CIBC Announces First Quarter 2010 Results

TORONTO, Feb. 25 /CNW/ - CIBC (CM: TSX; NYSE) announced net income of $652 million for the first quarter ended January 31, 2010, compared with net income of $147 million for the same period last year. Diluted earnings per share (EPS) were $1.58, compared with EPS of $0.29 a year ago. Cash diluted EPS were $1.60(1), compared with cash diluted EPS of $0.31(1) a year ago.

CIBC's Tier 1 and Total capital ratios at January 31, 2010 were 13.0% and 17.1%, respectively, and CIBC's efficiency ratio for the quarter was 57.1%.

Results for the first quarter of 2010 were affected by the following items of note aggregating to a negative impact of $0.05 per share:

    
    -   $25 million ($17 million after-tax, or $0.04 per share) gain from the
        structured credit run-off business;

    -   $25 million ($0.06 per share) future tax asset write-down resulting
        from the enactment of lower Ontario corporate tax rates; and

    -   $17 million ($12 million after-tax, or $0.03 per share) negative
        impact of changes in credit spreads on the mark-to-market of credit
        derivatives in CIBC's corporate loan hedging program.
    

Net income for the first quarter of 2010 compared with net income of $644 million for the prior quarter. Diluted EPS and cash diluted EPS for the first quarter of 2010 compared with diluted EPS of $1.56 and cash diluted EPS of $1.59(1), respectively, for the prior quarter, which included items of note that aggregated to a positive impact of $0.18 per share.

"CIBC Retail Markets and Wholesale Banking reported higher revenues than both last quarter and a year ago, reflecting the investments we are making on behalf of our clients and to capitalize on growth opportunities," says Gerry McCaughey, CIBC President and Chief Executive Officer. "At the same time, we continued to build capital while investing across our business, and we maintained strong expense discipline. We also took advantage of improving credit markets by reducing positions in our structured credit run-off and other legacy portfolios."

Core business performance

CIBC Retail Markets reported net income of $529 million.

Total revenue of $2.4 billion was up 1% from the first quarter of 2009 and 2% from last quarter.

Each of CIBC's core retail businesses delivered year over year revenue growth.

Personal banking revenue of $1.6 billion was up 10% from the first quarter of 2009, business banking revenue of $331 million was up 5% and wealth management revenue of $346 million was up 7%.

The provision for credit losses of $365 million was up from $278 million a year ago, primarily due to higher write-offs and bankruptcies in cards, as well as higher losses in personal lending and FirstCaribbean International Bank (FirstCaribbean). Provisions were comparable with the prior quarter as lower personal lending losses were offset by higher FirstCaribbean losses.

CIBC Retail Markets' objective is to be the primary financial institution for more of its clients by providing them with strong financial advice and services. During the first quarter of 2010, CIBC Retail Markets continued to make progress on its priorities of delivering strong advisory solutions, an excellent client experience and competitive products:

    
    -   As part of its enhanced Mobile Banking offer, CIBC became the first
        major bank in Canada to launch a Mobile Banking App for iPhone,
        allowing clients on the go to perform many of their day-to-day
        banking transactions, anywhere, anytime at www.cibc.mobi;

    -   We opened, relocated or expanded another five branches this quarter
        as part of our commitment to open 35 branches in 2010;

    -   We launched the eAdvantage(TM) Savings Account to further strengthen
        our savings account lineup and support continued momentum in
        deposits;

    -   We continued to attract new clients with CIBC's Unlimited Business
        Operating Account, the first of its kind from a Canadian bank which
        offers unlimited transactions for one low, monthly fee;

    -   We celebrated the 40th anniversary of Canada's first automated bank
        machine introduced by CIBC in 1969, which revolutionized the industry
        and provided clients with unprecedented access to their funds; and

    -   We invested in our brand through the launch of a national brand
        campaign that features employees from across the organization.
    

These initiatives are just a few examples of the progress made during the first quarter to position CIBC's retail business for future growth.

Wholesale Banking reported net income of $184 million for the first quarter.

Total revenue of $613 million was up $943 million from the first quarter of 2009 and up $110 million from last quarter.

Capital markets revenue of $277 million was up 6% from last quarter and corporate and investment banking revenue of $212 million was up 33%.

Credit quality in CIBC's wholesale portfolio was strong. Provision for credit losses of $24 million was down from $82 million last quarter.

Wholesale Banking continues to make progress on its client-focused strategy. This progress was evident in several notable achievements during the first quarter:

    
    -   We had a strong response to CIBC's first covered bond offering in the
        U.S. where we acted as joint book-running manager on the US$2 billion
        offering;

    -   We acted as joint book-runner for a $908 million bought secondary
        offering for Cameco Corporation of Centerra Gold Inc. common shares;

    -   We acted as exclusive financial advisor to AbitibiBowater Inc. with
        respect to the sale of its 60% interest in Manicougan Power Company
        to Hydro Quebec for $625 million;

    -   We acted as lead agent and joint book-runner for a $209 million
        offering from the Onex Credit Partners Credit Strategy Fund; and

    -   We completed a US$230 million transaction for the Central Group of
        Companies, representing the largest transaction CIBC has completed
        for the Central Group and bringing combined proceeds from 24
        transactions on behalf of this client to approximately
        US$2.0 billion.
    

These achievements reflect Wholesale Banking's commitment to being a premier client-focused Canadian-based wholesale bank, while delivering results that are aligned with CIBC's strategic imperative of consistent and sustainable performance.

Structured credit run-off progress

During the quarter, CIBC completed several transactions that have significantly reduced the potential for future losses and volatility from its structured credit run-off portfolio:

    
    -   We terminated $3.5 billion (US$3.2 billion) of written credit
        derivatives with exposures to collateralized loan obligations (CLOs)
        and assumed the related securities of the same amount, which are
        classified as loans;

    -   We terminated $2.8 billion (US$2.7 billion) of unmatched purchased
        credit derivatives on corporate debt exposures with two financial
        guarantors;

    -   We terminated $1.9 billion (US$1.8 billion) of written credit
        derivatives with exposures to corporate debt;

    -   We sold CLOs classified as loans with notional of $772 million
        (US $722 million) and carrying value of $724 million (US$677 million)
        and terminated $994 million (US$930 million) of related hedging
        contracts with two financial guarantors;

    -   We commuted U.S. residential mortgage market contracts with a
        financial guarantor; and

    -   Normal amortization reduced the notional of CIBC's purchased credit
        derivatives with financial guarantors by $209 million
        (US$196 million).
    

The risk reductions CIBC achieved this quarter reflect its strategy to take advantage of favourable market conditions and opportunities that present an acceptable economic risk/return trade-off to continue to reduce the size of its structured credit run-off portfolio.

As at January 31, 2010, the fair value, net of valuation adjustments, of purchased protection from financial guarantor counterparties was $1.3 billion (US$1.2 billion), down from $1.5 billion (US$1.4 billion) at October 31, 2009. Further significant losses could result depending on the performance of both the underlying assests and the financial guarantors.

"In summary, CIBC delivered broad-based performance during the first quarter of 2010 in support of our strategic imperative of consistent and sustainable performance," says McCaughey. "Our core businesses delivered solid results, we supported our clients with new product investments and high quality advice, we further strengthened key fundamental areas including our capital position, funding profile and productivity, and we reduced risk significantly in our structured credit run-off portfolio."

CIBC in its communities

In addition to generating strong returns for its shareholders, CIBC is committed to supporting causes that matter to its clients, its employees and its communities. During the quarter:

    
    -   CIBC's 2009 United Way campaign raised more than $7.3 million in
        Canada, including a $2.8 million corporate donation. More than 7,500
        employees contributed personal donations and hundreds of volunteers
        organized fundraising events and participated in the United Way Days
        of Caring across Canada;

    -   CIBC Miracle Day celebrated 25 years of bringing miracles to life. On
        December 2, 2009, CIBC's Wholesale Banking sales and trading staff
        and CIBC Wood Gundy's investment advisors raised more than
        $3.5 million that will be invested in children's charities in
        communities across Canada;

    -   CIBC hosted 16 graduates from the Ivey ReConnectTM program, designed
        for women who are prepared to restart their careers and successfully
        re-enter the workforce after a prolonged absence. This seven-day
        immersion program, made possible by a five-year, $1 million
        commitment from CIBC, was conducted at the Richard Ivey School of
        Business with faculty in London and Toronto, Ontario; and

    -   CIBC and FirstCaribbean donated $100,000 to the Haiti earthquake
        relief efforts, joining CIBC clients and employees and Canadians in
        providing support for those affected by the earthquake.

    ------------------------------------------------
    (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 our 2009 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 24, 2010. 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 179 to 181 of our
    2009 Annual Accountability Report.
    -------------------------------------------------------------------------

    Contents

    5   External reporting changes

    6   First quarter financial highlights

    7   Overview
    8   Outlook

    9   Run-off businesses and other selected activities

    9   Run-off businesses
    16  Other selected activities

    18  Financial performance review

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

    22  Business line overview

    22  CIBC Retail Markets
    24  Wholesale Banking
    26  Corporate and Other

    27  Financial condition

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

    29  Management of risk

    29  Risk overview
    29  Credit risk
    30  Market risk
    32  Liquidity risk
    32  Other risks

    33  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 "Core business performance", "Structured credit run-off progress", "Overview - Outlook for 2010", "Run-off businesses", "Financial performance review - Income Taxes", "Management of Risk - Market risk", "Management of Risk - Liquidity risk" 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 2010 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 2010" section of this report, and are subject to inherent risks and uncertainties that may be general or specific. A variety of factors, many of which are beyond our control, affect our operations, performance and results, and could cause actual results to differ materially from the expectations expressed in any of our forward-looking statements. These factors include: credit, market, liquidity, strategic, operational, reputation and legal, regulatory and environmental risk; legislative or regulatory developments in the jurisdictions where we operate; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions; the resolution of legal proceedings and related matters; the effect of changes to accounting standards, rules and interpretations; changes in our estimates of reserves and allowances; changes in tax laws; changes to our credit ratings; political conditions and developments; the possible effect on our business of international conflicts and the war on terror; natural disasters, public health emergencies, disruptions to public infrastructure and other catastrophic events; reliance on third parties to provide components of our business infrastructure; the accuracy and completeness of information provided to us by clients and counterparties; the failure of third parties to comply with their obligations to us and our affiliates; intensifying competition from established competitors and new entrants in the financial services industry; technological change; global capital market activity; economic and monetary policy; currency value fluctuations; general business and economic conditions worldwide, as well as in Canada, the U.S. and other countries where we have operations; changes in market rates and prices which may adversely affect the value of financial products; our success in developing and introducing new products and services, expanding existing distribution channels, developing new distribution channels and realizing increased revenue from these channels; changes in client spending and saving habits; our ability to attract and retain key employees and executives; and our ability to anticipate and manage the risks associated with these factors. This list is not exhaustive of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. We do not undertake to update any forward-looking statement that is contained in this report or in other communications except as required by law.

    
                         EXTERNAL REPORTING CHANGES
    

Retroactive changes with restatement of prior period information

    
    -   The global repurchase agreement (repo) business that was previously
        part of Treasury in Corporate and Other was retroactively transferred
        to capital markets within Wholesale Banking. The results of the repo
        business were previously allocated substantially to other within CIBC
        Retail Markets.

    -   Large corporate cash management revenue previously reported in
        business banking within CIBC Retail Markets was retroactively
        transferred to corporate and investment banking within Wholesale
        Banking.


                     FIRST QUARTER FINANCIAL HIGHLIGHTS

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

                                         As at or for the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited                              Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Common share information
    Per share
      - basic earnings                  $     1.59   $     1.57   $     0.29
      - cash basic earnings(1)                1.61         1.59         0.32
      - diluted earnings                      1.58         1.56         0.29
      - cash diluted earnings(1)              1.60         1.59         0.31
      - dividends                             0.87         0.87         0.87
      - book value                           29.91        28.96        28.98
    Share price
      - high                                 70.66        69.30        57.43
      - low                                  61.96        60.22        41.65
      - closing                              63.90        62.00        46.63
    Shares outstanding (thousands)
      - average basic                      384,442      382,793      380,911
      - average diluted                    385,598      383,987      381,424
      - end of period                      386,457      383,982      381,070
    Market capitalization ($ millions)  $   24,695   $   23,807   $   17,769
    -------------------------------------------------------------------------
    Value measures
    Dividend yield (based on closing
     share price)                             5.4%         5.6%         7.4%
    Dividend payout ratio                    54.8%        55.4%          n/m
    Market value to book value ratio          2.14         2.14         1.61
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial results ($ millions)
    Total revenue                       $    3,061   $    2,888   $    2,022
    Provision for credit losses                359          424          284
    Non-interest expenses                    1,748        1,669        1,653
    Net income                                 652          644          147
    -------------------------------------------------------------------------
    Financial measures
    Efficiency ratio                         57.1%        57.8%        81.8%
    Cash efficiency ratio, taxable
     equivalent basis (TEB)(1)               56.6%        57.3%        80.6%
    Return on equity                         21.5%        22.2%         4.0%
    Net interest margin                      1.76%        1.66%        1.43%
    Net interest margin on average
     interest-earning assets                 2.08%        1.99%        1.77%
    Return on average assets                 0.76%        0.75%        0.16%
    Return on average interest-earning
     assets                                  0.90%        0.90%        0.19%
    Total shareholder return                 4.40%      (5.25)%      (13.1)%
    -------------------------------------------------------------------------
    On- and off-balance sheet information
     ($ millions)
    Cash, deposits with banks and
     securities                         $   84,334   $   84,583   $   83,803
    Loans and acceptances                  180,115      175,609      181,284
    Total assets                           337,239      335,944      353,815
    Deposits                               224,269      223,117      226,383
    Common shareholders' equity             11,558       11,119       11,041
    Average assets                         340,822      339,197      369,249
    Average interest-earning assets        288,575      282,678      299,136
    Average common shareholders' equity     11,269       10,718       10,960
    Assets under administration          1,173,180    1,135,539    1,038,958
    -------------------------------------------------------------------------
    Balance sheet quality measures
    Common equity to risk-weighted
     assets                                  10.3%         9.5%         9.0%
    Risk-weighted assets ($ billions)   $    112.1   $    117.3   $    122.4
    Tier 1 capital ratio                     13.0%        12.1%         9.8%
    Total capital ratio                      17.1%        16.1%        14.8%
    -------------------------------------------------------------------------
    Other information

    Retail / wholesale ratio(2)            72%/28%      69%/31%      63%/37%
    Full-time equivalent employees          41,819       41,941       42,320
    -------------------------------------------------------------------------
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    (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.



                                   OVERVIEW
    

Net income for the quarter was $652 million, compared to net income of $147 million for the same quarter last year and net income of $644 million for the prior quarter.

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

    
    -   $25 million ($17 million after-tax) gain from the structured credit
        run-off business;

    -   $25 million future tax asset write-down resulting from the enactment
        of lower Ontario corporate tax rates; and

    -   $17 million ($12 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging program.
    

Compared with Q1, 2009

Revenue was higher than the same quarter last year, primarily due to gains from the structured credit run-off business compared with losses in the last year quarter. The current quarter also benefited from wider spreads on personal and commercial lending products, volume growth in retail deposits and most personal lending products, realized gains on the sale of merchant banking investments, and higher wealth management related fee income. These factors were partially offset by lower realized gains on the sale of available for sale (AFS) securities in Treasury and MTM losses on our corporate loan credit derivatives compared with MTM gains in the last year quarter. The last year quarter was impacted by MTM losses relating to interest-rate hedges for the leveraged lease portfolio, losses/write-downs on our merchant banking portfolio and foreign exchange losses on repatriation activities.

The provision for credit losses was up primarily due to higher losses in the cards and personal lending portfolios driven by higher delinquencies and bankruptcies, and higher losses in the U.S. real estate finance business and FirstCaribbean International Bank (FirstCaribbean).

Non-interest expenses were up primarily due to higher performance-related compensation, pension and occupancy costs, and the settlement made with the Ontario Securities Commission (OSC) relating to our participation in the asset-backed commercial paper (ABCP) market. These factors were partially offset by lower business and capital taxes.

Income taxes in the current quarter were impacted by the future tax asset write-down noted above. The last year quarter included tax benefits on the structured credit losses and foreign exchange losses on repatriation.

Compared with Q4, 2009

Revenue was higher than the prior quarter primarily due to realized gains on the sale of merchant banking investments, volume growth in retail deposits and most personal lending products, and lower MTM losses on our corporate loan credit derivatives. These factors were mostly offset by lower revenue in the structured credit run-off business during the quarter. The prior quarter was impacted by valuation charges on certain AFS positions in exited and other run-off businesses.

The provision for credit losses was lower primarily on lower losses in U.S. real estate finance and other run-off businesses, unsecured personal lending portfolios, and a lower provision for credit losses in the general allowance. These factors were partially offset by higher losses in FirstCaribbean.

Non-interest expenses were up primarily due to higher performance-related compensation, pension expenses and the ABCP settlement discussed above. These were partially offset by lower computer related expenses.

Income tax expense in the current quarter included the future tax asset write-down noted above, compared with a benefit from the positive revaluation of future tax assets in the prior quarter.

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

    
    -------------------------------------------------------------------------
    Q4, 2009
    --------
    -   $85 million ($58 million after-tax) gain from the structured credit
        run-off business;
    -   $62 million gains relating to various tax related items;
    -   $42 million ($27 million after-tax) of valuation charges related to
        certain AFS positions in exited and other run-off businesses; and
    -   $36 million ($25 million after-tax) negative impact of changes in
        credit spreads on our corporate loan credit derivatives.

    Q1, 2009
    --------
    -   $708 million ($483 million after-tax) loss in the structured credit
        run-off business;
    -   $94 million ($64 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives;
    -   $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
        repatriation activities.
    -------------------------------------------------------------------------
    

Outlook for 2010

Both the U.S. and Canadian economies ended 2009 on a stronger note, and that momentum looks to carry over into healthy growth through at least the first half of 2010. Production is picking up to get closer to demand after a period of inventory reductions, and in Canada, domestic demand is being supported by net job creation. Growth could slow later this year as the increases to Canadian exports from U.S. inventory restocking and fiscal stimulus fade, and as the now booming housing market decelerates after the anticipated interest rate hikes from the Bank of Canada in the second half and the new rules for insured mortgages take effect.

CIBC Retail Markets should see moderate growth in mortgages, cards and other credit products reflecting the impact of low interest rates and modest progress in employment growth, although mortgage demand could decelerate later this year as interest rates rise. Personal bankruptcies should level off with the recovery in the labour market, while small business bankruptcies rise on the lagged impact of last year's recession. Investment product demand should be supported by rising incomes and improving financial markets.

Wholesale Banking should benefit from a healthy pace of equity and bond issuance, with governments remaining heavy borrowers and businesses tapping strong capital markets. M&A activity could also increase on improving confidence. Credit demand should be supported by inventory rebuilding, and the public debt market remains a cost-effective alternative for larger entities. U.S. real estate finance could remain slow and corporate defaults are likely to remain elevated on the lagged impacts of the past year's recession.

    
                             RUN-OFF BUSINESSES
    

Structured credit run-off business

Overview and results

Our structured credit business, within Wholesale Banking, comprised our previous activities as principal and for client facilitation. These activities included warehousing of assets and structuring of special purpose entities (SPEs), which resulted 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 -
    -   U.S. residential mortgage market (USRMM)
    -   non-USRMM

    Hedged -
    -   financial guarantors (USRMM and non-USRMM) including unmatched
        positions where we have purchased protection but do not have exposure
        to the underlying
    -   other counterparties (USRMM and non-USRMM)
    

Results

Net income, before taxes, for the quarter was $25 million, compared with a net loss, before taxes, of $708 million for the same quarter last year and net income, before taxes, of $85 million for the prior quarter.

The net income for the current quarter is a result of decreases in credit valuation adjustments (CVA) relating primarily to financial guarantors, driven by mark-to-market recoveries for certain underlying assets and tightening of credit spreads, and gains on unhedged positions, largely related to USRMM. These gains were offset by losses from reduced receivables from financial guarantors on loan assets that are carried at amortized cost, MTM losses on the limited recourse note issued by Cerberus Capital Management LP (Cerberus), and losses from transactions described below.

Change in exposures

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

    
    -------------------------------------------------------------------------
                                                           2010         2009
    US$ millions, as at                                 Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Notional
      Investments and loans                          $   12,618   $   10,442
      Written credit derivatives(1)                      17,496       22,710
    -------------------------------------------------------------------------
    Total gross exposures                            $   30,114   $   33,152
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Purchased credit derivatives                     $   27,744   $   32,257
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.
    

We undertook a number of transactions during the quarter to reduce our exposures, as noted below:

    
    -   We terminated $3.5 billion (US$3.2 billion) of written credit
        derivatives with exposures to collateralized loan obligations (CLOs)
        and assumed the related securities of the same amount, which are
        classified as loans. We also entered into a funding transaction for
        similar assets in the amount of $1.9 billion (US$1.8 billion) with
        the same counterparty. These transactions resulted in a pre-tax loss
        of $4 million (US$4 million);

    -   We terminated $2.8 billion (US$2.7 billion) of unmatched non-USRMM
        purchased credit derivatives on corporate debt exposures with two
        financial guarantors (reported as counterparties "VI" and "IX") for a
        total cash payment of $3 million (US$3 million). The transaction
        resulted in a pre-tax loss of $8 million (US$8 million);

    -   We terminated $1.9 billion (US$1.8 billion) of written credit
        derivatives with exposures to corporate debt resulting in a pre-tax
        loss of $3 million (US$3 million). Subsequent to this transaction,
        $1.9 billion (US$1.8 billion) of purchased credit derivatives that
        previously hedged these positions became unmatched;

    -   We sold CLOs classified as loans with notional of $772 million
        (US$722 million) and carrying value of $724 million (US$677 million)
        for cash consideration of $708 million (US$662 million), resulting in
        a pre-tax loss of $16 million (US$15 million). Subsequent to this
        transaction, we also terminated $994 million (US$930 million) of
        related hedging contracts with two financial guarantors (reported as
        counterparties "III" and "IV") for a total cash payment of $3 million
        (US$3 million). The transaction resulted in an additional pre-tax
        loss of $11 million (US$10 million). The underlying exposures that
        became unhedged as a result of the termination were written credit
        derivatives with a notional of $169 million (US$158 million) and a
        fair value of $9 million (US$8 million) and a security classified as
        a loan with a notional of $52 million (US$50 million) and a carrying
        value of $50 million (US$48 million) as at the transaction date;

    -   We commuted USRMM contracts with a financial guarantor (reported as
        counterparty "II") for cash consideration of $79 million
        (US$75 million). As a result, we wrote down the gross receivable by
        $511 million (US$486 million) with a corresponding reduction of the
        related CVA of $396 million (US$377 million). The transaction
        resulted in a pre-tax loss of $36 million (US$34 million). The
        underlying exposures that became unhedged as a result of the
        commutation were securities with a notional of $549 million
        (US$523 million) and a fair value of $37 million (US$35 million) as
        at the transaction date; and

    -   Normal amortization reduced the notional of our purchased credit
        derivatives with financial guarantors by $209 million
        (US$196 million).
    

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

In the fourth quarter of 2008, we recognized a gain of $895 million (US$841 million), resulting from the reduction to zero of our unfunded commitment on a VFN issued by a collateralized debt obligation (CDO). This reduction followed certain actions of the indenture trustee for the CDO following the September 15, 2008 bankruptcy filing of Lehman Brothers Holdings, Inc. (Lehman), the guarantor of a related credit default swap agreement with the CDO. While the Lehman estate expressed its disagreement with the actions of the indenture trustee, the estate has not instituted any legal proceeding with regard to the CDO or our VFN. The Lehman estate has, however, instituted legal proceedings involving a number of other CDOs, and in the first quarter of 2010, in Lehman Brothers Special Financing, Inc. v. BNY Corporate Trustee Services, Ltd., the U.S. bankruptcy court in New York ruled unenforceable a customary provision in a CDO transaction that reversed the priority of the payment waterfall upon the bankruptcy of Lehman, the credit support provider under a related swap agreement. That ruling, which the defendant has indicated it will appeal, does not change our belief that if contested, the trustee's actions in reducing the unfunded commitment on our VFN to zero should be upheld although there can be no certainty regarding any eventual outcome. We continue to believe that the CDO indenture trustee's actions were fully supported by the terms of the governing contracts and the relevant legal standards.

Total exposures

The exposures held within our structured credit run-off business within Wholesale Banking are summarized in the table below. The table excludes the protection from Capital Management LP (Cerberus) on our USRMM exposures.

    
    US$ millions, as at January 31, 2010
    -------------------------------------------------------------------------
                                              Exposures(9)
                       ------------------------------------------------------
                           Investments and loans(1)         Written credit
                                                             derivatives
                                                          and liquidity and
                                                         credit facilities(2)
                       -------------------------------- ---------------------


                                       Fair   Carrying                  Fair
                        Notional      value      value   Notional    value(3)
                       ------------------------------------------------------
    Hedged

    USRMM - CDOs        $      -   $      -   $      -   $    493   $    469
    -------------------------------------------------------------------------
    Total USRMM
     Hedged             $      -   $      -   $      -   $    493   $    469
    -------------------------------------------------------------------------
    Non-USRMM
    ---------
      CLO               $    152   $    142   $    142   $  4,313   $    258
      CLO classified
       as loans(4)         7,959      7,260      7,360          -          -
      Corporate debt           -          -          -      8,016        236
      Corporate debt
       (Unmatched)             -          -          -          -          -
      CMBS (Unmatched)         -          -          -          -          -
      Other securtities
       classified
       as loans(5)           693        377        437          -          -
      Others (includes
       CMBS and TruPs)       314        125        125      1,458        439
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Non-USRMM
     Hedged             $  9,118   $  7,904   $  8,064   $ 13,787   $    933
    -------------------------------------------------------------------------

    Total Hedged        $  9,118   $  7,904   $  8,064   $ 14,280   $  1,402
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Unhedged

    USRMM - CDOs(6)     $  2,177   $     95   $     95   $  2,424   $  2,119
    -------------------------------------------------------------------------
    Total USRMM
     Unhedged           $  2,177   $     95   $     95   $  2,424   $  2,119
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Non-USRMM
    ---------
      CLO               $     64   $     24   $     24   $    250   $     14
      CLO classified
       as loans              253        235        243          -          -
      Corporate debt         166        113        113          -          -
      Montreal Accord
       related
       notes(2)(7)           386        209        209        281        n/a
      Third party
       sponsored
        ABCP
         conduits(2)         102        102        102         75        n/a
      Other
       securtities
       classified
       as loans              174        170        152          -          -
      Others(2)(8)           178        161        161        186          1
    -------------------------------------------------------------------------
    Total Non-USRMM
     Unhedged           $  1,323   $  1,014   $  1,004   $    792   $     15
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Unhedged      $  3,500   $  1,109   $  1,099   $  3,216   $  2,134
    -------------------------------------------------------------------------
    Total               $ 12,618   $  9,013   $  9,163   $ 17,496   $  3,536
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009       $ 10,442   $  6,721   $  7,024   $ 22,710   $  4,152
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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



                       -------------------------------------------
                        Financial guarantors         Others
                       --------------------- ---------------------
                                       Fair                  Fair
                                      value                 value
                                     before                before
                        Notional      CVA(3)  Notional      CVA(3)
                       -------------------------------------------
    Hedged

    USRMM - CDOs        $     60   $     40   $    434   $    428
    --------------------------------------------------------------
    Total USRMM
     Hedged             $     60   $     40   $    434   $    428
    --------------------------------------------------------------
    Non-USRMM
    ---------
      CLO               $  4,218   $    257   $    248   $     17
      CLO classified
       as loans(4)         7,775        520        222         15
      Corporate debt         800         34      7,220        210
      Corporate debt
       (Unmatched)         3,500         38          -          -
      CMBS (Unmatched)       775        603          -          -
      Other securtities
       classified
       as loans(5)           692        316          -          -
      Others (includes
       CMBS and TruPs)     1,397        580        403         44
    --------------------------------------------------------------
    --------------------------------------------------------------
    Total Non-USRMM
     Hedged             $ 19,157   $  2,348   $  8,093   $    286
    --------------------------------------------------------------

    Total Hedged        $ 19,217   $  2,388   $  8,527   $    714
    --------------------------------------------------------------
    --------------------------------------------------------------

    Unhedged

    USRMM - CDOs(6)     $      -   $      -   $      -   $      -
    --------------------------------------------------------------
    Total USRMM
     Unhedged           $      -   $      -   $      -   $      -
    --------------------------------------------------------------
    --------------------------------------------------------------
    Non-USRMM
    ---------
      CLO               $      -   $      -   $      -   $      -
      CLO classified
       as loans                -          -          -          -
      Corporate debt           -          -          -          -
      Montreal Accord
       related
       notes(2)(7)             -          -          -          -
      Third party
       sponsored
        ABCP
         conduits(2)           -          -          -          -
      Other
       securtities
       classified
       as loans                -          -          -          -
      Others(2)(8)             -          -          -          -
    --------------------------------------------------------------
    Total Non-USRMM
     Unhedged           $      -   $      -   $      -   $      -
    --------------------------------------------------------------
    --------------------------------------------------------------
    Total Unhedged      $      -   $      -   $      -   $      -
    --------------------------------------------------------------
    Total               $ 19,217   $  2,388   $  8,527   $    714
    --------------------------------------------------------------
    --------------------------------------------------------------
    Oct. 31, 2009       $ 23,748   $  3,413   $  8,509   $    681
    --------------------------------------------------------------
    --------------------------------------------------------------
    (1) Excludes equity and surplus notes that we obtained in consideration
        for commutation of our USRMM contracts with financial guarantors with
        notional US$261 million and fair value US$41 million, as at
        January 31, 2010.
    (2) Undrawn notional of the liquidity and credit facilities relating to
        Montreal Accord related notes amounted to US$281 million, relating to
        third party non-bank sponsored ABCP conduits amounted to
        US$75 million, and relating to unhedged other non-USRMM amounted to
        US$20 million.
    (3) This is the gross fair value of the contracts, which were typically
        zero, or close to zero, at the time they were entered into.
    (4) Investments and loans include unfunded investment commitments with a
        notional of US$173 million.
    (5) Represents CDOs with trust preferred securities (TruPs) collateral.
    (6) The net unhedged USRMM exposure, after write-downs, was
        US$400 million as at January 31, 2010 and includes US$371 million of
        super senior CDO of mezzanine residential mortgage-backed securities
        (RMBS), net of write-downs.
    (7) Includes estimated USRMM exposure of $98 million as at January 31,
        2010.
    (8) Includes warehouse - non RMBS securities with notional US$10 million
        and fair value of nil.
    (9) We have excluded our total holdings, including holdings related to
        our treasury activities, of notional US$1.3 billion (October 31,
        2009: US$868 million) with fair value of US$1.3 billion (October 31,
        2009: US$865 million) in debt securities issued by Federal National
        Mortgage Association (Fannie Mae) (notional US$418 million, fair
        value US$417 million), Federal Home Loan Mortgage Corporation
        (Freddie Mac) (notional US$232 million, fair value US$229 million),
        and Government National Mortgage Association (Ginnie Mae) (notional
        US$616 million, fair value US$615 million). Trading equity securities
        with a fair value of US$1 million (October 31, 2009: US$1 million),
        issued by Student Loan Marketing Association (Sallie Mae), were also
        excluded.

    n/a Not applicable.
    

Cerberus transaction

In 2008, we transacted with Cerberus to obtain downside protection on our hedged and unhedged USRMM collateralized debt obligation (CDO) exposures while retaining upside participation if the underlying securities recover. As at January 31, 2010, the outstanding principal and fair value of the limited recourse note issued as part of the Cerberus transaction was $539 million (US$504 million) and $355 million (US$332 million) respectively. The underlying CDO exposures had a fair value of $453 million (US$424 million) as at January 31, 2010. We recorded a loss of $119 million (US$112 million) on the limited recourse note during the quarter largely offset by gains on the hedged assets.

Purchased protection from financial guarantors

The following table presents the notional amounts and fair values of non-USRMM related protection purchased from financial guarantors, and the underlying referenced assets, by counterparty. In addition we also have USRMM related protection purchased from a financial guarantor (reported as counterparty "I") with a notional US$60 million, a gross fair value of US$40 million, and a CVA of US$26 million as at January 31, 2010. The fair value net of CVA is included in derivative instruments in other assets on the consolidated balance sheet.

    
    US$ millions, as at January 31, 2010
    -------------------------------------------------------------------------



                                                         Notional amounts of
                                                 referenced non-USRMM assets
             Standard    Moody's             --------------------------------
    Counter-      and   investor      Fitch             Corporate
     party     Poor's   services    ratings        CLO       debt       CMBS
    -------------------------------------------------------------------------

    I           BB+(1)      B3(1)       -(3)  $    510   $      -   $  777(4)
    II           CC(2)    Caa2(2)       -(3)       838          -          -
    III          CC(1)       -(3)       -(3)     1,011          -          -
    IV            -(3)       -(3)       -(3)     1,182          -          -
    V             -(3)       -(3)       -(3)     2,608          -          -
    VI         BBB-(1)       Ba1        -(3)         -    2,800(4)         -
    VII         AAA(1)     Aa3(1)      AA(1)     4,481          -          -
    VIII        AAA(1)     Aa3(1)     AA-(1)     1,288          -          -
    IX          BB-(1)     Ba1(1)       -(3)        75    1,500(4)         -
    -------------------------------------------------------------------------
    Total
     financial
     guaran-
     tors                                     $ 11,993   $  4,300   $    777
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2009                                     $ 13,292   $  6,959   $    777
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------------------------
              Notional
             amounts of
             referenced
             non-USRMM                       Protection purchased
               assets                   from financial guarantors
            ------------          --------------------------------
    Counter-               Total  Fair value           Fair value
     party     Others   Notional  before CVA       CVA   less CVA
    --------------------------------------------------------------

    I        $    179   $  1,466   $    713   $   (465)  $    248
    II            772      1,610        364       (269)        95
    III           119      1,130        114        (92)        22
    IV            263      1,445        133       (109)        24
    V               -      2,608        156        (37)       119
    VI              -      2,800         58        (11)        47
    VII           250      4,731        479        (86)       393
    VIII          128      1,416        140        (27)       113
    IX            376      1,951        191        (93)        98
    --------------------------------------------------------------
    Total
     financial
     guaran-
     tors    $  2,087   $ 19,157   $  2,348   $ (1,189)  $  1,159
    --------------------------------------------------------------
    --------------------------------------------------------------
    Oct. 31,
     2009    $  2,132   $ 23,160   $  2,880     (1,591)  $  1,404
    --------------------------------------------------------------
    --------------------------------------------------------------
    (1) Credit watch/outlook with negative implication.
    (2) Watch developing.
    (3) Rating withdrawn and no longer rated.
    (4) Includes US$3.5 billion and US$775 million of unmatched purchase
        protection related to corporate debt and commercial mortgage backed
        securities (CMBS) respectively.
    

The total CVA recovery for financial guarantors was $388 million (US$366 million) for the quarter. As at January 31, 2010, CVA on credit derivative contracts with financial guarantors was $1.3 billion (US$1.2 billion) (October 31, 2009: $2.2 billion (US$2.0 billion)), and the fair value of credit derivative contracts with financial guarantors net of CVA was $1.3 billion (US$1.2 billion) (October 31, 2009: $1.5 billion (US$1.4 billion)). Further significant losses could result depending on the performance of both the underlying assets and the financial guarantors.

In addition, in our other run-off portfolios, we also have loans 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, 2010, these positions were performing and the total amount guaranteed by financial guarantors was approximately $74 million (US$69 million).

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

    
    US$ millions, as at January 31, 2010
    -------------------------------------------------------------------------
                                        Fair                    Notional/
                                       value                     tranche
                                   purchased     Total   --------------------
                        Notional  protection  tranches(1)    High        Low
    -------------------------------------------------------------------------
    Hedged
    ------
    CLO (includes
     loans)             $ 11,993   $    777         78   $    375   $      -
    Corporate debt           800         34          1        800        800
    Others
      TruPs (includes
       loans)                784        366         12        123         23
      Non-US RMBS            151         74          3         69         21
      Other                1,154        456          9        251          1
    Unmatched
    ---------
    Corporate debt         3,500         38          6        800        400
    U.S. CMBS                775        603          2        452        323
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total               $ 19,157   $  2,348        111   $  2,870   $  1,568
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------------------------
                              Fair value/               Investment
                                tranche                    grade
                        --------------------   WAL in      under-
                            High        Low  years(2)(3) lyings(4)
    --------------------------------------------------------------
    Hedged
    ------
    CLO (includes
     loans)             $     26   $      -        3.6         2%
    Corporate debt            34         34        3.9        51%
    Others
      TruPs (includes
       loans)                 64         12       14.2        n/a
      Non-US RMBS             34         10        3.0        n/a
      Other                  163          -        6.4        n/a
    Unmatched
    ---------
    Corporate debt            15          4        3.6        68%
    U.S. CMBS                328        275        4.9        15%
                        --------------------
                        --------------------
    Total               $    664   $    335
    --------------------------------------------------------------
    --------------------------------------------------------------


    --------------------------------------------------------------
                            Subordination/
                            attachment(5)         Detachment(6)
                        --------------------  --------------------
                         Average      Range    Average      Range
    --------------------------------------------------------------
    Hedged
    ------
    CLO (includes
     loans)                  31%      6-67%        99%    50-100%
    Corporate debt           15%        15%        30%        30%
    Others
      TruPs (includes
       loans)                49%     45-57%       100%       100%
      Non-US RMBS            53%        53%       100%       100%
      Other                  20%      0-53%       100%       100%
    Unmatched
    ---------
    Corporate debt           23%     15-30%        44%     30-60%
    U.S. CMBS                44%     43-46%       100%       100%


    Total
    --------------------------------------------------------------
    --------------------------------------------------------------
    (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) The Weighted Average Life (WAL) of the positions is impacted by
        assumptions on collateral, interest deferrals and defaults, and
        prepayments, and for TruPs CDOs, also the potential for successful
        future auctions. These assumptions and the resulting WAL, especially
        for TruPs CDOs, may change significantly from period to period.
    (3) The WAL of a 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
        the tranche.
    (4) Or equivalent based on internal credit ratings.
    (5) Subordination/attachment points are the level of losses which can be
        sustained on the collateral underlying the reference assets without
        those losses impacting the tranches shown above.
    (6) The detachment points are the level of losses on the collateral
        underlying the reference assets at which point any further losses
        cease to impact the tranches shown above.
    n/a Not available.


    Hedged positions
    ----------------
    

CLO

The hedged CLO underlyings consist of 78 tranches. Approximately 37% of the total notional amount of the CLO tranches was rated equivalent to AAA, 56% rated between the equivalent of AA+ and AA-, 6% rated between the equivalent of A+ and A-, and only 1% rated between the equivalent of BBB+ and BBB-, as at January 31, 2010. Approximately 18% of the underlying collateral was rated equivalent to BB- or higher, 57% was rated between the equivalent of B+ and B-, 14% rated equivalent to CCC+ or lower, with the remainder unrated as at January 31, 2010. The collateral comprises assets in a wide range of industries with the highest concentration in the services (personal and food) industry (29%); the broadcasting, publishing and telecommunication sector (18%); and the manufacturing sector (13%). Only 3% is in the real estate sector. Approximately 70% and 24% of the underlyings represent U.S. and European exposures respectively.

Corporate Debt

The hedged corporate debt underlyings consist of 1 super senior synthetic CDO tranche that reference portfolios of primarily U.S. (63%) and European (20%) corporate debt in various industries (manufacturing - 28%, financial institutions - 16%, cable and telecommunications - 11%, retail and wholesale - 3%). Approximately 10% of the total notional amount of US$800 million of the corporate debt underlyings were rated equivalent to A- or higher, 41% were rated between the equivalent of BBB- and BBB+, with the remainder rated equivalent to BB+ or lower, as at January 31, 2010.

Others

Other hedged positions include CDOs with TruPs collateral, which are Tier I 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, film receivables and CMBS.

    
    Unmatched positions
    -------------------
    

Corporate Debt

The unmatched corporate debt underlyings consist of 6 super senior synthetic CDO tranches that reference portfolios of primarily U.S. (56%) and European (30%) corporate debt in various industries (manufacturing - 31%, financial institutions - 10%, cable and telecommunications - 12%, retail and wholesale - 8%). Approximately 19% of the total notional amount of US$3.5 billion of the unmatched corporate debt underlyings were rated equivalent to A- or higher, 49% were rated between the equivalent of BBB- and BBB+, with the remainder rated equivalent to BB+ or lower, as at January 31, 2010.

U.S. CMBS

The two synthetic tranches reference unmatched CMBS portfolios which are backed by pools of commercial real estate mortgages located primarily in the U.S. Approximately 15% of the underlyings were rated between the equivalent of BBB and BBB-, 15% were rated between the equivalent of BB+ and BB-, 33% rated between the equivalent of B+ and B-, with the remainder rated equivalent to CCC+ or lower, as at January 31, 2010.

Purchased protection from other counterparties

The following table provides the notional amounts and fair values before CVA of US$5 million (October 31, 2009: US$8 million) of purchased credit derivatives from non-financial guarantor counterparties, excluding unmatched purchased credit derivatives:

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



    US$ millions, as at            Notional  Fair value  Notional  Fair value
    -------------------------------------------------------------------------
    Non-bank financial
     institutions                  $    434   $    428   $     66   $      3
    Banks                                 -          -        805         73
    Canadian conduits                     -          -      7,220        210
    Others                                -          -          2          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                          $    434   $    428   $  8,093   $    286
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                      Total
                                  -------------------------------------------
                                         Notional              Fair value
                                  --------------------- ---------------------
                                       2010       2009       2010       2009
    US$ millions, as at             Jan. 31    Oct. 31    Jan. 31    Oct. 31
    -------------------------------------------------------------------------
    Non-bank financial
     institutions                  $    500   $    437   $    431   $    350
    Banks                               805        862         73         86
    Canadian conduits                 7,220      7,166        210        245
    Others                                2          2          -          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                          $  8,527   $  8,467   $    714   $    681
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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
                       ------------ -----------------------------------------
    US$ millions, as at                      Corporate
     January 31, 2010        CDO(1)   CLO(2)      debt    Other(3)     Total
    -------------------------------------------------------------------------
    Non-bank financial
     institutions       $      434   $    -   $      -   $     66   $     66
    Banks                        -      470          -        335        805
    Canadian conduits            -        -      7,220          -      7,220
    Others                       -        -          -          2          2
    -------------------------------------------------------------------------
    Total               $      434   $  470   $  7,220   $    403   $  8,093
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The US$434 million represents super senior CDO with approximately 67%
        sub-prime RMBS, 4% Alt-A RMBS, 15% ABS CDO, and 14% non-USRMM. Sub-
        prime and Alt-A are all pre-2006 vintage.
    (2) All underlyings are non-investment grade. 10% is North American
        exposure and 89% is European exposure. Major industry concentration
        is in the services industry (35%), the manufacturing sector (13%),
        the broadcasting and communication industries (18%), and only 4% is
        in the real estate sector.
    (3) Approximately 60% of the underlyings are investment grade or
        equivalent based on internal ratings with the majority of the
        exposure located in the U.S. and Europe. The industry concentration
        is primarily banking and financial institutions, manufacturing,
        broadcasting, publishing and telecommunication, with approximately 4%
        in the real estate sector.
    

Canadian conduits

We purchased credit derivative protection from Canadian conduits and generated revenue by selling the same protection onto 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. Great North Trust, is sponsored by CIBC and the remaining conduit counterparty, MAV I was party to the Montreal Accord.

    
    -------------------------------------------------------------------------
    US$ millions,                                      Mark-to-   Collateral
     as at                                               market          and
     January 31,                                        (before    guarantee
     2010           Underlying          Notional(1)         CVA) notionals(2)
    -------------------------------------------------------------------------
    Great North  Investment grade
     Trust        corporate credit
                  index(3)              $    4,622   $      178   $    280(4)
    MAV I        160 Investment
                  grade corporates(5)        2,598           32          328
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                               $    7,220   $      210   $      608
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These exposures mature within 3 to 7 years.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, banker's acceptances (BA),
        and funding commitments. The fair value of the collateral at January
        31, 2010 was US$596 million (October 31, 2009: US$566 million).
    (3) Consists of a static portfolio of 126 North American corporate
        reference entities that were investment grade rated when the index
        was created. 79% of the entities are rated BBB- or higher. 100% of
        the entities are U.S. entities. Financial guarantors represent
        approximately 1.6% of the portfolio. 4.0% of the entities have
        experienced credit events. Original attachment point is 30% and there
        is no direct exposure to USRMM or the U.S. commercial real estate
        market.
    (4) The value of funding commitments (with indemnities) from certain
        third party investors in Great North Trust was nil as at January 31,
        2010 (October 31, 2009: nil).
    (5) The underlying portfolio consists of a static portfolio of 160
        corporate reference entities of which 91% were investment grade on
        the trade date. 82% of the entities are currently rated BBB- or
        higher (investment grade). 58% of the entities are U.S. entities.
        Financial guarantors represent approximately 2.5% of the portfolio.
        1.9% of the entities have experienced credit events. Original
        attachment point is 20% and there is no direct exposure to USRMM or
        the U.S. commercial real estate market.
    

Unhedged USRMM exposures

Our remaining net unhedged exposure (excluding the Cerberus protection noted above) to the USRMM, after write-downs, was $428 million (US$400 million) as at January 31, 2010. $397 million (US$371 million) of the net unhedged exposure relates to super senior CDOs of mezzanine RMBS.

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, and other.

CLO

Our unhedged CLO exposures, including those classified as loans, with notional of $606 million (US$567 million) are mostly tranches rated equivalent to AA or higher as at January 31, 2010, and are primarily backed by diversified pools of European-based senior secured leveraged loans.

Corporate debt

Approximately 63%, 11% and 26% of the unhedged corporate debt exposures with notional of $178 million (US$166 million) are related to positions in Canada, Europe, and other countries respectively.

Montreal Accord related notes

As at January 31, 2010 we held variable rate Class A-1 and Class A-2 notes and various zero coupon subordinated and tracking notes with a combined fair value of $223 million and remaining notional value of $413 million that were originally received in exchange for our non-bank sponsored ABCP in January 2009 upon the ratification of the Montreal Accord restructuring. The notes are expected to mature in December 2016 and 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 $98 million and a fair value of $9 million as at January 31, 2010.

We have provided a $300 million undrawn Margin Funding 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.

During the quarter we reached a settlement with Ontario Securities Commission relating to our participation in the ABCP market, resulting in a $22 million (US$21 million) loss.

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, 2010, $189 million (US$177 million) of the facilities remained committed, which mostly relate to U.S. CDOs. As at January 31, 2010, $109 million (US$102 million) of the committed facilities was drawn. Of the undrawn facilities, $29 million (US$27 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 one to eight years.

Other

Other unhedged exposures with notional of $389 million (US$364 million) include $167 million (US$156 million) credit facilities (drawn US$136 million and undrawn US$20 million) provided to special purpose entities with film rights receivables (28%), lottery receivables (24%), and U.S. mortgage defeasance loans (48%).

The remaining $222 million (US$208 million) primarily represents written protection on tranches of high yield corporate debt portfolios with 44% rated the equivalent of AA- or higher, 32% rated between the equivalent of A+ and A-, with the remaining rated equivalent to BB+. 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, which was restructured in February 2009.

Other unhedged exposures classified as loans with notional of $186 million (US$174 million) represent primarily investment grade commercial paper.

European leveraged finance

We provided leveraged finance to non-investment grade customers to facilitate their buyout, acquisition and restructuring activities. We generally underwrote leveraged financial loans and syndicated the majority of the loans, earning a fee during the process.

We stopped transacting new business in European leveraged finance (ELF) in 2008.

As with the structured credit run-off business, the risk in the ELF run-off business is monitored by a team focused on proactively managing all accounts in the portfolio. As at January 31, 2010, we had drawn leveraged loans of $783 million (October 31, 2009: $894 million) and unfunded letters of credit and commitments of $192 million (October 31, 2009: $162 million). The drawn and undrawn amounts include non-impaired notional of $157 million and $45 million, respectively, in respect of certain restructured facilities. Of the drawn loans, $42 million (October 31, 2009: $99 million) related to restructured facilities, were considered impaired, for which an allowance of $13 million as at January 31, 2010 (October 31, 2009: $60 million) has been applied. The decrease in the allowance this quarter is substantially due to a write-off of the receivables relating to the restructured facilities. In addition, non-impaired loans and commitments with a face value of $480 million were on the credit watch list as at January 31, 2010.

Exposures of ELF loans (net of write-downs and allowance for credit losses) by industry are as below:

    
    -------------------------------------------------------------------------
    $ millions, as at January 31, 2010                    Drawn      Undrawn
    -------------------------------------------------------------------------
    Publishing and printing                          $       37   $       10
    Telecommunications                                       13           13
    Manufacturing                                           227           87
    Business services                                        18           16
    Hardware and software                                   230           22
    Transportation                                           11           13
    Wholesale trade                                         223           31
    Utilities                                                11            -
    -------------------------------------------------------------------------
    Total                                            $      770   $      192
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009                                    $      834   $      162
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                          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 ABCP 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, 2010, our holdings of ABCP issued by our non-consolidated sponsored multi-seller conduits that offer ABCP to external investors was $323 million (October 31, 2009: $487 million) and our committed backstop liquidity facilities to these conduits was $3.4 billion (October 31, 2009: $4.0 billion). We also provided credit facilities of $40 million (October 31, 2009: $50 million) and banker's acceptances of $71 million (October 31, 2009: $69 million) to these conduits as at January 31, 2010.

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, 2010                 Amount(1)      (years)
    -------------------------------------------------------------------------
    Asset class
    Canadian residential mortgages                   $      891          1.5
    Auto leases                                             569          0.6
    Franchise loans                                         452          1.1
    Auto loans                                               90          0.7
    Credit cards                                            975        3.1(2)
    Equipment leases/loans                                  101          1.0
    Other                                                     5          0.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                            $    3,083          1.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009                                    $    3,612          1.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) 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 $750 million.
    (2) Based on the revolving period and amortization period contemplated in
        the transaction.
    

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 credit ratings of the notes issued by the multi-seller conduits.

We also participated in a syndicated facility for a 364 day commitment of $390 million to a CIBC-sponsored single-seller conduit that provides funding to franchisees of a major Canadian retailer. Our portion of the commitment is $95 million. At January 31, 2010 we funded $71 million (October 31, 2009: $69 million) by the issuance of banker's acceptances.

In addition, we consolidated Macro Trust, a CIBC-sponsored conduit, as we held all of its issued commercial paper.

We also securitize our mortgages and credit card receivables. Details of our consolidated variable interest entities and securitization transactions during the quarter are provided in Note 4 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 one to three 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 at January 31, 2010, we had CMBS inventory with a market value of less than US$1 million (October 31, 2009: less than US$1 million). As at January 31, 2010, $337 million (October 31, 2009: $279 million) of funded loans were considered impaired and US$152 million of loans and US$5 million of undrawn commitments were included in the credit watch list. During the quarter we recorded provisions for credit losses of $26 million (US$24 million).

The following table provides a summary of our positions in this business as at January 31, 2010:

    
    -------------------------------------------------------------------------
    US$ millions, as at January 31, 2010                  Drawn      Undrawn
    -------------------------------------------------------------------------
    Construction program                             $      171   $       32
    Interim program                                       1,965          230
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                            $    2,136   $      262
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009                                    $    2,209   $      236
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

U.S. leveraged finance

We sold our U.S. leveraged finance business as part of our sale of some of our U.S. businesses to Oppenheimer Holdings Inc. (Oppenheimer) in fiscal 2008. Under the transaction, the leveraged loans in existence at the time of the sale remained with us. These loans are being managed to maturity. In addition, under the current terms of our agreement with Oppenheimer, we agreed to provide a loan warehouse facility of up to US$2 billion to finance and hold syndicated loans originated for U.S. middle market companies by Oppenheimer. Underwriting of any loan for inclusion in this facility is subject to joint credit approval by Oppenheimer and CIBC. Exposures of our U.S. leveraged loans, including loans originated through Oppenheimer (net of allowance for credit losses of US$34 million as at January 31, 2010) are summarized in the table below. As at January 31, 2010, US$16 million of the loans and US$2 million of undrawn commitments were impaired and US$116 million of loans and US$55 million of undrawn commitments were included in the credit watch list. No provision for credit losses was recognized during the quarter.

    
    -------------------------------------------------------------------------
    US$ millions, as at January 31, 2010                  Drawn    Undrawn(1)
    -------------------------------------------------------------------------
    Transportation                                   $       93   $       75
    Gaming and lodging                                       71           56
    Healthcare                                               81          150
    Media and advertising                                    32           11
    Manufacturing                                            27          126
    Other                                                    50          114
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                            $      354   $      532
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009                                    $      370   $      575
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes unfunded letters of credit of US$36 million.


                         FINANCIAL PERFORMANCE REVIEW

    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,514   $    1,419   $    1,333
    Non-interest income                      1,547        1,469          689
    -------------------------------------------------------------------------
    Total revenue                            3,061        2,888        2,022
    Provision for credit losses                359          424          284
    Non-interest expenses                    1,748        1,669        1,653
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests                 954          795           85
    Income tax expense (benefit)               286          145          (67)
    Non-controlling interests                   16            6            5
    -------------------------------------------------------------------------
    Net income                          $      652   $      644   $      147
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Net interest income

Net interest income was up $181 million or 14% from the same quarter last year, primarily due to wider spreads and volume growth in most retail products, higher treasury revenue, and lower interest expense in the structured credit run-off business.

Net interest income was up $95 million or 7% from the prior quarter, mainly due to volume growth in most retail products, lower interest expense in the structured credit run-off business, and higher income from corporate credit products.

Non-interest income

Non-interest income was up $858 million from the same quarter last year, primarily due to gain from the structured credit run-off business compared with losses in the last year quarter. The current quarter also benefited from higher interest rate based trading revenue, and higher income from securitization activities, higher wealth management related fee income, and higher gains on sale of merchant banking investments. These factors were partially offset by lower realized gains on the sale of AFS securities in Treasury and MTM losses on our corporate loan credit derivatives compared with MTM gains in the last year quarter. The last year quarter was impacted by MTM losses relating to interest-rate hedges for the leveraged lease portfolio, losses/write-downs on our merchant banking portfolio and foreign exchange losses on repatriation activities.

Non-interest income was up $78 million or 5% from the prior quarter, primarily due to higher gains on the sale of merchant banking investments, lower MTM losses on our corporate loan credit derivatives, higher mutual fund fee income, and higher foreign exchange and commodities trading. These factors were partially offset by lower revenue in the structured credit run-off business.

Provision for credit losses

The provision for credit losses was up $75 million or 26% from the same quarter last year and down $65 million or 15% from the prior quarter.

The provision for credit losses in consumer portfolios was up $76 million from the same quarter last year, primarily due to higher delinquencies and bankruptcies in the credit cards and personal lending portfolios. The provision for credit losses in consumer portfolios was down $15 million from the prior quarter. This decrease was mainly driven by improvements in delinquencies in the personal lending portfolio.

The provision for credit losses in business and government lending increased by $58 million from the same quarter last year due to higher provisions in the U.S. real estate finance portfolio and FirstCaribbean, and lower recoveries. The provision for credit losses in business and government lending decreased by $36 million from the prior quarter. The decrease was primarily due to lower losses in the U.S. real estate finance portfolio and our run-off businesses partially offset by higher losses in FirstCaribbean.

Non-interest expenses

Non-interest expenses were up $95 million or 6% from the same quarter last year, primarily due to higher performance-related compensation, pension expenses and occupancy costs, and the ABCP settlement, partially offset by lower business and capital taxes.

Non-interest expenses were up $79 million or 5% from the prior quarter, primarily due to higher performance-related compensation, pension expenses and the ABCP settlement, partially offset by lower computer related expenses, professional fees, and business and capital taxes.

Income taxes

Income tax expense was $286 million, compared with a benefit of $67 million in the same quarter last year. The primary reason for this change was higher income in the current quarter. The current quarter also included a future tax asset write-down of $25 million resulting from the enactment of lower Ontario corporate tax rates.

Income tax expense was up $141 million from the prior quarter, for the reasons noted above. Also, the prior quarter included $62 million of favourable tax adjustments, including the write-up of future tax assets.

At the end of the quarter, our future income tax asset was $1,379 million, net of a $94 million (US$88 million) valuation allowance. Included in the future income tax asset are $760 million related to Canadian non-capital loss carryforwards that expire in 19 years, $62 million related to Canadian capital loss carryforwards that have no expiry date, and $337 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.

On October 2, 2009, the Canada Revenue Agency (CRA) issued reassessments disallowing the deduction of the 2005 Enron settlement payments of approximately $3.0 billion. During the quarter, CRA proposed to deny the Enron-related legal expenses and make certain other miscellaneous adjustments. These additional items have been factored into the tax and interest amounts below. We filed a Notice of Objection in December 2009 and intend to commence legal proceedings to defend our tax filing position in the Tax Court of Canada. We believe that we will be successful in sustaining at least the amount of the accounting tax benefit recognized to date. Should we successfully defend our tax filing position in its entirety, we would be able to recognize an additional accounting tax benefit of $214 million and taxable refund interest thereon of approximately $155 million. Should we fail to defend our position in its entirety, additional tax expense of approximately $860 million and non-deductible interest thereon of $154 million would be incurred.

Final closing agreements for leveraged leases were executed with the Internal Revenue Service (IRS) in 2009. We are now engaged in the process of finalizing amounts with the U.S. revenue authorities for the various affected taxation years. It is expected that this will be concluded in 2010. While we believe our 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 actual amounts with the U.S. revenue authorities.

Foreign exchange

Our U.S. dollar denominated results are impacted by fluctuations in the U.S. dollar/Canadian dollar exchange rate. The Canadian dollar appreciated 14% on average relative to the U.S. dollar from the same quarter last year, resulting in a $23 million decrease in the translated value of our U.S. dollar earnings.

The Canadian dollar appreciated 2% on average relative to the U.S. dollar from the prior quarter, resulting in a $3 million decrease in the translated value of our U.S. dollar earnings.

Review of quarterly financial information

    
                                       2010                             2009
    -------------------------------------------------------------------------
    $ millions, except per share
     amounts, for the three months
     ended                          Jan. 31    Oct. 31    Jul. 31    Apr. 30
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets          $  2,402   $  2,356   $  2,318   $  2,223
      Wholesale Banking                 613        503        552       (213)
      Corporate and Other                46         29        (13)       151
    -------------------------------------------------------------------------
    Total revenue                     3,061      2,888      2,857      2,161
    Provision for credit losses         359        424        547        394
    Non-interest expenses             1,748      1,669      1,699      1,639
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests          954        795        611        128
    Income tax (benefit) expense        286        145        172        174
    Non-controlling interests            16          6          5          5
    -------------------------------------------------------------------------
    Net income (loss)              $    652   $    644   $    434   $    (51)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic                      $   1.59   $   1.57   $   1.02   $  (0.24)
      - diluted(1)                 $   1.58   $   1.56   $   1.02   $  (0.24)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                       2009                             2008
    -------------------------------------------------------------------------
    $ millions, except per share
     amounts, for the three months
     ended                          Jan. 31    Oct. 31    Jul. 31    Apr. 30
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail Markets          $  2,375   $  2,345   $  2,347   $  2,252
      Wholesale Banking                (330)      (302)      (574)    (2,140)
      Corporate and Other               (23)       161        132         14
    -------------------------------------------------------------------------
    Total revenue                     2,022      2,204      1,905        126
    Provision for credit losses         284        222        203        176
    Non-interest expenses             1,653      1,927      1,725      1,788
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests           85         55        (23)    (1,838)
    Income tax (benefit) expense        (67)      (384)      (101)      (731)
    Non-controlling interests             5          3          7          4
    -------------------------------------------------------------------------
    Net income (loss)              $    147   $    436   $     71   $ (1,111)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss) per share
      - basic                      $   0.29   $   1.07   $   0.11   $  (3.00)
      - diluted(1)                 $   0.29   $   1.06   $   0.11   $  (3.00)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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 banking activities.

Wholesale Banking revenue was adversely affected in 2008 and early 2009, due to the charges on credit protection purchased from financial guarantors and MTM losses related to our exposure to the USRMM. Foreign exchange losses on repatriation activities were included in the first quarter of 2009 and the second quarter of 2008. The second quarter of 2009 and the fourth quarter of 2008 included foreign exchange gains on repatriation activities.

Retail lending provisions trended higher beginning the second half of 2008 largely due to higher losses in the cards and personal lending portfolios. This is the result of both volume growth as well as economic deterioration in the consumer sector. Recoveries and reversals in Wholesale Banking have decreased from the high levels in the past. Wholesale Banking provisions trended higher in 2009, reflective of the recessions in the U.S. and Europe. There has been an increase in general allowance in each quarter since.

Performance-related compensation has been lower over the quarters in 2008 and 2009. The fourth quarter of 2008 included severance related expenses.

The second and third 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. Tax-exempt income had steadily decreased since the third quarter of 2008 until the third quarter of 2009. Thereafter, tax exempt income levels have remained fairly constant. Income tax benefits on the foreign exchange losses on repatriation activities were included in the first quarter of 2009 and the second quarter of 2008. The second quarter of 2009 and the fourth quarter of 2008 included income tax expenses on repatriation activities. The current quarter and the second quarter of 2009 included write-downs of future tax assets. The fourth quarter of 2009 included a tax benefit primarily from a positive revaluation of future tax assets.

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 57 of the 2009 Annual Accountability Report.

The following table provides 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 share              2010         2009         2009
     amounts                               Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net interest income                 $    1,514   $    1,419   $    1,333
    Non-interest income                      1,547        1,469          689
    -------------------------------------------------------------------------
    Total revenue per interim
     financial statements             A $    3,061   $    2,888   $    2,022
    TEB adjustment                    B          8            7           15
    -------------------------------------------------------------------------
    Total revenue (TEB)(1)            C $    3,069   $    2,895   $    2,037
    -------------------------------------------------------------------------

    Non-interest expenses per
     interim financial statements     D $    1,748   $    1,669   $    1,653
    Less: amortization of other
     intangible assets                          10           10           11
    -------------------------------------------------------------------------
    Cash non-interest expenses(1)     E $    1,738   $    1,659   $    1,642
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Income before taxes and
     non-controlling interests
     per interim financial
     statements                       F $      954   $      795   $       85
    TEB adjustment                    B          8            7           15
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests
     (TEB)(1)                         G $      962   $      802   $      100
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income applicable to
     common shares                    H $      610   $      601   $      111
    Add: after-tax effect of
     amortization of other intangible
     assets                                      8            8            9
    -------------------------------------------------------------------------
    Cash net income applicable to
     common shares(1)                 I $      618   $      609   $      120
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic weighted-average common
     shares (thousands)               J    384,442      382,793      380,911
    Diluted weighted-average common
     shares (thousands)               K    385,598      383,987      381,424
    -------------------------------------------------------------------------

    Cash efficiency ratio (TEB)(1)  E/C      56.6%        57.3%        80.6%

    Cash basic earnings (loss) per
     share(1)                       I/J $     1.61   $     1.59   $     0.32

    Cash diluted earnings (loss)
     per share(1)                   I/K $     1.60   $     1.59   $     0.31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Non-GAAP measure.
    

Business unit allocations

Treasury activities impact the reported financial results of CIBC's strategic business units (CIBC Retail Markets and Wholesale Banking).

Each business line is charged or credited with a market-based cost of funds on assets and liabilities, respectively, and this impacts the revenue performance of the business units. Once the interest and liquidity risk inherent in our customer-driven assets and liabilities is transfer priced into Treasury, it is managed within CIBC's risk framework and limits. The majority of the revenue from these Treasury activities is then allocated to the "Other" business line within CIBC Retail Markets and Wholesale Banking.

Treasury also allocates capital to the business units in a manner that is intended to consistently measure and align economic costs with the underlying benefits and risks associated with business unit activities. Earnings on unallocated capital and the impact of securitization activities remain in Corporate and Other.

In addition, non-interest expenses are attributed to the business unit to which they relate. Indirect expenses are allocated to the business units based on appropriate criteria.

We review our transfer pricing and treasury allocations methodologies on an ongoing basis to ensure they reflect changing market environments and industry practices. The nature of transfer pricing and treasury allocations methodologies is such that the presentation of certain line items in segmented results is different compared to total bank results.

    
                             CIBC RETAIL MARKETS
    

CIBC Retail Markets comprises CIBC's personal banking, business banking and wealth management businesses. We provide a full range of financial products and services to almost 11 million clients in Canada, as well as investment management services globally to retail and institutional clients in Hong Kong, Singapore, and the Caribbean. In addition, we offer a full range of financial services to clients in over 17 regional markets in the Caribbean through FirstCaribbean International Bank.

Results(1)

    
    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31    Oct. 31(3)   Jan. 31(3)
    -------------------------------------------------------------------------
    Revenue
      Personal banking                  $    1,601   $    1,562   $    1,454
      Business banking                         331          334          315
      Wealth management                        346          337          323
      FirstCaribbean                           157          160          180
      Other                                    (33)         (37)         103
    -------------------------------------------------------------------------
    Total revenue (a)                        2,402        2,356        2,375
    Provision for credit losses                365          362          278
    Non-interest expenses (b)                1,314        1,338        1,291
    -------------------------------------------------------------------------
    Income before taxes and
     non-controlling interests                 723          656          806
    Income tax expense                         189          182          224
    Non-controlling interests                    5            6            5
    -------------------------------------------------------------------------
    Net income (c)                      $      529   $      468   $      577
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Efficiency ratio (b/a)                   54.7%        56.8%        54.4%
    Amortization of other intangible
     assets (d)                         $        7   $        7   $        8
    Cash efficiency ratio(2) ((b-d)/a)       54.4%        56.5%        54.0%
    ROE(2)                                   42.3%        37.8%        45.8%
    Charge for economic capital(2) (e)  $     (173)  $     (169)  $     (168)
    Economic profit(2) (c+e)            $      356   $      299   $      409
    Full-time equivalent employees          28,933       28,921       29,096
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    (3) Prior period amounts have been restated to reflect the retroactive
        transfer of certain businesses from CIBC Retail Markets to Wholesale
        Banking. Refer to "External Reporting Changes" on page 5 for details.
    

Financial overview

Net income for the quarter was $529 million, a decrease of $48 million or 8% from the same quarter last year. Revenue increased by 1% as a result of wider spreads and strong volume growth, largely offset by higher loan losses.

Net income was up $61 million or 13% compared with the prior quarter as revenue increased by 2% and expenses were lower by 2%.

Revenue

Revenue was up $27 million or 1% from the same quarter last year.

Personal banking revenue was up $147 million or 10%, with wider spreads and strong volume growth partially offset by lower mortgage prepayment penalty fees.

Business banking revenue was up $16 million or 5%, as higher commercial banking fees were partially offset by narrower spreads.

Wealth management revenue was up $23 million or 7%, primarily due to market driven increases in asset values and higher transaction volumes partially offset by narrower spreads.

FirstCaribbean revenue was down $23 million or 13%, primarily due to a stronger Canadian dollar and lower volumes partially offset by higher securities gains.

Other revenue was down $136 million due to lower treasury allocations.

Revenue was up $46 million from the prior quarter.

Personal banking revenue was up $39 million, primarily due to volume growth across most products and wider spreads.

Business banking revenue was down $3 million, primarily due to narrower spreads partially offset by volume growth in deposits and lending.

Wealth management revenue was up $9 million, mainly due to market driven increases in asset values.

FirstCaribbean revenue was down $3 million, primarily due to a stronger Canadian dollar.

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

Provision for credit losses

The provision for credit losses was up $87 million or 31% from the same quarter last year. The increase was largely attributed to higher write-offs and bankruptcies in cards, personal lending and FirstCaribbean.

The provision for credit losses was consistent with the prior quarter as higher loan losses for FirstCaribbean were offset by lower losses on personal lending.

Non-interest expenses

Non-interest expenses were up $23 million or 2% from the same quarter last year. The increase was primarily due to higher performance-related compensation and pension expenses, partially offset by lower support expenses and a stronger Canadian dollar impacting FirstCaribbean.

Non-interest expenses were down $24 million from the prior quarter. The decrease was primarily due to lower project expenses due to timing of projects and lower performance-related compensation.

Income taxes

Income taxes were down $35 million or 16% from the same quarter last year, mainly due to lower income and a lower effective tax rate.

Income taxes were up $7 million from the prior quarter, primarily due to an increase in income partially offset by a lower effective tax rate.

    
                              WHOLESALE BANKING
    

Wholesale Banking provides a wide range of capital markets, credit, 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
                                        -------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31    Oct. 31(3)   Jan. 31(3)
    -------------------------------------------------------------------------
    Revenue (TEB)(2)
      Capital markets                   $      277   $      261   $      332
      Corporate and investment banking         212          161          171
      Other                                    132           88         (818)
    -------------------------------------------------------------------------
    Total revenue (TEB)(2)                     621          510         (315)
    TEB adjustment                               8            7           15
    -------------------------------------------------------------------------
    Total revenue                              613          503         (330)
    Provision for (reversal of) credit
     losses                                     24           82          (11)
    Non-interest expenses                      318          245          281
    -------------------------------------------------------------------------
    Income (loss) before taxes and
     non-controlling interests                 271          176         (600)
    Income tax expense (benefit)                76           16         (223)
    Non-controlling interests                   11            -            -
    -------------------------------------------------------------------------
    Net income (loss) (a)               $      184   $      160   $     (377)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    ROE(2)                                   35.7%        28.2%      (56.1)%
    Charge for economic capital(2) (b)  $      (71)  $      (76)  $      (95)
    Economic (loss) profit(2) (a+b)     $      113   $       84   $     (472)
    Full-time equivalent employees           1,050        1,077        1,106
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.
    (3) Prior period amounts have been restated to reflect the retroactive
        transfer of certain businesses from CIBC Retail Markets to Wholesale
        Banking. Refer to "External Reporting Changes" on page 5 for details.
    

Financial overview

Net income for the current quarter was $184 million, compared to a net loss of $377 million in the same quarter last year, primarily due to income in the structured credit run-off business compared to losses in the last year quarter. During the quarter we realized a $46 million gain on the sale of a merchant banking investment. Net of minority interest and related expenses, the after-tax gain on the sale was $18 million.

Net income was up $24 million from the prior quarter, mainly due to higher revenue, including the merchant banking gain noted above, and a lower provision for credit losses in the current quarter, partially offset by higher non-interest expenses.

Revenue

Revenue was up $943 million from the same quarter last year.

Capital markets revenue was down $55 million, primarily due to lower foreign exchange and equity trading revenue.

Corporate and investment banking revenue was up $41 million, mainly due to higher gains net of write-downs, including the merchant banking gain, discussed above.

Other revenue was up $950 million, primarily due to income in the structured credit run-off business compared to losses in the last year quarter. The increase was partially offset by MTM losses on our corporate loan credit derivatives compared to MTM gains in the prior year quarter. The prior year quarter also had losses and write-downs in the legacy merchant banking portfolio and losses related to leveraged leases.

Revenue was up $110 million from the prior quarter.

Capital markets revenue was up $16 million, mainly due to higher foreign exchange and commodities trading, and higher debt new issuance.

Corporate and investment banking revenue was up $51 million, primarily due to higher gains net of write-downs in the core merchant banking portfolio and higher revenue in corporate credit products.

Other revenue was up $44 million due to lower MTM losses on our corporate loan credit derivatives and higher gains in the legacy merchant banking portfolio. Lower revenue in structured credit run-off was largely offset by lower losses in other trading positions which we are managing down.

Provision for credit losses

The provision for credit losses was $35 million higher than the same quarter last year, mainly due to higher provisions in the U.S. real estate finance portfolio and lower recoveries.

The provision for credit losses was $58 million lower than the prior quarter, mainly due to lower losses in the U.S. real estate finance, Canadian corporate credit and European leveraged loan portfolios.

Non-interest expenses

Non-interest expenses were up $37 million from the same quarter last year and up $73 million from the prior quarter, primarily due to the ABCP settlement and higher performance-related compensation.

Income taxes

Income tax expense was $76 million compared to a benefit of $223 million in the same quarter last year, due to the impact of the structured credit run-off business.

Income tax expense was up $60 million from the prior quarter due to higher income and $24 million of prior quarter favourable tax adjustments.

Full time equivalent employees

The full time equivalent employees were down 56 from the same quarter last year and 27 from the prior quarter, primarily due to continued cost reduction initiatives.

    
                             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. It also includes the CIBC Mellon joint ventures, and other income statement and balance sheet items, including the general allowance, not directly attributable to the business lines. The general allowance applicable to FirstCaribbean is determined locally and is included in CIBC Retail Markets. 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
                                        -------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Total revenue                       $       46   $       29   $      (23)
    (Reversal of) provision for credit
     losses                                    (30)         (20)          17
    Non-interest expenses                      116           86           81
    -------------------------------------------------------------------------
    Loss before taxes                          (40)         (37)        (121)
    Income tax expense (benefit)                21          (53)         (68)
    -------------------------------------------------------------------------
    Net (loss) income                   $      (61)  $       16   $      (53)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Full-time equivalent employees          11,836       11,943       12,118
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

Financial overview

Net loss was up $8 million from the same quarter last year, primarily due to the write-down of future tax assets resulting from the enactment of lower Ontario corporate tax rates, and higher unallocated corporate support costs, partly offset by a lower provision for credit losses in the general allowance.

Net loss in the current quarter was $61 million compared with net income of $16 million in the prior quarter. The current quarter included the above-noted write-down of future tax assets, whereas the prior quarter included $38 million of favourable tax adjustments.

Revenue

Revenue was up $69 million from the same quarter last year, primarily due to lower treasury losses on securitization activities. The last year quarter included a $48 million foreign exchange loss on repatriation activities.

Revenue was up $17 million from the prior quarter, primarily due to lower unallocated treasury losses.

Reversal of credit losses

Reversal of credit losses was up $47 million from the same quarter last year, and up $10 million from the prior quarter, primarily due to a lower provision for credit losses in the general allowance.

Non-interest expenses

Non-interest expenses were up $35 million from the same quarter last year, and up $30 million from the prior quarter, primarily due to higher unallocated corporate support costs related to pension and performance-related compensation.

Income tax

Income tax expense was $21 million compared with an income tax benefit of $68 million in the same quarter last year. The current quarter had a write-down of future tax assets as noted above. The prior year quarter included a $52 million tax benefit related to the foreign exchange loss on repatriation activities.

Income tax expense was $21 million, compared with an income tax benefit of $53 million in the prior quarter, for the reasons noted above.

Full time equivalent employees

The full time equivalent employees were down 282 from the same quarter last year, and 107 from the prior quarter, primarily due to continuing cost reduction initiatives.

    
                             FINANCIAL CONDITION
    

Review of consolidated balance sheet

    
    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Assets
    Cash and deposits with banks                     $    8,290   $    7,007
    Securities                                           76,044       77,576
    Securities borrowed or purchased under
     resale agreements                                   32,497       32,751
    Loans                                               173,118      167,212
    Derivative instruments                               23,563       24,696
    Other assets                                         23,727       26,702
    -------------------------------------------------------------------------
    Total assets                                     $  337,239   $  335,944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity
    Deposits                                         $  224,269   $  223,117
    Derivative instruments                               25,686       27,162
    Obligations related to securities lent or
     sold short or under repurchase agreements           49,242       43,369
    Other liabilities                                    17,438       22,090
    Subordinated indebtedness                             5,119        5,157
    Preferred share liabilities                             600          600
    Non-controlling interests                               171          174
    Shareholders' equity                                 14,714       14,275
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  337,239   $  335,944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Assets

As at January 31, 2010 total assets were up $1.3 billion from October 31, 2009.

Cash and deposits with banks increased by $1.3 billion or 18%, mainly due to higher treasury deposit placements.

Securities decreased by $1.5 billion or 2%, primarily due to a decline in AFS and designated at fair value (FVO) securities offset by an increase in Trading securities. The decrease in AFS securities was mainly in government issued short-term bonds. FVO securities declined mainly due to the sale of mortgage-backed securities partially offset by new securitizations during the quarter. Trading securities increased mainly in government issued short-term bonds and equity securities reflecting normal trading activities.

Loans increased by $5.9 billion or 4% largely due to the CLO loans that we assumed on termination of our written credit derivatives as described in the "Run-off businesses" section. There were also lower securitization activities in the quarter.

Derivative instruments reduced by $1.1 billion or 5%, largely due to volume driven decreases in credit derivatives.

Other assets decreased by $3 billion or 11%, mainly due to a decrease in collateral pledged and lower items in transit compared to the previous quarter.

Liabilities

As at January 31, 2010, total liabilities were down $0.9 billion from October 31, 2009.

Deposits increased by $1.2 billion largely due to retail volume growth and reclassification of certain payables from other liabilities. The increase was partially offset by a reduction in our funding requirements and client-driven activities.

Derivative instruments decreased by $1.5 billion or 5%, largely due to volume driven decreases in credit derivatives.

Obligations related to securities lent or sold short or under repurchase agreements increased by $5.9 billion or 14% as a result of normal client-driven activities and funding requirements.

Other liabilities and acceptances decreased by $4.7 billion or 21% largely due to the reclassification of certain payables mentioned above and a decline in collateral pledged.

Shareholders' equity

The increase in Shareholders' equity is primarily due to a net increase in retained earnings during the quarter.

Capital resources

We actively manage our capital to maintain a strong and efficient capital base, to maximize risk-adjusted returns to shareholders, and to meet regulatory requirements. For additional details, see pages 65 to 69 of the 2009 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:

    
    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   14,589   $   14,154
    Tier 2 capital                                        4,578        4,673
    Total regulatory capital                             19,167       18,827
    Risk-weighted assets                                112,122      117,298
    Tier 1 capital ratio                                  13.0%        12.1%
    Total capital ratio                                   17.1%        16.1%
    Assets-to-capital multiple                            16.1x        16.3x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Tier 1 ratio was up 0.9% and the total capital ratio was up 1.0% from year-end. The capital ratios benefited from lower risk-weighted assets (RWAs) and an increase in both Tier 1 and total capital.

The $5.2 billion decrease in RWAs from year-end was largely attributable to a decrease in structured credit exposure to financial guarantors, updates to advanced internal ratings based (AIRB) model parameters and a decrease in corporate exposure.

Tier 1 and total capital increased from year-end mainly due to internal capital generation and the issuance of $131 million of common shares during the quarter.

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 70 to 72 of the 2009 Annual Accountability Report.

During the quarter, we securitized residential mortgages of $1.4 billion.

The following table summarizes our exposures to non-consolidated entities involved in the securitization of third-party assets (both CIBC sponsored/structured and third-party structured). Investments and loans are stated at carrying value. Undrawn liquidity and credit facilities and written credit derivatives are notional amounts.

    
    -------------------------------------------------------------------------
                                                                        2010
    $ millions, as at                                                Jan. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits             $      394   $  2,732(3)  $        -
    CIBC structured CDO vehicles               651           52          603
    Third-party structured
     vehicles - run-off                      9,026          586        7,253
    Third-party structured
     vehicles - continuing                   1,861            -            -
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                                        2009
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                                      liquidity       credit
                                        Investment   and credit  derivatives
                                       and loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored conduits             $      556   $  3,108(3)  $        -
    CIBC structured CDO vehicles               737           66          652
    Third-party structured
     vehicles - run-off                      6,676          650       11,110
    Third-party structured
     vehicles - continuing                   1,695            -            -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by, retained in, and derivatives with
        entities established by Canada Mortgage and Housing Corporation
        (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae, Federal Home Loan Banks,
        Federal Farm Credit Bank, and Sallie Mae. $8.5 billion (Oct. 31,
        2009: $6.1 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 negative fair value recorded on
        the consolidated balance sheet was $3.5 billion (Oct. 31, 2009:
        $4.1 billion). Notional amounts of $6.7 billion (Oct. 31, 2009:
        $10.7 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of CVA was
        $0.5 billion (Oct. 31, 2009: $0.6 billion). Accumulated fair value
        losses amount to $2.3 billion (Oct. 31, 2009: $2.5 billion) on
        unhedged written credit derivatives.
    (3) Net of $394 million (Oct. 31, 2009: $556 million) of investment and
        loans in CIBC sponsored conduits.
    

In the third quarter of 2009, we consolidated certain third-party structured CDOs after determining that we are the primary beneficiary following the commutation of our protection from a financial guarantor. The table above excludes our investments (fair value of $61 million as at January 31, 2010) in, and written credit derivatives (notional of $1.9 billion and negative fair value of $1.6 billion, as at January 31, 2010) on, the notes of these CDOs.

Additional details of our own asset securitization activities and our exposures to variable interest entities are provided in Note 4 to the interim consolidated financial statements.

    
                             MANAGEMENT OF RISK
    

Our approach to management of risk has not changed significantly from that described on pages 73 to 88 of the 2009 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 2009 Annual Accountability Report.

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

    
    -   Capital Markets Risk Management - This unit provides independent
        oversight of the measurement, monitoring and control of market risks
        (both trading and non-trading), trading credit risk and trading
        operational risk across CIBC's portfolios.

    -   Card Products Risk Management - This unit oversees the management of
        credit risk in the card products portfolio, including the
        optimization of lending profitability.

    -   Retail Lending & Wealth Risk Management - This unit oversees the
        management of credit and fraud risk in the retail lines and loans and
        residential mortgage portfolios, including the optimization of
        lending profitability.

    -   Wholesale Credit and Investment Risk Management - This unit is
        responsible for the adjudication and oversight of credit risks
        associated with our small business, commercial and wholesale lending
        activities globally, as well as management of the special loans and
        investments portfolios.

    -   Risk Services - This unit is responsible for a range of activities,
        including: regulatory and economic capital reporting; operational
        risk management; and vetting and validating of models and parameters.
        Risk services is also responsible for various risk policies including
        those associated with credit, operational, and reputation and legal
        risks.
    

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

Credit risk

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

Exposure to credit risk

Our gross credit exposure measured as exposure at default (EAD) for on- and off-balance sheet financial instruments was $494.4 billion as at January 31, 2010 (October 31, 2009: $486.8 billion). Overall exposure was up $7.5 billion, with the increase across both the retail and business and government portfolios.

    
    Gross exposure at default, before credit risk mitigation
    --------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Business and government portfolios-AIRB
     approach
    Drawn                                            $   95,866   $  102,449
    Undrawn commitments                                  22,965       22,368
    Repo-style transactions                              88,186       83,805
    Other off-balance sheet                              40,106       34,841
    OTC derivatives                                      14,505       15,257
    -------------------------------------------------------------------------
                                                     $  261,628   $  258,720
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retail Portfolios-AIRB approach
    Drawn                                            $  133,791   $  130,028
    Undrawn commitments                                  67,174       67,323
    Other off-balance sheet                                 388          412
    -------------------------------------------------------------------------
                                                     $  201,353   $  197,763
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Standardized portfolios                          $   12,584   $   12,916
    Securitization exposures                             18,813       17,446
    -------------------------------------------------------------------------
                                                     $  494,378   $  486,845
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Included in the business and government portfolios-AIRB approach is EAD of $1.7 billion in the probability of default band considered watch list as at January 31, 2010 (October 31, 2009: $1.9 billion).

The decrease in watch list exposures in the current quarter was largely driven by the downgrade of certain customers in our ELF run-off portfolio. The majority of watch list exposures are from the financial services sector, including financial guarantor exposures discussed in more detail in our "Run-off businesses" section.

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 2009 consolidated financial statements.

We establish a CVA for expected future credit losses from each of our derivative counterparties. As at January 31, 2010, the CVA for all derivative counterparties was $1.4 billion (October 31, 2009: $2.2 billion).

    
    Rating profile of derivative MTM receivables(1)
    -----------------------------------------------
    -------------------------------------------------------------------------
                                                  2010                  2009
    $ billions, as at                          Jan. 31               Oct. 31
    -------------------------------------------------------------------------
    Standard & Poor's rating
     equivalent
    AAA to BBB-                    $    5.7      74.6%   $    6.1      75.5%
    BB+ to B-                           1.4       18.2        1.4       17.5
    CCC+ to CCC-                        0.4        5.3        0.4        5.1
    Below CCC-                          0.1        0.8        0.1        1.0
    Unrated                             0.1        1.1        0.1        0.9
    -------------------------------------------------------------------------
    Total                          $    7.7     100.0%   $    8.1     100.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) MTM value of the derivative contracts after CVA and derivative master
        netting agreements but before any collateral.


    Impaired loans and allowance and provision for credit losses
    ------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans
    Consumer                                         $      796   $      727
    Business and government(1)                            1,130        1,184
    -------------------------------------------------------------------------
    Total gross impaired loans                       $    1,926   $    1,911
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Allowance for credit losses
    Consumer                                         $    1,169   $    1,132
    Business and government(1)                              795          828
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,964   $    1,960
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
    Specific allowance for loans(2)                  $      730   $      735
    General allowance for loans(2)                        1,234        1,225
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,964   $    1,960
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    (2) Excludes specific and general allowance for letters of credit and
        undrawn credit facilities of nil and $75 million respectively
        (October 31, 2009: $1 million and $82 million respectively).
    

Gross impaired loans were up $15 million or 1% from October 31, 2009. Consumer gross impaired loans were up $69 million or 9%, largely attributable to increased new classifications in residential mortgages. Business and government gross impaired loans were down $54 million or 5%, due to a decrease in financial institutions, partially offset by increases in the business services, and real estate and construction sectors.

The allowance for credit losses was up $4 million from October 31, 2009. Specific allowance was down $5 million or 1%, primarily due to a decrease in publishing and broadcasting, partially offset by increases in business services, real estate, and construction sectors. The general allowance for loans was up $9 million or 1% driven by personal lending and credit cards, partially offset by a decrease in the allowance for business and government lending.

For details on the provision for credit losses, see the "Financial performance review" section.

Market risk

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

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, 2010 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 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 31% from the last quarter, primarily due to changes in our market risk exposure across trading books, and general improvement in market conditions, especially in credit markets.

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(2)
    ---------------------------------------

                                         As at or for the three months ended
    -------------------------------------------------------------------------
                                                               Jan. 31, 2010
                                  -------------------------------------------
    $ millions                         High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    4.9   $    1.6   $    4.0   $    2.7
    Credit spread risk                  0.6        0.3        0.4        0.4
    Equity risk                         2.5        1.0        1.1        1.3
    Foreign exchange risk               1.9        0.4        0.6        0.8
    Commodity risk                      3.1        0.3        0.3        0.6
    Debt specific risk                  2.0        1.2        1.3        1.4
    Diversification effect(1)           n/m        n/m       (3.1)      (3.6)
    ------------------------------                      ---------------------
    Total risk                     $    5.5   $    2.8   $    4.6   $    3.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                         As at or for the three months ended
    -------------------------------------------------------------------------
                                         Oct. 31, 2009         Jan. 31, 2009
                                  -------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk             $    3.3   $    4.5   $    4.5   $    4.8
    Credit spread risk                  0.5        0.6        1.6        2.1
    Equity risk                         1.2        1.5        4.0        4.8
    Foreign exchange risk               1.1        1.2        0.5        1.3
    Commodity risk                      0.5        0.6        0.8        0.6
    Debt specific risk                  1.2        1.3        2.4        2.3
    Diversification effect(1)          (3.4)      (4.5)      (7.1)      (7.8)
    -------------------------------------------------------------------------
    Total risk                     $    4.4   $    5.2   $    6.7   $    8.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    (2) The table excludes exposures in our run-off businesses.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    

Trading Revenue

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

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

The trading revenue (TEB)(1) for the current quarter excludes a gain of $180 million related to changes in exposures and fair values of structured credit assets, as well as trading losses of $1 million related to loss 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 twelve months of an immediate 100 basis point increase or decrease in interest rates, adjusted for estimated prepayments as well as adjusted to accommodate the downward shock in the current interest rate environment.

    
    Interest rate sensitivity - non-trading (after-tax)
    ---------------------------------------------------
    -------------------------------------------------------------------------
                                                2010                    2009
                                             Jan. 31                 Oct. 31
                             ------------------------------------------------
    $ millions, as at              $     US$   Other       $     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                $  118  $  (55) $    4  $  134  $  (21) $    2
    Change in present value
     of shareholders' equity     186    (124)     (3)    322     (89)     (6)

    100 basis points decrease
     in interest rates
    Net income                $  (87) $   40  $   (4) $  (30) $   21  $   (2)
    Change in present value
     of shareholders' equity    (115)    104       2    (257)     75       5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------
                                                2009
                                             Jan. 31
                             ------------------------
    $ millions, as at              $     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                $  115  $  (21) $    8
    Change in present value
     of shareholders' equity     203     (48)     (3)

    100 basis points decrease
     in interest rates
    Net income                $  (53) $   20  $   (9)
    Change in present value
     of shareholders' equity    (226)     47       1
    -------------------------------------------------
    -------------------------------------------------
    

Liquidity Risk

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

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

We obtain funding through both wholesale and retail sources. Core personal deposits remain a primary source of retail funding and totalled $106.9 billion, as at January 31, 2010 (October 31, 2009: $104.3 billion).

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

CIBC continued to access some of the extraordinary liquidity facilities such as the 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 (composed of insured residential mortgage pools). Generally speaking, however, conditions in capital markets are much improved allowing for easier access to longer term funding. On January 27, 2010, CIBC issued US$2 billion of covered bonds in the US market. The transaction was settled on February 3, 2010.

Balance sheet liquid assets are summarized in the following table:

    
    -------------------------------------------------------------------------
                                                           2010         2009
    $ billions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.2   $      1.2
    Deposits with banks                                     7.1          5.8
    Securities issued by Canadian governments(1)           12.0         16.8
    Mortgage-backed securities(1)                          17.2         19.4
    Other securities(2)                                    35.0         31.0
    Securities borrowed or purchased under
     resale agreements                                     32.5         32.8
    -------------------------------------------------------------------------
                                                     $    105.0   $    107.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These represent securities with residual term to contractual maturity
        of more than one year.
    (2) Comprises AFS and FVO securities with residual term to contractual
        maturity within one year and trading securities.
    

In the course of our regular business activities, certain assets are pledged as part of collateral management, including those necessary for day-to-day clearing and settlement of payments and securities. Pledged assets, including those for covered bonds and securities borrowed or financed through repurchase agreements, as at January 31, 2010 totalled $40.4 billion (October 31, 2009: $36.7 billion).

Access to wholesale funding sources and the cost of funds are dependent on various factors including credit ratings. There have been no changes to our credit ratings and outlook during the quarter at major credit rating agencies.

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

Contractual obligations

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

Details of our contractual obligations are provided on pages 86 to 87 of the 2009 Annual Accountability Report. There were no significant changes to contractual obligations that were not in the ordinary course of our business.

Other risks

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

For additional details, see pages 87 to 88 of the 2009 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 2009 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 89 to 95 of the 2009 Annual Accountability Report.

Valuation of financial instruments

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

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

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

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

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

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

    
    -------------------------------------------------------------------------
                                        Structured
                                            credit
                                           run-off        Total        Total
    $ millions, as at January 31, 2010    business         CIBC       CIBC(1)
    -------------------------------------------------------------------------
    Assets
      Trading securities                $    1,332   $    1,471         7.8%
      AFS securities                            20        2,691          7.4
      FVO securities and loans                 152          159          0.8
      Derivative instruments                 2,033        2,360         10.0
    -------------------------------------------------------------------------
    Liabilities
      FVO deposits                      $      885   $      885        20.5%
      Derivative instruments                 3,805        4,636         18.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents percentage of Level 3 assets and liabilities in each
        reported category on our interim consolidated balance sheet.
    

For credit derivatives purchased from financial guarantors, our CVA is generally driven off market-observed credit spreads where available. For financial guarantors that do not have observable credit spreads or where observable credit spreads are available but do not reflect an orderly market (i.e. not representative of fair value), a proxy market spread is used. The proxy market credit spread is based on our internal credit rating for the particular financial guarantor. Credit spreads contain information on market (or proxy market) expectations of probability of default as well as loss given default. The credit spreads are applied in relation to the weighted average life of our exposure to the counterparties. For financial guarantor counterparties where a proxy market spread is used, we also make an adjustment to reflect additional financial guarantor risk over an equivalently rated non-financial guarantor counterparty. The amount of the adjustment is dependent on all available internal and external market information for financial guarantors. The final CVA takes into account the expected correlation between the future performance of the underlying reference assets and that of the counterparties except for high quality reference assets where we expect no future credit degradation.

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

Our interest-only strips from the sale of securitized assets are sensitive to prepayment rates which we also consider to be a non-observable market input.

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

Asset-backed securities are sensitive to credit spreads which we consider to be a non-observable market input. The effect of changing one or more of the assumptions to fair value these instruments to reasonably possible alternatives would impact net income as described below.

Our unhedged structured credit exposures (USRMM and non-USRMM) are sensitive to changes in MTM, generally as derived from indicative broker quotes and internal models as described above. A 10% adverse change in MTM of the underlyings would result in a loss of approximately $27 million in our unhedged USRMM portfolio and $80 million in our non-USRMM portfolio, excluding unhedged loans (reclassified from held-to-maturity (HTM)) and before the impact of the Cerberus transaction.

A 10% reduction in the MTM of our on-balance sheet hedged structured credit positions other than those classified as loans 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 $10 million before the impact of the Cerberus transaction. 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 receivables net of CVA from financial guarantors would result in a net loss of approximately $127 million.

A 10% increase in prepayment rates pertaining to our retained interests related to the interest-only strip resulting from the sale of securitized assets would result in a net loss of approximately $31 million.

A 20 basis point decrease in liquidity rates used to fair value our derivatives related to the sale of securitized assets would result in a loss of approximately $98 million.

A 10% reduction in the mark-to-market of our on-balance sheet asset-backed securities that are valued using non-observable credit spreads would result in a net loss of approximately $144 million.

The net gain recognized in the consolidated statement of operations on the financial instruments, for which fair value was estimated using a valuation technique requiring non-observable market parameters, for the quarter ended January 31, 2010 was $6 million (for the quarter ended January 31, 2009: net loss of $691 million). 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:

    
    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Trading securities
      Market risk                                    $        3   $        7
    Derivatives
      Market risk                                            81           81
      Credit risk                                         1,354        2,241
      Administration costs                                   32           33
      Other                                                   2            2
    -------------------------------------------------------------------------
                                                     $    1,472   $    2,364
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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 and may not reflect ultimate realizable amounts.

Accounting Developments

Transition to International Financial Reporting Standards (IFRS)

In February 2008, the AcSB affirmed its intention to replace Canadian GAAP with IFRS. We will adopt IFRS commencing November 1, 2011 also presenting comparative financial statements, for the year commencing November 1, 2010 and as a result, we will publish our first consolidated financial statements, prepared in accordance with IFRS, for the quarter ending January 31, 2012.

The transition to IFRS represents a significant initiative for CIBC and is supported by a formal governance structure with an enterprise view and a dedicated project team. Our IFRS transition project continues to progress on track with our transition plan.

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

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, 2010, of CIBC's disclosure controls and procedures (as defined in the rules of the Securities and Exchange Commission 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, 2010, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

    
                  INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

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

                                                           2010         2009
    Unaudited, $ millions, as at                        Jan. 31      Oct. 31
    ------------------------------------------------------------ ------------
    ASSETS
    Cash and non-interest-bearing deposits
     with banks                                      $    1,917   $    1,812
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Interest-bearing deposits with banks                  6,373        5,195
    ------------------------------------------------------------ ------------
    Securities (Note 2)
    Trading                                              18,823       15,110
    Available-for-sale (AFS)                             37,290       40,160
    Designated at fair value (FVO)                       19,931       22,306
    ------------------------------------------------------------ ------------
                                                         76,044       77,576
    ------------------------------------------------------------ ------------
    Securities borrowed or purchased under
     resale agreements                                   32,497       32,751
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Loans
    Residential mortgages                                89,605       86,152
    Personal                                             34,059       33,869
    Credit card                                          12,122       11,808
    Business and government                              39,296       37,343
    Allowance for credit losses (Note 3)                 (1,964)      (1,960)
    ------------------------------------------------------------ ------------
                                                        173,118      167,212
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               23,563       24,696
    Customers' liability under acceptances                6,997        8,397
    Land, buildings and equipment                         1,624        1,618
    Goodwill                                              1,954        1,997
    Software and other intangible assets                    635          669
    Other assets (Note 7)                                12,517       14,021
    ------------------------------------------------------------ ------------
                                                         47,290       51,398
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
                                                     $  337,239   $  335,944
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $  111,237   $  108,324
    Business and government                             105,920      107,209
    Bank                                                  7,112        7,584
    ------------------------------------------------------------ ------------
                                                        224,269      223,117
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               25,686       27,162
    Acceptances                                           6,997        8,397
    Obligations related to securities sold short          7,137        5,916
    Obligations related to securities lent or
     sold under repurchase agreements                    42,105       37,453
    Other liabilities                                    10,441       13,693
    ------------------------------------------------------------ ------------
                                                         92,366       92,621
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Subordinated indebtedness                             5,119        5,157
    ------------------------------------------------------------ ------------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Non-controlling interests                               171          174
    ------------------------------------------------------------ ------------
    Shareholders' equity
    Preferred shares                                      3,156        3,156
    Common shares (Note 5)                                6,371        6,240
    Treasury shares                                           1            1
    Contributed surplus                                      94           92
    Retained earnings                                     5,432        5,156
    Accumulated other comprehensive loss (AOCI)            (340)        (370)
    ------------------------------------------------------------ ------------
                                                         14,714       14,275
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
                                                     $  337,239   $  335,944
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Interest income
    Loans                               $    1,761   $    1,703   $    2,016
    Securities borrowed or purchased
     under resale agreements                    30           31          171
    Securities                                 371          367          554
    Deposits with banks                          9            8           54
    -------------------------------------------------------------------------
                                             2,171        2,109        2,795
    -------------------------------------------------------------------------
    Interest expense
    Deposits                                   502          527        1,040
    Other liabilities                          104          110          350
    Subordinated indebtedness                   43           45           64
    Preferred share liabilities                  8            8            8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                               657          690        1,462
    -------------------------------------------------------------------------
    Net interest income                      1,514        1,419        1,333
    -------------------------------------------------------------------------
    Non-interest income
    Underwriting and advisory fees             144          132          102
    Deposit and payment fees                   190          193          193
    Credit fees                                 87           85           60
    Card fees                                   87           68           95
    Investment management and
     custodial fees                            110          112          108
    Mutual fund fees                           183          175          159
    Insurance fees, net of claims               67           63           66
    Commissions on securities
     transactions                              121          124          120
    Trading revenue (Note 6)                   333          301         (720)
    AFS securities gains (losses), net          93           42          148
    FVO revenue                               (205)        (155)          44
    Income from securitized assets             151          149          119
    Foreign exchange other than trading         78           63          117
    Other                                      108          117           78
    -------------------------------------------------------------------------
                                             1,547        1,469          689
    -------------------------------------------------------------------------
    Total revenue                            3,061        2,888        2,022
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Provision for credit losses (Note 3)       359          424          284
    -------------------------------------------------------------------------
    Non-interest expenses
    Employee compensation and benefits
     (Note 8)                                  981          886          932
    Occupancy costs                            151          157          134
    Computer, software and office
     equipment                                 242          251          245
    Communications                              69           70           68
    Advertising and business development        42           46           47
    Professional fees                           43           54           40
    Business and capital taxes                  20           28           30
    Other                                      200          177          157
    -------------------------------------------------------------------------
                                             1,748        1,669        1,653
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income before income taxes and
     non-controlling interests                 954          795           85
    Income tax expense (benefit)               286          145          (67)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                               668          650          152
    Non-controlling interests                   16            6            5
    -------------------------------------------------------------------------
    Net income                          $      652   $      644   $      147
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per share (in dollars)
     (Note 9)      - Basic              $     1.59   $     1.57   $     0.29
                   - Diluted            $     1.58   $     1.56   $     0.29
    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
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Preferred shares
    Balance at beginning and end
     of period                          $    3,156   $    3,156   $    2,631
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Common shares
    Balance at beginning of period      $    6,240   $    6,161   $    6,062
    Issue of common shares                     131           79           12
    Issuance costs, net of related
     income taxes                                -            -            -
    -------------------------------------------------------------------------
    Balance at end of period            $    6,371   $    6,240   $    6,074
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Treasury shares
    Balance at beginning of period      $        1   $        1   $        1
    Purchases                                 (853)        (920)      (1,955)
    Sales                                      853          920        1,954
    -------------------------------------------------------------------------
    Balance at end of period            $        1   $        1   $        -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Contributed surplus
    Balance at beginning of period      $       92   $      101   $       96
    Stock option expense                         3            2            4
    Stock options exercised                     (1)           -            -
    Net premium (discount) on
     treasury shares                             -           (3)           1
    Other                                        -           (8)          (1)
    -------------------------------------------------------------------------
    Balance at end of period            $       94   $       92   $      100
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings
    Balance at beginning of period,
     as previously reported             $    5,156   $    4,886   $    5,483
    Adjustment for change in
     accounting policies                         -            -        (6)(1)
    -------------------------------------------------------------------------
    Balance at beginning of period,
     as restated                             5,156        4,886        5,477
    Net income                                 652          644          147
    Dividends
      Preferred                                (42)         (43)         (36)
      Common                                  (335)        (333)        (332)
    Other                                        1            2            1
    -------------------------------------------------------------------------
    Balance at end of period            $    5,432   $    5,156   $    5,257
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    AOCI, net of tax
    Balance at beginning of period      $     (370)  $     (485)  $     (442)
    Other comprehensive income (OCI)            30          115           52
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Balance at end of period            $     (340)  $     (370)  $     (390)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained earnings and AOCI          $    5,092   $    4,786   $    4,867
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shareholders' equity at end of
     period                             $   14,714   $   14,275   $   13,672
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Represents the impact of changing the measurement date for employee
        future benefits.

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



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

                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Net income                          $      652   $      644   $      147
    -------------------------------------------------------------------------
    OCI, net of tax
      Foreign currency translation
       adjustments
      Net (losses) gains on investment
       in self-sustaining foreign
       operations                              (57)         (10)          26
      Net gains (losses) on hedges of
       foreign currency translation
        adjustments                             17           (8)           3
    -------------------------------------------------------------------------
                                               (40)         (18)          29
    -------------------------------------------------------------------------
      Net change in AFS securities
      Net unrealized gains on AFS
       securities                              112          179           87
      Transfer of net gains to net
       income                                  (36)         (37)         (62)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                76          142           25
    -------------------------------------------------------------------------
      Net change in cash flow hedges
      Net losses on derivatives
       designated as cash flow hedges          (10)         (13)          (4)
      Net losses on derivatives
       designated as cash flow hedges
       transferred to net income                 4            4            2
    -------------------------------------------------------------------------
                                                (6)          (9)          (2)
    -------------------------------------------------------------------------
    Total OCI                                   30          115           52
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprehensive income                $      682   $      759   $      199
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Foreign currency translation
     adjustments
      Changes on investment in self-
       sustaining foreign operations    $        2   $       (3)  $       (7)
      Changes on hedges of foreign
       currency translation adjustments         (4)           1          (15)
    Net change in AFS securities
      Net unrealized gains on AFS
       securities                              (45)         (34)         (56)
      Transfer of net gains to net
       income                                   18           18           30
    Net change in cash flow hedges
      Changes on derivatives designated
       as cash flow hedges                       4            6            3
      Changes on derivatives designated
       as cash flow hedges transferred
       to net income                             -           (5)          (1)
    -------------------------------------------------------------------------
                                        $      (25)  $      (17)  $      (46)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    Unaudited, $ millions                  Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     operating activities
    Net income                          $      652   $      644   $      147
    Adjustments to reconcile net income
     (loss) to cash flows provided by
     (used in) operating activities:
      Provision for credit losses              359          424          284
      Amortization(1)                           94          102          103
      Stock-based compensation                   3            2           (3)
      Future income taxes                      228          188         (130)
      AFS securities (gains) losses, net       (93)         (42)        (148)
      Losses (gains) on disposal of land,
       buildings and equipment                   -           (1)          (1)
      Other non-cash items, net               (216)        (122)          (8)
      Changes in operating assets and
       liabilities
        Accrued interest receivable             64          (72)         134
        Accrued interest payable               (83)        (160)         (92)
        Amounts receivable on derivative
         contracts                           1,086        3,736       (5,196)
        Amounts payable on derivative
         contracts                          (1,392)      (4,095)       5,345
        Net change in trading securities    (3,713)        (719)      21,031
        Net change in FVO securities         2,375        1,203           63
        Net change in other FVO assets
         and liabilities                      (167)      (2,648)       4,083
        Current income taxes                  (108)        (129)          87
        Other, net                             213        1,181         (236)
    -------------------------------------------------------------------------
                                              (698)        (508)      25,463
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     financing activities
    Deposits, net of withdrawals             1,422       11,428       (9,304)
    Obligations related to securities
     sold short                              1,232         (259)      (1,054)
    Net obligations related to
     securities lent or sold under
     repurchase agreements                   4,652       (3,562)         118
    Redemption/repurchase of
     subordinated indebtedness                  (5)        (524)           -
    Issue of common shares, net                131           79           12
    Net proceeds from treasury shares
     (purchased) sold                            -            -           (1)
    Dividends                                 (377)        (376)        (368)
    Other, net                              (2,036)          25           87
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                             5,019        6,811      (10,510)
    -------------------------------------------------------------------------
    Cash flows provided by (used in)
     investing activities
    Interest-bearing deposits with
     banks                                  (1,178)        (152)        (908)
    Loans, net of repayments                (8,642)      (6,803)      (1,787)
    Proceeds from securitizations            2,467        2,775        7,610
    Purchase of AFS securities             (17,469)     (19,574)     (28,725)
    Proceeds from sale of AFS securities    11,916        9,040        5,161
    Proceeds from maturity of AFS
     securities                              8,500       10,179        1,155
    Net securities borrowed or purchased
     under resale agreements                   254       (1,722)       2,343
    Purchase of land, buildings and
     equipment                                 (57)         (89)         (35)
    -------------------------------------------------------------------------
                                            (4,209)      (6,346)     (15,186)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Effect of exchange rate changes on
     cash and non-interest-bearing
     deposits with banks                        (7)           3            8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net increase (decrease) in cash and
     non-interest-bearing deposits with
     banks during period                       105          (40)        (225)
    Cash and non-interest-bearing
     deposits with banks at beginning
     of period                               1,812        1,852        1,558
    -------------------------------------------------------------------------
    Cash and non-interest-bearing
     deposits with banks at end of
     period(2)                          $    1,917   $    1,812   $    1,333
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash interest paid                  $      740   $      850   $    1,554
    Cash income taxes paid (recovered)  $      167   $       87   $      (25)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes amortization of buildings, furniture, equipment, leasehold
        improvements, software and other intangible assets.
    (2) Includes restricted cash balances of $272 million (October 31, 2009:
        $268 million; January 31, 2009: $329 million)

    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, 2009. 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, 2009, as set out on pages 96 to 167 of the 2009
    Annual Accountability Report.

    1.  Fair value of financial instruments

    Our approach for fair valuation of financial instruments is presented in
    Note 2 to the 2009 consolidated financial statements.

    Sensitivities to non-observable inputs

    Valuation techniques using non-observable market inputs are used for a
    number of financial instruments including our structured credit run-off
    business. These positions are valued using inputs such as indicative
    broker quotations and internal models with estimated market inputs, which
    we consider to be non-observable. We have certain AFS securities and swap
    arrangements relating to the sale of securitized assets that are
    sensitive to prepayment rates and liquidity rates respectively, both of
    which we consider to be non-observable market inputs. In addition certain
    asset-backed securities are sensitive to credit spreads which we consider
    to be a non-observable market inputs.

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

    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 $27 million in our unhedged USRMM portfolio and $80
    million in our unhedged non-USRMM portfolio, excluding unhedged
    loans (reclassified from HTM) and before the impact of our transaction
    with Cerberus Capital Management LP (Cerberus) to obtain downside
    protection on our USRMM exposures.

    A 10% reduction in the mark-to-market of our on-balance sheet hedged
    structured credit positions, other than those classified as loans, 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 $10 million before the impact of the Cerberus protection.

    The impact of a 10% reduction in receivable net of CVA from financial
    guarantors would result in a net loss of approximately $127 million.

    A 10% increase in prepayment rates pertaining to our retained interests
    related to the interest-only strip resulting from the sale of securitized
    assets would result in a net loss of approximately $31 million.

    A 20 basis point decrease in liquidity rates used to fair value our
    derivatives related to the sale of securitized assets would result in a
    loss of approximately $98 million.

    A 10% reduction in the mark-to-market of our asset-backed securities that
    are valued using non-observable credit spreads would result in a net loss
    of approximately $144 million.

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

    -------------------------------------------------------------------------
                                           Level 1      Level 2      Level 3
                                       ------------ ------------ ------------
                                                                   Valuation
                                                      Valuation  technique -
                                                    technique -         non-
                                            Quoted   observable   observable
                                            market       market       market
    $ millions, as at January 31, 2010       price       inputs       inputs
    -------------------------------------------------------------------------
    Assets
    Trading securities
      Government issued and guaranteed
       securities                       $    3,475   $    6,231   $      138
      Corporate equity                       5,924          534            -
      Corporate debt                             -          991           54
      Mortgage- and asset-backed
       securities                                -          197        1,279
                                       --------------------------------------
                                       --------------------------------------
                                        $    9,399   $    7,953   $    1,471
    AFS securities
      Government issued and guaranteed
       securities                       $   10,219   $   16,377   $       10
      Corporate debt                             -        4,236           26
      Mortgage- and asset-backed
       securities                                -        2,942        2,651
      Corporate public equity                    8           70            4
                                       --------------------------------------
                                        $   10,227   $   23,625   $    2,691
    FVO securities and loans                     -       19,942          159
    Derivative instruments                     230       20,973        2,360
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total assets                        $   19,856   $   72,493   $    6,681
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    October 31, 2009                    $   42,057   $   54,298   $    5,320
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    Obligations related to securities
     sold short                         $    3,615   $    3,522   $        -
    FVO deposits                                 -        3,425          885
    Derivative instruments                     250       20,800        4,636
    -------------------------------------------------------------------------
    Total liabilities                   $    3,865   $   27,747   $    5,521
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    October 31, 2009                    $    5,444   $   26,299   $    5,820
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the quarter, we reclassified certain government issued and
    guaranteed securities from Level 1 to Level 2 to reflect our use of
    valuation techniques with observable market inputs. As a result of the
    reclassification, the fair values of these securities as at January 31,
    2010, included in Level 2 that would previously have been included in
    Level 1 in the table above, are $4,710 million of trading securities,
    $12,607 million of AFS securities, $757 million of FVO securities and
    $2,416 million of obligations related to securities sold short.

    Certain corporate debt securities were also reclassified during the
    quarter from Level 1 to Level 2 as active market quotes were not
    available. As a result of the reclassification, the fair values of these
    securities, as at January 31, 2010, included in Level 2 that would
    previously have been included in Level 1 in the table above, are
    $107 million of trading securities and $3,440 million of AFS securities.

    In addition, certain asset-backed AFS securities of $1,269 million that
    would previously have been included in Level 2, were reclassified to
    Level 3 during the quarter, due to a lack of observable market inputs.

    The net gain recognized in the consolidated statement of operations on
    the financial instruments, for which fair value was estimated using a
    valuation technique requiring non-observable market inputs, for the
    quarter ended January 31, 2010 was $6 million (net gain of $723 million
    and a net loss of $691 million for the three months ended October 31,
    2009 and January 31, 2009 respectively).

    The following table presents the changes in fair value of Level 3 assets,
    liabilities and derivative assets and liabilities net, for the quarter
    ended January 31, 2010. These instruments are measured at fair value
    utilizing non-observable market inputs. We often hedge positions with
    offsetting positions that may be classified in a different Level. As a
    result, the gains and losses for assets and liabilities in the Level 3
    category presented in the table below do not reflect the effect of
    offsetting gains and losses on the related hedging instruments that are
    classified in Level 1 and Level 2.

    -------------------------------------------------------------------------
                                          Net realized/unrealized
                                       gains/(losses) included in
                                   -------------------------------
                                                   Net              Transfer
    $ millions, as at               Opening     income/                in to
     January 31, 2010               Balance   (loss)(1)       OCI  Level 3(3)
    -------------------------------------------------------------------------

    Financial assets
    Trading securities             $  1,360   $    130   $      -   $      -
    AFS securities                    1,297        138         20      1,269
    FVO securities and loans            210         (6)         -          -
    -------------------------------------------------------------------------
                                   $  2,867   $    262   $     20   $  1,269
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial liabilities
    FVO deposits                   $    689   $   (222)  $      -   $      -
    Derivative instruments (net)      2,678        (34)         -          -
    -------------------------------------------------------------------------
                                   $  3,367   $   (256)  $      -   $      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------------------------
                                  Net sales            Unrealized
    $ millions, as at                   and   Closing       gains/
     January 31, 2010           settlements   balance  (losses)(2)
    --------------------------------------------------------------

    Financial assets
    Trading securities             $    (19)  $  1,471   $    117
    AFS securities                      (33)     2,691        108
    FVO securities and loans            (45)       159          5
    --------------------------------------------------------------
                                   $    (97)  $  4,321   $    230
    --------------------------------------------------------------
    --------------------------------------------------------------
    Financial liabilities
    FVO deposits                   $    (26)  $    885   $   (211)
    Derivative instruments (net)       (436)     2,276        202
    --------------------------------------------------------------
                                   $   (462)  $  3,161   $     (9)
    --------------------------------------------------------------
    --------------------------------------------------------------
    (1) Includes foreign currency gains and losses.
    (2) Changes in unrealized gains/(losses) included in earnings for
        instruments held as at January 31, 2010.
    (3) Includes AFS securities that were reclassified from Level 2 to
        Level 3 during the quarter, as noted above.

    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 $20,101 million and $4,310 million respectively as at
    January 31, 2010 ($22,532 million and $4,485 million as at October 31,
    2009). For the quarter ended January 31, 2010, the FVO designated items
    and related hedges resulted in a net loss of $137 million (a net loss of
    $91 million and net income of $96 million for the three months ended
    October 31, 2009 and January 31, 2009 respectively), which included net
    interest income of $68 million ($63 million and $54 million for the three
    months ended October 31, 2009 and January 31, 2009 respectively).

    The impact of changes in credit spreads on FVO designated loans was a
    gain of $10 million for the quarter ended January 31, 2010 ($7 million
    gain and $69 million loss for the three months ended October 31, 2009 and
    January 31, 2009 respectively), and nil for the quarter ended January 31,
    2010 ($1 million gain and $18 million loss for the three months ended
    October 31, 2009 and January 31, 2009 respectively) net of credit hedges.
    There was no impact of CIBC's credit risk on outstanding FVO designated
    liabilities in the current quarter ($2 million loss and $20 million loss
    for the three months ended October 31, 2009 and January 31, 2009
    respectively).

    2.  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 July 2009,
    amendments made to section 3855 resulted in the reclassification of these
    HTM securities to loans effective November 1, 2008. In the current
    quarter, we have not reclassified any securities.

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

    -------------------------------------------------------------------------
    $ millions, as at   January 31, 2010                    October 31, 2009
    ------------------------------------- -----------------------------------
                                                       Re-               Re-
                                                classified        classified
                                                   in 2009           in 2008
                           Fair Carrying     Fair Carrying     Fair Carrying
                          value    value    value    value    value    value
                       ------------------ ----------------- -----------------
    Trading assets
     previously
     reclassified
     to HTM (currently
     in loans)          $ 5,805  $ 6,041  $   -    $    -   $ 5,843  $ 6,202
    Trading assets
     previously
     reclassified
     to AFS                 759      759       84       84      786      786
    ------------------------------------- -----------------------------------
    Total financial
     assets
     reclassified       $ 6,564  $ 6,800  $    84  $    84  $ 6,629  $ 6,988
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Income (loss) recognized on
    ---------------------------
     securities reclassified
     -----------------------
    Gross income recognized in income
     statement                          $       41   $       39   $      124
    Impairment write-downs                       -          (22)           -
    Funding related interest expenses          (25)         (29)         (44)
    -------------------------------------------------------------------------
    Net income recognized, before
     taxes                              $       16   $      (12)  $       80
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Impact if reclassification had
     not been made
    On trading assets previously
     reclassified to HTM (currently
     in loans)                          $     (125)  $     (156)  $      322
    On trading assets previously
     reclassified to AFS                        (1)         (11)          26
    -------------------------------------------------------------------------
    (Increase) reduction in income,
     before taxes                       $     (126)  $     (167)  $      348
    -------------------------------------------------------------------------

    3.  Loans

    Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
                       ------------------------------------------------------
                                                          Oct. 31,   Jan. 31,
                                         Jan. 31, 2010       2009       2009
                       ------------------------------------------------------
                        Specific    General      Total      Total      Total
    $ millions         allowance  allowance  allowance  allowance  allowance
    -------------------------------------------------------------------------
    Balance at
     beginning of
     period             $    736   $  1,307   $  2,043   $  1,980   $  1,523
    Provision for
     credit losses           357          2        359        424        284
    Write-offs              (388)         -       (388)      (390)      (228)
    Recoveries                32          -         32         26         44
    Other                     (7)         -         (7)         3          4
    -------------------------------------------------------------------------
    Balance at end of
     period             $    730   $  1,309   $  2,039   $  2,043   $  1,627
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans             $    730   $  1,234   $  1,964   $  1,960   $  1,551
      Undrawn credit
       facilities       $      -   $     75   $     75   $     82   $     76
      Letters of credit        -          -          -   $      1          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Impaired loans

    -------------------------------------------------------------------------
                                             2010                       2009
    $ millions, as at                     Jan. 31                    Oct. 31
    -------------------------------------------------------------------------
                          Gross   Specific    Net    Gross   Specific    Net
                         amount  allowance  total   amount  allowance  total
    -------------------------------------------------------------------------
    Residential
     mortgages          $   462  $    38  $   424  $   402  $    35  $   367
    Personal                334      256       78      325      258       67
    Business and
     government           1,130      436      694    1,184      442      742
    -------------------------------------------------------------------------
    Total impaired
     loans(1)           $ 1,926  $   730  $ 1,196  $ 1,911  $   735  $ 1,176
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Average balance of gross impaired loans totalled $1,789 million
        (2009: $1,345 million).

    4.  Securitizations and variable interest entities

    Securitizations

    Residential mortgages

    We securitize insured fixed and variable-rate residential mortgages
    through the creation of mortgage-backed securities (MBS) under the Canada
    Mortgage Bond (CMB) Program, sponsored by the Canada Mortgage and Housing
    Corporation (CMHC), and the Government of Canada National Housing Act
    (NHA) MBS Auction process. Under both programs, the MBS are sold to a
    trust that issues securities to investors. We act as counterparty in
    interest rate swap agreements where we pay the trust the interest due to
    investors and receive the interest on the MBS. As at January 31, 2010, we
    had $1,004 million (October 31, 2009: $1,024 million) of interest-only
    strips relating to the securitized assets and another $34 million
    (October 31, 2009: $38 million) in interest-only strips relating to other
    CMHC MBS programs. Credit losses are not expected as the mortgages are
    insured.

    We also securitize Canadian insured prime mortgages and uninsured
    Near-Prime/Alt-A mortgages to a qualifying specific purpose entity
    (QSPE). As at January 31, 2010, we had $95 million (October 31, 2009:
    $91 million) of interest-only strips relating to the securitized assets;
    we also held $270 million (October 31, 2009: $408 million) notes issued
    by the QSPE of which $230 million (October 31, 2009: $372 million) were
    R1 high notes and $40 million (October 31, 2009: $36 million) were R1 mid
    notes. A liquidity facility of $931 million ($661 million net of our
    investments in the QSPE) (October 31, 2009: $851 million ($443 million
    net of our investments in the QSPE)) was provided to the QSPE which was
    not drawn as at January 31, 2010. In addition we had a $28 million
    (October 31, 2009: $25 million) deposit with the QSPE as first recourse
    protection. We are also the counterparty to interest rate swap agreements
    where we pay the QSPE the interest due to investors and receive a rate of
    interest derived off the coupon of the underlying mortgages. Total assets
    in the QSPE as at January 31, 2010 were $932 million (October 31, 2009:
    $851 million), which includes $401 million (October 31, 2009:
    $414 million) Prime mortgages and $524 million (October 31, 2009:
    $431 million) Near-Prime/Alt-A mortgages. We held another $67 million
    (October 31, 2009: $116 million) in inventory that is available for
    securitization. The Near-Prime/Alt-A mortgages have an average loss rate
    over the past five years of 30 bps and an average loan-to-value ratio of
    74%.

    Upon sale of these 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.

    Commercial mortgages

    We securitize commercial mortgages through a pass-through QSPE structure
    that results in ownership certificates held by various investors. As at
    January 31, 2010, we held ownership certificates of $16 million
    (October 31, 2009: $26 million). We continue to service the mortgages.
    There were no commercial mortgage securitizations during the quarter.

    Cards

    We securitize credit card receivables to Cards II Trust, a QSPE
    established to purchase co-ownership interests in the receivables. We
    maintain the credit card client servicing responsibilities for the
    securitized receivables and recognize revenue as services are provided.

    During the quarter, there were no securitizations of credit card
    receivables.

    As at January 31, 2010, our investments in the QSPE included
    interest-only strips of $10 million (October 31, 2009: $11 million),
    subordinated and enhancement notes of $266 million (October 31, 2009:
    $268 million), and senior notes of $96 million as at January 31, 2010
    (October 31, 2009: $96 million).


    The following table summarizes our residential mortgages related
    securitization and sales activity:

    -------------------------------------------------------------------------
                                                  For the three months ended
                                        -------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Securitized(1)                       $   1,351   $    3,185   $    7,864
    Sold(1)(2)                               2,444        2,826        7,601
    Net cash proceeds                        2,467        2,829        7,610
    Retained interests                         118          168          386
    Gain on sale, net of transaction
     costs                                      58           64           (6)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)
    Weighted-average remaining life
     (in years)                                3.3          4.0          3.4
    Prepayment/payment rate              15.0-18.0    15.0-18.0  13.0 - 24.0
    Discount rate                          2.0-8.5      2.2-8.5    1.4 - 7.5
    Expected credit losses                 0.0-0.4      0.0-0.2    0.0 - 0.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes $155 million (October 31, 2009: $90 million; January 31,
        2009: Nil) of uninsured fixed-rate mortgages securitized to a QSPE.
    (2) Assets securitized and not sold are reported as FVO securities on the
        consolidated balance sheet and are stated at fair value.

    Variable interest entities (VIEs)

    VIEs that are consolidated

    As discussed in Note 6 to our 2009 consolidated financial statements, we
    are considered the primary beneficiary of certain VIEs. $1,058 million of
    total assets and liabilities were consolidated as at January 31, 2010
    (October 31, 2009: $1,125 million).

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

    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Trading securities                               $      738   $      669
    AFS securities                                           95           91
    Residential mortgages                                    67          115
    Other assets                                            158          250
    -------------------------------------------------------------------------
                                                     $    1,058   $    1,125
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    VIEs that are not consolidated

    Also as discussed in Note 6 to our 2009 consolidated financial
    statements, we have interests in VIEs involved in the securitization of
    third-party assets, for which we are not considered the primary
    beneficiary and thus do not consolidate. These VIEs include several
    CIBC-sponsored conduits and CDOs for which we acted as structuring and
    placement agents.

    We are not considered the primary beneficiary of CIBC Capital Trust, a
    trust wholly owned by CIBC. For additional details see Note 18 to our
    2009 consolidated financial statements.

    We also have interests in securities issued by entities established by
    CMHC, Federal National Mortgage Association (Fannie Mae), Federal Home
    Loan Mortgage Corporation (Freddie Mac), Government National Mortgage
    Association (Ginnie Mae), Federal Home Loan Bank, Federal Farm Credit
    Bank and Student Loan Marketing Association (Sallie Mae).

    CIBC-sponsored conduits

    We sponsor several non-consolidated conduits in Canada that purchase
    pools of financial assets from our clients and finance the purchases by
    issuing commercial paper to investors. Total assets of these
    non-consolidated conduits amounted to $3.5 billion as at January 31, 2010
    (October 31, 2009: $4.1 billion). We continue to support our sponsored
    conduits from time to time through the purchase of commercial paper
    issued by these conduits.

    CIBC structured CDO vehicles

    We have curtailed our business activity in structuring CDO vehicles
    within our structured credit run-off portfolio. Our exposures to CDO
    vehicles mainly arose through our previous involvement in acting as
    structuring and placement agent for the CDO vehicles.

    Third-party structured vehicles - run-off

    Similar to our structured CDO activities, we also curtailed our business
    activities in third-party structured vehicles, within our structured
    credit run-off portfolio. These positions were initially traded as
    intermediation, correlation and flow trading which earned us a spread on
    matching positions.

    Third-party structured vehicles - continuing

    We have investments in third-party structured vehicles through our
    Treasury and trading activities.

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

    -------------------------------------------------------------------------
                                      CIBC-            Third-party
                           CIBC- structured    structured vehicles
    $ millions, as at  sponsored        CDO  ----------------------
     January 31, 2010   conduits   vehicles    Run-off  Continuing     Total
    -------------------------------------------------------------------------
    On balance sheet
     assets(1)
    Trading securities  $    178   $      -   $    511   $     11   $    700
    AFS securities           145          5         15      1,596      1,761
    FVO                        -        152          -        254        406
    Loans                     71        494      8,500          -      9,065
    -------------------------------------------------------------------------
    Total               $    394   $    651   $  9,026   $  1,861   $ 11,932
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    October 31, 2009    $    556   $    737   $  6,676   $  1,695   $  9,664
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    On balance sheet
     liabilities
    Derivatives(2)      $      -   $    205   $  3,324   $      -   $  3,529
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total               $      -   $    205   $  3,324   $      -   $  3,529
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    October 31, 2009    $      -   $    243   $  3,890   $      -   $  4,133
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Maximum Exposure to Loss
    Maximum exposure to loss before hedge positions                 $ 20,876
    Less: notional of protection purchased from third
     parties relating to written credit derivatives                 $ (6,698)
    Less: fair value of hedges relating to securities and loans     $ (9,557)
    -------------------------------------------------------------------------
    Maximum exposure to loss net of hedges                          $  4,621
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    October 31, 2009                                                $  3,041
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by, retained interest in, and derivatives
        with entities established by CMHC, Fannie Mae, Freddie Mac, Ginnie
        Mae, Federal Home Loan Banks, Federal Farm Credit Bank, and Sallie
        Mae.
    (2) Comprises credit derivatives (written options and total return swaps)
        under which we assume exposures and excludes all other derivatives.

    5.  Share capital

    Common shares

    During the first quarter, we issued 1.1 million new common shares for a
    total consideration of $43 million, pursuant to stock options plans. We
    also issued 1.4 million new common shares for a total consideration of
    $88 million, pursuant to the Shareholder Investment Plan.

    Regulatory capital and ratios

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

    -------------------------------------------------------------------------
                                                           2010         2009
    $ millions, as at                                   Jan. 31      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   14,589   $   14,154
    Total regulatory capital                             19,167       18,827
    Risk-weighted assets                                112,122      117,298
    Tier 1 capital ratio                                  13.0%        12.1%
    Total capital ratio                                   17.1%        16.1%
    Assets-to-capital multiple                            16.1x        16.3x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    6.  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 net recovery of $388 million ($322 million recovery and
    $636 million net charge for the three months ended October 31, 2009 and
    January 31, 2009 respectively) on the hedging contracts provided by
    financial guarantors in trading revenue. The related valuation
    adjustments were $1.3 billion as at January 31, 2010 (October 31, 2009:
    $2.2 billion). The fair value of derivative contracts with financial
    guarantors net of valuation adjustments, was $1.3 billion as at January
    31, 2010 (October 31, 2009: $1.5 billion).

    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.

    7.  Income taxes

    Future income tax asset

    As at January 31, 2010, our future income tax asset was $1,379 million
    (October 31, 2009: $1,635 million), net of a $94 million valuation
    allowance (October 31, 2009: $95 million). Included in the future income
    tax asset are $760 million as at January 31, 2010 (October 31, 2009:
    $990 million) related to Canadian non-capital loss carryforwards that
    expire in 19 years, $62 million as at January 31, 2010 (October 31, 2009:
    $68 million) related to Canadian capital loss carryforwards that have no
    expiry date, and $337 million as at January 31, 2010 (October 31, 2009:
    $356 million) related to our U.S. operations. Accounting standards
    require a valuation allowance when it is more likely than not that all or
    a portion of a future income tax asset will not be realized prior to its
    expiration. Although realization is not assured, we believe that based on
    all available evidence, it is more likely than not that all of the future
    income tax asset, net of the valuation allowance, will be realized.

    Enron

    On October 2, 2009, the Canada Revenue Agency (CRA) issued reassessments
    disallowing the deduction of the 2005 Enron settlement payments of
    approximately $3.0 billion. During the quarter, CRA proposed to deny the
    Enron-related legal expenses and make certain other miscellaneous
    adjustments. These additional items have been factored into the tax and
    interest amounts below. We filed a Notice of Objection in December 2009
    and intend to commence legal proceedings to defend our tax filing
    position in the Tax Court of Canada. We believe that we will be
    successful in sustaining at least the amount of the accounting tax
    benefit recognized to date. Should we successfully defend our tax filing
    position in its entirety, we would be able to recognize an additional
    accounting tax benefit of $214 million and taxable refund interest
    thereon of approximately $155 million. Should we fail to defend our
    position in its entirety, additional tax expense of approximately $860
    million and non-deductible interest thereon of $154 million would be
    incurred.

    8.  Employee future benefit expenses

    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
                                              2010         2009         2009
    $ millions                             Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Defined benefit plans

    Pension benefit plans               $       44   $       15   $       20
    Other benefit plans                         10            8           10
    -------------------------------------------------------------------------
                                        $       54   $       23   $       30
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Defined contribution plans

    CIBC's pension plans                $        3   $        4   $        3
    Government pension plans(1)                 18           17           20
    -------------------------------------------------------------------------
                                        $       21   $       21   $       23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.

    9.  Earnings per share (EPS)

    -------------------------------------------------------------------------
                                                  For the three months ended
                                       --------------------------------------
    $ millions, except per share              2010         2009         2009
     amounts                               Jan. 31      Oct. 31      Jan. 31
    -------------------------------------------------------------------------
    Basic EPS
    Net income                          $      652   $      644   $      147
    Preferred share dividends and
     premiums                                  (42)         (43)         (36)
    -------------------------------------------------------------------------
    Net income applicable to common
     shares                             $      610   $      601   $      111
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               384,442      382,793      380,911
    -------------------------------------------------------------------------
    Basic EPS                           $     1.59   $     1.57   $     0.29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted EPS
    Net income applicable to common
     shares                             $      610   $      601   $      111
    -------------------------------------------------------------------------
    Weighted-average common shares
     outstanding (thousands)               384,442      382,793      380,911
    Add: stock options potentially
     exercisable(1) (thousands)              1,156        1,194          513
    -------------------------------------------------------------------------
    Weighted-average diluted common
     shares outstanding(2) (thousands)     385,598      383,987      381,424
    -------------------------------------------------------------------------
    Diluted EPS                         $     1.58   $     1.56   $     0.29
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes average options outstanding of 2,398,961 with a weighted-
        average exercise price of $77.62; average options outstanding of
        3,444,668 with a weighted-average exercise price of $69.37; and
        average options outstanding of 4,506,016 with a weighted-average
        exercise price of $65.94 for the three months ended January 31, 2010,
        October 31, 2009, and January 31, 2009, 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.

    10. Guarantees

    -------------------------------------------------------------------------
                                                  2010                  2009
    $ 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)            $ 36,228   $      -   $ 30,797   $      -
    Standby and performance
     letters of credit                4,965         20      5,123         20
    Credit derivatives
      Written options                14,813      3,563     20,547      4,226
      Swap contracts written
       protection                     3,511        218      3,657        276
    Other derivative written
     options                            -(3)     2,292        -(3)     2,849
    Other indemnification
     agreements                         -(3)         -        -(3)         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $38.2 billion (October 31, 2009: $33.1 billion).
    (2) Securities lending with indemnification is the full contract amount
        of custodial client securities lent by CIBC Mellon Global Securities
        Services Company, which is a 50/50 joint venture between CIBC and The
        Bank of New York Mellon.
    (3) See narrative on page 153 of the 2009 consolidated financial
        statements for further information.

    11. Contingent liabilities

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

    In the fourth quarter of 2008, we recognized a gain of $895 million
    (US$841 million), resulting from the reduction to zero of our unfunded
    commitment on a variable funding note (VFN) issued by a collateralized
    debt obligation (CDO). This reduction followed certain actions of the
    indenture trustee for the CDO following the September 15, 2008 bankruptcy
    filing of Lehman Brothers Holdings, Inc. (Lehman), the guarantor of a
    related credit default swap agreement with the CDO. While the Lehman
    estate expressed its disagreement with the actions of the indenture
    trustee, the estate has not instituted any legal proceeding with regard
    to the CDO or our VFN. The Lehman estate has, however, instituted legal
    proceedings involving a number of other CDOs, and in the first quarter of
    2010, in Lehman Brothers Special Financing, Inc. v. BNY Corporate Trustee
    Services, Ltd., the U.S. bankruptcy court in New York ruled unenforceable
    a customary provision in a CDO transaction that reversed the priority of
    the payment waterfall upon the bankruptcy of Lehman, the credit support
    provider under a related swap agreement. That ruling, which the defendant
    has indicated it will appeal, does not change our belief that if
    contested, the trustee's actions in reducing the unfunded commitment on
    our VFN to zero should be upheld although there can be no certainty
    regarding any eventual outcome. We continue to believe that the CDO
    indenture trustee's actions were fully supported by the terms of the
    governing contracts and the relevant legal standards.

    12. Segmented information

    CIBC has two strategic business lines: CIBC Retail Markets and Wholesale
    Banking. 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, the global repurchase agreement (repo) business that
    was previously part of Treasury in Corporate and Other was retroactively
    transferred to capital markets within Wholesale Banking. The results of
    the repo business were previously allocated substantially to other within
    CIBC Retail Markets. Also during the quarter, large corporate cash
    management revenue previously reported in business banking within CIBC
    Retail Markets, was retroactively transferred to corporate and investment
    banking within Wholesale Banking. Prior period amounts were restated.

    The nature of transfer pricing and treasury allocations methodologies is
    such that the presentation of certain line items in segmented results is
    different compared to total bank results.

    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the three        Retail  Wholesale  Corporate       CIBC
     months ended                   Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Jan. 31, 2010
      Net interest income
       (expense)                  $   1,507  $     147  $    (140) $   1,514
      Non-interest income
       (expense)                        895        466        186      1,547
      Intersegment revenue(1)             -          -          -          -
    -------------------------------------------------------------------------
      Total revenue                   2,402        613         46      3,061
      Provision for (reversal of)
       credit losses                    365         24        (30)       359
      Amortization(2)                    29          1         64         94
      Other non-interest expenses     1,285        317         52      1,654
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        723        271        (40)       954
      Income tax expense (benefit)      189         76         21        286
      Non-controlling interests           5         11          -         16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income (loss)           $     529  $     184  $     (61) $     652
    -------------------------------------------------------------------------
      Average assets(3)           $ 266,515  $ 101,885  $ (27,578) $ 340,822
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2009
      Net interest income
       (expense)                  $   1,493  $      89  $    (163) $   1,419
      Non-interest income
       (expense)                        863        414        192      1,469
      Intersegment revenue(1)             -          -          -          -
    -------------------------------------------------------------------------
      Total revenue                   2,356        503         29      2,888
      Provision for (reversal of)
       credit losses                    362         82        (20)       424
      Amortization(2)                    30          2         70        102
      Other non-interest expenses     1,308        243         16      1,567
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        656        176        (37)       795
      Income tax expense (benefit)      182         16        (53)       145
      Non-controlling interests           6          -          -          6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income                  $     468  $     160  $      16  $     644
    -------------------------------------------------------------------------
      Average assets(3)           $ 267,191  $  99,439  $ (27,433) $ 339,197
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2009
      Net interest income
       (expense)                  $   1,258  $     108  $     (33) $   1,333
      Non-interest income
       (expense)                      1,116       (438)        11        689
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,375       (330)       (23)     2,022
      Provision for (reversal of)
       credit losses                    278        (11)        17        284
      Amortization(2)                    35          2         66        103
      Other non-interest expenses     1,256        279         15      1,550
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        806       (600)      (121)        85
      Income tax expense (benefit)      224       (223)       (68)       (67)
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Net income (loss)           $     577  $    (377) $     (53) $     147
    -------------------------------------------------------------------------
      Average assets(3)           $ 264,893  $ 126,050  $ (21,694) $ 369,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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.
    (4) Certain prior period information has been restated to conform to the
        presentation in the current quarter.
    

%SEDAR: 00002543EF

SOURCE CIBC

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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