CIBC Announces Second Quarter 2009 Results



    TORONTO, May 28 /CNW/ - CIBC (CM: TSX; NYSE) announced a net loss of $51
million for the second quarter ended April 30, 2009, compared with a net loss
of $1.1 billion for the same period last year. Diluted loss per share was
$0.24, compared with a diluted loss per share of $3.00 a year ago. Cash
diluted loss per share was $0.21(1), compared with a cash diluted loss per
share of $2.98(1) a year ago.
    CIBC's Tier 1 and Total capital ratios at April 30, 2009 remain strong,
at 11.5% and 15.9%, respectively. During the quarter, CIBC strengthened its
capital position with the issuance of $525 million of preferred shares and 
$1.6 billion of Tier 1 Notes through CIBC Capital Trust.
    "Our core businesses performed well this quarter. Retail Markets
continued to deliver solid results against a backdrop of a challenging market
environment and Wholesale Banking generated good revenue momentum while making
further progress in the area of risk and maintaining discipline around
expenses," says Gerald T. McCaughey, President and Chief Executive Officer of
CIBC. "We also continued to focus on balance sheet strength as evidenced by
our Tier 1 capital ratio which is amongst the strongest of any bank in North
America."
    "Losses in structured credit did impact our results but the bulk of these
losses occurred early in the quarter before market conditions improved," adds
McCaughey. "The rate of deterioration in the broader economy appeared to slow
and liquidity levels recovered during the quarter  -- both of which are
encouraging signs as we head into the last half of the year."

    
    Results for the second quarter of 2009 were affected by the following
items of note aggregating to a negative impact of $1.65 per share:

    -   $475 million ($324 million after-tax, or $0.85 per share) loss on
        structured credit run-off activities, driven primarily by a
        deterioration in the credit quality of financial guarantors,
        particularly early in the second quarter, as well as mark-to-market
        (MTM) losses on certain underlying positions within the structured
        credit run-off portfolios hedged by financial guarantors. These
        factors were mitigated by a decline in the fair value of the limited
        recourse note payable to a third party and MTM gains, net of credit
        valuation adjustments, on purchased credit derivatives that are
        unmatched or hedging Held-To-Maturity (HTM) securities;

    -   $168 million ($115 million after-tax, or $0.30 per share) negative
        impact of narrowing credit spreads on the MTM of credit derivatives
        in CIBC's corporate loan hedging programs. These MTM losses reversed
        previous gains and were incurred later in the second quarter as
        market conditions improved;

    -   $159 million foreign exchange gain ($3 million after-tax, or $0.01
        per share) on repatriation activities;

    -   $100 million of valuation charges ($65 million after-tax, or $0.17
        per share) related to certain trading and available for sale
        positions in exited and other run-off businesses;

    -   $65 million ($44 million after-tax, or $0.11 per share) provision for
        credit losses in the general allowance;

    -   $57 million ($0.15 per share) write off of future tax assets mainly
        due to lower future statutory tax rates;

    -   $49 million ($29 million after-tax, or $0.08 per share) of net
        losses/write-downs on CIBC's legacy merchant banking portfolio.
    

    The net loss of $51 million for the second quarter of 2009 compared to
net income of $147 million for the prior quarter. Diluted loss per share and
cash diluted loss per share of $0.24 and $0.21(1), respectively, for the
second quarter of 2009 compared to diluted earnings per share and cash diluted
earnings per share of $0.29 and $0.31(1), respectively, for the prior quarter,
which included items of note that aggregated to a negative impact on results
of $1.36 per share.

    Update on business priorities

    Capital strength

    CIBC continues to emphasize capital strength as a key area of focus.

    CIBC's Tier 1 capital ratio of 11.5%, which is among the highest of major
commercial banks in North America, is well above CIBC's target of 8.5% and the
regulatory minimum of 7.0%. CIBC's capital strength positions CIBC for market
conditions that remain uncertain while CIBC continues to invest in its core
businesses for future growth.

    Business strength

    CIBC Retail Markets reported net income of $390 million. Retail Markets'
results in the second quarter reflect its focus on balancing growth with
expense and risk discipline in the current environment.
    Revenue of $2.3 billion was comparable to the second quarter of 2008.
Volume growth and higher revenue from FirstCaribbean International Bank
(FirstCaribbean) were offset by spread compression and the impact of weaker
equity markets. Revenue in the second quarter of 2008 included a $22 million
loss related to the Visa initial public offering.
    Expenses decreased to $1,304 million from $1,380 million a year ago. The
improvement was primarily due to lower performance-related compensation,
offset in part by the negative impact of a weaker Canadian dollar on the
translated U.S. dollar expenses of FirstCaribbean.
    Loan losses were $403 million, up from $209 million a year ago, and
included $90 million of higher allowances for future losses. In addition, the
loan losses reflected increased provisions in the cards portfolio driven by
higher delinquencies and bankruptcies related to the deteriorating economic
environment.

    During the quarter, CIBC's retail business continued its focus on
providing clients with greater access, flexibility and choice:

    
    -   CIBC opened and expanded 14 branches in markets that provide
        long-term, high growth potential;

    -   CIBC added Sunday banking hours to 22 branches across the country - a
        first for many of the communities - and now have a total of 37
        branches offering Sunday banking to clients;

    -   CIBC completed the replacement of almost 600 ABMs with state-of-the-
        art machines that consume less power while offering the latest
        technology, accessibility and security features;

    -   Building upon the success of CIBC's "It's worth a talk" campaign
        launched last fall, and further emphasizing its advisory
        capabilities, CIBC premiered two new television advertisements
        highlighting the CIBC Financial HealthCheck and the CIBC Aerogold
        credit card. These were further supported by radio and print
        advertising, as well as direct mail campaigns in key markets.

    CIBC's retail business also made progress on its strategic priority of
offering competitive products to further client relationships:

    -   CIBC led the 2009 Lipper Awards by winning four mutual fund Lipper
        Awards and seven Lipper Certificates. These awards recognize mutual
        funds with the highest risk-adjusted returns over the last year;

    -   CIBC mutual funds had an industry-leading 23 4-star or 5-star funds,
        as rated by Morningstar. CIBC also had the highest percentage of
        funds above median, at 64%, for the one-year period ending
        March 31st;

    -   CIBC introduced Registered Disability Savings Plans to help clients
        with disabilities and their families save for the future.
    

    Wholesale banking reported a net loss of $373 million for the second
quarter.
    Revenue of $(241) million was up $127 million from the prior quarter.
Lower structured credit losses, as well as higher revenue from capital markets
and corporate and investment banking, more than offset MTM losses this quarter
from corporate loan hedges (compared to gains in the prior quarter) and
valuation charges in exited and run-off businesses. The prior quarter also
included MTM losses relating to interest-rate hedges for the leveraged leases
portfolio that did not qualify for hedge accounting.
    Expenses of $247 million were down $20 million from the prior quarter,
primarily due to lower employee-related expenses.
    CIBC's corporate loan portfolio continues to perform well despite the
deteriorating economic environment. Loan losses were $46 million in the second
quarter, which included a $28 million increase to the general allowance for
credit losses.
    In support of its goal of being the premier client-focused wholesale bank
based in Canada, CIBC has aligned the branding of CIBC's wholesale business
unit under the CIBC brand and is now referring to the business as Wholesale
Banking. This change reflects a commitment to work effectively with all CIBC
businesses and colleagues so wholesale banking clients have access to the full
breadth of the CIBC business and brand. The legal entity name remains CIBC
World Markets Inc.

    During the quarter, the Wholesale Banking franchise participated in
several notable achievements:

    
    -   CIBC acted as lead agent and joint book-runner in a $0.9 billion
        private placement, as well as lead manager and joint book-runner in a
        $1.3 billion public offering, of ING Group's sale of its entire 70%
        stake in ING Canada;

    -   CIBC is acting as a financial advisor to Suncor Energy Inc. on its
        proposed $59 billion merger with Petro Canada;

    -   CIBC's covered bond program was awarded "Securitization Deal of the
        Year" by leading finance law magazine, International Finance Law
        Review. The program was recognized as the most innovative and
        creative of all securitization deals done across the Americas in
        2008;

    -   CIBC acted as sole underwriter in $259 million and $160 million
        treasury offerings of Class A shares for Central Fund of Canada.

    CIBC also made progress during the second quarter in reducing exposures
within its structured credit run-off business:

    -   CIBC terminated $2.1 billion (US$1.7 billion) of purchased credit
        derivatives with MAV I and MAV II and unwound written credit
        protection of a similar amount. As a result of the termination of the
        purchased credit derivatives, CIBC received $252 million
        (US$202 million) of assets previously held as collateral and recorded
        a pre-tax gain of $7 million (US$7 million);

    -   CIBC terminated $396 million (US$323 million) of written credit
        derivatives with exposures to commercial mortgage-backed securities.
        As a result of this transaction, the related credit derivatives
        purchased from the financial guarantor counterparty CIBC has
        identified as "I" in its disclosure became unmatched;

    -   CIBC assumed $389 million (US$326 million) of Trust Preferred
        securities (TruPs) into HTM securities on its balance sheet and
        unwound the related written credit derivatives of a similar amount,
        with negligible impact to our results;

    -   CIBC terminated $181 million (US$143 million) of written credit
        derivatives and unwound the related purchased credit derivatives of a
        similar amount from the financial guarantor counterparty previously
        identified as "X" in its disclosure, with no impact to its results;

    -   Normal amortization of $119 million (US$100 million) reduced the
        notional amount of credit derivatives purchased from financial
        guarantors.
    

    As at April 30, 2009, the fair value, net of valuation adjustments, of
purchased protection from financial guarantor counterparties was $2.5 billion
(US$2.1 billion). Further significant losses could result depending on the
performance of both the underlying assets and the financial guarantors.

    Productivity

    In addition to continuing to invest and position its businesses for
long-term performance, CIBC continues to make progress in the area of expense
discipline.
    Non-interest expenses for the second quarter were $1,639 million, down
from $1,788 million a year ago and well below CIBC's quarterly run-rate target
of $1,776 million, primarily due to continuing cost reduction initiatives and
reduced infrastructure support activities resulting from business
divestitures.
    "Through a combination of better revenue performance, as well as a
continued focus on adjusting our infrastructure support activities to business
changes and evolving market conditions, we expect to achieve further progress
in the area of productivity," says McCaughey.

    Making a difference in communities

    As a leader in community investment, CIBC is committed to supporting
causes that matter to its clients, its employees and its communities. CIBC
continues to make a difference in communities through corporate donations,
sponsorships and the volunteer spirit of employees.

    CIBC had several notable achievements in this area during the second
quarter:

    
    -   CIBC continued its lead sponsorship of the annual National Aboriginal
        Achievement Awards in 2009. The 16th annual awards, held in Winnipeg
        on March 9th, celebrate excellence in the Aboriginal community
        through recognition of outstanding career achievements of First
        Nations, Inuit and Métis people in a wide range of occupations.

    -   CIBC was the proud sponsor, for the fourth year, of Eva's Initiatives
        Award for Innovation. This award recognizes three community
        organizations across Canada that are models of integrated support for
        helping homeless youth become self-sufficient.

    -   CIBC and the YMCA announced their renewed alliance and the rollout of
        the job readiness training and financial literacy seminars in
        Vancouver during 2009. This follows a successful pilot of the
        two-part program in Toronto in 2008. In addition, the financial
        literacy seminars will be delivered in five locations this year
        throughout the Greater Toronto Area.

    -   CIBC received a 2009 Edmonton Mayor's Celebration of the Arts Award
        for Innovative Support for the "CIBC Theatre for All" program. The
        program allows corporations and individuals to donate a percentage of
        their Citadel Theatre tickets to Kids Up Front, a charity that re-
        distributes tickets to agencies that work with disadvantaged youth.

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

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

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


    
                     MANAGEMENT'S DISCUSSION AND ANALYSIS
    -------------------------------------------------------------------------

    Management's discussion and analysis (MD&A) should be read in conjunction
with the unaudited interim consolidated financial statements included in this
report and with the MD&A contained in our 2008 Annual Accountability Report.
The unaudited interim consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles (GAAP) and
are expressed in Canadian dollars. This MD&A is current as of May 28, 2009.
Additional information relating to CIBC is available on SEDAR at www.sedar.com
and on the U.S. Securities and Exchange Commission's website at www.sec.gov.
No information on CIBC's website (www.cibc.com) should be considered
incorporated herein by reference. Certain comparative amounts have been
reclassified to conform with the presentation adopted in the current period. A
glossary of terms used throughout this quarterly report can be found on pages
167 to 169 of our 2008 Annual Accountability Report.

    External reporting changes

    Second Quarter

    -   We have changed the name of our wholesale banking business from
        CIBC World Markets to Wholesale Banking.

    -   We have replaced regular workforce headcount with full time
        equivalent employees as a measure of the number of employees.

    First Quarter

    -   In the first quarter of 2009 we realigned the businesses within
        CIBC Retail Markets and Wholesale Banking. Prior period information
        was restated to reflect the changes. The new reported businesses are
        as follows:

        CIBC Retail Markets:

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

        Wholesale Banking:

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

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

    -   We moved the sublease income and related operating costs of our
        New York premises from Wholesale Banking to Corporate and Other.
        Prior period information was not restated.

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

    Contents

    5  A note about forward-looking statements

    6  Second quarter financial highlights

    7  Overview

    8  Significant events
    8  Outlook

    9  Run-off businesses and other selected activities

    9  Run-off businesses
    17 Other selected activities

    19 Financial performance  review

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

    23 Business line overview

    23 CIBC Retail Markets
    25 Wholesale Banking
    27 Corporate and Other

    29 Financial condition

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

    31 Management of risk

    31 Risk overview
    31 Credit risk
    33 Market risk
    34 Liquidity risk
    35 Operational risk
    35 Other risks

    36 Accounting and control matters
    

    A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make
written or oral forward-looking statements within the meaning of certain
securities laws, including in this report, in other filings with Canadian
securities regulators or the U.S. Securities and Exchange Commission and in
other communications. These statements include, but are not limited to,
statements made in the "Summary of second quarter results", "Update on
business priorities", "Overview - Outlook for 2009", "Run-off businesses",
"Other selected activities", "Financial performance review - Income Taxes" and
"Accounting and Control Matters" sections, of this report and other statements
about our operations, business lines, financial condition, risk management,
priorities, targets, ongoing objectives, strategies and outlook for 2009 and
subsequent periods. Forward-looking statements are typically identified by the
words "believe", "expect", "anticipate", "intend", "estimate" and other
similar expressions or future or conditional verbs such as "will", "should",
"would" and "could". By their nature, these statements require us to make
assumptions, including the economic assumptions set out in the "Overview -
Outlook for 2009" section of this report, and are subject to inherent risks
and uncertainties that may be general or specific. A variety of factors, many
of which are beyond our control, affect our operations, performance and
results, and could cause actual results to differ materially from the
expectations expressed in any of our forward-looking statements. These factors
include: credit, market, liquidity, strategic, operational, reputation and
legal, regulatory and environmental risk discussed in the Management of Risk
section of this report; legislative or regulatory developments in the
jurisdictions where we operate; amendments to, and interpretations of,
risk-based capital guidelines and reporting instructions; the resolution of
legal proceedings and related matters; the effect of changes to accounting
standards, rules and interpretations; changes in our estimates of reserves and
allowances; changes in tax laws; changes to our credit ratings; that our
estimate of sustainable effective tax rate will not be achieved; political
conditions and developments; the possible effect on our business of
international conflicts and the war on terror; natural disasters, public
health emergencies, disruptions to public infrastructure and other
catastrophic events; reliance on third parties to provide components of our
business infrastructure; the accuracy and completeness of information provided
to us by clients and counterparties; the failure of third parties to comply
with their obligations to us and our affiliates; intensifying competition from
established competitors and new entrants in the financial services industry;
technological change; global capital market activity; interest rate and
currency value fluctuations; general business and economic conditions
worldwide, as well as in Canada, the U.S. and other countries where we have
operations; changes in market rates and prices which may adversely affect the
value of financial products; our success in developing and introducing new
products and services, expanding existing distribution channels, developing
new distribution channels and realizing increased revenue from these channels;
changes in client spending and saving habits; our ability to attract and
retain key employees and executives; and our ability to anticipate and manage
the risks associated with these factors. This list is not exhaustive of the
factors that may affect any of our forward-looking statements. These and other
factors should be considered carefully and readers should not place undue
reliance on our forward-looking statements. We do not undertake to update any
forward-looking statement that is contained in this report or in other
communications except as required by law.


    
                        SECOND QUARTER FINANCIAL HIGHLIGHTS

    -------------------------------------------------------------------------
                                      As at or for the      As at or for the
                                    three months ended      six months ended
                       -------------------------------- ---------------------
                            2009       2009       2008       2009       2008
    Unaudited            Apr. 30    Jan. 31    Apr. 30    Apr. 30    Apr. 30
    --------------------------------------------------- ---------------------
    Common share
     information
    Per share
      - basic (loss)
         earnings      $   (0.24) $    0.29  $   (3.00) $    0.05  $   (7.31)
      - cash basic
         (loss)
         earnings(1)       (0.21)      0.32      (2.98)      0.10      (7.26)
      - diluted
         (loss)
         earnings          (0.24)      0.29      (3.00)      0.05      (7.31)
      - cash diluted
         (loss)
         earnings(1)       (0.21)      0.31      (2.98)      0.10      (7.26)
      - dividends           0.87       0.87       0.87       1.74       1.74
      - book value         27.95      28.98      29.01      27.95      29.01
    Share price
      - high               54.90      57.43      74.17      57.43      99.81
      - low                37.10      41.65      56.94      37.10      56.94
      - closing            53.57      46.63      74.17      53.57      74.17
    Shares outstanding
     (thousands)
      - average
         basic           381,410    380,911    380,754    381,156    359,512
      - average diluted  381,779    381,424    382,377    381,599    361,366
      - end of period    381,478    381,070    380,770    381,478    380,770
    Market
     capitalization
     ($ millions)      $  20,436  $  17,769  $  28,242  $  20,436  $  28,242
    --------------------------------------------------- ---------------------
    Value measures
    Price to earnings
     multiple (12 month
     trailing)              43.7        n/m        n/m       43.7        n/m
    Dividend yield
     (based on closing
     share price)            6.7%       7.4%       4.8%       6.6%       4.7%
    Dividend payout
     ratio                   n/m        n/m        n/m        n/m        n/m
    Market value to
     book value ratio       1.92       1.61       2.56       1.92       2.56
    --------------------------------------------------- ---------------------
    Financial results
     ($ millions)
    Total revenue      $   2,161  $   2,022  $     126  $   4,183  $    (395)
    Provision for
     credit losses           394        284        176        678        348
    Non-interest
     expenses              1,639      1,653      1,788      3,292      3,549
    Net (loss) income        (51)       147     (1,111)        96     (2,567)
    --------------------------------------------------- ---------------------
    Financial measures
    Efficiency ratio        75.9%      81.8%       n/m       78.7%       n/m
    Cash efficiency
     ratio, taxable
     equivalent basis
     (TEB)(1)               74.9%      80.6%       n/m       77.6%       n/m
    Return on equity       (3.5)%       4.0%    (37.6)%       0.4%    (45.0)%
    Net interest margin     1.48%      1.43%      1.57%      1.45%      1.45%
    Net interest margin
     on average
     interest-earning
     assets                 1.85%      1.77%      1.85%      1.81%      1.71%
    Return on average
     assets               (0.06)%      0.16%    (1.29)%      0.05%    (1.49)%
    Return on average
     interest-earning
     assets               (0.07)%      0.19%    (1.52)%      0.07%    (1.75)%
    Total shareholder
     return                 17.0%    (13.1)%       2.6%       1.7%    (25.4)%
    --------------------------------------------------- ---------------------
    On- and off-balance
     sheet information
     ($ millions)
    Cash, deposits with
     banks and
     securities        $  94,523  $  90,589  $  92,189  $  94,523  $  92,189
    Loans and
     acceptances         162,962    174,499    174,580    162,962    174,580
    Total assets         347,363    353,815    343,063    347,363    343,063
    Deposits             221,912    226,383    238,203    221,912    238,203
    Common
     shareholders'
     equity               10,661     11,041     11,046     10,661     11,046
    Average assets       353,819    369,249    349,005    361,662    346,742
    Average interest-
     earning assets      282,414    299,136    296,427    290,914    294,778
    Average common
     shareholders'
     equity               10,644     10,960     12,328     10,804     11,748
    Assets under
     administration    1,096,028  1,038,958  1,147,887  1,096,028  1,147,887
    --------------------------------------------------- ---------------------
    Balance sheet
     quality measures
    Common equity to
     risk-weighted
     assets                  8.9%       9.0%       9.6%       8.9%       9.6%
    Risk-weighted
     assets
     ($ billions)      $   119.6  $   122.4  $   114.8  $   119.6  $   114.8
    Tier 1 capital
     ratio                  11.5%       9.8%      10.5%      11.5%      10.5%
    Total capital ratio     15.9%      14.8%      14.4%      15.9%      14.4%
    --------------------------------------------------- ---------------------
    Other information
    Retail/wholesale
     ratio(2)             64%/36%    63%/37%    68%/32%    64%/36%    68%/32%
    Full time
     equivalent
     employees            42,305     42,320     44,124     42,305     44,124
    --------------------------------------------------- ---------------------
    --------------------------------------------------- ---------------------
    (1) For additional information, see the "Non-GAAP measures" section.
    (2) The ratio represents the amount of capital attributed to the business
        lines as at the end of the period.
    n/m Not meaningful due to the net loss.


                                   OVERVIEW

    Net loss for the quarter was $51 million, compared to a net loss of $1,111
million for the same quarter last year and net income of $147 million for the
prior quarter.

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

    -   $475 million ($324 million after-tax) loss on the structured credit
        run-off business;
    -   $168 million ($115 million after-tax) negative impact of changes in
        credit spreads on the mark-to-market (MTM) of credit derivatives in
        our corporate loan hedging programs;
    -   $159 million foreign exchange gain ($3 million after-tax) on
        repatriation activities;
    -   $100 million of valuation charges ($65 million after-tax) related to
        certain trading and available for sale (AFS) positions in exited and
        other run-off businesses;
    -   $65 million ($44 million after-tax) provision for credit losses in
        the general allowance;
    -   $57 million write-off of future tax assets; and
    -   $49 million ($29 million after-tax) net losses/write-downs in our
        legacy merchant banking portfolio.
    

    Compared with Q2, 2008

    Revenue was higher than the same quarter last year, primarily due to the
higher structured credit losses in the last year quarter. The current quarter
also benefited from a foreign exchange gain on repatriation activities
compared to a foreign exchange loss in the last year quarter. Revenue was also
higher on volume growth in retail products, higher fixed income and equity
trading revenue and higher revenue from U.S. real estate finance. These
factors were partially offset by the negative impact of the MTM of credit
derivatives in our corporate loan hedging programs as noted above, compared to
a positive impact in the last year quarter, spread compression on retail
products, valuation charges in certain trading and AFS positions, and lower
wealth management related fee income.
    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 an increase in the allowances, both related to the
deteriorating economic environment.
    Non-interest expenses were lower mainly due to lower benefits, salaries
and professional fees partly offset by higher performance-related
compensation. The last year quarter included higher litigation expenses.
    The current quarter included a tax expense related to the foreign
exchange gain on repatriation activities and the write-off of future tax
assets noted above. The structured credit losses in the last year quarter
resulted in a higher tax benefit in that quarter.

    Compared with Q1, 2009

    Revenue was marginally higher than the prior quarter mainly due to lower
structured credit losses. The current quarter included a foreign exchange gain
compared to the prior quarter loss on repatriation activities and MTM losses
on non-accounting hedges for leveraged leases. These factors were partially
offset by the negative impact of the MTM of credit derivatives compared to a
positive impact in the prior quarter, the valuation charges noted above,
spread compression on retail products, the impact of three fewer days, and
lower treasury revenue.
    Provision for credit losses was up primarily due to higher losses in the
cards portfolio, driven by higher delinquencies and bankruptcies and an
increase in the allowances, both related to the deteriorating economic
environment.
    Non-interest expenses were marginally lower mainly due to lower
performance-related compensation. The current quarter included a tax expense
related to repatriation activities compared to a tax recovery in the prior
quarter.

    Compared with the six months ended April 30, 2008

    Revenue in the current period was higher than the same period last year,
primarily due to the higher structured credit losses in the last year period.
Volume growth in retail products was more than offset by spread compression on
retail products, lower wealth management related fee income, net
losses/write-downs on our legacy merchant banking portfolio, and the valuation
charges noted above. The current period was also affected by the MTM losses on
non-accounting hedges for leveraged leases and the negative impact on the MTM
of credit derivatives compared to a positive impact in the same period last
year.
    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 an increase in the allowances, both related to the
deteriorating economic environment.
    Non-interest expenses were marginally lower mainly due to lower benefits,
salaries and professional fees partly offset by higher performance-related
compensation. The last year period included higher litigation expenses. The
structured credit losses in the last year period resulted in a higher tax
benefit in that period. The current period included a tax expense on
repatriation activities compared to a tax recovery in the last year period.

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

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

    Q2, 2008
    --------
    -   $2.5 billion ($1.7 billion after-tax) loss on structured credit
        run-off business;
    -   $50 million ($34 million after-tax) of valuation charges against
        credit exposures to derivatives counterparties, other than financial
        guarantors;
    -   $26 million ($18 million after-tax) of severance accruals;
    -   $22 million ($19 million after-tax and minority interest) loss on
        Visa Inc.'s initial public offering (IPO) adjustment;
    -   $65 million ($21 million after-tax) foreign exchange loss on
        repatriation activities; and
    -   $14 million ($9 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives.

    Q1, 2008
    --------
    -   $171 million ($115 million after-tax) positive impact of changes in
        credit spreads on corporate loan credit derivatives ($128 million,
        $86 million after-tax) and financial guarantors credit hedges
        ($43 million, $29 million after-tax);
    -   $56 million positive impact of favourable tax-related items;
    -   $2.8 billion ($1.9 billion after-tax) losses on structured credit
        related positions; and
    -   $108 million ($64 million after-tax) combined loss related to the
        sale of some of our U.S. businesses to Oppenheimer Holdings Inc.
        (Oppenheimer), management changes and the exit and restructuring of
        certain other businesses.
    -------------------------------------------------------------------------
    

    Significant events

    Global market credit issues

    Our structured credit business within Wholesale Banking had losses,
before taxes for the quarter of $475 million ($1,183 million for the six
months ended April 30, 2009). We continue to reduce our exposures through the
termination of written and purchased credit derivatives. These activities are
discussed in more detail in our "Run-off businesses" section.

    Innovative Tier 1 Notes

    On March 13, 2009, CIBC Capital Trust, a trust wholly owned by CIBC,
issued $1.3 billion of 9.976% CIBC Tier 1 Notes - Series A due June 30, 2108
and $300 million of 10.25% CIBC Tier 1 Notes - Series B due June 30, 2108
(together, the Notes). The Notes qualify as part of Tier 1 regulatory capital.

    Leveraged leases

    Effective November 1, 2007, we adopted the amended Canadian Institute of
Chartered Accountants (CICA) Emerging Issues Committee Abstract (EIC 46),
"Leveraged Leases", which requires that a change in the estimated timing of
the cash flows relating to income taxes results in a recalculation of the
timing of income recognition from the leveraged lease.
    Final closing agreements for leveraged leases were executed with the
Internal Revenue Service (IRS) during the quarter. CIBC is now engaged in the
process of finalizing amounts with the U.S. revenue authorities for the
various affected taxation years. It is expected this will be concluded (or
substantially concluded) in 2009. While CIBC believes its provisions and
charges to date accurately reflect the terms of the IRS settlement offer and
subsequent clarifications thereto by the IRS, it is possible that additional
charges could occur during the process of finalizing actual amounts with the
U.S. revenue authorities.

    Outlook for 2009

    A deepening global slowdown sent the Canadian economy into a recession in
the first fiscal quarter, one which has proven to be the steepest downturn
through its first two quarters than any previous post-war slump. Real GDP now
looks likely to drop by more than 2 1/2% for calendar 2009 as a whole. We
expect growth to return in the final quarter of the calendar year in response
to low interest rates and fiscal stimulus in Canada and abroad.
    CIBC Retail Markets is expected to see slower demand for mortgage and
other credit products, reflecting softer housing turnover and prices, weaker
consumer spending growth, and higher unemployment rates. We expect a rise in
personal and small business bankruptcies associated with the weaker economic
backdrop.
    For Wholesale Banking, a recovery in new issuance of equities and
corporate bonds could support improved corporate finance activities. Corporate
default rates are likely to head higher, but valuations on corporate debt
securities and the market for new debt and equity issues could continue to
improve. Loan demand could be supported by reduced competition from
foreign-based banks.

    
                             RUN-OFF BUSINESSES
    

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

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

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

    Structured credit run-off business

    Overview and results

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

    Exposures

    Our exposures largely consist of the following categories:
    Unhedged -
    -  U.S. residential mortgage market (USRMM)
    -  non-USRMM
    Hedged -
    -  financial guarantors (USRMM and non-USRMM)
    -  other counterparties (USRMM and non-USRMM)


    Results - losses before taxes
    ------------------------------------------------------------ ------------
                                                                     For the
                                                        For the   six months
                                             three months ended        ended
                                          ---------------------- ------------
                                              2009         2009         2009
    $ millions                             Apr. 30      Jan. 31      Apr. 30
    ------------------------------------------------------------ ------------
    Trading                               $    514     $    758     $  1,272
    Held-to-maturity (HTM)                     (28)         (69)         (97)
    Available-for-sale (AFS)                   (11)          19            8
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    Total                                 $    475     $    708     $  1,183
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    

    These losses were primarily driven by deterioration in the credit quality
of financial guarantors and MTM losses for certain underlying assets, which
resulted in increases in credit valuation adjustments (CVA). Reported losses
are net of the gain on the Cerberus protection, described below.

    Reclassification of certain exposures

    As a result of the unprecedented extent of the deterioration in global
market conditions and the lack of an active trading market, in the fourth
quarter of 2008, we changed our intention on certain positions from trading to
held-to-maturity. As a consequence, we reclassified notional of $5,973 million
(US$5,833 million) of CLOs and $455 million (US$444 million) CDOs of trust
preferred securities (TruPs) in our structured credit run-off business from
trading to non-trading held-to-maturity effective August 1, 2008. As at April
30, 2009, the estimated remaining weighted average life (WAL) of the CLOs, and
TruPs was 4.8 years and 15 years respectively. The impact of the
reclassifications is summarized in Note 4 to the 2008 annual consolidated
financial statements.
    If the reclassification had not been made, income before taxes would have
been reduced by $77 million (US$65 million) and $399 million (US$318 million)
for the current quarter and for the six months ended April 30, 2009,
respectively.

    Change in exposures

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

    
    -------------------------------------------------------------------------
                                                           2009         2008
    US$ millions, as at                                 Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Notional
      Investments and loans                            $ 10,728     $ 10,304
      Written credit derivatives(1)                      25,889       30,931
    -------------------------------------------------------------------------
    Total gross exposures                              $ 36,617     $ 41,235
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Purchased credit derivatives                       $ 34,381     $ 37,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes notional amount for written credit derivatives and liquidity
        and credit facilities.
    

    Cerberus transaction

    In the fourth quarter of 2008, we transacted with Cerberus to obtain
downside protection on our USRMM CDO exposures while retaining upside
participation if the underlying securities recover. As at April 30, 2009, the
outstanding principal and fair value of the limited recourse note issued as
part of the Cerberus transaction was $667 million (US$559 million) and $330
million (US$276 million) respectively. The underlying CDO exposures had a fair
value of $416 million (US$357 million) as at April 30, 2009. We recorded a
gain of $117 million (US$96 million) and $153 million (US$125 million) on the
limited recourse note in the current and first quarter respectively.

    Other changes in exposures

    In addition to the termination of the $2.2 billion (US$1.8 billion) of
written credit derivatives and $155 million (US$126 million) of normal
amortization of our purchased credit derivatives in the first quarter, we
undertook a number of transactions during the current quarter to further
reduce our exposures, noted below:

    
    -   We terminated $2.1 billion (US$1.7 billion) of purchased credit
        derivatives with non-financial guarantors (MAV I and MAV II) and
        unwound written credit protection of a similar amount. As a result of
        the termination of the purchased credit derivatives, we received
        $252 million (US$202 million) of assets previously held as
        collateral. These transactions resulted in a pre-tax gain of
        $8 million (US$7 million);
    -   We terminated $396 million (US$323 million) of written credit
        derivatives with exposures to commercial mortgage backed securities
        with negligible impact to our results. Subsequent to this
        transaction, US$323 million of purchased credit derivatives that
        previously hedged these positions became unmatched;
    -   We assumed $389 million (US$326 million) of TruPs assets (included
        within Non-USRMM - Others HTM on the total exposure table on page 11)
        and unwound the related written credit derivatives of the same amount
        with negligible impact to our results;
    -   We terminated $181 million (US$143 million) of written credit
        derivatives on non-USRMM exposures and unwound all our purchased
        credit derivatives with a financial guarantor (previously reported as
        counterparty X) with no impact to our results; and
    -   Normal amortization reduced the notional of our purchased credit
        derivatives with financial guarantors by $119 million
        (US$100 million).

    Total exposures

    The exposures held within our structured credit run-off business within
Wholesale Banking are summarized in the table below. Our subsidiary,
FirstCaribbean, within CIBC Retail Markets, had holdings in securities with
USRMM exposure which were all sold in the current quarter. The table below
excludes the Cerberus protection on our USRMM exposures.

    -------------------------------------------------------------------------
    US$ millions, as at April 30, 2009
    -------------------------------------------------------------------------
                                          Exposures(1)
    -------------------------------------------------------------------------
                           Investments & loans             Written credit
                                                            derivatives
                                                         and liquidity and
                                                        credit facilities(2)
                    ---------------------------------- ----------------------


                                    Fair    Carrying                    Fair
                     Notional      value       value    Notional     value(4)
                    ---------------------------------------------------------
    USRMM
    Unhedged(6)
    -----------
      Super senior
      CDO of
       mezzanine
       RMBS         $    550    $      1    $      1    $    814    $    809
      Warehouse -
       RMBS              310           1           1           -           -
      Various(7)         323           1           1         321         312
    -------------------------------------------------------------------------
                       1,183           3           3       1,135       1,121
    Hedged
    ------
      Other CDO        1,265         114         114       2,342       2,036
    -------------------------------------------------------------------------
    Total USRMM     $  2,448    $    117    $    117    $  3,477    $  3,157
    -------------------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)        $     67    $      4    $      4    $     85    $      6
      CLO HTM            195         164         186           -           -
      Corporate
       debt              171         109         109           -           -
      Montreal
       Accord
       notes(7)          376         152         152         251         n/a
      Third party
       sponsored
       ABCP
       conduits(2)       141         141         141         110         n/a
      Warehouse -
       non-RMBS          155           1           1           -           -
      Others(2)          219         212         219         263          21
      Others HTM         164         138         138           -           -
    -------------------------------------------------------------------------
                       1,488         921         950         709          27
    Hedged
    ------
      CLO                220         160         161       7,695         648
      CLO HTM(8)       5,619       4,425       5,057           -           -
      Corporate debt       -           -           -      11,895         898
      CMBS                 -           -           -         454         364
      Others             240          71          70       1,659         680
      Others HTM(9)      713         231         444           -           -
    Unmatched
     purchased
     credit
     derivatives           -           -           -           -           -
    -------------------------------------------------------------------------
    Total non-
     USRMM          $  8,280    $  5,808    $  6,682    $ 22,412    $  2,617
    -------------------------------------------------------------------------
    Total           $ 10,728    $  5,925    $  6,799    $ 25,889    $  5,774
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008   $ 10,304    $  6,430    $  6,952    $  30,931   $  5,924
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    US$ millions, as at April 30, 2009
    -------------------------------------------------------------------------
                                     Hedged by                      Unhedged
                   ----------------------------------------------
                   Purchased credit derivatives and index hedges       USRMM



                   ----------------------------------------------------------
                     Financial guarantors          Others
                    ----------------------  --------------------
                                    Fair                    Fair         Net
                     Notional  value(3)(4)   Notional value(3)(4) exposure(5)
                   ----------------------------------------------------------
    USRMM
    Unhedged(6)
    -----------
      Super senior
      CDO of
       mezzanine
       RMBS         $      -    $      -    $      -    $       -   $      6
      Warehouse -
       RMBS                -           -           -            -          1
      Various(7)           -           -           -            -         10
    -------------------------------------------------------------------------
                           -           -           -            -   $     17
    Hedged
    ------
      Other CDO        3,139       2,748         468          424
    --------------------------------------------------------------
    Total USRMM     $  3,139    $  2,748    $    468    $     424
    --------------------------------------------------------------
    Non-USRMM
    Unhedged
    --------
      CLO(2)        $      -    $      -    $      -    $       -
      CLO HTM              -           -           -            -
      Corporate
       debt                -           -           -            -
      Montreal
       Accord
       notes(7)            -           -           -            -
      Third party
       sponsored
       ABCP
       conduits(2)         -           -           -            -
      Warehouse -
       non-RMBS            -           -           -            -
      Others(2)            -           -           -            -
      Others HTM           -           -           -            -
    --------------------------------------------------------------
                           -           -           -            -
    Hedged
    ------
      CLO              7,679         634         237           32
      CLO HTM(8)       5,437         457         212           29
      Corporate debt   5,159         495       6,740          416
      CMBS               454         363           -            -
      Others           1,492         778         456           77
      Others HTM(9)      716         495           -            -
    Unmatched
     purchased
     credit
     derivatives       2,123         393          69            -
    --------------------------------------------------------------
    Total non-
     USRMM          $ 23,060    $  3,615    $  7,714    $     554
    --------------------------------------------------------------
    Total           $ 26,199    $  6,363    $  8,182    $     978
    --------------------------------------------------------------
    --------------------------------------------------------------
    Oct. 31, 2008   $ 27,108    $  5,711    $  9,931    $   1,195
    --------------------------------------------------------------
    --------------------------------------------------------------
    (1) We have excluded our total holdings, including holdings related to
        our treasury activities, of notional US$3,779 million with fair value
        of US$3,768 million in the followings: debt securities issued by
        Federal National Mortgage Association (Fannie Mae) (notional US$1,634
        million, fair value US$1,629 million), Federal Home Loan Mortgage
        Corporation (Freddie Mac) (notional US$1,140 million, fair value
        US$1,134 million), Government National Mortgage Association
        (Ginnie Mae) (notional US$155 million, fair value US$155 million),
        and Federal Home Loan Banks (notional US$850 million, fair value
        US$850 million).
    (2) Liquidity and credit facilities to third party non-bank sponsored
        ABCP conduits amounted to US$110 million and to non-USRMM unhedged
        others amounted to US$33 million.
    (3) Gross of CVA for purchased credit derivatives of US$4.3 billion.
    (4) This is the gross fair value of the contracts, which were typically
        zero, or close to zero, at the time they were entered into.
    (5) After write-downs.
    (6) As at April 30, 2009, the S&P rating for super senior CDO of
        mezzanine RMBS ranges from CCC+ to CC. The rating for the warehouse
        RMBS was approximately 21% investment grade and 79% non-investment
        grade (based on market value).
    (7) Includes estimated USRMM exposure of $126 million as at April 30,
        2009.
    (8) Investments and loans include unfunded investment commitments with a
        notional of US$255 million.
    (9) Represents TruPs.
    n/a Not applicable.
    

    Unhedged USRMM exposures

    Our remaining unhedged exposure to the USRMM, after write-downs, was $20
million (US$17 million) as at April 30, 2009.

    Unhedged non-USRMM exposures

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

    CLO

    Our unhedged CLO exposures, including HTM, with notional of $414 million
(US$347 million) are mostly rated AAA as at April 30, 2009, and are backed by
diversified pools of European-based senior secured leveraged loans.

    Corporate debt

    Approximately 19%, 55% and 26% of the unhedged corporate debt exposures
with notional of $204 million (US$171 million) are related to positions in
Europe, Canada and other countries respectively.

    Montreal Accord related notes

    The standstill and court approved restructuring plan proposed by
signatories to the Montreal Accord was ratified on January 21, 2009. As a
result, we received $141 million in senior Class A-1 notes, $152 million in
senior Class A-2 notes and $178 million of various subordinated and tracking
notes in exchange for our non-bank sponsored ABCP with par value of $471
million. As was the case with the original ABCP instruments, the new notes are
backed by fixed income, traditional securitization and CDO assets as well as
super senior credit default swaps on investment grade corporates. The
underlying assets that have U.S. subprime mortgage exposures have been
isolated and are specifically linked to tracking notes with a notional value
of $126 million as at April 30, 2009. In the current quarter, $11 million of
the tracking notes were paid down at par. As at April 30, 2009, the remaining
notional amount on all the notes was $449 million (US$376 million).
    The Class A-1 and Class A-2 notes pay a variable rate of interest below
market levels. The subordinated notes are zero coupon in nature, paying
interest and principal only after the Class A-1 and Class A-2 notes are
settled in full. The tracking notes pass through the cash flows of the
underlying assets. All of the restructured notes are expected to mature in
December 2016.
    Based on our estimate of the $181 million combined fair value of the
notes as at April 30, 2009, we recorded a loss of $22 million during the
current quarter ($44 million for the six months ended April 30, 2009).
    In addition, pursuant to the restructuring plan, we are a participant in
a Margin Funding Facility (MFF) to support the collateral requirements of the
restructured conduits. Under the terms of the MFF, we have provided a $300
million undrawn loan facility to be used if the amended collateral triggers of
the related credit derivatives are breached and the new trusts created under
the restructuring plan do not have sufficient assets to meet any collateral
calls. If the loan facility was fully drawn and subsequently more collateral
was required due to breaching further collateral triggers, we would not be
obligated to fund any additional collateral, although the consequence would
likely be the loss of that $300 million loan.

    Third party non-Bank sponsored ABCP conduits

    We provided liquidity and credit related facilities to third party
non-bank sponsored ABCP conduits. As at April 30, 2009, $299 million (US$251
million) of the facilities remained committed. Of this amount, $75 million
(US$63 million), which remained undrawn as at April 30, 2009, was provided to
a conduit, with U.S. auto loan assets, sponsored by a U.S. based auto
manufacturer.
    The remaining $224 million (US$188 million) primarily relates to U.S.
CDOs, of which $168 million (US$141 million) was drawn as at April 30, 2009.
$45 million (US$38 million) of the undrawn facilities was subject to liquidity
agreements under which the conduits maintain the right to put their assets
back to CIBC at par. The underlying assets of the U.S. CDOs have maturities
ranging from three to seven years.

    Warehouse non-RMBS

    Of the unhedged warehouse non-RMBS assets with notional of $185 million
(US$155 million), 75% represents investments in CLOs backed by diversified
pools of U.S.-based senior secured leveraged loans. Approximately 12%
represents investments in CDOs backed by TruPs with exposure to U.S. real
estate investment trusts. Another 8% has exposure to the U.S. commercial real
estate market.

    Other

    Other unhedged exposures with notional of $575 million (US$482 million)
include $283 million (US$237 million) credit facilities (drawn US$204 million
and undrawn US$33 million) provided to SPEs with film rights receivables
(32%), lottery receivables (20%), and U.S. mortgage defeasance loans (42%).
    The remaining $274 million (US$230 million) primarily represents written
protection on mostly AAA tranches of portfolios of high yield corporate debt.
We are only obligated to pay for any losses upon both the default of the
underlying corporate debt as well as that of the primary financial guarantor,
which was restructured in February 2009.
    Other HTM unhedged exposures with notional of $196 million (US$164
million) relate to collateral received from the unwinding of MAV II and
primarily represents investment grade commercial paper.

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

    The total CVA charge for financial guarantors was $657 million (US$508
million) for the current quarter ($1,293 million (US$1,020 million) for six
months ended April 30, 2009). As at April 30, 2009, CVA on credit derivative
contracts with financial guarantors was $5.1 billion (US$4.3 billion) (October
31, 2008: $4.6 billion (US$3.8 billion)), and the fair value of credit
derivative contracts with financial guarantors net of valuation adjustments
was $2.5 billion (US$2.1 billion) (October 31, 2008: $2.3 billion (US$1.9
billion)). Further significant losses could result depending on the
performance of both the underlying assets and the financial guarantors.
    In addition to our structured credit run-off positions, we have loan and
tranched securities positions that are partly secured by direct guarantees
from financial guarantors or by bonds guaranteed by financial guarantors. As
at April 30, 2009, these positions were performing and the total amount
guaranteed by financial guarantors was approximately $183 million (US$154
million).
    The following table presents the notional amounts and fair values of
purchased protection from financial guarantors by counterparty. The fair value
net of valuation adjustments is included in derivative instruments in other
assets on the consolidated balance sheet.

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

    US$ millions, as at April 30, 2009                 USRMM related
    ----------------------------------------  -------------------------------
             Standard    Moody's
    Counter-      and   Investor      Fitch                  Fair
     party     Poor's   Services    Ratings   Notional    value(1)       CVA
    -------------------------------------------------------------------------
    I(5)       BBB+(2)        B3        -(4)  $     70   $     35   $    (23)
    II            A(2)     Ba3(3)       -(4)       530        489       (304)
    III          BB(3)     Ba3(3)       -(4)         -          -          -
    IV            -(4)    Caa3(2)       -(4)         -          -          -
    V             -(4)      Ca(3)       -(4)     2,539      2,224     (1,972)
    VI           AA(2)       Ba1       AA(2)         -          -          -
    VII           AAA        Aa2       AA(3)         -          -          -
    VIII        AAA(2)     Aa3(3)     AA+(2)         -          -          -
    IX         BBB-(2)       Ba1        -(4)         -          -          -
    -------------------------------------------------------------------------
    Total
     financial
     guarantors                               $  3,139   $  2,748   $ (2,299)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008                                     $  3,786   $  3,086   $ (2,260)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    US$ millions, as at
    April 30, 2009                   Non-USRMM                    Total
                        ------------------------------- ---------------------
                                                                         Net
    Counter-                           Fair                             fair
     party              Notional    value(1)       CVA   Notional      value
    -------------------------------------------------------------------------
    I(5)                $  1,614   $    838   $   (557)  $  1,684   $    293
    II                     1,699        512       (318)     2,229        379
    III                    1,430        198        (66)     1,430        132
    IV                     2,106        228       (196)     2,106         32
    V                      2,628        205       (182)     5,167        275
    VI                     5,200        485       (153)     5,200        332
    VII                    4,707        585       (263)     4,707        322
    VIII                   1,450        234       (105)     1,450        129
    IX                     2,226        330       (172)     2,226        158
    -------------------------------------------------------------------------
    Total
     financial
     guarantors         $ 23,060   $  3,615   $ (2,012)  $ 26,199   $  2,052
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008               $ 23,322   $  2,625   $ (1,520)  $ 27,108   $  1,931
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Before CVA.
    (2) Credit watch/outlook with negative implication.
    (3) Watch developing.
    (4) Rating withdrawn.
    (5) The counterparty was restructured in February 2009 with part of its
        business transferred to a new entity.


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

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

    US$ millions,    USRMM
     as at         related             Non-USRMM related
     April 30,    --------- -------------------------------------------------
     2009         Notional                  Notional
    ------------- --------- -------------------------------------------------
                                     Corporate
    Counterparty       CDO       CLO      debt      CMBS    Others     Total
    -------------------------------------------------------------------------

    I             $     70  $    609  $      -  $  777(1)    $228  $   1,614
    II                 530       878         -         -      821      1,699
    III                  -     1,305         -         -      125      1,430
    IV                   -     1,850         -         -      256      2,106
    V                2,539     2,628         -         -        -      2,628
    VI                   -         -   5,200(1)        -        -      5,200
    VII                  -     4,457         -         -      250      4,707
    VIII                 -     1,314         -         -      136      1,450
    IX                   -        75     1,759         -      392      2,226
    -------------------------------------------------------------------------
    Total
     financial
     guarantors   $ 3,139   $ 13,116  $  6,959  $    777  $ 2,208   $ 23,060
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31,
     2008         $ 3,786   $ 13,125  $  6,959  $    777  $ 2,461   $ 23,322
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes US$1.8 billion and US$323 million of unmatched purchase
        protection related to corporate debt and CMBS respectively.
    

    USRMM

    Our USRMM related positions of notional $3.7 billion (US$3.1 billion)
hedged by financial guarantors comprise super senior CDOs with underlyings
being approximately 15% sub-prime RMBS, 48% Alt-A RMBS, 13% asset backed
securities (ABS) CDO and 24% non-USRMM. Sub-prime and Alt-A underlyings
consist of approximately 9% pre-2006 vintage as well as 91% 2006 and 2007
vintage RMBS. Sub-prime exposures are defined as having Fair Isaac Corporation
(FICO) scores less than 660; and Alt-A underlyings as those exposures that
have FICO scores of 720 or below, but greater than 660.

    Non-USRMM

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

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



    US$ millions,                           Total  Notional/Tranche
     as at April 30,                Fair tranches  -----------------
     2009              Notional    value       (1)    High      Low
    ----------------------------------------------------------------
    CLO                 $13,116  $ 1,091       82  $   375  $    25
    Corporate debt        5,159      495        9      800      259
    Corporate debt
     (Unmatched)          1,800      105        2      800      200
    U.S. CMBS               454      364        1      453        1
    U.S. CMBS
     (Unmatched)            323      287        1      323      323
    Others
      TruPS                 814      564       12      128       24
      Non-US RMBS           196      114        3      107       28
      Other               1,198      595        9      263        7
    ----------------------------------------------------------------
    Total               $23,060  $ 3,615      119  $ 3,249  $   867
    ----------------------------------------------------------------
    ----------------------------------------------------------------


    -------------------------------------------------------------------------
                                         Weighted
                                          average   Invest-
                                             life     ment     Subordination/
    US$ millions,      Fair value/Tranche (WAL)(2)(3) grade(4)  attachment(5)
     as at April 30,   ------------------      in    under- -----------------
     2009                  High      Low    years   lyings  Average    Range
    -------------------------------------------------------------------------
    CLO                 $    44  $     1      4.8       1%      31%    6-67%
    Corporate debt          191       21      3.6      67%      20%   15-30%
    Corporate debt
     (Unmatched)             81       18      3.0        -      16%   15-18%
    U.S. CMBS               364        1      5.3      35%      43%   43-46%
    U.S. CMBS
     (Unmatched)            287      287      6.3        -      46%      46%
    Others
      TruPs                  91       16     15.0      n/a      49%   45-57%
      Non-US RMBS            63       16      3.0      n/a      53%      53%
      Other                 236        -      6.8      n/a      20%    0-53%
    -------------------------------------
    Total               $ 1,357  $   360
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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 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 quarter to quarter.
    (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 referenced assets without losses impacting
        guaranteed, matched and unmatched, tranches.
    

    CLO

    Approximately 99% of the total notional amount of the CLO positions of
US$13.1 billion (including CLO HTM) at April 30, 2009 continues to be rated
AAA with the remainder rated AA. The majority of the underlying collateral
continues to be rated between B- and B+. The collateral comprise assets in a
wide range of industries with the highest concentration in the services
(personal and food) industry (28%); the broadcasting, publishing and
telecommunication sector (19%); and the manufacturing sector (15%). Only 3% is
in the real estate sector. Approximately 68% and 27% of the underlyings
represent U.S. and European exposures respectively.

    Corporate Debt

    The Corporate Debt underlyings consist of 11 super senior synthetic CDO
tranches that reference portfolios of primarily U.S. (56%) and European (29%)
corporate debt in various industries (manufacturing 28%, financial
institutions 13%, cable and telecommunications 10%, retail and wholesale 9%).
The average detachment points (maximum level of losses that can impact
guaranteed, matched and unmatched, tranches) are 44% and 38% with a range of
30% to 60% and 30% to 45% on corporate debt matched and unmatched
respectively.

    CMBS

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

    Others

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

    Purchased protection from other counterparties

    The following table provides the notional amounts and fair values (before
CVA of US$42 million (October 31, 2008: US$21 million)) of purchased credit
derivatives from counterparties other than financial guarantors, excluding
unmatched purchased credit derivatives:

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


                                                    Fair                Fair
    US$ millions, as at               Notional     value  Notional     value
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    468  $    424  $     93  $     17
    Banks                                    -         -       810       121
    Canadian conduits                        -         -     6,740       416
    Others                                   -         -         2         -
    -------------------------------------------------------------------------
    Total                             $    468  $    424  $  7,645  $    554
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                       Total
                                      ---------------------------------------
                                            Notional           Fair value
                                      ------------------- -------------------
                                          2009      2009      2009      2009
    US$ millions, as at                Apr. 30   Jan. 31   Apr. 30   Jan. 31
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    561  $    592  $    441  $    451
    Banks                                  810       793       121        74
    Canadian conduits                    6,740     8,379       416       505
    Others                                   2         2         -         -
    -------------------------------------------------------------------------
    Total                             $  8,113  $  9,766  $    978  $  1,030
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    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                  CDO(1)   CLO(2) Corporate   Other(3)
     April 30, 2009                                           debt
    -------------------------------------------------------------------------
    Non-bank financial institutions   $    468  $     -   $      -  $     93
    Banks                                    -      449          -       361
    Canadian conduits                        -        -      6,740         -
    Others                                   -        -          -         2
    -------------------------------------------------------------------------
    Total                             $    468  $   449   $  6,740  $    456
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The US$468 million represents super senior CDO with approximately 74%
        sub-prime RMBS, 3% Alt-A RMBS, 11% ABS CDO, and 12% non-USRMM. Sub-
        prime and Alt-A are all pre-2006 vintage.
    (2) All underlyings are non-investment grade. 5% is North American
        exposure and 95% is European exposure. Major industry concentration
        is in the services industry (33%), the manufacturing sector (19%),
        the broadcasting and communication industries (14%), and only 3% is
        in the real estate sector.
    (3) Approximately 56% of the underlyings are investment grade or
        equivalent with the majority of the exposure located in the U.S. and
        Europe. The industry concentration is primarily banking and finance,
        manufacturing, broadcasting, publishing and telecommunication and
        mining, oil and gas, with less than 3% in the real estate sector.
    

    Canadian conduits

    We purchased credit derivative protection from Canadian conduits and
generated revenue by selling the same protection 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.
    During the quarter, we terminated purchased credit derivatives of $2.1
billion (US$1.7 billion), representing part of our protection from MAV I and
all our protection from MAV II and unwound written credit protection of a
similar amount.

    
    -------------------------------------------------------------------------
                                                                  Collateral
    US$ millions,                                                        and
     as at April                                        Mark-to-   guarantee
     30, 2009             Underlying    Notional(1)      market  notionals(2)
    -------------------------------------------------------------------------
    Conduits
    --------
    Great North Trust  Investment grade
                        corporate
                        credit index(3)  $   4,142    $     235    $   348(4)
    MAV I              160 Investment
                        grade
                        corporates(5)        2,598          181        307
    -------------------------------------------------------------------------
    Total                                $   6,740    $     416    $   655
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                        $   8,453    $     660    $   944
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These exposures mature within 4 to 8 years.
    (2) Comprises investment grade notes issued by third party sponsored
        conduits, corporate floating rate notes, bankers acceptances, and
        funding commitments. The fair value of the collateral at April 30,
        2009 was US$608 million (October 31, 2008: US$921 million).
    (3) Consists of a static portfolio of 126 North American corporate
        reference entities that were investment grade rated when the index
        was created. 81% of the entities are rated BBB- or higher. 99% of the
        entities are U.S. entities. Financial guarantors represent
        approximately 1.6% of the portfolio. 2.4% of the entities have
        experienced credit events. Attachment point is 30% and there is no
        direct exposure to USRMM or the U.S. commercial real estate market.
    (4) Includes US$98 million (October 31, 2008: US$219 million) of funding
        commitments (with indemnities) from certain third party investors in
        Great North Trust.
    (5) The underlying portfolio consists of a static portfolio of 160
        corporate reference entities of which 91.3% were investment grade on
        the trade date. 84.4% of the entities are currently rated BBB- or
        higher (investment grade). 48% of the entities are U.S. entities.
        Financial guarantors represent approximately 2.5% of the portfolio.
        1.25% of the entities have experienced credit events. Attachment
        point is 20% and there is no direct exposure to USRMM or the U.S.
        commercial real estate market.
    

    Leveraged finance business

    We provide leveraged finance to non-investment grade customers to
facilitate their buyout, acquisition and restructuring activities. We
generally underwrite leveraged financial loans and syndicate the majority of
the loans, earning a fee during the process.
    We sold our U.S. leveraged finance business as part of our sale of some
of our U.S. businesses to Oppenheimer and are exiting our European leveraged
finance (ELF) business.
    As with the structured credit run-off business, the risk in the ELF
run-off business is also managed by a focused team with the mandate to reduce
the residual portfolio. As at April 30, 2009, we have funded leveraged loans
of $943 million (October 31, 2008: $935 million), and unfunded letters of
credits and commitments of $194 million (October 31, 2008: $210 million).

    Exposures of ELF loans (none of which is impaired) by industry are as
below:

    
    -------------------------------------------------------------------------
    $ millions, as at April 30, 2009                      Drawn      Undrawn
    -------------------------------------------------------------------------
    Publishing                                        $      99    $      31
    Telecommunications                                       15           15
    Manufacturing                                           300           53
    Services                                                270           41
    Transportation and public utilities                      17            9
    Wholesale trade                                         242           45
    -------------------------------------------------------------------------
    Total                                             $     943    $     194
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     935    $     210
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    U.S. total return swaps portfolio

    Our U.S. total return swaps (TRS) portfolio consists of TRS on primarily
non-investment grade loans and units in hedge funds. The underlying loans
consist of six term loans to the corporate sector. The underlying assets are
rated Baa2 and below. The portfolio has an average term of 340 days. The total
current notional of the TRS portfolio is approximately $212 million (US$178
million). Of this total portfolio, $33 million (US$28 million) is loan related
and backed by $20 million (US$17 million) of cash collateral. The remaining
hedge fund exposures are subject to net asset value tests which determine
margin requirements keeping total assets available at 133% of notional. The
table below summarizes the notional value of our positions in the portfolio:

    
    -------------------------------------------------------------------------
    US$ millions, as at April 30, 2009                              Notional
    -------------------------------------------------------------------------
    Loans                                                          $      28
    Hedge Funds                                                          150
    -------------------------------------------------------------------------
    Total                                                          $     178
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                                  $   1,458
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the quarter we continued to reduce the portfolio by closing some of
the TRS and selling off the related underlying assets. The net loss of the TRS
portfolio was $6 million for the quarter ($13 million for six months ended
April 30, 2009).

                          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 April 30, 2009, our holdings of ABCP issued by our sponsored
conduits that offer ABCP to external investors was $8 million (October 31,
2008: $729 million) and our committed backstop liquidity facilities to these
conduits was $5.7 billion (October 31, 2008: $8.7 billion). We also provided
credit facilities of $50 million (October 31, 2008: $70 million) and banker's
acceptances of $70 million (October 31, 2008: $76 million) to these conduits
as at April 30, 2009.

    The following table shows the underlying collateral and the average
maturity for each asset type in these multi-seller conduits:

    
    -------------------------------------------------------------------------
                                                                Estimated
                                                                weighted
                                                                avg. life
    $ millions, as at April 30, 2009               Amount(2)    (years)
    -------------------------------------------------------------------------
    Asset class
    Canadian residential mortgages                 $   2,165          1.8
    Auto leases                                        1,129          1.0
    Franchise loans                                      722          1.0
    Auto loans                                           285          0.9
    Credit cards                                         975          3.9(1)
    Equipment leases/loans                               203          1.2
    Other                                                  9          0.9
    -------------------------------------------------------------------------
    Total                                          $   5,488          1.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                  $   8,440          1.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Based on the revolving period and amortization period contemplated in
        the transaction.
    (2) The committed backstop facility of these assets was the same as the
        amounts noted in the table, other than for franchise loans, for which
        the facility was $900 million.
    

    The short-term notes issued by the conduits are backed by the above
assets. The performance of the above assets has met the criteria required to
retain the credit ratings of the notes issued by the multi-seller conduits.
    $198 million of the $2,165 million Canadian residential mortgages relates
to amounts securitized by the subsidiary of the finance arm of a U.S. auto
manufacturer.
    Of the $1,129 million relating to auto leases, $360 million relates to
balances originated by Canadian fleet leasing companies and the remaining
relates to non-North American auto manufacturers.
    Of the $285 million relating to auto loans, $68 million relates to
balances originated by the finance arms of two U.S. auto manufacturers, $18
million relates to balances originated by a regulated Canadian financial
institution and the remaining relates to non-North American auto
manufacturers.
    In addition, during the first and second quarters, we acquired all of the
commercial paper issued by MACRO Trust, a CIBC-sponsored conduit. During the
current quarter, MACRO Trust acquired auto lease receivables from one of our
multi-seller conduits. The consolidation of the conduit resulted in $508
million of dealer floorplan receivables, $481 million of auto leases, and $16
million of medium term notes backed by Canadian residential mortgages being
recognized in the consolidated balance sheet as at April 30, 2009. The dealer
floor plan and auto lease receivables were originated by the finance arm of a
U.S. auto manufacturer, and have an estimated weighted average life of less
than a year. The commitment period for the dealer floor-plan receivables
expires on June 1, 2009.
    We also participated in a syndicated facility for a 364-day commitment of
$475 million to a CIBC-sponsored single-seller conduit that provides funding
to franchisees of a major Canadian retailer. Our portion of the commitment is
$95 million. At April 30, 2009 we funded $70 million (October 31, 2008: $76
million) by the issuance of bankers' acceptances.
    We also securitize our mortgages and credit cards receivables. Details of
our consolidated variable interest entities and securitization transactions
during the quarter are provided in Note 5 to the interim consolidated
financial statements.

    U.S. real estate finance

    In our U.S. real estate finance business, we operate a full-service
platform which originates commercial mortgages to mid-market clients, under
three programs. The construction program offers floating rate financing to
properties under construction. The interim program offers fixed and
floating-rate financing for properties that are fully leased or with some
leasing or renovation yet to be done. These programs provide feeder product
for the group's permanent fixed-rate loan program and typically have an
average term of 1 to 3 years.
    Once the construction and interim phases are complete and the properties
are income-producing, borrowers are offered fixed-rate financing within the
permanent program (typically with average terms of 10 years). The business
also maintains CMBS trading and distribution capabilities. As at April 30,
2009 we had CMBS inventory with a market value of less than US$1 million
(October 31, 2008: US$2 million). During the quarter we provided for an
allowance for credit losses of $7 million (US$6 million).

    The following table provides a summary of our positions in this business
as at April 30, 2009:

    
    -------------------------------------------------------------------------
                                                       Unfunded       Funded
    US$ millions, as at April 30, 2009              commitments        loans
    -------------------------------------------------------------------------
    Construction program                              $     111    $     521
    Interim program                                         230        1,519
    Commercial fixed rate mortgages                           -           91
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                             $     341    $   2,131
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     416    $   2,018
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    North American auto industry exposure

    We have exposures to the North American auto industry through our
securitization business and in our run-off exposure to third party non-Bank
sponsored ABCP conduits as discussed above. As at April 30, 2009, we had loans
and undrawn credit commitments to the North American auto-related industries
as shown in the table below. In addition, we also have MTM receivables of
approximately $11 million from derivatives transactions with these
counterparties.

    
    -------------------------------------------------------------------------
                                                                     Undrawn
                                                                      credit
    $ millions, as at April 30, 2009                    Loans(2) commitments
    -------------------------------------------------------------------------
    Finance arms associated with the U.S. auto
     manufacturers(1)                                 $     163    $       9
    Motor vehicle parts suppliers and wholesalers           100          344
    Canadian automobile dealers                             524          493
    -------------------------------------------------------------------------
    Total                                             $     787    $     846
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oct. 31, 2008                                     $     819    $     865
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) $113 million of the finance arms' exposure is economically hedged
        with credit derivatives in our corporate loan hedging programs.
    (2) Includes impaired loans of $5 million, $1 million net of allowances
        as at April 30, 2009 (Impaired loans of $9 million, $6 million net of
        allowances as at October 31, 2008).


                         FINANCIAL PERFORMANCE REVIEW

    ----------------------------------------------------- -------------------
                                           For the three         For the six
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net interest income     $  1,273  $  1,333  $  1,349  $  2,606  $  2,503
    Non-interest income
     (loss)                      888       689    (1,223)    1,577    (2,898)
    ----------------------------------------------------- -------------------
    Total revenue              2,161     2,022       126     4,183      (395)
    Provision for credit
     losses                      394       284       176       678       348
    Non-interest expenses      1,639     1,653     1,788     3,292     3,549
    ----------------------------------------------------- -------------------
    Income (loss) before
     taxes and non-
     controlling interests       128        85    (1,838)      213    (4,292)
    Income tax expense
     (benefit)                   174       (67)     (731)      107    (1,733)
    Non-controlling
     interests                     5         5         4        10         8
    ----------------------------------------------------- -------------------
    Net (loss) income       $    (51) $    147  $ (1,111) $     96  $ (2,567)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    

    Net interest income

    Net interest income was down $76 million or 6% from the same quarter last
year, mainly due to lower treasury revenue and spread compression on retail
products. These factors were offset in part by volume growth in most retail
products, and higher interest income from U.S. real estate finance and
corporate credit products.
    Net interest income was down $60 million or 5% from the prior quarter,
primarily due to the impact of three fewer days, spread compression on retail
products, and lower treasury revenue. These factors were offset in part by
higher interest income from U.S. real estate finance and corporate credit
products.
    Net interest income for the six months ended April 30, 2009 was up $103
million or 4% from the same period in 2008, mainly due to volume growth in
most retail products, and higher interest income from U.S. real estate finance
and corporate credit products. These factors were offset in part by lower
treasury revenue and spread compression on retail products.

    Non-interest income

    Non-interest income was up $2,111 million from the same quarter last
year, primarily due to lower structured credit losses, the foreign exchange
gain on repatriation activities compared to a foreign exchange loss in the
prior year quarter, and higher AFS securities gains. These factors were
partially offset by losses associated with corporate loan hedging programs
compared to gains in the prior year quarter, valuation charges related to
certain trading and AFS positions in exited and run-off businesses, lower
wealth management related fee income, and write-downs in the merchant banking
portfolio.
    Non-interest income was up $199 million or 29% from the prior quarter,
primarily due to lower structured credit losses, and the foreign exchange
gains on repatriation activities compared to a foreign exchange loss in the
prior quarter. The MTM losses relating to interest-rate hedges for the
leveraged lease portfolio that did not qualify for hedge accounting in the
prior quarter, and lower write-downs in the merchant banking portfolio also
contributed to the increase. These factors were partially offset by losses
associated with corporate loan hedging programs compared to gains in the prior
quarter, valuation charges noted above and lower AFS securities gains.
    Non-interest income for the six months ended April 30, 2009 was up $4,475
million from the same period in 2008, primarily due to lower structured credit
losses, and higher AFS securities gains. The foreign exchange gain on
repatriation activities compared to a foreign exchange loss in the prior year,
and the prior year loss on the sale of some of our U.S. businesses also
contributed to the increase. These factors were partially offset by losses
associated with corporate loan hedging programs compared to gains in the prior
year, lower wealth management related fee income, write-downs in the merchant
banking portfolio, the valuation charges noted above, MTM losses relating to
interest-rate hedges for the leveraged lease portfolio that did not qualify
for hedge accounting, and lower advisory revenue.

    Provision for credit losses

    Provision for credit losses was up $218 million from the same quarter
last year, $110 million or 39% from the prior quarter and $330 million or 95%
for the six months ended April 30, 2009 compared to the same period last year.
    Provision for credit losses in consumer portfolios was up $123 million
from the same quarter last year, and $49 million from the prior quarter, while
the six month year to date provision is up $209 million from the same period
last year. The increase was driven by higher delinquencies and bankruptcies in
the credit cards and personal lending portfolios.
    Provision for credit losses in business and government lending increased
by $33 million from the prior quarter, and $32 million from the same quarter
last year, while the six month provision is up $22 million from the same
period last year. This increase was primarily due to reduced recoveries, in
addition to an increase in impaired loans, largely in the U.S.
    In addition, the general allowance increased by $65 million in the
current quarter primarily related to large corporate lending and credit cards
as a reflection of the deteriorating economic environment.

    Non-interest expenses

    Non-interest expenses were down $149 million or 8% from the same quarter
last year, primarily due to lower benefits, salaries, commissions,
professional fees and computer and office equipment, partially offset by
higher performance-related compensation. The last year quarter included higher
litigation expenses.
    Non-interest expenses were down $14 million or 1% from the prior quarter,
primarily due to lower performance-related expenses, benefits, and salaries,
partially offset by higher occupancy expenses and communications.
    Non-interest expenses for the six months ended April 30, 2009 were down
$257 million or 7% from the same period in 2008, primarily due to lower
salaries, benefits, commissions and computer and office equipment, partially
offset by higher performance-related compensation. The prior year included
higher litigation expenses.

    Income taxes

    Income tax expense was $174 million, compared to a benefit of $731
million in the same quarter last year. The primary reason for this change was
the tax impact of the loss incurred in the prior year quarter. The current
quarter included a $156 million tax expense related to foreign exchange gains
on repatriation activities and a $57 million tax expense mainly related to the
write off of future tax assets due to lower future statutory tax rates.
    Income tax expense was $174 million compared to a benefit of $67 million
in the prior quarter. The current quarter included the above-noted items. The
prior quarter included a $52 million tax benefit related to foreign exchange
losses on repatriation activities.
    Income tax expense was $107 million for the six months ended April 30,
2009 compared to an income tax benefit of $1,733 million in the same period
last year. The primary reason for this change was the tax impact of the loss
incurred in the prior year period. The current period also included a tax
expense on repatriation activities compared to a tax recovery in the prior
year period.
    At the end of the quarter, our future income tax asset was $1,989
million, net of a US$52 million ($62 million) valuation allowance. Included in
the future income tax asset are $1,226 million related to Canadian non-capital
loss carryforwards that expire in 20 years, $75 million related to Canadian
capital loss carryforwards that have no expiry date, and $477 million related
to our U.S. operations. Accounting standards require a valuation allowance
when it is more likely than not that all or a portion of a future income tax
asset will not be realized prior to its expiration. Although realization is
not assured, we believe that based on all available evidence, it is more
likely than not that all of the future income tax asset, net of the valuation
allowance, will be realized.
    The Ontario Government, as part of its 2009 Budget, proposed to reduce
Ontario corporate tax rates from 14% to 10% by 2013. These reductions were not
substantively enacted for accounting purposes as at April 30, 2009. If
enacted, we would have to write down our future tax assets by up to $45
million.

    Foreign exchange

    Our U.S. dollar denominated results are impacted by fluctuations in the
U.S. dollar/Canadian dollar exchange rate. The Canadian dollar depreciated 23%
on average relative to the U.S. dollar from the same quarter last year,
resulting in a $23 million increase in the translated value of our U.S. dollar
earnings.
    The Canadian dollar depreciated 1% on average relative to the U.S. dollar
from the prior quarter, resulting in a $1 million increase in the translated
value of our U.S. dollar earnings.
    The Canadian dollar depreciated 23% on average relative to the U.S.
dollar for the six months ended April 30, 2009 from the same period in 2008,
resulting in a $33 million increase in the translated value of our U.S. dollar
earnings.

    
    Review of quarterly financial information

                                    2009                                2008
    -------------------------------------------------------------------------
    $ millions, except
     per share amounts,
     for the three
     months ended       Apr. 30  Jan. 31  Oct. 31  Jul. 31  Apr. 30  Jan. 31
    -------------------------------------------------------------------------
    Revenue
      CIBC Retail
       Markets          $ 2,252  $ 2,416  $ 2,367  $ 2,377  $ 2,284  $ 2,410
      Wholesale
       Banking             (241)    (368)    (318)    (598)  (2,166)  (2,957)
      Corporate and
       Other                150      (26)     155      126        8       26
    -------------------------------------------------------------------------
    Total revenue         2,161    2,022    2,204    1,905      126     (521)
    Provision for
     credit losses          394      284      222      203      176      172
    Non-interest
     expenses             1,639    1,653    1,927    1,725    1,788    1,761
    -------------------------------------------------------------------------
    Income (loss)
     before taxes and
     non-controlling
     interests              128       85       55      (23)  (1,838)  (2,454)
    Income tax
     (benefit) expense      174      (67)    (384)    (101)    (731)  (1,002)
    Non-controlling
     interests                5        5        3        7        4        4
    -------------------------------------------------------------------------
    Net income (loss)   $   (51) $   147  $   436  $    71  $(1,111) $(1,456)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss)
     per share
      - basic           $ (0.24) $  0.29  $  1.07  $  0.11  $ (3.00) $ (4.39)
      - diluted(1)      $ (0.24) $  0.29  $  1.06  $  0.11  $ (3.00) $ (4.39)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                    2007
    -------------------------------------
    $ millions, except
     per share amounts,
     for the three
     months ended       Oct. 31  Jul. 31
    -------------------------------------
    Revenue
      CIBC Retail
       Markets          $ 2,855  $ 2,393
      Wholesale
       Banking                5      455
      Corporate and
       Other                 86      131
    -------------------------------------
    Total revenue         2,946    2,979
    Provision for
     credit losses          132      162
    Non-interest
     expenses             1,874    1,819
    -------------------------------------
    Income (loss)
     before taxes and
     non-controlling
     interests              940      998
    Income tax
     (benefit) expense       45      157
    Non-controlling
     interests               11        6
    -------------------------------------
    Net income (loss)   $   884  $   835
    -------------------------------------
    -------------------------------------
    Earnings (loss)
     per share
     - basic            $  2.55  $  2.33
     - diluted(1)       $  2.53  $  2.31
    -------------------------------------
    -------------------------------------
    (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.
    Revenue was higher in the fourth quarter of 2007 primarily due to the
gain recorded on the Visa restructuring. Wholesale Banking revenue has been
adversely affected since the third quarter of 2007 due to the MTM losses on
CDOs and RMBS, and more significantly in 2008 due to the charges on credit
protection purchased from financial guarantors and MTM losses related to our
exposure to the USRMM. 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 quarters of 2008 and 2007 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 portfolio. 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. There was an increase in general allowance in both
quarters of 2009.
    Performance-related compensation has been lower since the third quarter
of 2007. The net reversal of litigation accruals also led to lower expenses in
the third and fourth quarters of 2007. The fourth quarter of 2008 included
severance related expenses.
    The first three quarters of 2008 had an income tax benefit resulting from
the loss during the period. A $486 million income tax reduction attributable
to an increase in our expected tax benefit relating to Enron-related
litigation settlements was recorded in the fourth quarter of 2008. Income tax
recoveries related to the favourable resolution of various income tax audits
and reduced tax contingencies were included in the second and fourth quarters
of 2008 and the last two quarters of 2007. Tax-exempt income has generally
been increasing over the period, until the third quarter of 2008. Thereafter,
the tax-exempt income has been steadily decreasing. Larger tax-exempt
dividends were received in the fourth quarter of 2007. The last quarter of
2007 benefited from a lower tax rate on the gain recorded on the Visa
restructuring and the last two quarters of 2007 benefited from a lower tax
rate on the net reversal of litigation accruals. Income tax benefits on the
foreign exchange losses on repatriation activities were included in the first
quarter of 2009 and the second quarter of 2008. The second quarter of 2009 and
the fourth quarters of 2008 and 2007 included income tax expenses on
repatriation activities. The second quarter of 2009 included a write-off 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 54 of the 2008 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         For the six
                                            months ended        months ended
                            ----------------------------- -------------------
    $ millions, except          2009      2009      2008      2009      2008
     per share amounts       Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Net interest income     $  1,273  $  1,333  $  1,349  $  2,606  $  2,503
    Non-interest income          888       689    (1,223)    1,577    (2,898)
    ----------------------------------------------------- -------------------
    Total revenue per
     financial
     statements          A     2,161     2,022       126     4,183      (395)
    TEB adjustment       B        14        15        60        29       121
    ----------------------------------------------------- -------------------
    Total revenue
     (TEB)(1)            C  $  2,175  $  2,037  $    186  $  4,212  $   (274)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    Non-interest
     expenses per
     financial
     statements          D  $  1,639  $  1,653  $  1,788  $  3,292  $  3,549
    Less: amortization
     of other intangible
     assets                       12        11        10        23        20
    ----------------------------------------------------- -------------------
    Cash non-interest
     expenses(1)         E  $  1,627  $  1,642  $  1,778  $  3,269  $  3,529
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    Income (loss) before
     taxes and non-
     controlling
     interests per
     financial
     statements          F  $    128  $     85  $ (1,838) $    213  $ (4,292)
    TEB adjustment       B        14        15        60        29       121
    ----------------------------------------------------- -------------------
    Income (loss) before
     taxes and non-
     controlling
     interests (TEB)(1)  G  $    142  $    100  $ (1,778) $    242  $ (4,171)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    Net (loss) income
     applicable to
     common shares       K  $    (90) $    111  $ (1,141) $     21  $ (2,627)
    Add: after-tax effect
     of amortization of
     other intangible
     assets                        9         9         8        18        16
    ----------------------------------------------------- -------------------
    Cash net income
     (loss) applicable
     to common shares(1) L  $    (81) $    120  $ (1,133) $     39  $ (2,611)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    Basic weighted-
     average common
     shares (thousands)  M   381,410   380,911   380,754   381,156   359,512
    Diluted weighted-
     average common
     shares (thousands)  N   381,779   381,424   382,377   381,599   361,366
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    Cash efficiency
     ratio (TEB)(1)    E/C      74.9%     80.6%      n/m      77.6%      n/m
    Cash basic
     earnings (loss)
     per share(1)      L/M  $  (0.21) $   0.32  $  (2.98) $   0.10  $  (7.26)
    Cash diluted
     earnings (loss)
     per share(1)(2)   L/N  $  (0.21) $   0.31  $  (2.98) $   0.10  $  (7.26)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Non-GAAP measure.
    (2) In case of a loss, the effect of stock options potentially
        exercisable on diluted earnings (loss) per share will be anti-
        dilutive; therefore, basic and diluted earnings (loss) per share will
        be the same.
    n/m Not meaningful due to the net loss.


                             CIBC RETAIL MARKETS

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

    Results(1)
    ----------------------------------------------------- -------------------
                                           For the three         For the six
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Revenue
      Personal banking      $  1,399  $  1,457  $  1,409  $  2,856  $  2,824
      Business banking           312       330       328       642       680
      Wealth management          297       323       380       620       776
      FirstCaribbean             204       180       122       384       248
      Other                       40       126        45       166       166
    ----------------------------------------------------- -------------------
    Total revenue (a)          2,252     2,416     2,284     4,668     4,694
    Provision for credit
     losses                      403       327       209       730       398
    Non-interest expenses (b)  1,304     1,305     1,380     2,609     2,733
    ----------------------------------------------------- -------------------
    Income before taxes and
     non-controlling
     interests                   545       784       695     1,329     1,563
    Income tax expense           150       217       177       367       381
    Non-controlling
     interests                     5         5         2        10         6
    ----------------------------------------------------- -------------------

    Net income (c)          $    390  $    562  $    516  $    952  $  1,176
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    Efficiency ratio (b/a)     57.9%     54.0%     60.4%     55.9%     58.2%
    Amortization of other
     intangible assets (d)  $      9  $      8  $      8  $     17  $     16
    Cash efficiency ratio(2)
     ((b-d)/a)                 57.5%     53.7%     60.1%     55.5%     57.9%
    ROE(2)                     32.0%     45.5%     42.6%     38.4%     48.5%
    Charge for economic
     capital(2) (e)         $   (165) $   (168) $   (154) $   (333) $   (310)
    Economic profit(2)
     (c+e)                  $    225  $    394  $    362  $    619  $    866
    Full time equivalent
     employees                29,241    29,102    29,654    29,241    29,654
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.


    Financial overview

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

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

    We also moved the impact of securitization from CIBC Retail Markets to
Corporate and Other which impacted total revenue, provision for credit losses
and net income.
    Prior period information was restated to reflect these changes.
    Net income for the quarter was $390 million, a decrease of $126 million
or 24% from the same quarter last year. These results continue to reflect the
economic conditions which resulted in an increase in the provision for credit
losses and lower wealth management revenues. These declines were partially
offset by solid volume growth across most products and expense management
activities.
    Net income was down $172 million or 31% from the prior quarter on lower
revenue and an increase in the provision for credit losses.
    Net income for the six months ended April 30, 2009 was $952 million, a
decrease of $224 million or 19% from the same period in 2008. An increase in
the provision for credit losses was partially offset by lower expenses.

    Revenue

    Revenue was down $32 million or 1% from the same quarter last year.
    Personal banking revenue was down $10 million, with narrower spreads
partially offset by volume growth in all products, particularly in deposits
and secured lending. Overall spreads were compressed due to a lower interest
rate environment impacting spreads on deposits and a decrease in prepayment
penalty fees, partially offset by wider prime/BA spreads.
    Business banking revenue was down $16 million, mainly due to lower
spreads as a result of a lower interest rate environment.
    Wealth management revenue was down $83 million, primarily due to lower
fee income as a result of a market-driven decline in asset values.
    FirstCaribbean revenue was up $82 million, primarily due to the impact of
a weaker Canadian dollar, gains on redemption of subordinated debt and lower
securities losses.
    Revenue was down $164 million or 7% from the prior quarter.
    Personal banking revenue was down $58 million, primarily due to three
fewer days in the quarter and narrower spreads mostly from a decrease in
prepayment penalty fees, partially offset by solid volume growth in deposits
and secured lending.
    Business banking revenue was down $18 million, primarily due to three
fewer days in the quarter and a decrease in deposit volumes.
    Wealth management revenue was down $26 million, mainly due to narrower
spreads and lower fee income as a result of a decline in asset values.
    FirstCaribbean revenue was up $24 million, primarily due to gains on
redemption of subordinated debt and lower securities losses.
    Other revenue was down $86 million, mainly due to lower treasury revenue
allocations.
    Revenue for the six months ended April 30, 2009 was down $26 million or
1% from the same period in 2008.
    Personal banking revenue was up $32 million, primarily due to volume
growth in most products, partially offset by narrower spreads mostly from
lower prepayment penalty fees, and the interest rate environment impacting
deposits.
    Business banking revenue was down $38 million, mainly due to lower
spreads, partially offset by volume growth.
    Wealth management revenue was down $156 million, mainly due to lower fee
income as a result of a decline in asset values due to market conditions.
    FirstCaribbean revenue was up $136 million, primarily due to a weaker
Canadian dollar, lower securities losses, and gains on redemption of
subordinated debt.

    Provision for credit losses

    Provision for credit losses was up $194 million or 93% from the same
quarter last year and included a net increase to the allowance for loan losses
of $90 million. The increase was largely attributed to the cards and personal
lending portfolios driven by higher delinquencies and bankruptcies related to
the deteriorating economic environment.
    Provision for credit losses was up $76 million or 23% from the prior
period mainly due to a net increase to the allowance for loan losses of $45
million.
    Provision for credit losses for the six months ended April 30, 2009 was
up $332 million or 83% from the same period in 2008 and included a net
increase to the allowance for loan losses of $154 million. The increase was
largely attributed to cards and personal lending portfolios driven by higher
delinquencies and bankruptcies related to the deteriorating economic
environment.

    Non-interest expenses

    Non-interest expenses were down $76 million or 6% from the same quarter
last year. Non-interest expenses for the six months ended April 30, 2009 were
down $124 million or 5% from the same period in 2008. The decreases were
primarily due to lower performance-related compensation and expense management
activities, offset in part by a weaker Canadian dollar impacting
FirstCaribbean.

    Income taxes

    Income taxes were down $27 million or 15% from the same quarter last year
and were down $14 million or 4% for the six months ended April 30, 2009 from
the same period in 2008, mainly due to a decrease in income, largely offset by
a higher effective tax rate.
    Income taxes were down $67 million or 31% from the prior quarter,
primarily due to a decrease in income.

    
                              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. In the current quarter, we have changed the name of
our wholesale banking business from CIBC World Markets to Wholesale Banking.

    Results(1)
    ----------------------------------------------------- -------------------
                                           For the three         For the six
                                            months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------

    Revenue (TEB)(2)
      Capital markets       $    318  $    307  $    194  $    625  $    418
      Corporate and
       investment banking        200       156       109       356       290
      Other                     (745)     (816)   (2,409)   (1,561)   (5,710)
    ----------------------------------------------------- -------------------
    Total revenue (TEB)(2)      (227)     (353)   (2,106)     (580)   (5,002)
    TEB adjustment                14        15        60        29       121
    ----------------------------------------------------- -------------------
    Total revenue               (241)     (368)   (2,166)     (609)   (5,123)
    Provision for credit
     losses                       46        19         2        65        19
    Non-interest expenses        247       267       358       514       709
    ----------------------------------------------------- -------------------
    Loss before taxes and
     non-controlling
     interests                  (534)     (654)   (2,526)   (1,188)   (5,851)
    Income tax benefit          (161)     (241)     (891)     (402)   (2,057)
    Non-controlling
     interests                     -         -         2         -         2
    ----------------------------------------------------- -------------------
    Net loss (income) (a)   $   (373) $   (413) $ (1,637) $   (786) $ (3,796)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

    ----------------------------------------------------- -------------------
    ROE(2)                    (59.0)%   (63.4)%  (293.9)%   (60.4)%  (342.4)%
    Charge for economic
     capital(2) (b)         $    (92) $    (94) $    (73) $   (186) $   (145)
    Economic loss(2) (a+b)  $   (465) $   (507) $ (1,710) $   (972) $ (3,941)
    Full time equivalent
     employees                 1,084     1,092     1,255     1,084     1,255
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    (2) For additional information, see the "Non-GAAP measures" section.


    Financial overview

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

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

    Prior period information was restated to reflect these changes.

    Net loss for the current quarter was $373 million, compared to a net loss
of $1,637 million in the same quarter last year due to lower structured credit
losses.
    Net loss was down $40 million from the prior quarter, mainly due to lower
losses in structured credit and other run-off businesses and higher income in
corporate and investment banking, partially offset by MTM losses on corporate
loan hedges and valuation charges related to certain trading and AFS positions
in our exited and other run-off businesses. In the prior quarter, we recorded
MTM losses relating to interest-rate hedges for the leveraged lease portfolio
that did not qualify for hedge accounting.
    Net loss for the six months ended April 30, 2009 was down $3,010 million
from the same period in 2008, mainly due to lower structured credit losses,
partially offset by MTM losses on corporate loan hedges.

    Revenue

    Revenue was up $1,925 million from the same quarter last year.
    Capital markets revenue was up $124 million, primarily due to higher
fixed income and equity trading revenue and higher revenue from equity
issuances.
    Corporate and investment banking revenue was up $91 million, mainly due
to higher revenue from U.S. real estate finance and corporate credit products.
    Other revenue was up $1,664 million, primarily due to lower structured
credit losses. The increase was partially offset by MTM losses on corporate
loan hedges.

    Revenue was up $127 million from the prior quarter.
    Capital markets revenue was up $11 million, mainly due to higher fixed
income trading and equity new issue revenue, partially offset by lower foreign
exchange and equity trading revenue.
    Corporate and investment banking revenue was up $44 million, primarily
due to higher revenue from U.S. real estate finance and higher revenue from
our core merchant banking portfolio.
    Other revenue was up $71 million as lower losses from structured credit
were partially offset by MTM losses on corporate loan hedges and the valuation
charges noted above. In the prior quarter, we also recorded MTM losses
relating to interest-rate hedges for the leveraged lease portfolio that did
not qualify for hedge accounting.

    Revenue for the six months ended April 30, 2009 was up $4,514 million
from the same period in 2008.
    Capital markets revenue was up $207 million, primarily due to higher
equity, fixed income, and foreign exchange trading revenue.
    Corporate and investment banking revenue was up $66 million, primarily
due to higher revenue from U.S. real estate finance and corporate credit
products, partially offset by lower advisory revenue.
    Other revenue was up $4,149 million, primarily due to lower structured
credit losses, partially offset by higher MTM losses on corporate loan hedges
and higher write-downs in the legacy merchant banking portfolio.

    Provision for credit losses

    Provision for credit losses was $44 million higher than the same quarter
last year, mainly due to an increase in the general provision for credit
losses, lower recoveries and higher losses in the U.S.
    Provision for credit losses was $27 million higher than the prior
quarter, mainly due to higher losses and lower recoveries.
    Provision for credit losses for the six months ended April 30, 2009 was
up $46 million from the same period in 2008, mainly due to an increase in the
general provision for credit losses and higher losses in the U.S.

    Non-interest expenses

    Non-interest expenses were down $111 million or 31% from the same quarter
last year, primarily due to lower litigation related and severance expenses.
    Non-interest expenses were down $20 million or 7% from the prior quarter,
primarily due to lower employee-related expenses.
    Non-interest expenses for the six months ended April 30, 2009 were down
$195 million or 28% from the same period last year, primarily due to lower
litigation-related and severance expenses and the impact of the sale of some
of our U.S. businesses.

    Income taxes

    Income tax recovery was $161 million and $402 million in the current
quarter and six months ended April 30, 2009 respectively, compared with a
recovery of $891 million in the same quarter last year and $2,057 million for
the six months ended April 30, 2008. The lower income tax recoveries were
mainly due to lower structured credit losses. There was also lower tax exempt
dividend income in the current periods.
    Income tax recovery was down $80 million from the prior quarter, mainly
due to the lower losses in the structured credit and other run-off businesses
and the write off of $21 million of future tax assets.

    Full time equivalent employees

    The full time equivalent employees were down 171 from the same quarter
last year primarily due to continuing 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, as
well as CIBC Mellon joint ventures, and other income statement and balance
sheet items, not directly attributable to the business lines. The impact of
securitization is retained within Corporate and Other. The remaining revenue
and expenses are generally allocated to the business lines.

    
    Results(1)
    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Total revenue           $    150  $    (26) $      8  $    124  $     34
    Reversal of credit losses    (55)      (62)      (35)     (117)      (69)
    Non-interest expenses         88        81        50       169       107
    ----------------------------------------------------- -------------------
    (Loss) income before
     taxes and
     non-controlling
     interests                   117       (45)       (7)       72        (4)
    Income tax expense
     (benefit)                   185       (43)      (17)      142       (57)
    ----------------------------------------------------- -------------------
    Net (loss) income       $    (68) $     (2) $     10  $    (70) $     53
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------

                            ----------------------------- -------------------
    Full time equivalent
     employees                11,980    12,126    13,215    11,980    13,215
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) For additional segmented information, see the notes to the interim
        consolidated financial statements.
    

    Financial overview

    In the first quarter of 2009, we moved the impact of securitization from
CIBC Retail Markets to Corporate and Other which impacted total revenue,
reversal of credit losses and net income. Prior period information was
restated to reflect this change.

    Net loss in the current quarter was $68 million compared to net income of
$10 million in the same quarter last year, primarily due to lower treasury
revenue and higher unallocated corporate support costs, partially offset by
the net gain on repatriation activities.
    Net loss was up $66 million from the prior quarter primarily due to
adjusting future tax assets at future years' lower statutory rates and lower
treasury revenue, partially offset by lower losses on securitization
activities.
    Net loss was $70 million for the six months ended April 30, 2009,
compared to a net income of $53 million for the same period last year,
primarily due to adjusting future tax assets at future years' lower statutory
rates, lower treasury revenue, higher unallocated corporate support costs and
higher losses on securitization activities. These losses were partially offset
by the net gain on repatriation activities.

    Revenue

    Revenue was up $142 million from the same quarter last year, primarily
due to a $159 million foreign exchange gain, compared to a $65 million foreign
exchange loss in the last year quarter, on repatriation activities, offset by
lower treasury revenue, and higher losses related to securitization
activities.
    Revenue was up $176 million from the prior quarter primarily due to the
foreign exchange gain on repatriation activities noted above, compared to a
$48 million foreign exchange loss in the prior quarter, and lower losses
related to securitization activities, offset by lower treasury revenue.
    Revenue for the six months ended April 30, 2009 was up $90 million from
the same period in 2008 primarily due to a net $111 million foreign exchange
gain on repatriation activities, compared to a $65 million foreign exchange
loss in the same period last year, partially offset by lower treasury revenue
and higher losses related to securitization activities. The same period last
year was impacted by losses from the hedging of stock appreciation rights
(SARs).

    Reversal of credit losses

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

    Non-interest expenses

    Non-interest expenses were up $38 million or 76% from the same quarter
last year, primarily due to severances and higher unallocated corporate
support costs.
    Non-interest expenses were up $7 million or 9% from the prior quarter,
primarily due to severances, partially offset by lower unallocated corporate
support costs.
    Non-interest expenses for the six months ended April 30, 2009 were up $62
million or 58% from the same period in 2008, primarily due to severances and
higher unallocated corporate support costs. The same period last year included
higher recoveries related to SARs.

    Income tax

    Income tax expense was $185 million, compared to an income tax benefit of
$17 million from the same quarter last year primarily due to the $156 million
tax expense related to the foreign exchange gain on repatriation activities
noted above and the write off of $36 million of future tax assets due to lower
future statutory tax rates. The prior year quarter included a $44 million tax
benefit related to foreign exchange loss on repatriation activities.
    Income tax expense was $185 million and $142 million for the current
quarter and for the six months ended April 30, 2009 respectively, compared to
an income tax benefit of $43 million and $57 million in the prior quarter and
six months ended April 30, 2008 respectively. The change was primarily due to
the tax impacts of the items noted above and to the recognition of a tax
benefit of $52 million in the prior quarter related to a foreign exchange loss
on repatriation activities.

    Full time equivalent employees

    The full time equivalent employees were down 1,235 from the same quarter
last year primarily due to continuing cost reduction initiatives and reduced
infrastructure support resulting from the sale of some of our U.S. businesses.
    The full time equivalent employees were down 146 from the prior quarter
primarily due to continuing cost reduction initiatives.

    
                             FINANCIAL CONDITION

    Review of consolidated balance sheet
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Assets

    Cash and deposits with banks                     $    8,301  $     8,959
    Securities                                           86,222       79,171
    Securities borrowed or purchased
     under resale agreements                             32,674       35,596
    Loans                                               153,512      171,475
    Derivative instruments                               34,048       28,644
    Other assets                                         32,606       30,085
    -------------------------------------------------------------------------
    Total assets                                     $  347,363   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities and shareholders' equity

    Deposits                                         $  221,912   $  232,952
    Derivative instruments                               38,094       32,742
    Obligations related to securities lent or sold
     short or under repurchase agreements                42,057       44,947
    Other liabilities                                    24,096       22,015
    Subordinated indebtedness                             6,612        6,658
    Preferred share liabilities                             600          600
    Non-controlling interests                               175          185
    Shareholders' equity                                 13,817       13,831
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity       $  347,363   $  353,930
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Assets

    Total assets decreased for the six-month period by $6.6 billion or 2%
from October 31, 2008.
    Securities increased by $7.1 billion or 9% and comprise AFS, trading,
fair value option (FVO) and HTM securities. During the six-month period,
matured trading securities were reinvested in debt and government securities
that are classified as AFS. FVO securities increased due to the continued
securitization of residential mortgages.
    Securities borrowed or purchased under resale agreements decreased
primarily driven by business decisions to reduce certain underlying exposures.
    Loans decreased by approximately $18.0 billion or 10% mainly due to
mortgage securitizations noted above and repayments, partly offset by volume
growth in most retail products.
    Derivative instruments increased mainly due to market valuations on
interest rate derivatives driven by changes in the interest rate environment,
partially offset by reduction in market values of foreign exchange
derivatives.
    Other assets increased mainly due to an increase in derivatives
collateral receivable and customers' liability under acceptances.

    Liabilities

    Total liabilities decreased for the six-month period by $6.6 billion or
2% from October 31, 2008.
    Deposits decreased by $11.0 billion or 5% largely driven by a reduction
in business and government and bank deposits driven by our funding
requirements, partially offset by volume growth in personal deposits.
    Derivative instruments liabilities increased due to the same factors
discussed under derivative instruments assets above.
    Obligations related to securities lent or sold short or under repurchase
agreements decreased mainly on funding requirements.
    Other liabilities increased mainly due to an increase in derivatives
collateral payable and bankers' acceptances.

    Shareholders' equity

    Shareholders' equity includes current year earnings and the proceeds from
issuance of preferred shares Series 35 and Series 37, offset by dividend
payments.

    Capital resources

    We actively manage our capital to maintain a strong and efficient capital
base, to maximize risk-adjusted returns to shareholders, and to meet
regulatory requirements. For additional details, see pages 63 to 66 of the
2008 Annual Accountability Report.

    Significant capital management activities

    On March 13, 2009 CIBC Capital Trust, a trust wholly owned by CIBC,
issued $1.3 billion of 9.976% CIBC Tier 1 Notes - Series A due June 30, 2108
and $300 million of 10.25% CIBC Tier 1 Notes - Series B due June 30, 2108
(together, the Notes). The Notes qualify as part of Tier 1 regulatory capital.
    During the quarter, we completed the offering of 13 million non-
cumulative Rate Reset Class A Preferred Shares, Series 35 for net proceeds of
$319 million and the offering of 8 million non-cumulative Rate Reset Class A
Preferred Shares, Series 37 for net proceeds of $196 million. We also
announced our intention to redeem our $750 million 4.25% Debentures
(subordinated indebtedness) due June 1, 2014, for their outstanding principal
amount, plus unpaid interest accrued to the redemption date, in accordance
with their terms.
    The following table summarizes our significant capital management
activities:

    
    -------------------------------------------------------------------------
                                                        For the      For the
                                                          three          six
                                                         months       months
                                                          ended        ended
                                                        Apr. 30,     Apr. 30,
    $ millions                                             2009         2009
    -------------------------------------------------------------------------
    Issue of common shares                           $       16   $       28
    Issue of preferred shares                               525          525
    Dividends
      Preferred shares - classified as equity               (39)         (75)
      Preferred shares - classified as liabilities           (8)         (16)
    Common shares                                          (331)        (663)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For additional details, see Notes 6 and 7 to the interim consolidated
financial statements.

    Regulatory capital

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

    The following table presents the changes to the components of our
regulatory capital:

    
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                   $   13,732   $   12,365
    Tier 2 capital                                        5,299        5,764
    Total regulatory capital                             19,031       18,129
    Risk-weighted assets                                119,561      117,946
    Tier 1 capital ratio                                  11.5%        10.5%
    Total capital ratio                                   15.9%        15.4%
    Assets-to-capital multiple                            16.6x        17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Tier 1 ratio was up 1% and the total capital ratio was up 0.5% from
year-end mainly due to the Notes issued by CIBC Capital Trust and the issuance
of preferred shares noted above. The ratios also benefited from lower
risk-weighted assets on residential mortgages resulting from higher insured
mortgages. The ratios were negatively impacted by the structured credit
charges in the first half of the year and higher credit risk-weighted assets
in the trading book resulting primarily from financial guarantor downgrades.
    In addition, the Tier 1 ratio was also adversely impacted by the expiry
of OSFI's transition rules related to the grandfathering of substantial
investments pre-December 31, 2006, which were deducted entirely from Tier 2
capital at year- end. Also, as required by OSFI, the planned redemption of our
$750 million 4.25% Debentures on June 1, 2009 was reflected in the total
capital ratio as at April 30, 2009.

    Off-balance sheet arrangements

    We enter into several types of off-balance sheet arrangements in the
normal course of our business. These include securitizations, derivatives,
credit-related arrangements, and guarantees. Details on our off-balance sheet
arrangements are provided on pages 67 to 69 of the 2008 Annual Accountability
Report.
    The following table summarizes our exposures to unconsolidated entities
involved in the securitization of third-party assets (both CIBC
sponsored/structured and third-party structured). Investments, generally
securities, are at fair value and loans, none of which are impaired, are
carried at par. Undrawn liquidity and credit facilities and written credit
derivatives are at notional amounts.

    
    -------------------------------------------------------------------------
                                                                        2009
    $ millions, as at                                                Apr. 30
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                        Investment    liquidity       credit
                                               and   and credit  derivatives
                                           loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored
     conduits                           $       78   $  5,707(3)  $        -
    CIBC structured CDO vehicles               725         61            722
    Third-party structured vehicles          6,926        857         15,497
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                                        2008
    $ millions, as at                                                Oct. 31
    -------------------------------------------------------------------------
                                                        Undrawn      Written
                                        Investment    liquidity       credit
                                               and   and credit  derivatives
                                           loans(1)  facilities (notional)(2)
    -------------------------------------------------------------------------
    CIBC-sponsored
     conduits                           $      805   $  7,984(3)  $        -
    CIBC structured CDO vehicles               772         69            766
    Third-party structured vehicles          8,167      1,091         17,174
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Excludes securities issued by entities established by Canada Mortgage
        and Housing Corporation (CMHC), Fannie Mae, Freddie Mac, Ginnie Mae,
        Federal Home Loan Banks, Federal Farm Credit Bank, and Sallie Mae.
        $6.0 billion (Oct. 31, 2008: $6.7 billion) of the exposure related to
        CIBC structured CDO and third-party structured vehicles was hedged by
        credit derivatives.
    (2) Comprises credit derivatives (written options and total return swaps)
        under which we assume exposures. The negative fair value recorded on
        the consolidated balance sheet was $5.8 billion (Oct. 31, 2008:
        $5.6 billion). Notional amounts of $14.5 billion (Oct. 31, 2008:
        $16.0 billion) were hedged with credit derivatives protection from
        third parties, the fair value of these hedges net of CVA was
        $1.1 billion (Oct. 31, 2008: $1.2 billion). Accumulated fair value
        losses amount to $1.4 billion (Oct. 31, 2008: $1.3 billion) on
        unhedged written credit derivatives.
    (3) Net of $78 million (Oct. 31, 2008: $805 million) of investment and
        loans in CIBC sponsored conduits.
    

    During the quarter, MACRO Trust, a CIBC-sponsored conduit, acquired auto
lease receivables from one of our multi-seller conduits. During the first and
second quarters, we acquired all of the commercial paper issued by MACRO
Trust. The consolidation of the conduit resulted in $508 million of dealer
floorplan receivables, $481 million of auto leases, and $16 million of medium
term notes backed by Canadian residential mortgages being recognized in the
consolidated balance sheet as at April 30, 2009. The dealer floorplan
receivables and retail auto receivables were originated by the finance arm of
a U.S. auto manufacturer and have an estimated weighted average life of less
than a year. The commitment period for the dealer floorplan receivables
expires on June 1, 2009.
    Also during the quarter, CIBC Capital Trust, a trust wholly owned by
CIBC, issued $1.6 billion of CIBC Tier 1 Notes.

    For additional details, see Notes 5 and 7 to the interim consolidated
financial statements.

    
                             MANAGEMENT OF RISK
    

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

    Risk overview

    We manage risk and related balance sheet resources within tolerance
levels established by our management committees and approved by the Board of
Directors and its committees. Key risk management policies are approved or
renewed by the applicable Board and management committees annually. Further
details on the Board and management committees, as applicable to the
management of risk, are provided in the "Governance" section included within
the 2008 Annual Accountability Report.

    Several groups within Risk Management, independent of the originating
businesses, contribute to our management of risk. Following a realignment of
risk management during the first quarter, there are four groups which are as
follows:

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

    -   Product Risk Management, Card Products, Mortgages & Retail Lending -
        oversees the management of credit and fraud risk in the credit card,
        residential mortgages and retail lending portfolios, including the
        optimization of lending profitability.

    -   Wholesale Credit & Investment Risk Management - responsible for the
        credit quality of CIBC's risk-rated credits through the global
        management of adjudication of small business, commercial and
        wholesale credit risks, as well as management of the special loans
        and investments portfolios.

    -   Risk Services - responsible for a range of activities, including:
        strategic risk analytics; credit portfolio management; Basel II
        reporting; economic capital; credit risk analytics; risk rating
        methodology; corporate and operational risk management; and vetting
        and validating of models and parameters.
    

    Credit risk

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

    Process and control

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

    Credit risk limits

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

    Credit risk mitigation

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

    Exposure to credit risk

    Our gross credit exposure measured as exposure at default (EAD) for on-
and off-balance sheet financial instruments was $474.6 billion as at April 30,
2009 (October 31, 2008: $458.7 billion). An increase in drawn exposure in the
sovereign category, largely exposures to Canadian and U.S. governments and
their agencies, accounted for the majority of the increase. This increase was
partially offset by a decrease in drawn exposures in real estate secured
personal lending due to exposures being securitized into mortgage
securitization programs over the period.

    
    Gross exposure at default, before credit risk mitigation
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Business and government portfolios-AIRB
     approach(1)
    Drawn                                            $  117,542   $   83,686
    Undrawn commitments                                  21,466       21,309
    Repo-style transactions                              82,776       82,975
    Other off-balance sheet                              39,408       41,163
    OTC derivatives                                      17,982       18,763
    -------------------------------------------------------------------------
                                                     $  279,174   $  247,896
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retail Portfolios-AIRB approach(1)
    Drawn                                            $  114,495   $  128,648
    Undrawn commitments                                  45,328       44,003
    Other off-balance sheet                                 302          105
    -------------------------------------------------------------------------
                                                     $  160,125   $  172,756
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Standardized portfolios                          $   14,582   $   14,714
    Securitization exposures                             20,740       23,356
    -------------------------------------------------------------------------
                                                     $  474,621   $  458,722
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Advanced internal ratings based (AIRB) approach.
    

    Included in the business and government portfolios-AIRB approach is EAD
of $2.1 billion in the probability of default band considered watch list as at
April 30, 2009 (October 31, 2008: $1.7 billion).
    The increase in watch list exposures was largely driven by increases in
the financial services sector. 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 2008
consolidated financial statements.
    We establish a credit valuation adjustment for expected future credit
losses from each of our derivative counterparties. As at April 30, 2009, the
credit valuation adjustment for all derivative counterparties was $5.3 billion
(October 31, 2008: $4.7 billion).

    
    Rating profile of derivative MTM receivables(1)
    -------------------------------------------------------------------------
                                                  2009              2008
    $ billions, as at                          Apr. 30           Oct. 31
    -------------------------------------------------------------------------
    Standard & Poor's rating equivalent
    AAA to BBB-                   $     7.3      67.3%  $     8.3       80.9%
    BB+ to B-                           2.6       23.2        1.2       11.5
    CCC+ to CCC-                        0.9        8.2        0.7        6.6
    Below CCC-                          0.1        1.1         -         0.2
    Unrated                               -        0.2        0.1        0.8
    -------------------------------------------------------------------------
    Total                         $    10.9     100.0%  $    10.3     100.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) MTM value of the derivative contracts after credit valuation
        adjustments and derivative master netting agreements but before any
        collateral.


    Impaired loans and allowance and provision for credit losses
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Gross impaired loans

    Consumer                                         $      721   $      584
    Business and government(1)                              542          399
    -------------------------------------------------------------------------
    Total gross impaired loans                       $    1,263   $      983
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Allowance for credit losses

    Consumer                                         $    1,021   $      888
    Business and government(1)                              672          558
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,693   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
    Specific allowance for loans                     $      780   $      631
    General allowance for loans(2)                          913          815
    -------------------------------------------------------------------------
    Total allowance for credit losses                $    1,693   $    1,446
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Includes scored small business portfolios which are managed on a pool
        basis under Basel II.
    (2) Excludes general allowance for undrawn credit facilities of
        $75 million (October 31, 2008: $77 million).
    

    Gross impaired loans were up $280 million or 28% from October 31, 2008.
Consumer gross impaired loans were up $137 million or 23%, largely attributed
to increased new classifications in residential mortgages and personal lending
in Canada. Business and government loans increased by $143 million or 36%,
with the business services sector accounting for $73 million of the increase.
Gross impaired real estate loans increased $28 million, attributable to two
new impaired accounts in the U.S.
    Allowance for credit losses was up $247 million or 17% from October 31,
2008. Specific allowance was up $149 million or 24%, primarily due to credit
cards, personal lending and business services. The general allowance was up
$98 million or 12% due to large corporate lending and credit cards.
    For details on the provision for credit losses, see the "Financial
performance review" section.

    Market risk

    Trading activities

    The following table shows Value-at-Risk (VaR) by risk type for CIBC's
trading activities.
    The VaR for the three months ended April 30, 2009 disclosed in the table
and backtesting chart below exclude our exposures in our run-off businesses as
described on pages 9 to 16 of the MD&A. Due to the volatile and illiquid
markets, the quantification of risk for these positions is subject to a high
degree of uncertainty. These positions are being managed down independent of
our trading businesses.
    Total average risk was down 19% from the last quarter, primarily due to
proactive reduction of our market risk exposure across trading books.
    Actual realized market loss experience may differ from that implied by
the VaR measure for a variety of reasons. Fluctuations in market rates and
prices may differ from those in the past that are used to compute the VaR
measure. Additionally, the VaR measure does not account for any losses that
may occur beyond the 99% confidence level.

    
    VaR by risk type - trading portfolio
    -------------------------------------------------------------------------
                                         As at or for the three months ended
                                  -------------------------------------------
                                                               Apr. 30, 2009
                                  -------------------------------------------
    $ millions                         High        Low      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     5.6  $     1.8  $     2.8  $     3.3
    Credit spread risk                  1.8        0.9        1.2        1.3
    Equity Risk                         6.1        1.7        1.8        3.3
    Foreign exchange risk               1.1        0.2        0.4        0.6
    Commodity risk                      2.7        0.5        0.6        0.8
    Debt specific risk                  6.1        2.2        5.1        3.9
    Diversification effect(1)           n/m        n/m       (5.4)      (6.6)
                                                        ---------------------
    Total risk                    $     8.2  $     5.7  $     6.5  $     6.6
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                         As at or for the three months ended
                                  -------------------------------------------
                                         Jan. 31, 2009         Apr. 30, 2008
                                  -------------------------------------------
    $ millions                        As at    Average      As at    Average
    -------------------------------------------------------------------------
    Interest rate risk            $     4.5  $     4.8  $     7.5  $     7.6
    Credit spread risk                  1.6        2.1        3.6        5.0
    Equity Risk                         4.0        4.8        5.0        5.3
    Foreign exchange risk               0.5        1.3        0.5        0.6
    Commodity risk                      0.8        0.6        0.6        0.8
    Debt specific risk                  2.4        2.3        7.8        8.0
    Diversification effect(1)          (7.1)      (7.8)     (13.0)     (13.3)
                                  -------------------------------------------
    Total risk                    $     6.7   $    8.1  $    12.0  $    14.0
    -------------------------------------------------------------------------


    ---------------------------------------------------
                                           For the six
                                          months ended
                                  ---------------------
                                    Apr. 30,   Apr. 30,
                                       2009       2008
                                  ---------------------
    $ millions                      Average    Average
                                  ---------------------
    Interest rate risk            $     4.0  $     7.5
    Credit spread risk                  1.7        8.9
    Equity Risk                         4.1        5.2
    Foreign exchange risk               0.9        0.7
    Commodity risk                      0.7        0.8
    Debt specific risk                  3.1        9.2
    Diversification effect(1)          (7.1)     (16.0)
                                  ---------------------
    Total risk                    $     7.4  $    16.3
    ---------------------------------------------------
    (1) Aggregate VaR is less than the sum of the VaR of the different market
        risk types due to risk offsets resulting from portfolio
        diversification effect.
    n/m Not meaningful. It is not meaningful to compute a diversification
        effect because the high and low may occur on different days for
        different risk types.
    

    Trading Revenue

    The trading revenue (TEB)(1) and VaR backtesting graph below compares the
current quarter and the three previous quarters' actual daily trading revenue
(TEB)(1) with the previous day's VaR measures.
    Trading revenue (TEB)(1) was positive for 98% of the days in the quarter.
Trading losses did not exceed VaR during the quarter. Average daily trading
revenue (TEB)(1) was $4.1 million during the quarter.
    The trading revenue (TEB)(1) for the current quarter excludes a $34.6
million loss related to the consolidation of variable interest entities as
well as trading losses from the run-off businesses, including $558 million
related to reductions in fair value of structured credit assets and
counterparty credit-related valuation adjustments and $50 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 12 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)
    -------------------------------------------------------------------------
                                                2009                    2009
                                             Apr. 30                 Jan. 31
                               ----------------------------------------------
    $ millions, as at              $     US$   Other       $     US$   Other
    -------------------------------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $ 158   $ (17)  $   6   $ 115   $ (21)  $   8
    Change in present value of
     shareholders' equity        203     (47)      3     203     (48)     (3)

    100 basis points decrease
     in interest rates
    Net income                 $ (11)  $   2   $  (5)  $ (53)  $  20   $  (9)
    Change in present value
     of shareholders' equity    (160)     26       1    (226)     47       1
    -------------------------------------------------------------------------

    -------------------------------------------------
                                                2008
                                             Apr. 30
                               ----------------------
    $ millions, as at              $     US$   Other
    -------------------------------------------------
    100 basis points increase
     in interest rates
    Net income                 $  51   $  (6)  $  (1)
    Change in present value of
     shareholders' equity        171      16      33

    100 basis points decrease
     in interest rates
    Net income                 $ (62)  $   6   $   1
    Change in present value
     of shareholders' equity    (264)    (16)    (35)
    -------------------------------------------------
    

    Liquidity Risk

    Liquidity risk arises from our general funding activities and in the
course of managing our assets and liabilities. It is the risk of having
insufficient cash resources to meet current financial obligations without
raising funds at unfavourable rates or selling assets on a forced basis.
    Our liquidity risk management strategies seek to maintain sufficient
liquid financial resources to continually fund our balance sheet under both
normal and stressed market environments.
    We obtain funding through both wholesale and retail sources. Core
personal deposits remain a primary source of retail funding. As at April 30,
2009, Canadian dollar deposits from individuals totalled $95.5 billion
(October 31, 2008: $90.5 billion).
    Strategies for managing liquidity risk include maintaining diversified
sources of wholesale term funding within prudential limits across a range of
maturities, asset securitization initiatives, adequate capitalization, and
segregated pools of high-quality liquid assets that can be sold or pledged as
security to provide a ready source of cash. Collectively, these strategies
result in lower dependency on short-term wholesale funding.
    New facilities introduced in 2008 by various governments and global
central banks including Bank of Canada and the Federal Reserve Bank provide
liquidity to financial systems. These exceptional liquidity initiatives
include expansion of eligible types of collateral, provision of term liquidity
through Purchase and Resale Agreement facilities, and the pooling and sale to
CMHC of National Housing Act mortgage-backed securities which are composed of
insured residential mortgage pools. From time to time, we utilize these term
funding facilities, pledging a combination of private and public sector assets
against these obligations.

    Balance sheet liquid assets are summarized in the following table:

    
    -------------------------------------------------------------------------
                                                           2009         2008
    $ billions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Cash                                             $      1.0   $      1.1
    Deposits with banks                                     7.1          7.9
    Securities issued by Canadian
     Governments(1)                                        18.0          5.5
    Mortgage backed securities(1)                          27.1         20.7
    Other securities(2)                                    28.0         39.6
    Securities borrowed or purchased
     under resale agreements                               32.7         35.6
    -------------------------------------------------------------------------
                                                     $    113.9   $    110.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) These represent securities with residual term to contractual maturity
        of more than one year.
    (2) Comprises AFS securities and securities designated at fair value
        (FVO) with residual term to contractual maturity within one year and
        trading securities.
    

    In the course of our regular business activities, certain assets are
pledged as part of collateral management, including those necessary for
day-to-day clearing and settlement of payments and securities. Pledged assets,
including those for covered bonds and securities borrowed or financed through
repurchase agreements, as at April 30, 2009 totalled $45.2 billion (October
31, 2008: $44.6 billion).
    Access to wholesale funding sources and the cost of funds are dependent
on various factors including credit ratings. Due to a methodology change, DBRS
placed the preferred share and Tier 1 innovative instrument ratings of all
Canadian banks, including CIBC, under review with negative implications. In a
positive development, subsequent to April 30, 2009, Fitch has affirmed our
ratings and removed us from Rating Watch Negative; our ratings have been
assigned a Negative Rating Outlook. There were no material changes to any of
our other ratings.
    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 81 to 82 of
the 2008 Annual Accountability Report. There were no significant changes to
contractual obligations that were not in the ordinary course of our business.

    Operational risk

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

    Other risks

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

    
                       ACCOUNTING AND CONTROL MATTERS
    

    Critical accounting policies and estimates

    A summary of significant accounting policies is presented in Note 1 to
the 2008 consolidated financial statements.
    Certain accounting policies of CIBC are critical to understanding the
results of operations and financial condition of CIBC. These critical
accounting policies require management to make certain judgments and
estimates, some of which may relate to matters that are uncertain. For a
description of the judgments and estimates involved in the application of
critical accounting policies and assumptions made for pension and other
benefit plans, see pages 84 to 88 of the 2008 Annual Accountability Report.

    Valuation of financial instruments

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

    
    -------------------------------------------------------------------------
                                                      Valuation    Valuation
                                                    technique -  technique -
                                                         market   non-market
                                            Quoted   observable   observable
    As at April 30, 2009              market price       inputs       inputs
    -------------------------------------------------------------------------
    Assets
      Trading securities                       76%          17%           7%
      AFS securities                            86           10            4
      FVO financial instruments                  6           93            1
      Derivative instruments                     3           86           11
    -------------------------------------------------------------------------
    Liabilities
      Obligations related to
       securities sold short                   86%          14%           -%
      FVO financial instruments                  -           97            3
      Derivative instruments                     2           77           21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


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

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


    -------------------------------------------------------------------------
                                        Structured
                                            credit
                                           run-off        Total        Total
    $ millions, as at April 30, 2009      business         CIBC         CIBC
    -------------------------------------------------------------------------
    Assets
      Trading securities                $      524   $    1,007           7%
      AFS securities                            14        1,415            4
      FVO financial instruments                191          200            1
      Derivative instruments                 3,626        3,784           11
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
      FVO financial instruments                334          334            3
      Derivative instruments                 6,965        7,932           21
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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

    The following table summarizes our valuation adjustments:

    
    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30       Oct.31
    -------------------------------------------------------------------------
    Trading securities
      Market risk                                    $       14   $       43
    Derivatives
      Market risk                                           128          223
      Credit risk                                         5,297        4,672
      Administration costs                                   38           30
      Other                                                   3            6
    -------------------------------------------------------------------------
                                                     $    5,480   $    4,974
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Much of our structured credit run-off business requires the application
of valuation techniques using non-market observable 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-market observable), are primarily used for the
valuation of these positions.
    We also consider whether a credit valuation adjustment is required to
recognize the risk that any given counterparty to which we are exposed, may
not ultimately be able to fulfill its obligations.
    Our credit valuation adjustments are driven off market observed credit
spreads for each counterparty, or a proxy for a comparable credit quality
where no observed credit spreads exist, or where observed credit spreads are
considered not to be representative of an active market. These credit spreads
are applied in relation to the weighted average life of the underlying
instruments protected by these counterparties, while considering the
probabilities of default derived from these spreads. Furthermore our approach
takes into account the correlation between the performance of the underlying
assets and the counterparties.
    Where appropriate, on certain financial guarantors, we determined the CVA
based on estimated recoverable amounts.
    Our unhedged structured credit exposures (USRMM and non-USRMM) are
sensitive to changes in MTM, generally as derived from indicative broker
quotes or internal models as described above. A 10% adverse change in mark-to-
market of the underlyings would result in a loss of approximately $3 million
in our unhedged USRMM portfolio and $66 million in our non-USRMM portfolio,
excluding unhedged HTM positions and before the impact of the Cerberus
transaction.
    A 10% reduction in the mark-to-market of our on-balance sheet hedged
structured credit positions other than those classified as HTM and a 10%
increase in the fair value (before CVA) of all credit derivatives in our
hedged structured credit positions would result in a net loss of approximately
$252 million before the impact of the Cerberus protection. The fair value of
the Cerberus protection is expected to reasonably offset any changes in fair
value of protected USRMM positions.
    The impact of a 10% reduction in receivable net of CVA from financial
guarantors would result in a net loss of approximately $247 million.
    The total net loss recognized in the consolidated statement of operations
on the financial instruments, for which fair value was estimated using a
valuation technique requiring unobservable market parameters, for the quarter
ended April 30, 2009 was $338 million ($1,148 million for the six months ended
April 30, 2009).

    Risk factors related to fair value adjustments

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

    Reclassification of financial assets

    In October 2008, certain trading financial assets, for which there was no
active market and which management intends to hold to maturity or for the
foreseeable future, were reclassified as HTM and AFS respectively, with effect
from August 1, 2008 at fair value as at that date. In the first quarter, we
also reclassified $144 million of trading financial assets to AFS.
    If the above reclassifications had not been made, income during the
quarter, related to the securities reclassified to HTM and AFS securities
would have been lower by $77 million and higher by $37 million respectively
(lower by $399 million and higher by $11 million, on HTM and AFS securities
respectively, for the six months ended April 30, 2009).

    Accounting Developments

    Intangibles

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

    Transition to International Financial Reporting Standards (IFRS)

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

    Controls and procedures

    Disclosure controls and procedures

    CIBC's management, with the participation of the Chief Executive Officer
and Chief Financial Officer, has evaluated the effectiveness, as at April 30,
2009, of CIBC's disclosure controls and procedures (as defined in the rules of
the Securities and Exchange Commission (SEC) and the Canadian Securities
Administrators) and has concluded that such disclosure controls and procedures
are effective.

    Changes in internal control over financial reporting

    There have been no changes in CIBC's internal control over financial
reporting during the quarter ended April 30, 2009, 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
                                                           2009         2008
    Unaudited, $ millions, as at                        Apr. 30      Oct. 31
    ------------------------------------------------------------ ------------
    ASSETS
    Cash and non-interest-bearing deposits with
     banks                                           $    2,068   $    1,558

    ------------------------------------------------------------ ------------
    Interest-bearing deposits with banks                  6,233        7,401
    ------------------------------------------------------------ ------------
    Securities (Note 3)
    Trading                                              13,477       37,244
    Available-for-sale (AFS)                             36,446       13,302
    Designated at fair value (FVO)                       29,352       21,861
    Held-to-maturity (HTM)                                6,947        6,764
    ------------------------------------------------------------ ------------
                                                         86,222       79,171
    ------------------------------------------------------------ ------------
    Securities borrowed or purchased under
     resale agreements                                   32,674       35,596
    ------------------------------------------------------------ ------------
    Loans
    Residential mortgages                                75,926       90,695
    Personal                                             33,211       32,124
    Credit card                                          10,618       10,829
    Business and government                              35,450       39,273
    Allowance for credit losses (Note 4)                 (1,693)      (1,446)
    ------------------------------------------------------------ ------------
                                                        153,512      171,475
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               34,048       28,644
    Customers' liability under acceptances                9,450        8,848
    Land, buildings and equipment                         1,653        1,623
    Goodwill                                              2,099        2,100
    Software and other intangible assets                    695          812
    Other assets (Note 9)                                18,709       16,702
    ------------------------------------------------------------ ------------
                                                         66,654       58,729
    ------------------------------------------------------------ ------------
                                                     $  347,363   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Deposits
    Personal                                         $  103,788   $   99,477
    Business and government (Note 7)                    109,080      117,772
    Bank                                                  9,044       15,703
    ------------------------------------------------------------ ------------
                                                        221,912      232,952
    ------------------------------------------------------------ ------------
    Other
    Derivative instruments                               38,094       32,742
    Acceptances                                           9,529        8,848
    Obligations related to securities sold short          7,368        6,924
    Obligations related to securities lent or sold
     under repurchase agreements                         34,689       38,023
    Other liabilities                                    14,567       13,167
    ------------------------------------------------------------ ------------
                                                        104,247       99,704
    ------------------------------------------------------------ ------------
    Subordinated indebtedness                             6,612        6,658
    ------------------------------------------------------------ ------------
    Preferred share liabilities                             600          600
    ------------------------------------------------------------ ------------
    Non-controlling interests                               175          185
    ------------------------------------------------------------ ------------
    Shareholders' equity
    Preferred shares (Note 6)                             3,156        2,631
    Common shares (Note 6)                                6,090        6,062
    Treasury shares                                           1            1
    Contributed surplus                                     104           96
    Retained earnings                                     4,826        5,483
    Accumulated other comprehensive (loss) (AOCI)          (360)        (442)
    ------------------------------------------------------------ ------------
                                                         13,817       13,831
    ------------------------------------------------------------ ------------
                                                     $  347,363   $  353,930
    ------------------------------------------------------------ ------------
    ------------------------------------------------------------ ------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                 For the six
                              For the three months ended        months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Interest income
    Loans                   $  1,637  $  1,908  $  2,310  $  3,545  $  4,892
    Securities borrowed or
     purchased under resale
     agreements                   86       171       419       257       948
    Securities                   480       662       697     1,142     1,361
    Deposits with banks           18        54       192        72       422
    ----------------------------------------------------- -------------------
                               2,221     2,795     3,618     5,016     7,623
    ----------------------------------------------------- -------------------
    Interest expense
    Deposits                     694     1,040     1,747     1,734     3,955
    Other liabilities            194       350       452       544     1,015
    Subordinated indebtedness     52        64        62       116       134
    Preferred share liabilities    8         8         8        16        16
    ----------------------------------------------------- -------------------
                                 948     1,462     2,269     2,410     5,120
    ----------------------------------------------------- -------------------
    Net interest income        1,273     1,333     1,349     2,606     2,503
    ----------------------------------------------------- -------------------
    Non-interest income
    Underwriting and
     advisory fees               112       102        88       214       264
    Deposit and payment fees     188       193       191       381       386
    Credit fees                   72        60        56       132       116
    Card fees                     85        95        67       180       144
    Investment management and
     custodial fees               96       108       131       204       267
    Mutual fund fees             158       159       204       317       416
    Insurance fees, net of
     claims                       60        66        63       126       121
    Commissions on securities
     transactions                106       120       133       226       303
    Trading revenue (Note 8)    (440)     (720)   (2,401)   (1,160)   (5,528)
    AFS securities gains
     (losses), net                60       148        12       208       (37)
    FVO revenue                   53        44       (18)       97       (47)
    Income from securitized
     assets                      137       119       146       256       290
    Foreign exchange other
     than trading                243       117         3       360       135
    Other                        (42)       78       102        36       272
    ----------------------------------------------------- -------------------
                                 888       689    (1,223)    1,577    (2,898)
    ----------------------------------------------------- -------------------
    Total revenue              2,161     2,022       126     4,183      (395)
    ----------------------------------------------------- -------------------
    Provision for credit
     losses (Note 4)             394       284       176       678       348
    ----------------------------------------------------- -------------------
    Non-interest expenses
    Employee compensation and
     benefits (Note 10)          891       932       933     1,823     1,927
    Occupancy costs              155       134       142       289       287
    Computer, software and
     office equipment            251       245       265       496       527
    Communications                76        68        72       144       146
    Advertising and business
     development                  45        47        58        92       111
    Professional fees             42        40        61        82       112
    Business and capital taxes    30        30        35        60        60
    Other                        149       157       222       306       379
    ----------------------------------------------------- -------------------
                               1,639     1,653     1,788     3,292     3,549
    ----------------------------------------------------- -------------------
    Income (loss) before income
     taxes and non-controlling
     interests                   128        85    (1,838)      213    (4,292)
    Income tax expense (benefit) 174       (67)     (731)      107    (1,733)
    ----------------------------------------------------- -------------------
                                 (46)      152    (1,107)      106    (2,559)
    Non-controlling interests      5         5         4        10         8
    ----------------------------------------------------- -------------------
    Net (loss) income       $    (51) $    147  $ (1,111) $     96  $ (2,567)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (Loss) earnings per
     share (in dollars)
     (Note 11) - Basic      $  (0.24) $   0.29  $  (3.00) $   0.05  $  (7.31)
               - Diluted    $  (0.24) $   0.29  $  (3.00) $   0.05  $  (7.31)
    Dividends per common
     share (in dollars)     $   0.87  $   0.87  $   0.87  $   1.74  $   1.74
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Preferred shares
    Balance at beginning
     of period              $  2,631  $  2,631  $  2,331  $  2,631  $  2,331
    Issue of preferred
     shares                      525         -         -       525         -
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  3,156  $  2,631  $  2,331  $  3,156    $2,331
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Common shares
    Balance at beginning
     of period              $  6,074  $  6,062  $  6,049  $  6,062  $  3,133
    Issue of common shares        16        12         8        28     2,956
    Issuance costs, net of
     related income taxes          -         -        (1)        -       (33)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  6,090  $  6,074  $  6,056  $  6,090  $  6,056
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Treasury shares
    Balance at beginning
     of period              $      -  $      1  $     12  $      1  $      4
    Purchases                 (2,059)   (1,955)   (2,147)   (4,014)   (5,106)
    Sales                      2,060     1,954     2,143     4,014     5,110
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $      1  $      -  $      8  $      1  $      8
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Contributed surplus
    Balance at beginning
     of period              $    100  $     96  $     86  $     96  $     96
    Stock option expense           3         4         2         7         5
    Stock options exercised        -         -         -         -        (1)
    Net premium (discount)
     on treasury shares            1         1         3         2       (11)
    Other                          -        (1)       (1)       (1)        1
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $    104  $    100  $     90  $    104  $     90
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
    Balance at beginning
     of period, as
     previously reported    $  5,257  $  5,483  $  7,174  $  5,483  $  9,017
    Adjustment for change
     in accounting policies        -     (6)(1)        -     (6)(1)   (66)(2)
    ----------------------------------------------------- -------------------
    Balance at beginning of
     period, as restated       5,257     5,477     7,174     5,477     8,951
    Net income (loss)            (51)      147    (1,111)       96    (2,567)
    Dividends
      Preferred                  (39)      (36)      (30)      (75)      (60)
      Common                    (331)     (332)     (332)     (663)     (623)
    Other                        (10)        1        (2)       (9)       (2)
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $  4,826  $  5,257  $  5,699  $  4,826  $  5,699
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    AOCI, net of tax
    Balance at beginning
     of period              $   (390) $   (442) $   (849) $   (442) $ (1,092)
    Other comprehensive
     income (OCI)                 30        52        42        82       285
    ----------------------------------------------------- -------------------
    Balance at end of
     period                 $   (360) $   (390) $   (807) $   (360) $   (807)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Retained earnings
     and AOCI               $  4,466  $  4,867  $  4,892  $  4,466  $  4,892
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Shareholders' equity
     at end of period       $ 13,817  $ 13,672  $ 13,377  $ 13,817  $ 13,377
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Represents the impact of changing the measurement date for employee
        future benefits. See Note 10 for additional details.
    (2) Represents the impact of adopting the amended Canadian Institute of
        Chartered Accountants Emerging Issues Committee Abstract 46,
        "Leveraged Leases".

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


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

                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2009      2009      2008       2009     2008
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30    Apr. 30  Apr. 30
    ----------------------------------------------------- -------------------
    Net income (loss)       $    (51) $    147  $ (1,111) $     96  $ (2,567)
    ----------------------------------------------------- -------------------
    OCI, net of tax
      Foreign currency
       translation
       adjustments
      Net gains (losses) on
       investment in self-
       sustaining foreign
       operations                109        26         2       135       975
      Net (losses) gains on
       hedges of foreign
       currency translation
       adjustments              (128)        3        25      (125)     (721)
    ----------------------------------------------------- -------------------
                                 (19)       29        27        10       254
    ----------------------------------------------------- -------------------
      Net change in AFS
       securities
      Net unrealized gains
       (losses) on AFS
       securities                168        87        83       255        62
      Transfer of net (gains)
       losses to net income     (119)      (62)      (65)     (181)       41
    ----------------------------------------------------- -------------------
                                  49        25        18        74       103
    ----------------------------------------------------- -------------------
      Net change in cash flow
       hedges
      Net (losses) gains on
       derivatives designated
       as cash flow hedges        (1)       (4)       (5)       (5)      (41)
      Net losses (gains) on
       derivatives designated
       as cash flow hedges
       transferred to net
       income                      1         2         2         3       (31)
    ----------------------------------------------------- -------------------
                                   -        (2)       (3)       (2)      (72)
    ----------------------------------------------------- -------------------
    Total OCI                     30        52        42        82       285
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Comprehensive income
     (loss)                 $    (21) $    199  $ (1,069) $    178  $ (2,282)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------



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

                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Foreign currency
     translation adjustments
      Changes on investment
       in self-sustaining
       foreign operations   $     10  $     (7) $      -  $      3  $     (3)
      Changes on hedges of
       foreign currency
       translation
       adjustments               117       (15)      (41)      102       333
    Net change in AFS
     securities
      Net unrealized
       (gains) losses on
       AFS securities           (102)      (56)      (50)     (158)      (35)
      Transfer of net gains
       (losses) to net
       income                     55        30        41        85       (48)
    Net change in cash flow
     hedges
      Changes on derivatives
       designated as cash
       flow hedges                 1         3         1         4        21
      Changes on derivatives
       designated as cash
       flow hedges
       transferred to net
       income                     (1)       (1)       (2)       (2)       16
    ----------------------------------------------------- -------------------
                            $     80  $    (46) $    (51) $     34  $    284
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    The accompanying notes are an integral part of these consolidated
    financial statements.



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

                                                                     For the
                              For the three months ended    six months ended
                           ------------------------------ -------------------
                                2009      2009      2008      2009      2008
    Unaudited, $ millions    Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Cash flows provided by
     (used in) operating
     activities
    Net income (loss)       $    (51) $    147  $ (1,111) $     96  $ (2,567)
    Adjustments to
     reconcile net income
     (loss) to cash flows
     provided by (used in)
     operating activities:
      Provision for credit
       losses                    394       284       176       678       348
      Amortization(1)            100       103        61       203       123
      Stock-based
       compensation                -        (3)        2        (3)      (17)
      Future income taxes        (98)     (130)     (765)     (228)     (818)
      AFS securities
       (gains) losses, net       (60)     (148)      (12)     (208)       37
      (Gains) losses on
       disposal of land,
       buildings and
       equipment                   3        (1)       (1)        2        (1)
      Other non-cash
       items, net               (131)       (8)      (13)     (139)       53
      Changes in operating
       assets and
       liabilities
        Accrued interest
         receivable               95       134        32       229       136
        Accrued interest
         payable                 (40)      (92)      (93)     (132)     (117)
        Amounts receivable
         on derivative
         contracts               136    (5,196)      (79)   (5,060)      584
        Amounts payable on
         derivative contracts (1,062)    5,345       (82)    4,283    (1,036)
        Net change in
         trading securities    2,880  21,031(2)    3,469    23,911     3,883
        Net change in FVO
         securities           (7,554)       63    (1,321)   (7,491)   (5,294)
        Net change in
         other FVO
         financial
         instruments           3,263     4,083       (83)    7,346      (664)
        Current income taxes   1,499        87       (74)    1,586    (1,868)
        Other, net            (3,029)     (236)      218    (3,265)   (3,561)
    ----------------------------------------------------- -------------------
                              (3,655)   25,463       324    21,808   (10,779)
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by financing
     activities
    Deposits, net of
     withdrawals              (7,151)   (9,304)   (1,643)  (16,455)    7,201
    Obligations related to
     securities sold short       818    (1,054)      648      (236)   (2,428)
    Net obligations related
     to securities lent or
     sold under repurchase
     agreements               (3,452)      118    (2,825)   (3,334)   (2,414)
    Redemption/repurchase
     of subordinated
     indebtedness                (77)        -       (89)      (77)     (339)
    Issue of preferred
     shares                      525         -         -       525         -
    Issue of common shares,
     net                          16        12         7        28     2,923
    Net proceeds from
     treasury shares
     (purchased) sold              1        (1)       (4)        -         4
    Dividends                   (370)     (368)     (362)     (738)     (683)
    Other, net                   617        87       223       704      (222)
    ----------------------------------------------------- -------------------
                              (9,073)  (10,510)   (4,045)  (19,583)    4,042
    ----------------------------------------------------- -------------------
    Cash flows (used in)
     provided by investing
     activities
    Interest-bearing
     deposits with banks       2,076      (908)    4,570     1,168       340
    Loans, net of repayments   4,661    (1,787)   (4,694)    2,874    (6,741)
    Proceeds from
     securitizations           6,525     7,610       933    14,135     3,183
    Purchase of AFS/HTM
     securities              (22,849)  (28,725)   (3,286)  (51,574)   (5,210)
    Proceeds from sale of
     AFS/HTM securities        8,215     5,161     1,944    13,376     7,814
    Proceeds from maturity
     of AFS/HTM securities    14,376     1,155     1,288    15,531     6,229
    Net securities borrowed
     or purchased under
     resale agreements           579     2,343     2,455     2,922       850
    Purchase of land,
     buildings and
     equipment                  (108)      (35)      (21)     (143)      (64)
    ----------------------------------------------------- -------------------
                              13,475   (15,186)    3,189    (1,711)    6,401
    ----------------------------------------------------- -------------------
    Effect of exchange rate
     changes on cash and
     non-interest-bearing
     deposits with banks         (12)        8         1        (4)       21
    ----------------------------------------------------- -------------------
    Net increase (decrease)
     in cash and non-
     interest-bearing
     deposits with banks
     during period               735      (225)     (531)      510      (315)
    Cash and non-interest-
     bearing deposits with
     banks at beginning of
     period                    1,333     1,558     1,673     1,558     1,457
    ----------------------------------------------------- -------------------
    Cash and non-interest-
     bearing deposits with
     banks at end of period $  2,068  $  1,333  $  1,142  $  2,068  $  1,142
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Cash interest paid      $    988  $  1,554  $  2,362  $  2,542  $  5,237
    Cash income taxes
     (recovered) paid       $ (1,227) $    (25) $    107  $ (1,252) $    953
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Includes amortization of buildings, furniture, equipment leasehold
        improvements, software and other intangible assets.
    (2) Includes securities initially bought as trading securities and
        subsequently reclassified to HTM and AFS securities.

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



           NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)

    The unaudited interim consolidated financial statements of Canadian
    Imperial Bank of Commerce and its subsidiaries (CIBC) have been prepared
    in accordance with Canadian generally accepted accounting principles
    (GAAP). These financial statements follow the same accounting policies
    and their methods of application as CIBC's consolidated financial
    statements for the year ended October 31, 2008, except as noted below.
    CIBC's interim consolidated financial statements do not include all
    disclosures required by Canadian GAAP for annual financial statements
    and, accordingly, should be read in conjunction with the consolidated
    financial statements for the year ended October 31, 2008, as set out on
    pages 94 to 155 of the 2008 Annual Accountability Report.

    1.  Change in accounting policy

    Intangible assets

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

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

    2.  Fair value of financial instruments

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

    Methodology and sensitivity

    Valuation techniques using non-market observable inputs are used for a
    number of financial instruments including our U.S. residential mortgage
    market (USRMM) and certain non-USRMM positions. 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-market observable), are
    primarily used for the valuation of these positions.

    We also consider whether a credit valuation adjustment (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.

    Our credit valuation adjustments are driven off market observed credit
    spreads for each counterparty, or a proxy for a comparable credit quality
    where no observed credit spreads exist, or where observed credit spreads
    are considered not to be representative of an active market.

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

    Our unhedged structured credit exposures (USRMM and non-USRMM) are
    sensitive to changes in 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 $3 million for the quarter ended April 30, 2009 in
    our unhedged USRMM portfolio and $66 million for the quarter ended April
    30, 2009 in our non-USRMM portfolio, excluding unhedged HTM positions and
    before the impact of the transaction with Cerberus Capital Management LP
    (Cerberus).

    A 10% reduction in the mark-to-market of our on-balance sheet hedged
    structured credit positions other than those classified as HTM and a 10%
    increase in the fair value (before CVA) of all credit derivatives in our
    hedged structured credit positions would result in a net loss of
    approximately $252 million for the quarter ended April 30, 2009
    before the impact of the Cerberus protection. The fair value of the
    Cerberus protection is expected to reasonably offset any changes in the
    fair value of protected USRMM positions.

    The impact of a 10% reduction in receivable net of CVA from financial
    guarantors would result in a net loss of approximately $247 million for
    the quarter ended April 30, 2009.

    The total net loss recognized in the consolidated statement of operations
    on the financial instruments, for which fair value was estimated using a
    valuation technique requiring unobservable market parameters, for the
    quarter ended April 30, 2009 was $338 million ($1,148 million for the six
    months ended April 30, 2009).

    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 $29,575 million and $11,763 million respectively as at April
    30, 2009 ($22,867 million and $6,388 million as at October 31, 2008). The
    FVO designated items and related hedges resulted in net income of $120
    million for the quarter ended April 30, 2009 ($216 million for the six
    months ended April 30, 2009).

    The impact of changes in credit spreads on FVO designated loans was a
    gross loss of $20 million for the quarter ended April 30, 2009 ($68
    million for the six months ended April 30, 2009), and a $0.4 million loss
    for the quarter ended April 30, 2009 ($16 million for the six months
    ended April 30, 2009) net of credit hedges.

    The impact of CIBC's credit risk on outstanding FVO designated
    liabilities was a $12 million loss for the quarter ended April 30, 2009
    ($14 million for the six months ended April 30, 2009).

    3.  Securities

    Reclassification of financial instruments

    In October 2008, amendments made to the CICA handbook sections 3855
    "Financial Instruments - Recognition and Measurement" and 3862 "Financial
    Instruments - Disclosures" permitted certain trading financial assets to
    be reclassified to HTM and AFS in rare circumstances. In the current
    quarter, 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                   April 30, 2009      October 31, 2008
    -------------------------------------------------------------------------
                                            Previously
                                          Reclassified

                                       Fair   Carrying       Fair   Carrying
                                      value      value      value      value
                                  --------------------- ---------------------
    Trading assets reclassified
     to HTM                       $   5,631  $   6,659  $   6,135  $   6,764
    Trading assets reclassified
     to AFS                           1,122      1,122      1,078      1,078
    -------------------------------------------------------------------------
    Total financial assets
     reclassified                 $   6,753  $   7,781  $   7,213  $   7,842
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                               For the               For the
                                    three months ended      six months ended
                                  --------------------- ---------------------
                                    Apr. 30,   Jan. 31,              Apr. 30,
    $ millions                         2009       2009                  2009
    -------------------------------------------------------------------------
    Income (loss) recognized
     on securities reclassified
    Gross income recognized in
     income statement             $      71  $     124  $                195
    Impairment write-downs              (55)         -                   (55)
    Funding related interest
     expenses                           (36)       (44)                  (80)
    -------------------------------------------------------------------------
    Net (loss) income recognized, before
     taxes                              (20)        80                    60
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Impact if reclassification had
     not been made
    On trading assets reclassified
     to HTM                              77        322                   399
    On trading assets reclassified
     to AFS                             (37)        26                   (11)
    -------------------------------------------------------------------------
    Reduction (increase) in
     income, before taxes         $      40  $     348  $                388
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    4.  Allowance for credit losses

    -------------------------------------------------------------------------
                                                  For the three months ended
    -------------------------------------------------------------------------
                                                 Apr. 30,  Jan. 31,  Apr. 30,
                                                    2009      2009      2008
    -------------------------------------------------------------------------
                            Specific   General     Total     Total     Total
    $ millions             allowance allowance allowance allowance allowance
    -------------------------------------------------------------------------
    Balance at beginning of
     period                 $    701  $    926  $  1,627  $  1,523  $  1,469
    Provision for credit
     losses                      329        65       394       284       176
    Write-offs                  (269)        -      (269)     (228)     (202)
    Recoveries                    22         -        22        44        26
    Transfer from general
     to specific(1)                3        (3)        -         -         -
    Other                         (6)        -        (6)        4        (1)
    -------------------------------------------------------------------------
    Balance at end of
     period                 $    780  $    988  $  1,768  $  1,627  $  1,468
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Comprises:
      Loans                 $    780  $    913  $  1,693  $  1,551  $  1,384
      Undrawn credit
       facilities                  -        75        75        76        84
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------
                      For the six months ended
    -------------------------------------------
                             Apr. 30,  Apr. 30,
                                2009      2008
    -------------------------------------------
                               Total     Total
    $ millions             allowance allowance
    -------------------------------------------
    Balance at beginning of
     period                 $  1,523  $  1,443
    Provision for credit
     losses                      678       348
    Write-offs                  (497)     (389)
    Recoveries                    66        57
    Transfer from general
     to specific(1)                -         -
    Other                         (2)        9
    -------------------------------------------
    Balance at end of
     period                 $  1,768  $  1,468
    -------------------------------------------
    -------------------------------------------
    Comprises:
      Loans                 $  1,693  $  1,384
      Undrawn credit
       facilities                 75        84
    -------------------------------------------
    -------------------------------------------
    (1) Related to student loan portfolio.

    5.  Securitizations and variable interest entities

    Securitizations (residential mortgages)

    We securitize insured fixed- and variable-rate residential mortgages
    through the creation of mortgage-backed securities under the Canada
    Mortgage Bond Program and the more recent Government of Canada NHA MBS
    Auction process. We also securitize mortgage assets to a qualifying
    special purpose entity (QSPE) that holds Canadian mortgages. Total assets
    in the QSPE as at April 30, 2009 were $757 million (October 31, 2008:
    $634 million), of which $321 million (October 31, 2008: $171 million)
    represent insured prime mortgages and the remaining $436 million
    (October 31, 2008: $463 million) represent uninsured Near Prime/Alt A
    mortgages. We also hold another $63 million (October 31, 2008:
    $15 million) in inventory that is available for securitization. The Near
    Prime/Alt A mortgages do not meet traditional lending criteria in order
    to qualify for prime-based lending because of either limited credit
    history or specific isolated event driven credit issues, but otherwise
    have a strong credit profile with an average loss rate over the past five
    years of 20 bps and an average loan-to-value ratio of 75%.

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

    -------------------------------------------------------------------------
                                                For the three months ended
                                       --------------------------------------
                                              2009         2009         2008
    $ millions                             Apr. 30      Jan. 31      Apr. 30
    -------------------------------------------------------------------------
    Securitized                           $ 14,405     $  7,864     $  2,663
    Sold                                     6,567        7,601          937
    Net cash proceeds                        6,525        7,610          933
    Retained interests                         350          386           20
    Gain on sale, net of transaction
     costs                                      47           (6)           9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Retained interest assumptions (%)
    Weighted-average remaining life
     (in years)                                3.6          3.4          4.0
    Prepayment/payment rate            12.0 - 20.0  13.0 - 24.0  11.0 - 35.0
    Discount rate                        1.7 - 8.8    1.4 - 7.5    2.9 - 3.6
    Expected credit losses               0.0 - 0.2    0.0 - 0.2    0.0 - 0.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ------------------------------------------------------------
                                       For the six months ended
                                      --------------------------
                                              2009         2008
    $ millions                             Apr. 30      Apr. 30
    ------------------------------------------------------------
    Securitized                           $ 22,269     $  8,971
    Sold                                    14,168        3,209
    Net cash proceeds                       14,135        3,183
    Retained interests                         736           68
    Gain on sale, net of transaction
     costs                                      41           23
    ------------------------------------------------------------
    ------------------------------------------------------------
    Retained interest assumptions (%)
    Weighted-average remaining life
     (in years)                                3.5          3.8
    Prepayment/payment rate            12.0 - 24.0  11.0 - 36.0
    Discount rate                        1.4 - 8.8    2.9 - 4.6
    Expected credit losses               0.0 - 0.2    0.0 - 0.1
    ------------------------------------------------------------
    ------------------------------------------------------------

    Variable interest entities (VIEs)

    VIEs that are consolidated

    As discussed in Note 6 to our 2008 consolidated financial statements, we
    were considered the primary beneficiary of certain VIEs and consolidated
    total assets and liabilities of approximately $1,200 million as at
    April 30, 2009 (October 31, 2008: $109 million).

    During the first and second quarters, we acquired all of the commercial
    paper issued by MACRO Trust, a CIBC-sponsored conduit. This resulted in
    the consolidation of the conduit with $508 million of dealer floorplan
    receivables, $481 million of auto leases, and other assets being
    recognized in the consolidated balance sheet as at April 30, 2009.

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

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Cash                                                $    65      $     -
    Trading securities                                        -           34
    AFS securities                                           80           60
    Residential mortgages                                    63           15
    Other assets                                            992            -
    -------------------------------------------------------------------------
                                                        $ 1,200      $   109
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    VIEs in which we have a significant interest, but do not consolidate

    We have significant interests in VIEs where we are not considered the
    primary beneficiary and thus do not consolidate. We may provide these
    VIEs liquidity facilities, hold their notes, or act as counterparty to
    derivative contracts. These VIEs include several multi-seller
    conduits in Canada, which we sponsor, and CDOs for which we act as
    structuring and placement agents and for which we may manage collateral
    on behalf of investors.

    Securities issued by entities established by Canada Housing and Mortgage
    Corporation, Federal National Mortgage Association (Fannie Mae), Federal
    Home Loan Mortgage Corporation (Freddie Mac), Government National
    Mortgage Association (Ginnie Mae), and Student Loan Marketing Association
    (Sally Mae) are among our holdings that are not considered significant
    interests in the entities.

    We continue to support our sponsored conduits from time to time through
    the purchase of commercial paper issued by these conduits. As at April
    30, 2009, our direct investment in commercial paper issued by our
    sponsored conduits was $8 million (October 31, 2008: $729 million). We
    were not considered to be the primary beneficiary of any of these
    conduits. At April 30, 2009, our maximum exposure to loss relating to
    CIBC sponsored conduits was $5.6 billion (October 31, 2008:
    $8.7 billion).

    Maximum exposure to loss are amounts net of hedges. The maximum exposure
    comprises the fair value for investments, the notional amounts for
    liquidity and credit facilities, the notional amounts less accumulated
    fair value losses for written credit derivatives on VIE reference assets,
    and the positive fair value for all other derivative contracts with VIEs.
    Excluded hedged positions amount to $24.1 billion (October 31, 2008:
    $25.8 billion).

    $ billions, as at                   April 30, 2009      October 31, 2008
    -------------------------------------------------------------------------
                                               Maximum               Maximum
                                      Total   exposure      Total   exposure
                                     assets    to loss     assets    to loss
    -------------------------------------------------------------------------
    CIBC-sponsored
     conduits                     $     6.0  $     5.6  $    10.1  $     8.7
    CIBC structured CDO vehicles        1.1          -        1.1          -
    Third-party structured vehicles     6.1        0.9        7.2        1.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    During the quarter, CIBC Capital Trust, a trust wholly owned by CIBC,
    issued $1.3 billion CIBC Tier 1 Notes - Series A, due June 30, 2108 and
    $300 million of CIBC Tier 1 Notes - Series B, due June 30, 2108 which
    qualifies as Tier 1 regulatory capital. The Trust is a VIE which is not
    consolidated as we are not considered the primary beneficiary.

    6.  Share capital

    Common shares

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

    During the second quarter, we issued 0.4 million new common shares for a
    total consideration of $16 million, pursuant to stock options plans.

    Preferred shares

    On February 4, 2009, we issued 13 million 6.5% non-cumulative Rate Reset
    Class A Preferred Shares, Series 35 with a par value of $25.00 each, for
    net proceeds of $319 million.

    On March 6, 2009, we issued 8 million 6.5% non-cumulative Rate Reset
    Class A Preferred Shares, Series 37 with a par value of $25.00 each, for
    net proceeds of $196 million.

    Regulatory capital and ratios

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

    -------------------------------------------------------------------------
                                                           2009         2008
    $ millions, as at                                   Apr. 30      Oct. 31
    -------------------------------------------------------------------------
    Tier 1 capital                                      $13,732      $12,365
    Total regulatory capital                             19,031       18,129
    Risk-weighted assets                                119,561      117,946
    Tier 1 capital ratio                                  11.5%        10.5%
    Total capital ratio                                   15.9%        15.4%
    Assets-to-capital multiple                            16.6x        17.9x
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    7.  Capital Trust Securities

    On March 13, 2009, CIBC Capital Trust (the Trust), a trust wholly owned
    by CIBC and established under the laws of the Province of Ontario, issued
    $1,300 million of CIBC Tier 1 Notes - Series A, due June 30, 2108 and
    $300 million of CIBC Tier 1 Notes - Series B, due June 30, 2108
    (collectively, the Notes). The proceeds were used by the Trust to
    purchase senior deposit notes from CIBC. The Trust is a VIE not
    consolidated by CIBC; the Notes issued by the Trust are therefore not
    reported on the consolidated balance sheet. The senior deposit notes
    issued to the Trust are reported as deposits - business and government in
    the consolidated balance sheet.

    The Notes are structured to achieve Tier 1 regulatory capital treatment
    and, as such, have features of equity capital including the deferral of
    cash interest under certain circumstances (Deferral Events). In the case
    of a Deferral Event, holders of the Notes will be required to invest
    interest paid on the Notes in perpetual preferred shares of CIBC. Should
    the Trust fail to pay the semi-annual interest payments on the Notes in
    full, we will not declare dividends of any kind on any of our preferred
    or common shares for a specified period of time.

    In addition, the Notes will be automatically exchanged for perpetual
    preferred shares of CIBC upon the occurrence of any one of the following
    events: (i) proceedings are commenced for our winding-up; (ii) the Office
    of the Superintendent of Financial Institutions (OSFI) takes control of
    us or our assets; (iii) we or OSFI are of the opinion that our Tier 1
    capital ratio is less than 5% or our Total Capital ratio is less than 8%;
    or (iv) OSFI directs us pursuant to the Bank Act to increase our capital
    or provide additional liquidity and we elect such automatic exchange or
    we fail to comply with such direction. Upon such automatic exchange,
    holders of the Notes will cease to have any claim or entitlement to
    interest or principal against the Trust.

    CIBC Tier 1 Notes - Series A will pay interest, at a rate of 9.976%,
    semi-annually until June 30, 2019. On June 30, 2019, and on each five-
    year anniversary thereafter, the interest rate on the CIBC Tier 1 Notes -
    Series A will reset to the 5-year Government of Canada bond yield at such
    time plus 10.425%. CIBC Tier 1 Notes - Series B will pay interest, at a
    rate of 10.25%, semi-annually until June 30, 2039. On June 30, 2039, and
    on each five-year anniversary thereafter, the interest rate on the CIBC
    Tier 1 Notes - Series B will reset to the 5-year Government of Canada
    bond yield at such time plus 9.878%.

    According to OSFI guidelines, innovative capital instruments can comprise
    up to 15% of net Tier 1 capital with an additional 5% eligible for Tier 2
    capital. As at April 30, 2009, $1,589 million represents regulatory Tier
    1 capital and is net of $7 million of Tier 1 Notes - Series A and
    $4 million of Tier 1 Notes - Series B held for trading purposes.

    The table below presents the significant terms and conditions of the
    Notes as at April 30, 2009:

    -------------------------------------------------------------------------
                                                                        2009
    $ millions                                                       Apr. 30
    -------------------------------------------------------------------------
                                                     Earliest
                                                 redemption dates
                                                ------------------
                                                      At
                                                 greater
                                                      of
                                                  Canada
                            Interest               Yield
                     Issue   payment             Price(1)          Principal
    Issue             Date     dates     Yield   and par    At Par    Amount
    -------------------------------------------------------------------------
    CIBC Capital
     Trust
    $1,300 Tier 1
     Notes -
     Series A     March 13,  June 30,    9.976%  June 30,  June 30,   $1,300
                      2009  December 31             2014      2019
    $ 300 Tier 1
     Notes -
    Series B      March 13,  June 30,    10.25%  June 30,  June 30,     $300
                      2009  December 31             2014      2039
    -------------------------------------------------------------------------
    (1) Canada Yield Price: a price calculated at the time of redemption
        (other than an interest rate reset date applicable to the series) to
        provide a yield to maturity equal to the yield on a Government of
        Canada bond of appropriate maturity plus (i) for the CIBC Tier 1
        Notes - Series A, (a) 1.735% if the redemption date is any time prior
        to June 30, 2019, or (b) 3.475% if the redemption date is anytime on
        or after June 30, 2019, and (ii), for the CIBC Tier 1 Notes - Series
        B, (a) 1.645% if the redemption date is any time prior to June 30,
        2039, or (b) 3.29% if the redemption date is any time on or after
        June 30, 2039.

    Subject to the approval of OSFI, the Trust may, in whole or in part, on
    the redemption dates specified above, and on any date thereafter, redeem
    the CIBC Tier 1 Notes Series A or Series B without the consent of the
    holders. Also, subject to the approval of OSFI, the Trust may redeem all,
    but not part of, the CIBC Tier 1 Notes Series A or Series B prior to the
    earliest redemption date specified above without the consent of the
    holders, upon the occurrence of certain specified tax or regulatory
    events.

    8.  Financial guarantors

    We have derivative contracts with financial guarantors to hedge our
    exposure on various reference assets, including collateralized debt
    obligations and other positions related to the USRMM. During the quarter,
    we recorded a charge of $657 million ($1,293 million for the six months
    ended April 30, 2009) on the hedging contracts provided by financial
    guarantors in trading revenue. Their related valuation adjustments were
    $5.1 billion as at April 30, 2009 (October 31, 2008: $4.6 billion). The
    fair value of derivative contracts with financial guarantors net of
    valuation adjustments was $2.5 billion as at April 30, 2009 (October 31,
    2008: $2.3 billion).

    During the quarter, we cancelled non-USRMM exposures with a notional of
    $181 million and unwound related purchased credit derivatives of a
    similar amount with a financial guarantor with no impact to our results
    for the quarter. In the first quarter, we commuted USRMM contracts with a
    financial guarantor for $120 million with negligible impact to our
    results.

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

    9.  Income taxes

    As at April 30, 2009, our future income tax asset was $1,989 million
    (October 31, 2008: $1,822 million), net of a $62 million valuation
    allowance (October 31, 2008: $62 million). Included in the future income
    tax asset are $1,226 million as at April 30, 2009 (October 31, 2008:
    $1,260 million) related to Canadian non-capital loss carryforwards that
    expire in 20 years, $75 million as at April 30, 2009 (October 31, 2008:
    $75 million) related to Canadian capital loss carryforwards that have no
    expiry date, and $477 million as at April 30, 2009 (October 31, 2008:
    $296 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.

    10. Employee compensation and benefits

    Share based compensation

    The impact due to changes in CIBC's share price in respect of cash-
    settled share based compensation under the Restricted Share Awards and
    Performance Share Units plans is hedged through the use of derivatives.
    The gains and losses on these derivatives are recognized in employee
    compensation and benefits, within the consolidated statement of
    operations. During the quarter we recorded gains of $20 million (for the
    three months ended January 31, 2009: losses of $1 million; for the six
    months ended April 30, 2009: gains of $19 million) in the consolidated
    statement of operations and gains of $10 million (for the three months
    ended January 31, 2009: losses of $4 million, for the six months ended
    April 30, 2009: gains of $6 million) in other comprehensive income.

    Employee future benefit expenses

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
                                2009      2009      2008      2009      2008
    $ millions               Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Defined benefit plans(1)

    Pension benefit plans   $     20  $     20  $     38  $     40  $     76
    Other benefit plans            9        10        13        19        21
    ----------------------------------------------------- -------------------
                            $     29  $     30  $     51  $     59  $     97
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Defined contribution
     plans

    CIBC's pension plans    $      3  $      3  $      4  $      6  $      8
    Government pension
     plans(2)                     18        20        23        38        44
    ----------------------------------------------------- -------------------
                            $     21  $     23  $     27  $     44  $     52
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Effective November 1, 2008, we elected to change our measurement date
        for accrued benefit obligations and the fair value of plan assets
        related to our employee defined benefit plans from September 30 to
        October 31. This change aligns our measurement date with our fiscal
        year end and had no impact on our consolidated statement of
        operations for the quarter.
    (2) Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal
        Insurance Contributions Act.


    11. Loss/earnings per share (EPS)

    ----------------------------------------------------- -------------------
                                                                     For the
                              For the three months ended    six months ended
                            ----------------------------- -------------------
    $ millions, except per      2009      2009      2008      2009      2008
     share amounts           Apr. 30   Jan. 31   Apr. 30   Apr. 30   Apr. 30
    ----------------------------------------------------- -------------------
    Basic EPS
    Net (loss) income       $    (51) $    147  $ (1,111) $     96  $ (2,567)
    Preferred share
     dividends and premiums      (39)      (36)      (30)      (75)      (60)
    ----------------------------------------------------- -------------------
    Net (loss) income
     applicable to common
     shares                 $    (90) $    111  $ (1,141) $     21  $ (2,627)
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             381,410   380,911   380,754   381,156   359,512
    ----------------------------------------------------- -------------------
    Basic EPS               $  (0.24) $   0.29  $  (3.00) $   0.05  $  (7.31)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    Diluted EPS
    Net (loss) income
     applicable to common
     shares                 $    (90) $    111  $ (1,141) $     21  $ (2,627)
    ----------------------------------------------------- -------------------
    Weighted-average common
     shares outstanding
     (thousands)             381,410   380,911   380,754   381,156   359,512
    Add: stock options
     potentially
     exercisable(1)
     (thousands)                 369       513     1,623       443     1,854
    ----------------------------------------------------- -------------------
    Weighted-average diluted
     common shares
     outstanding(2)
     (thousands)             381,779   381,424   382,377   381,599   361,366
    ----------------------------------------------------- -------------------
    Diluted EPS(3)          $  (0.24) $   0.29  $  (3.00) $   0.05  $  (7.31)
    ----------------------------------------------------- -------------------
    ----------------------------------------------------- -------------------
    (1) Excludes average options outstanding of 4,845,876 with a weighted-
        average exercise price of $64.67; average options outstanding of
        4,506,016 with a weighted-average exercise price of $65.94; and
        average options outstanding of 2,128,531 with a weighted-average
        exercise price of $79.50 for the three months ended April 30, 2009,
        January 31, 2009, and April 30, 2008, respectively, as the options'
        exercise prices were greater than the average market price of CIBC's
        common shares.
    (2) Convertible preferred shares/preferred share liabilities have not
        been included in the calculation since we have the right to redeem
        them for cash prior to the conversion date.
    (3) In case of a loss, the effect of stock options potentially
        exercisable on diluted EPS will be anti-dilutive; therefore basic and
        diluted EPS will be the same.

    12. Guarantees

    -------------------------------------------------------------------------
                                                  2009                  2008
    $ millions, as at                          Apr. 30               Oct. 31
    -------------------------------------------------------------------------
                                    Maximum               Maximum
                                  potential             potential
                                     future   Carrying     future   Carrying
                                  payment(1)    amount  payment(1)    amount
    -------------------------------------------------------------------------
    Securities lending with
     indemnification(2)           $  35,241  $       -  $  36,152  $       -
    Standby and performance
     letters of credit                5,879         16      6,249         14
    Credit derivatives
      Written options                26,535      6,073     32,717      6,877
      Swap contracts written
       protection                     3,906        269      3,892        256
    Other derivative written
     options                            -(3)     4,560        -(3)     4,334
    Other indemnification
     agreements                         -(3)         -        -(3)         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) The total collateral available relating to these guarantees was
        $38.3 billion (October 31, 2008: $39.3 billion).
    (2) Comprises the full contract amount of custodial client securities
        lent by CIBC Mellon Global Securities Services Company, which is a
        50/50 joint venture between CIBC and The Bank of New York Mellon.
    (3) See narrative on page 143 of the 2008 consolidated financial
        statements for further information.


    13. 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 first quarter we moved the impact of securitization from CIBC
    Retail Markets to Corporate and Other. Prior period information was
    restated. In addition, we moved the sublease income and related operating
    costs of our New York premises from Wholesale Banking to Corporate and
    Other. Prior period information was not restated.

    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the three        Retail  Wholesale  Corporate       CIBC
      months ended                  Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Apr. 30, 2009
      Net interest income
       (expense)                  $   1,233  $     124  $     (84) $   1,273
      Non-interest income
       (expense)                      1,018       (365)       235        888
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,252       (241)       150      2,161
      Provision for credit losses       403         46        (55)       394
      Amortization(2)                    31          1         68        100
      Other non-interest expenses     1,273        246         20      1,539
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        545       (534)       117        128
      Income tax expense (benefit)      150       (161)       185        174
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
      Net income (loss)           $     390  $    (373) $     (68) $     (51)
    -------------------------------------------------------------------------
      Average assets(3)           $ 285,986  $  89,971  $ (22,138) $ 353,819
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Jan. 31, 2009
      Net interest income
       (expense)                  $   1,291  $      78  $     (36) $   1,333
      Non-interest income
       (expense)                      1,124       (446)        11        689
      Intersegment revenue(1)             1          -         (1)         -
    -------------------------------------------------------------------------
      Total revenue                   2,416       (368)       (26)     2,022
      Provision for credit losses       327         19        (62)       284
      Amortization(2)                    35          2         66        103
      Other non-interest expenses     1,270        265         15      1,550
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        784       (654)       (45)        85
      Income tax expense (benefit)      217       (241)       (43)       (67)
      Non-controlling interests           5          -          -          5
    -------------------------------------------------------------------------
      Net income (loss)           $     562  $    (413) $      (2) $     147
    -------------------------------------------------------------------------
      Average assets(3)           $ 292,724  $  97,316  $ (20,791) $ 369,249
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008
      Net interest income
       (expense)                  $   1,397  $      17  $     (65) $   1,349
      Non-interest income
       (expense)                        885     (2,183)        75     (1,223)
      Intersegment revenue(1)             2          -         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   2,284     (2,166)         8        126
      Provision for credit losses       209          2        (35)       176
      Amortization(2)                    28          3         30         61
      Other non-interest expenses     1,352        355         20      1,727
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                        695     (2,526)        (7)    (1,838)
      Income tax expense (benefit)      177       (891)       (17)      (731)
      Non-controlling interests           2          2          -          4
    -------------------------------------------------------------------------
      Net income (loss)           $     516  $  (1,637) $      10  $  (1,111)
    -------------------------------------------------------------------------
      Average assets(3)           $ 261,369  $ 104,210  $ (16,574) $ 349,005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                       CIBC
    $ millions, for the six          Retail  Wholesale  Corporate       CIBC
     months ended                   Markets    Banking  and Other      Total
    -------------------------------------------------------------------------
    Apr. 30, 2009
      Net interest income
       (expense)                  $   2,524  $     202  $    (120) $   2,606
      Non-interest income
       (expense)                      2,142       (811)       246      1,577
      Intersegment revenue(1)             2          -         (2)         -
    -------------------------------------------------------------------------
      Total revenue                   4,668       (609)       124      4,183
      Provision for credit losses       730         65       (117)       678
      Amortization(2)                    66          3        134        203
      Other non-interest expenses     2,543        511         35      3,089
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                      1,329     (1,188)        72        213
      Income tax expense (benefit)      367       (402)       142        107
      Non-controlling interests          10          -          -         10
    -------------------------------------------------------------------------
      Net income (loss)           $     952  $    (786) $     (70) $      96
    -------------------------------------------------------------------------
      Average assets(3)           $ 289,411  $  93,705  $ (21,454) $ 361,662
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Apr. 30, 2008
      Net interest income
       (expense)                  $   2,781  $    (147) $    (131) $   2,503
      Non-interest income
       (expense)                      1,910     (4,976)       168     (2,898)
      Intersegment revenue(1)             3          -         (3)         -
    -------------------------------------------------------------------------
      Total revenue                   4,694     (5,123)        34       (395)
      Provision for credit losses       398         19        (69)       348
      Amortization(2)                    56          8         59        123
      Other non-interest expenses     2,677        701         48      3,426
    -------------------------------------------------------------------------
      Income (loss) before income
       taxes and non-controlling
       interests                      1,563     (5,851)        (4)    (4,292)
      Income tax expense (benefit)      381     (2,057)       (57)    (1,733)
      Non-controlling interests           6          2          -          8
    -------------------------------------------------------------------------
      Net income (loss)           $   1,176  $  (3,796) $      53  $  (2,567)
    -------------------------------------------------------------------------
      Average assets(3)           $ 258,280  $ 106,167  $ (17,705) $ 346,742
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (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.
    

    %SEDAR: 00002543EF




For further information:

For further information: Investor and analyst inquiries should be
directed to John Ferren, Vice-President, Investor Relations, at (416)
980-2088; Media inquiries should be directed to Rob McLeod, Senior Director,
Communications and Public Affairs, at (416) 980-3714, or to Mary Lou Frazer,
Senior Director, Investor & Financial Communications, at (416) 980-4111


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