, including $(751.7) million related
to reductions in fair value of structured credit assets and counterparty
credit-related valuation adjustments and $(10.6) million related to revenue
from other positions in the run-off books.

    Backtesting of Trading Revenue (TEB)(1) vs. VAR

    (image appears here)

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


    Non-trading activities

    Interest rate risk

    Non-trading interest rate risk consists primarily of risk inherent in
Asset Liability Management (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 over the next 12 months of
an immediate 100 basis point increase or decrease in interest rates, adjusted
for estimated prepayments.

    
    Interest rate sensitivity - non-trading (after-tax)

    -------------------------------------------------------------------------
                              2009                 2008                 2008
                           Jan. 31              Oct. 31              Jan. 31
                   ----------------------------------------------------------
    $ millions,
     as at         $    US$  Other      $    US$  Other      $    US$  Other
    -------------------------------------------------------------------------
    100 basis
     points
     increase
     in interest
     rates
    Net income  $115   $(21)    $8    $74   $(18)    $5    $23    $(1)    $-
    Change in
     present
     value of
     share-
     holders'
     equity      203    (48)    (3)   225    (36)    (5)   101     31     36

    100 basis
     points
     decrease
     in interest
     rates
    Net income  $(53)   $20    $(9)  $(59)    $18   $(5)  $(56)    $1     $-
    Change in
     present
     value of
     share-
     holders'
     equity     (226)    47      1   (255)     36     5   (143)   (31)   (37)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Liquidity Risk

    Liquidity risk arises from our general funding activities and in the
course of managing our assets and liabilities. It is the risk of having
insufficient cash resources to meet current financial obligations without
raising funds at unfavourable rates or selling assets on a forced basis.
    Our liquidity risk management strategies seek to maintain sufficient
liquid financial resources to continually fund our balance sheet under both
normal and stressed market environments.
    We obtain funding through both wholesale and retail sources. Core
personal deposits remain a primary source of retail funding. As at January 31,
2009, Canadian dollar deposits from individuals totalled $92.5 billion
(October 31, 2008: $90.5 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding within prudential limits across a range of
maturities, asset securitization initiatives, adequate capitalization, and
segregated pools of high-quality liquid assets that can be sold or pledged as
security to provide a ready source of cash. Collectively, these strategies
result in lower dependency on short-term wholesale funding.
    New facilities introduced in 2008 by various governments and global
central banks including Bank of Canada and the Federal Reserve Bank provide
liquidity to financial systems. These exceptional liquidity initiatives
include expansion of eligible types of collateral, provision of term liquidity
through Purchase and Resale Agreement facilities, and the pooling and sale to
CMHC of National Housing Act mortgage-backed securities which comprises
insured residential mortgage pools. From time to time, we utilize these term
funding facilities, pledging a combination of private and public sector assets
against these obligations.

    
    Balance sheet liquid assets are summarized in the following table:

    -------------------------------------------------------------------------
                                                           2009         2008
    $ billions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.0   $      1.1
    Deposits with banks                                     8.6          7.9
    Securities(1)                                          33.4         39.6
    Securities borrowed or purchased
       under resale agreements                             33.3         35.6
    -------------------------------------------------------------------------
                                                     $     76.3   $     84.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Comprises AFS securities and securities designated at fair value
        (FVO) with residual term to contractual maturity within one year and
        trading securities.
    

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to-day clearing and settlement of payments and securities. Pledged assets,
including those for covered bonds and securities borrowed or financed through
repurchase agreements, as at January 31, 2009 totalled $44.3 billion (October
31, 2008: $44.6 billion).
    Access to wholesale funding sources and the cost of funds are dependent
on various factors including credit ratings. There has been no change to our
ratings during this quarter.

    Contractual obligations

    Contractual obligations give rise to commitments of future payments
affecting our short- and long-term liquidity and capital resource needs. These
obligations include financial liabilities, credit and liquidity commitments,
and other contractual obligations.
    Details of our contractual obligations are provided on pages 81 to 82 of
the 2008 Annual Accountability Report. There were no significant changes to
contractual obligations that were not in the ordinary course of our business.

    Operational risk

    In December 2008, we received formal acceptance of the Advanced
Measurement Approach (AMA) for operational risk from OSFI.

    Other risks

    We also have policies and processes to measure, monitor and control other
risks, including reputation and legal, regulatory, strategic, and
environmental risks.
    For additional details, see pages 82 to 83 of the 2008 Annual
Accountability Report.

    
                       ACCOUNTING AND CONTROL MATTERS
    

    Critical accounting policies and estimates

    A summary of significant accounting policies is presented in Note 1 to
the 2008 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 84 to 88 of the 2008 Annual Accountability Report.

    Valuation of financial instruments

    The table below presents the valuation methods used to determine the
sources of fair value of those financial instruments which are held at fair
value on the consolidated balance sheet and the percentage of each category of
financial instruments which are fair valued using these valuation techniques:

    
    -------------------------------------------------------------------------
                                                      Valuation    Valuation
                                                    technique -  technique -
                                            Quoted       market   non-market
                                            market   observable   observable
    As at January 31, 2009                   price       inputs       inputs
    -------------------------------------------------------------------------
    Assets
      Trading securities                       75%         19%            6%
      AFS securities                            83          14             3
      FVO financial instruments                  5          94             1
      Derivative instruments                     3          86            11
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to
       securities sold short                   82%         18%            -%
      FVO financial instruments                  -          94             6
      Derivative instruments                     2          76            22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                      Valuation    Valuation
                                                    technique -  technique -
                                            Quoted       market   non-market
                                            market   observable   observable
    As at October 31, 2008                   price       inputs       inputs
    -------------------------------------------------------------------------
    Assets
      Trading securities                       87%          10%           3%
      AFS securities                            54           39            7
      FVO financial instruments                  3           96            1
      Derivative instruments                     4           82           14
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to
       securities sold short                   74%          26%           -%
      FVO financial instruments                  -           88           12
      Derivative instruments                     4           73           23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The table below presents amounts, in each category of financial
instruments, which are fair valued using valuation techniques based on non-
market observable inputs, for the total bank and the structured credit
business:

    -------------------------------------------------------------------------
                                              2009          2009        2009
                                            Jan.31        Jan.31      Jan.31
                                 --------------------------------------------
                                 Structured credit         Total       Total
    $ millions, as at             run-off business          CIBC        CIBC
    -------------------------------------------------------------------------
    Assets
      Trading securities                  $    471      $    954          6%
      AFS securities                           215         1,204           3
      FVO financial instruments                198           207           1
      Derivative instruments                 3,628         3,811          11
    -------------------------------------------------------------------------
    Liabilities
      FVO financial instruments                509           509           6
      Derivative instruments                 7,461         8,636          22
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    We apply judgment in establishing valuation adjustments that take into
account various factors that may have an impact on the valuation. Such factors
include, but are not limited to, the bid-offer spread, illiquidity due to lack
of market depth, parameter uncertainty and other market risk, model risk,
credit risk and future administration costs.
    The following table summarizes our valuation adjustments:

    -------------------------------------------------------------------------
                                                            2009        2008
    $ millions, as at                                    Jan. 31      Oct.31
    -------------------------------------------------------------------------
    Trading securities
      Market risk                                       $     26    $     43
    Derivatives
      Market risk                                            153         223
      Credit risk                                          4,830       4,672
      Administration costs                                    31          30
      Other                                                    5           6
    -------------------------------------------------------------------------
                                                        $  5,045    $  4,974
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Much of our structured credit run-off business requires the application
of valuation techniques using non-market observable inputs. Indicative broker
quotes in an inactive market and internal models using expected rather than
observed market parameters, which we consider to be non-market observable, are
primarily used for the valuation of these positions.
    After arriving at these valuations, we consider whether a credit
valuation adjustment is required to recognize the risk that any given
counterparty to which we are exposed, may not ultimately be able to fulfill
its obligations.
    Our credit valuation adjustments continue to be driven off market
observed credit spreads for each of the counterparties, where such information
is available. These spreads are applied in relation to the weighted average
life of the underlying instruments protected by these counterparties, while
considering the probabilities of default derived from these spreads.
Furthermore our approach takes into account the correlation between the
performance of the underlying assets and the counterparties.
    Where a counterparty does not have an observable credit spread, we use a
proxy that reflects the credit profile of the counterparty.
    Where appropriate on certain financial guarantors, we determined the CVA
based on estimated recoverable amounts.
    Our unhedged structured credit exposures (USRMM and non-USRMM) are
sensitive to changes in MTM, generally as derived from indicative broker
quotes or internal models as described above. A 10% adverse change in mark-to-
market of the underlyings would result in a loss of approximately $8 million
in our unhedged USRMM portfolio and $50 million in our non-USRMM portfolio,
excluding unhedged HTM positions and before the impact of the Cerberus
transaction.
    A 10% reduction in the mark-to-market of our on-balance sheet hedged
structured credit positions other than those classified as HTM and a 10%
increase in the fair value (before CVA) of all credit derivatives in our
hedged structured credit positions would result in a net loss of approximately
$273 million before the impact of the Cerberus protection. The fair value of
the Cerberus protection is expected to reasonably offset any changes in fair
value of protected USRMM positions.
    The impact of a 10% reduction in receivable net of CVA from financial
guarantors would result in a net loss of approximately $237 million.
    The total loss recognized in the consolidated statement of operations on
the financial instruments, for which fair value was estimated using a
valuation technique requiring unobservable market parameters, was $691
million.

    Risk factors related to fair value adjustments

    We believe that we have made appropriate fair value adjustments and have
taken appropriate write-downs to date. The establishment of fair value
adjustments and the determination of the amount of write-downs involve
estimates that are based on accounting processes and judgments by management.
We evaluate the adequacy of the fair value adjustments and the amount of
write- downs on an ongoing basis. The levels of fair value adjustments and the
amount of the write-downs could be changed as events warrant.
    We have policies that set standards governing the independent
verification of prices of traded instruments at a minimum on a monthly basis.
Where lack of adequate price discovery in the market results in a non-
compliance for a particular position, management is required to assess the
need for an appropriate valuation adjustment to address such valuation
uncertainties.

    Reclassification of financial assets

    In October 2008, certain trading financial assets, for which there was no
active market and which management intends to hold to maturity or for the
foreseeable future, were reclassified as HTM and AFS respectively, with effect
from August 1, 2008 at fair value as at that date. In the current quarter, we
have also reclassified $144 million of trading financial assets to AFS.
    If the above reclassifications had not been made, $322 million and $26
million of unrealized losses relating to securities reclassified to HTM and
AFS respectively would have been included in the consolidated statement of
operations in the current quarter.

    Accounting Developments

    Intangibles

    Effective November 1, 2008, we adopted CICA 3064, "Goodwill and
Intangible Assets", which replaced CICA 3062, "Goodwill and Other Intangible
Assets", and CICA 3450, "Research and Development Costs". The new standard
establishes standards for recognition, measurement, presentation and
disclosure of goodwill and intangible assets.
    The adoption of this guidance did not result in a change in the
recognition of our goodwill and intangible assets. However, we have
retroactively reclassified intangible assets relating to application software
with net book value of $374 million as at January 31, 2009 (October 31, 2008:
$385 million) from Land, Buildings and Equipment to Software and Other
Intangible Assets on our consolidated balance sheet.

    Transition to International Financial Reporting Standards (IFRS)

    In February 2008, the Accounting Standards Board of the CICA affirmed its
intention to replace Canadian GAAP with IFRS. CIBC will adopt IFRS commencing
November 1, 2011 with comparatives for the year commencing November 1, 2010.
    CIBC's IFRS transition project is in progress with a formal governance
structure and transition plan in place. At this point it remains too early to
comment on the anticipated financial impact to the balance sheet and ongoing
results of operation resulting from the transition to IFRS as changes to the
accounting standards are expected prior to transition.

    Controls and procedures

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at January
31, 2009, 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, 2009, that have materially
affected, or are reasonably likely to materially affect, its internal control
over financial reporting.


    
    CIBC INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
    -------------------------------------------------------------------------

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

                                                           2009         2008
    Unaudited, $ millions, as at                        Jan. 31      Oct. 31
    ------------------------------------------------------------ ------------

    ASSETS
    Cash and non-interest-bearing
     deposits with banks                             $    1,333   $    1,558
    ------------------------------------------------------------ ------------
    Interest-bearing deposits with banks                  8,309        7,401
    ------------------------------------------------------------ ------------
    Securities (Note 3)
    Trading                                              16,357       37,244
    Available-for-sale (AFS)                             36,007       13,302
    Designated at fair value (FVO)                       21,798       21,861
    Held-to-maturity (HTM)                                6,785        6,764
    ------------------------------------------------------------ ------------
                                                         80,947       79,171
    ------------------------------------------------------------ ------------
    Securities borrowed or purchased under
     resale agreements                                   33,253       35,596
    ------------------------------------------------------------ ------------
    Loans
    Residential mortgages                                85,658       90,695
    Personal                                             32,493       32,124
    Credit card                                          10,461       10,829
    Business and government                              38,096       39,273
    Allowance for credit losses (Note 4)                 (1,551)      (1,446)
    ------------------------------------------------------------ ------------
                                                        165,157      171,475
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               34,144       28,644
    Customers' liability under acceptances                9,342        8,848
    Land, buildings and equipment                         1,620        1,623
    Goodwill                                              2,123        2,100
    Software and other intangible assets                    798          812
    Other assets (Note 8)                                16,789       16,702
    ------------------------------------------------------------ ------------
                                                         64,816       58,729
    ------------------------------------------------------------ ------------
                                                     $  353,815   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $  101,179   $   99,477
    Business and government                             113,534      117,772
    Bank                                                 11,670       15,703
    ------------------------------------------------------------ ------------
                                                        226,383      232,952
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               38,851       32,742
    Acceptances                                           9,345        8,848
    Obligations related to securities sold short          6,465        6,924
    Obligations related to securities lent or
     sold under repurchase agreements                    38,141       38,023
    Other liabilities                                    13,441       13,167
    ------------------------------------------------------------ ------------
                                                        106,243       99,704
    ------------------------------------------------------------ ------------
    Subordinated indebtedness                             6,728        6,658
    ------------------------------------------------------------ ------------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------ ------------
    Non-controlling interests                               189          185
    ------------------------------------------------------------ ------------
    Shareholders' equity
    Preferred shares (Note 13)                            2,631        2,631
    Common shares (Note 6)                                6,074        6,062
    Treasury shares                                           -            1
    Contributed surplus                                     100           96
    Retained earnings                                     5,257        5,483
    Accumulated other comprehensive (loss) (AOCI)          (390)        (442)
    ------------------------------------------------------------ ------------
                                                         13,672       13,831
    ------------------------------------------------------------ ------------
                                                     $  353,815   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------

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



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

                                                  For the three months ended
                                       --------------------------------------
                                              2009         2008         2008
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Interest income
    Loans                               $    1,908   $    2,204   $    2,582
    Securities borrowed or
     purchased under resale
     agreements                                171          261          529
    Securities                                 662          650          664
    Deposits with banks                         54          112          230
    -------------------------------------------------------------------------
                                             2,795        3,227        4,005
    -------------------------------------------------------------------------
    Interest expense
    Deposits                                 1,040        1,415        2,208
    Other liabilities                          350          356          563
    Subordinated indebtedness                   64           71           72
    Preferred share liabilities                  8            8            8
    -------------------------------------------------------------------------
                                             1,462        1,850        2,851
    -------------------------------------------------------------------------
    Net interest income                      1,333        1,377        1,154
    -------------------------------------------------------------------------
    Non-interest income
    Underwriting and advisory fees             102           79          176
    Deposit and payment fees                   193          193          195
    Credit fees                                 60           63           60
    Card fees                                   95           81           77
    Investment management and
     custodial fees                            108          129          136
    Mutual fund fees                           159          190          212
    Insurance fees, net of claims               66           65           58
    Commissions on securities
     transactions                              120          128          170
    Trading revenue (Note 7)                  (720)        (499)      (3,127)
    AFS securities gains (losses),
     net                                       148          (71)         (49)
    FVO revenue                                 44         (163)         (29)
    Income from securitized assets             119          134          144
    Foreign exchange other than
     trading                                   117          214          132
    Other                                       78          284          170
    -------------------------------------------------------------------------
                                               689          827       (1,675)
    -------------------------------------------------------------------------
    Total revenue                            2,022        2,204         (521)
    -------------------------------------------------------------------------
    Provision for credit losses
     (Note 4)                                  284          222          172
    -------------------------------------------------------------------------
    Non-interest expenses
    Employee compensation and
     benefits (Note 9)                         932        1,048          994
    Occupancy costs                            134          175          145
    Computer, software and office
     equipment                                 245          298          262
    Communications                              68           71           74
    Advertising and business
     development                                47           55           53
    Professional fees                           40           60           51
    Business and capital taxes                  30           29           25
    Other                                      157          191          157
    -------------------------------------------------------------------------
                                             1,653        1,927        1,761
    -------------------------------------------------------------------------
    Income (loss) before income
     taxes and non-controlling
     interests                                  85           55       (2,454)
    Income tax benefit                         (67)        (384)      (1,002)
    -------------------------------------------------------------------------
                                               152          439       (1,452)
    Non-controlling interests                    5            3            4
    -------------------------------------------------------------------------
    Net income (loss)                   $      147   $      436   $   (1,456)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
     (in dollars)
     (Note 10)      -Basic              $     0.29   $     1.07   $    (4.39)
                    -Diluted            $     0.29   $     1.06   $    (4.39)
    Dividends per common share
     (in dollars)                       $     0.87   $     0.87   $     0.87
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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



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

                                                  For the three months ended
                                       --------------------------------------
                                              2009         2008         2008
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Preferred shares
    Balance at beginning
     of period                          $    2,631   $    2,331   $    2,331
    Issue of preferred shares                    -          300            -
    -------------------------------------------------------------------------
    Balance at end of period            $    2,631   $    2,631   $    2,331
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Common shares
    Balance at beginning of
     period                             $    6,062   $    6,060   $    3,133
    Issue of common shares                      12            3        2,948
    Issuance costs, net of
     related income taxes                        -           (1)         (32)
    -------------------------------------------------------------------------
    Balance at end of period            $    6,074   $    6,062   $    6,049
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Treasury shares
    Balance at beginning of
     period                             $        1   $        -   $        4
    Purchases                               (1,955)      (1,861)      (2,959)
    Sales                                    1,954        1,862        2,967
    -------------------------------------------------------------------------
    Balance at end of period            $        -   $        1   $       12
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance at beginning of
     period                             $       96   $       89   $       96
    Stock option expense                         4            2            3
    Stock options exercised                      -            -           (1)
    Net premium (discount) on
     treasury shares                             1            3          (14)
    Other                                       (1)           2            2
    -------------------------------------------------------------------------
    Balance at end of period            $      100   $       96   $       86
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings
    Balance at beginning of
     period, as previously
     reported                           $    5,483   $    5,409   $    9,017
    Adjustment for change in
     accounting policies                     (6)(1)           -       (66)(2)
    -------------------------------------------------------------------------
    Balance at beginning of
     period, as restated                     5,477        5,409        8,951
    Net income (loss)                          147          436       (1,456)
    Dividends
      Preferred                                (36)         (29)         (30)
      Common                                  (332)        (331)        (291)
    Other                                        1           (2)           -
    -------------------------------------------------------------------------
    Balance at end of period            $    5,257   $    5,483   $    7,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    AOCI, net of tax
    Balance at beginning of
     period                             $     (442)  $     (745)  $   (1,092)
    Other comprehensive income
     (OCI)                                      52          303          243
    -------------------------------------------------------------------------
    Balance at end of period            $     (390)  $     (442)  $     (849)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings and AOCI          $    4,867   $    5,041   $    6,325
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity at end
     of period                          $   13,672   $   13,831   $   14,803
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents the impact of changing the measurement date for employee
        future benefits. See Note 9 for additional details.
    (2) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants Emerging Issues Committee Abstract 46,
        "Leveraged Leases".

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



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

                                                  For the three months ended
                                       --------------------------------------
                                              2009         2008         2008
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net income (loss)                   $      147   $      436   $   (1,456)
    -------------------------------------------------------------------------
    OCI, net of tax
      Foreign currency translation
       adjustments
      Net gains (losses) on
       investment in self-
       sustaining foreign
       operations                               26        1,712          973
      Net gains (losses) on hedges
       of foreign currency
       translation adjustments                   3       (1,293)        (746)
    -------------------------------------------------------------------------
                                                29          419          227
    -------------------------------------------------------------------------
      Net change in AFS securities
      Net unrealized gains (losses)
       on AFS securities                        87         (111)         (21)
      Transfer of net (gains)
       losses to net income                    (62)         (31)         106
    -------------------------------------------------------------------------
                                                25         (142)          85
    -------------------------------------------------------------------------
      Net change in cash flow hedges
      Net (losses) gains on
       derivatives designated as
       cash flow hedges                         (4)          29          (36)
      Net losses (gains) on
       derivatives designated as
       cash flow hedges
       transferred to net income                 2           (3)         (33)
    -------------------------------------------------------------------------
                                                (2)          26          (69)
    -------------------------------------------------------------------------
    Total OCI                                   52          303          243
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income (loss)         $      199   $      739   $   (1,213)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

                                                  For the three months ended
                                   ------------------------------------------
                                              2009         2008         2008
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Foreign currency translation
     adjustments
      Changes on investment in
       self-sustaining foreign
       operations                       $       (7)  $      (40)  $       (3)
      Changes on hedges of
       foreign currency
       translation adjustments                 (15)         588          374
    Net change in AFS securities
      Net unrealized (gains)
       losses on AFS securities                (56)          14           15
      Transfer of net gains
       (losses) to net income                   30            8          (89)
    Net change in cash flow hedges
      Changes on derivatives
       designated as cash flow
       hedges                                    3          (14)          20
      Changes on derivatives
       designated as cash flow hedges
       transferred to net income                (1)           2           18
    -------------------------------------------------------------------------
                                        $      (46)   $     558   $      335
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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



    -------------------------------------------------------------------------
    CONSOLIDATED STATEMENT OF CASH FLOWS
                                                  For the three months ended
                                       --------------------------------------
                                          2009           2008           2008
    Unaudited, $ millions              Jan. 31        Oct. 31        Jan. 31
    -------------------------------------------------------------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income (loss)              $       147    $       436    $    (1,456)

    Adjustments to reconcile net
     income (loss) to cash flows
     provided by (used in)
     operating activities:
      Provision for credit losses          284            222            172
      Amortization(1)                      103             61             62
      Stock-based compensation              (3)            (1)           (19)
      Future income taxes                 (130)          (494)           (53)
      AFS securities (gains)
       losses, net                        (148)            71             49
      (Gains) losses on disposal of
       land, buildings and equipment        (1)             1              -
      Other non-cash items, net             (8)           251             66
      Changes in operating assets
       and liabilities
        Accrued interest receivable        134            (25)           104
        Accrued interest payable           (92)           (24)           (24)
        Amounts receivable on
         derivative contracts           (5,196)        (5,398)           663
        Amounts payable on
         derivative contracts            5,345          7,397           (954)
        Net change in trading
         securities                   21,031(2)     (2,926)(2)           414
        Net change in FVO securities        63            518         (3,973)
        Net change in other FVO
         financial instruments           4,083          5,570           (581)
        Current income taxes                87            (45)        (1,794)
        Other, net                        (236)        (3,039)        (3,779)
    -------------------------------------------------------------------------
                                        25,463          2,575        (11,103)
    -------------------------------------------------------------------------
    Cash flows (used in) provided by
     financing activities
    Deposits, net of withdrawals        (9,304)          (736)         8,844
    Obligations related to securities
     sold short                         (1,054)          (902)        (3,076)
    Net obligations related to
     securities lent or sold under
     repurchase agreements                 118         11,371            411
    Issue of subordinated
     indebtedness                            -              -           (250)
    Issue of preferred shares                -            300              -
    Issue of common shares, net             12              2          2,916
    Net proceeds from treasury
     shares (purchased) sold                (1)             1              8
    Dividends                             (368)          (360)          (321)
    Other, net                              87          1,878           (445)
    -------------------------------------------------------------------------
                                       (10,510)        11,554          8,087
    -------------------------------------------------------------------------
    Cash flows (used in) provided
     by investing activities
    Interest-bearing deposits with
     banks                                (908)         3,499         (4,230)
    Loans, net of repayments            (1,787)       (12,485)        (2,047)
    Proceeds from securitizations        7,610          5,000          2,250
    Purchase of AFS securities         (28,725)        (7,389)        (1,924)
    Proceeds from sale of AFS
     securities                          5,161          6,877          5,870
    Proceeds from maturity of AFS
     securities                          1,155            471          4,941
    Net securities borrowed or
     purchased under resale
     agreements                          2,343        (10,083)        (1,605)
    Purchase of land, buildings
     and equipment                         (35)           (51)           (43)
    -------------------------------------------------------------------------
                                       (15,186)       (14,161)         3,212
    -------------------------------------------------------------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing deposits
     with banks                              8             44             20
    -------------------------------------------------------------------------
    Net increase (decrease) in cash
     and non-interest-bearing
     deposits with banks during
     period                               (225)            12            216
    Cash and non-interest-bearing
     deposits with banks at
     beginning of period                 1,558          1,546          1,457
    -------------------------------------------------------------------------
    Cash and non-interest-bearing
     deposits with banks at end of
     period                        $     1,333    $     1,558    $     1,673
    -------------------------------------------------------------------------
    Cash interest paid             $     1,554    $     1,874    $     2,875
    Cash income taxes (recovered)
     paid                          $       (25)   $       155    $       846
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Includes amortization of buildings, furniture, equipment leasehold
        improvements, software and other intangible assets.
    (2) Includes securities initially bought as trading securities and
        subsequently reclassified to HTM and AFS securities.

    The accompanying notes 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, 2008, 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, 2008, as set out on
    pages 94 to 155 of the 2008 Annual Accountability Report.

    1.  Change in accounting policy

    Intangible assets

    Effective November 1, 2008, we adopted Canadian Institute of Chartered
    Accountants (CICA) handbook section 3064, "Goodwill and Intangible
    Assets", which replaced CICA handbook sections 3062, "Goodwill and Other
    Intangible Assets", and 3450, "Research and Development Costs". The new
    standard establishes standards for recognition, measurement, presentation
    and disclosure of goodwill and intangible assets.

    The adoption of this guidance did not result in a change in the
    recognition of our goodwill and intangible assets. However, we have
    retroactively reclassified intangible assets relating to application
    software with net book value of $374 million as at January 31, 2009
    (October 31, 2008: $385 million) from "Land, buildings and equipment" to
    "Software and other intangible assets" on our consolidated balance sheet.

    2.  Fair value of financial instruments

    Our approach for fair valuation of financial instruments is presented in
    Note 2 to the 2008 consolidated financial statements.

    Methodology and sensitivity
    Valuation techniques using non-market observable inputs are used for a
    number of financial instruments including our U.S. residential mortgage
    market (USRMM) and certain non-USRMM positions. Indicative broker quotes
    in an inactive market and internal models using expected rather than
    observed market parameters, which we consider to be non-market
    observable, are primarily used for the valuation of these positions.
    Market observed credit spreads where available are a key factor in
    establishing valuation adjustments against our counterparty credit
    exposures.

    Where a counterparty does not have an observable credit spread, we use a
    proxy that reflects the credit profile of the counterparty.

    Where appropriate on certain financial guarantors who we consider non-
    viable, we determined the credit valuation adjustments (CVA) based on
    estimated recoverable amounts.

    Our unhedged structured credit exposures (USRMM and non-USRMM) are
    sensitive to changes in mark-to-market, generally as derived from
    indicative broker quotes or internal models as described above. A 10%
    adverse change in mark-to-market of the underlyings would result in a
    loss of approximately $8 million in our unhedged USRMM portfolio and
    $50 million in our non-USRMM portfolio, excluding unhedged HTM positions
    and before the impact of the transaction with Cerberus Capital Management
    LP (Cerberus).

    A 10% reduction in the mark-to-market of our on-balance sheet hedged
    structured credit positions other than those classified as HTM and a 10%
    increase in the fair value (before CVA) of all credit derivatives in our
    hedged structured credit positions would result in a net loss of
    approximately $273 million before the impact of the Cerberus protection.
    The fair value of the Cerberus protection is expected to reasonably
    offset any changes in the fair value of protected USRMM positions.

    The impact of a 10% reduction in receivable net of CVA from financial
    guarantors would result in a net loss of approximately $237 million.

    The total net loss recognized in the consolidated statement of operations
    on the financial instruments, whose fair value was estimated using a
    valuation technique requiring unobservable market parameters, was
    $691 million.

    Fair value option

    Financial instruments designated at fair value are those that (i) would
    otherwise be recognized in income at amortized cost, causing significant
    measurement inconsistencies with hedging derivatives and securities sold
    short carried at fair value; or (ii) are managed on a fair value basis in
    accordance with a documented trading strategy and reported to key
    management personnel on that basis.

    The fair values of the FVO designated assets and liabilities (excluding
    hedges) were $22,154 million and $8,766 million respectively as at
    January 31, 2009. The FVO designated items and related hedges resulted in
    a net income of $96 million for the quarter.

    The impact of changes in credit spreads on FVO designated loans was a
    gross loss of $69 million and a $18 million loss net of credit hedges in
    the quarter.

    The impact of CIBC's credit risk on outstanding FVO designated
    liabilities was a $20 million loss for the quarter.

    3.  Securities

    Reclassification of financial instruments

    In October 2008, amendments made to the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement" and 3862 "Financial
    Instruments - Disclosures" permitted certain trading financial assets to
    be reclassified to HTM and AFS in rare circumstances. In the current
    quarter, as a result of the lack of an active trading market, we have
    changed our intention on certain positions from trading to AFS
    securities.

    The following table shows the carrying values and fair values of the
    assets reclassified to date:

    -------------------------------------------------------------------------
    $ millions, as at            January 31, 2009           October 31, 2008
    -------------------------------------------------------------------------
                         Current Quarter        Previously
                       Reclassifications      Reclassified

                           Fair Carrying     Fair Carrying     Fair Carrying
                          value    value    value    value    value    value
                        ----------------- ----------------- -----------------

    Trading assets
     reclassified to
     HTM                $     -  $     -  $ 5,835  $ 6,785  $ 6,135  $ 6,764
    Trading assets
     reclassified to
     AFS                    139      139    1,073    1,073    1,078    1,078
    ------------------------------------- -----------------------------------
    Total financial
     assets re-
     classified         $   139  $   139  $ 6,908  $ 7,858  $ 7,213  $ 7,842
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the quarter, we recognized gross income of $124 million (three
    months ended October 31, 2008: $389 million), before funding related
    interest expenses of $44 million (three months ended October 31, 2008:
    $46 million), relating to securities reclassified from held for trading
    to HTM and AFS. If the reclassification had not been made, income before
    taxes for the quarter would have been reduced by $322 million (three
    months ended October 31, 2008: $629 million) and $26 million (three
    months ended October 31, 2008: $8 million) relating to HTM and AFS
    securities, respectively.

    4.  Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
                       ------------------------------------------------------
                                                          Oct. 31,   Jan. 31,
                                         Jan. 31, 2009       2008       2008
                       ------------------------------------------------------
                        Specific    General      Total      Total      Total
    $ millions         allowance  allowance  allowance  allowance  allowance
    -------------------------------------------------------------------------
    Balance at beginning
     of period           $   631    $   892    $ 1,523    $ 1,484    $ 1,443
    Provision for credit
     losses                  247         37        284        222        172
    Write-offs              (228)         -       (228)      (250)      (187)
    Recoveries                44          -         44         30         31
    Transfer from
     general to
     specific(1)               3         (3)         -          -          -
    Other                      4          -          4         37         10
    -------------------------------------------------------------------------
    Balance at end of
     period              $   701    $   926    $ 1,627    $ 1,523    $ 1,469
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans              $   701    $   850    $ 1,551    $ 1,446    $ 1,379
      Undrawn credit
       facilities              -         76         76         77         90
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Related to student loan portfolio.

    5.  Securitizations and variable interest entities

    Securitizations (residential mortgages)

    We securitize insured fixed- and variable-rate residential mortgages
    through the creation of mortgage-backed securities under the Canada
    Mortgage Bond Program and the more recent Government of Canada NHA MBS
    Auction process. We also securitize mortgage assets to a qualifying
    special purpose entity (QSPE) that holds Canadian mortgages. Total assets
    in the QSPE as at January 31, 2009 were $674 million, of which
    $277 million represent insured prime mortgages and the remaining
    $397 million represent uninsured Near Prime/Alt A mortgages. We also hold
    another $135 million in inventory that is available for securitization.
    The Near Prime/Alt A mortgages do not meet traditional lending criteria
    in order to qualify for prime-based lending because of either limited
    credit history or specific isolated event driven credit issues, but
    otherwise have a strong credit profile with an average loss rate over the
    past five years of 18 bps and an average loan-to-value ratio of 75%.

    Upon sale of securitized assets, a net gain or loss is recognized in
    "Income from securitized assets". We retain responsibility for servicing
    the mortgages and recognize revenue as these services are provided.

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2009         2008         2008
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Securitized                         $    7,864   $    4,931   $    6,308
    Sold                                     7,601        5,008        2,272
    Net cash proceeds                        7,610        5,000        2,250
    Retained interests                         386          195           48
    Gain on sale, net of transaction costs      (6)          48           14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)

    Weighted-average remaining
     life (in years)                           3.4          3.6          3.7
    Prepayment/payment rate            13.0 - 24.0  11.0 - 28.0  11.0 - 36.0
    Discount rate                        1.4 - 7.5    2.4 - 7.0    3.8 - 4.6
    Expected credit losses               0.0 - 0.2    0.0 - 0.1    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Variable interest entities (VIEs)

    VIEs that are consolidated
    As discussed in Note 6 to our 2008 consolidated financial statements, we
    were considered the primary beneficiary of certain VIEs and consolidated
    total assets and liabilities of approximately $881 million as at
    January 31, 2009 (October 31, 2008: $109 million).

    During the quarter we acquired all of the commercial paper issued by
    MACRO Trust, a CIBC-sponsored conduit.  This resulted in the
    consolidation of the conduit with $611 million of dealer floorplan
    receivables and other assets being recognized in the consolidated balance
    sheet as at January 31, 2009.

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

    $ millions, as at                                        2009       2008
                                                           Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Cash                                                $      30  $       -
    Trading securities                                         35         34
    AFS securities                                             88         60
    Residential mortgages                                     135         15
    Other assets                                              593          -
    -------------------------------------------------------------------------
                                                        $     881  $     109
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    VIEs in which we have a significant interest, but do not consolidate
    As a consequence of the commutation of purchased credit derivative
    contracts with a financial guarantor, we consider our interest in the
    unhedged underlying Collateralized Debt Obligation (CDO) positions to be
    significant. Total assets applicable to these CDOs were approximately
    $1.5 billion as at January 31, 2009 and our maximum exposure to loss was
    negligible.

    6.  Share capital

    Common shares
    During the quarter, we issued 0.3 million new common shares for a total
    consideration of $12 million, pursuant to stock options plans.

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

    -------------------------------------------------------------------------
                                                             2009       2008
    $ millions, as at                                     Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                      $  12,017  $  12,365
    Total regulatory capital                               18,115     18,129
    Risk-weighted assets                                  122,400    117,946
    Tier 1 capital ratio                                     9.8%      10.5%
    Total capital ratio                                     14.8%      15.4%
    Assets-to-capital multiple                              17.7x      17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    7.  Financial guarantors

    We have derivative contracts with financial guarantors 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 $636 million on the hedging contracts provided by
    financial guarantors in trading revenue. Their related valuation
    adjustments were $4.7 billion as at January 31, 2009. The fair value of
    derivative contracts with financial guarantors net of valuation
    adjustments was $2.4 billion.

    In January 2009, we commuted USRMM contracts with a financial guarantor
    for cash consideration of $105 million and common equity valued at
    $15 million, for a total of $120 million which was equal to the fair
    value of the net USRMM receivable at that time. As a result we wrote down
    the gross receivable by $720 million with a corresponding reduction of
    the related credit valuation adjustment of $600 million. There was
    negligible impact to our results for the quarter.

    We believe that we have made appropriate fair value adjustments to date.
    The establishment of fair value adjustments involves estimates that are
    based on accounting processes and judgments by management. We evaluate
    the adequacy of the fair value adjustments on an ongoing basis. Market
    and economic conditions relating to these counterparties may change in
    the future, which could result in significant future losses.

    8.  Income taxes

    At the end of the quarter, our future income tax asset was
    $1,971 million, net of a $64 million valuation allowance. Included in the
    future income tax asset are $1,258 million related to Canadian non-
    capital loss carryforwards that expire in 20 years, $76 million related
    to Canadian capital loss carryforwards that have no expiry date, and
    $471 million related to our U.S operations. Accounting standards require
    a valuation allowance when it is more likely than not that all or a
    portion of a future income tax asset will not be realized prior to its
    expiration. Although realization is not assured, we believe that based on
    all available evidence, it is more likely than not that all of the future
    income tax asset, net of the valuation allowance, will be realized.

    9.  Employee compensation and benefits

    Share based compensation
    The impact due to changes in CIBC's share price in respect of cash-
    settled share-based compensation under the Restricted Share Awards Plan
    is hedged through the use of derivatives. The gains and losses on these
    derivatives are recognized in employee compensation and benefits, within
    the consolidated statement of operations. Losses related to these
    derivatives for the quarter recognized in the consolidated statement of
    operations and other comprehensive income were $1 million and $4 million,
    respectively.

    Employee future benefit expenses
    -------------------------------------------------------------------------
                                                  For the three months ended
                                             --------------------------------
                                                  2009       2008       2008
    $ millions                                 Jan. 31    Oct. 31    Jan. 31
    -------------------------------------------------------------------------
    Defined benefit plans(1)

    Pension benefit plans                    $      20  $      42  $      38
    Other benefit plans                             10         11          8
    -------------------------------------------------------------------------
                                             $      30  $      53  $      46
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Defined contribution plans

    CIBC's pension plans                     $       3  $       4  $       4
    Government pension plans(2)                     20         13         21
    -------------------------------------------------------------------------
                                             $      23  $      17  $      25
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Effective November 1, 2008, we elected to change our measurement date
        for accrued benefit obligations and the fair value of plan assets
        related to our employee defined benefit plans from September 30 to
        October 31. This change aligns our measurement date with our fiscal
        year end and had no impact on our consolidated statement of
        operations for the quarter.
    (2) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    10. Earnings (loss) per share (EPS)

    -------------------------------------------------------------------------
                                                  For the three months ended
                                             --------------------------------
                                                  2009       2008       2008
    $ millions, except per share amounts       Jan. 31    Oct. 31    Jan. 31
    -------------------------------------------------------------------------
    Basic EPS
    Net income (loss)                        $     147  $     436  $  (1,456)
    Preferred share dividends and premiums         (36)       (29)       (30)
    -------------------------------------------------------------------------
    Net income (loss) applicable to common
     shares                                  $     111  $     407  $  (1,486)
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)                   380,911    380,782    338,732
    -------------------------------------------------------------------------
    Basic EPS                                $    0.29  $    1.07  $   (4.39)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted EPS
    Net income (loss) applicable to common
     shares                                  $     111  $     407  $  (1,486)
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)                   380,911    380,782    338,732
    Add: stock options potentially
     exercisable(1) (thousands)                    513      1,139      2,079
    -------------------------------------------------------------------------
    Weighted-average diluted common shares
     outstanding(2) (thousands)                381,424    381,921    340,811
    -------------------------------------------------------------------------
    Diluted EPS(3)                           $    0.29  $    1.06  $   (4.39)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes average options outstanding of 4,506,016 with a weighted-
        average exercise price of $65.94; average options outstanding of
        2,363,830 with a weighted-average exercise price of $78.02; and
        average options outstanding of 850,531 with a weighted-average
        exercise price of $87.69 for the three months ended January 31, 2009,
        October 31, 2008, and January 31, 2008, 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

    -------------------------------------------------------------------------
                                                  2009                  2008
    $ 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)           $  34,043  $       -  $  36,152  $       -
    Standby and performance
     letters of credit                6,267         16      6,249         14
    Credit derivatives
      Written options                30,526      7,054     32,717      6,877
      Swap contracts written
       protection                     3,970        303      3,892        256
    Other derivative written
     options                            -(3)     4,272        -(3)     4,334
    Other indemnification
     agreements                         -(3)         -        -(3)         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $36.9 billion (October 31, 2008: $39.3 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) See narrative on page 143 of the 2008 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
    -Technology and Operations; Corporate Development; Finance (including
    Treasury); Administration; and Risk Management. The activities of these
    functional groups are included within Corporate and Other, with their
    revenue, expenses and balance sheet resources generally being allocated
    to the business lines.

    During the quarter we moved the impact of securitization from CIBC Retail
    Markets to Corporate and Other. Prior period information was restated. In
    addition, we moved the sublease income of our New York premises from CIBC
    World Markets to Corporate and Other. Prior period information was not
    restated.

    -------------------------------------------------------------------------
                                       CIBC       CIBC
    $ millions, for the three        Retail      World  Corporate       CIBC
     months ended                   Markets    Markets  and Other      Total
    -------------------------------------------------------------------------
    Jan. 31, 2009
      Net interest income
       (expense)                  $   1,291  $      78  $     (36) $   1,333
      Non-interest income
       (expense)                      1,124       (446)        11        689
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,416       (368)       (26)     2,022
      Provision for credit losses       327         19        (62)       284
      Amortization(2)                    35          2         66        103
      Other non-interest expenses     1,270        265         15      1,550
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        784       (654)       (45)        85
      Income tax expense (benefit)      217       (241)       (43)       (67)
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income (loss)           $     562  $    (413) $      (2) $     147
    -------------------------------------------------------------------------
      Average assets(3)           $ 292,724  $  97,316  $ (20,791) $ 369,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008
      Net interest income         $   1,397  $     (37) $      17  $   1,377
      Non-interest income
       (expense)                        969       (281)       139        827
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,367       (318)       155      2,204
      Provision for credit losses       266        (10)       (34)       222
      Amortization(2)                    28          4         29         61
      Other non-interest expenses     1,335        284        247      1,866
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        738       (596)       (87)        55
      Income tax expense (benefit)      178       (726)       164       (384)
      Non-controlling interests           6         (3)         -          3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income (loss)           $     554  $     133  $    (251) $     436
    -------------------------------------------------------------------------
      Average assets(3)           $ 271,464  $  87,760  $ (16,603) $ 342,621
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2008
      Net interest income
       (expense)                  $   1,384  $    (164) $     (66) $   1,154
      Non-interest income             1,025     (2,793)        93     (1,675)
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,410     (2,957)        26       (521)
      Provision for (reversal of)
       credit losses                    189         17        (34)       172
      Amortization(2)                    28          5         29         62
      Other non-interest expenses     1,325        346         28      1,699
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Income before income taxes
       and non-controlling
       interests                        868     (3,325)         3     (2,454)
      Income tax expense (benefit)      204     (1,166)       (40)    (1,002)
      Non-controlling interests           4          -          -          4
    -------------------------------------------------------------------------
      Net income                  $     660  $  (2,159) $      43  $  (1,456)
    -------------------------------------------------------------------------
      Average assets(3)           $ 255,258  $ 108,082  $ (18,812) $ 344,528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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, software and finite-lived 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. Subsequent event

    Preferred share issuance Series 35

    Subsequent to January 31, 2009, on February 4, 2009, we issued 13 million
    non-cumulative Rate Reset Class A Preferred Shares, Series 35 with a par
    value of $25.00 each, for net proceeds of $316 million.
    

    %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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